SEB purchase saps Danske Bank’s capital ratio

Danske Bank’s acquisition of SEB Pension Danmark in December 2017 cost the bank 50 basis points of its common equity Tier 1 (CET1) capital ratio in the second quarter of this year, but left the ratio at a still hearty 15.9%.

The Danish lender’s CET1 capital dropped by DKK 3.8 billion ($588 million) to DKK 120 billion in the three months to June 30. The 15.9% capital ratio was down from 16.4% in March and the lowest since Q1 2017. 

Besides the capital spent on the SEB Pension merger, Danske