S&P warns on UBS and Citi’s capital
MOST BANKS are weakly capitalised, with Citigroup, UBS and Mizuho Financial Group more than two-thirds below the average, according to a study by rating agency Standard & Poor’s.
S&P yesterday released the first global comparison of risk-adjusted capital (RAC) adequacy for the world’s 45 top banks, aiming to more consistently capture credit risk.
“The results to date appear to confirm our view that capital is a rating weakness for a majority of banks in our sample,” S&P said in its report.
S&P said the global average for its RAC ratio was 6.7 per cent at the end of June, but Citigroup’s RAC was 2.1 per cent, UBS’s was 2.2 per cent and BBVA’s was 5.4 per cent while Mizuho had a ratio of just two per cent.