UniCredit’s Common Equity Tier 1 (CET1) capital ratio fell for the fourth consecutive quarter, slipping to 12.11% from 13.81% a year ago, as exposures to the troubled Turkish lira and volatile Italian government bonds (BTP) took their toll.
The Italian bank’s core ratio dropped 39 basis points in the third quarter alone. The Turkish lira’s slide, from €0.19 at end-June to €0.14 at end-September caused 14bp of the decline. The widening of the BTP-Bund spread drained a further 9bp, while risk
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