RBS’s leverage ratio sinks as balance sheet swells
NatWest Markets RWAs also increased on the quarter as derivatives positions deteriorated
RBS expanded its balance sheet while burning capital in the third quarter, causing its leverage ratio to fall.
As calculated under the European Union Capital Requirements Regulation (CRR), RBS’s leverage ratio dropped 15 basis points to 5.05% quarter-on-quarter, while under the UK-specific measure, which exempts central bank balances, it sank 16bp to 5.78%.
CRR leverage exposure, the ratio’s denominator, increased 1.7% to £670 billion ($861 billion) in the three months to end-September. Over
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