20
4Q09
At 31st December 2009 the Group’s eligible capital
base calculated according to Basel II rules came to
€39,440m, which was €436m more than the
previous quarter. The increase shows that in the
fourth quarter the Group again generated capital in
an organic manner as the impairment of goodwill in
the United States and the corresponding impact on
earnings has a neutral effect on core capital and the
total capital base.
Risk-weighted assets (RWA) stand at almost the
same level as the end of September (up 1.3%
year-on-year to €291,026m). The lower level of
lending was offset by the appreciation of the US
dollar and the Mexican peso.
The minimum capital requirement (8% of RWA)
therefore comes to €23,282m and the capital base
surplus is €16,158m. As a result the Group’s capital
base is 69% higher than the minimum required (up
slightly compared to the previous quarter).
Capital base (BIS II Regulation)
(Million euros)
Shareholders' funds
Adjustments
Mandatory convertible bonds
CORE CAPITAL
Preference shares
Adjustments
CAPITAL (TIER I)
Subordinated debt and other
Deductions
OTHER ELIGIBLE CAPITAL (TIER II)
CAPITAL BASE
Minimum capital requirement (BIS II Regulation)
CAPITAL SURPLUS
RISK-WEIGHTED ASSETS
BIS RATIO (%)
CORE CAPITAL (%)
TIER I (%)
TIER II (%)
Capital base
31-12-09
30-06-09
29,362 29,997 29,383 27,742 26,586
(8,171) (8,642) (8,625) (8,456) (8,688)
2,000 2,000
Core capital at the end of 2009 came to €23,191m,
implying a core ratio of 8.0% (the same as the third
quarter). The organic generation of capital in the
last quarter of 2009 was offset by the effect on
goodwill when the Group’s interest in China Citic
Bank was classified as a substantial shareholding.
Up to September this amount was included in the
cost of investment, reducing Tier I and Tier II by
30-09-09
23,191 23,355 20,758 19,286 17,898
5,129 5,398 5,433 5,421 5,395
(1,066) (1,527) (1,525) (1,532) (583)
27,254 27,226 24,666 23,175 22,710
13,251 13,304 12,880 12,802 12,914
(1,065) (1,527) (1,539) (1,543) (590)
12,186 11,778 11,340 11,259 12,324
39,440 39,004 36,006 34,434 35,033
23,282 23,242 23,493 23,861 22,989
16,158 15,762 12,513 10,573 12,044
291,026 290,521 293,661 298,261 287,364
13.6 13.4 12.3 11.5 12.2
8.0 8.0 7.1 6.5 6.2
9.4 9.4 8.4 7.8 7.9
4.2 4.1 3.9 3.8 4.3
31-03-09
31-12-08
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