Bank Capitalization Summary : 2Q08

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
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.

2 Responses to “Bank Capitalization Summary : 2Q08”

  1. […] Assiduous Readers all along – why should I care? Well … let’s have a look at Bank Capital for 2Q08 and drill down to RY Capitalization: 2Q08. Look at that. 15% of their capital is in the form of […]

  2. […] I wondered: what is the constraint on the balance sheets of Canadian Banks. I drew some data from the second quarter summary of Canadian banking capitalization and drilled down back into the supplementary packages reported by the banks to […]

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