RWA increase puts ABN’s core ratio closer to Basel III estimate
Higher RWAs shrink gap between actual and pro forma ratios
ABN Amro saw its Common Equity Tier 1 (CET1) ratio converge sharply towards its expected level under the final Basel III reforms in the fourth quarter, mainly the result of regulatory add-ons that increased risk-weighted assets (RWAs).
The bank reported a CET1 ratio of 16.3% at end-December, just 30 basis points higher than what it estimates the ratio will be in 2025. In the third quarter, the
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