IFRS 16 takes bite out of Danske’s capital ratio

Danske Bank's core capital ratio dropped 30 basis points over the first three months of the year, largely because of its implementation of IFRS 16, a new accounting rule.

The Danish lender's Common Equity Tier 1 (CET1) ratio decreased to 16.7% at end-March from 17% at end-2018, as capital fell and risk-weighted assets edged upwards.

Total RWAs climbed Dkr10.3 billion ($1.6 billion) to Dkr758.4 billion quarter-on-quarter. Higher credit RWAs pumped up the total. These increased 2% to Dkr614.7

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