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 2Q08 |
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| Note | RY | BNS | BMO | TD | CM | NA | |
| Equity Capital | A | 17,527 | 16,113 | 13,499 | 15,069 | 9,078 | 3,534 |
| Preferreds Outstanding | B | 2,555 | 2,210 | 1,696 | 1,675 | 2,931 | 573 |
| Issuance Capacity | C | 1,321 | 1,936 | 1,644 | 3,039 | 954 | 270 |
| Equity / Risk Weighted Assets | D | 7.03% | 7.36% | 7.24% | 8.43% | 7.91% | 6.81% |
| Tier 1 Ratio | E | 9.5% | 9.6% | 9.4% | 9.1% | 10.5% | 9.2% |
| A is a measure of the size of the bank B is … um … how many 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. |
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