The Big-Six banks have now all released their 2Q08 financials. The results may now be summarized, with the links pointing to the PrefBlog posts reporting on the quarterly reports:
| Big-6 Capitalization Summary 3Q08 |
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| Note | RY | BNS | BMO | TD | CM | NA | |
| Equity Capital | A | 17,892 | 16,310 | 13,609 | 13,563 | 8,695 | 3,930 |
| Preferreds Outstanding | B | 2,552 | 2,560 | 1,996 | 2,175 | 2,931 | 774 |
| Issuance Capacity | C | 1,400 | 1,671 | 1,386 | 1,877 | 790 | 78 |
| Equity / Risk Weighted Assets | D | 7.04% | 7.22% | 7.47% | 7.34% | 7.33% | 7.07% |
| Tier 1 Ratio | E | 9.5% | 9.8% | 9.9% | 9.5% | 9.8% | 10.0% |
| Total Capital Ratio | F | 11.7% | 11.5% | 12.3% | 13.4% | 14.4% | 13.9% |
| Assets to Capital Multiple | G | 19.4x | 17.8x | 15.9x | 17.9x | 17.7x | 15.7x |
| A is a measure of the size of the bank B is … um … how many preferreds. Are outstanding C is how many more (million CAD) they could issue if they so chose D is a measure of the safety of the preferreds – the first loss buffer, expressed as a percentage of their Risk-Weighted Assets. Higher is better. It may be increased by issuing common (or making some money and keeping it); preferred issuance will not change it. E is the number that OSFI and fixed-income investors will be watching. Higher is better, and it may be increased by issuing preferreds. F is less sexy than E, but still important. G is even less sexy than F, but PAY ATTENTION! |
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[…] of loss and making them more equity-like. Investors will have to pay increased attention to the Equity / Risk Weighted Assets Ratio than they have in the […]