Nordea’s CVA charge drops 34%

Nordea shed a third of its credit valuation adjustment (CVA) capital requirement in the second quarter of the year, to its lowest level since Q3 2018.

The bank’s CVA charge decreased by €30 million ($34 million), to €58 million, in the three months to end-June – a 34% reduction on the quarter prior. Year-on-year, the drop was a more modest 8%.

The CVA requirement accounts for 0.5% of the bank’s total capital requirement, down 20 basis points quarter-on-quarter.

There were negative valuation

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