Trim, SA-CCR weigh on Santander’s RWAs

Regulatory changes and model updates shave 24bp off the bank’s CET1 ratio

Santander’s risk-weighted assets (RWAs) increased by €17.2 billion ($20.3 billion) in the second quarter, pushing the bank’s core capital ratio lower.

The Spanish lender’s RWAs hit €585 billion at end-June, up 3% on three months prior. The increase contributed to a 15-basis point slip in its Common Equity Tier 1 ratio, which hit 12.11%.

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The bank said the European Central Bank’s (ECB) Targeted Review of Internal Models, which imposed corrections to risk modelling for the low-default