European banks adjust capital mix
Additional Tier 1 totals climb, CET1 and Tier 2 dips
Large European banks cut Common Equity Tier 1 and Tier 2 capital in 2018 while boosting outstanding Additional Tier 1 instruments.
Aggregate capital across 16 large dealers totalled €878.6 billion ($986.2 billion), of which 76% was composed of CET1, 9% of AT1 and 15% of Tier 2. This was down €9.3 billion on end-2017. Aggregate CET1 capital reduced €6.4 billion and Tier 2 capital €10.3 billion. In contrast, AT1 capital outstanding increased €7.4 billion. The capital split at end-2017 was 76%
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