By Sabela Ojea
Barclays PLC said Monday that it expects to report an increased common equity Tier 1 ratio--a key measure of balance-sheet strength--for the end of the second quarter, ahead of estimates, thanks to the positive effects of its regulatory changes.
The bank said that it currently expects to post a CET1 ratio of around 14% at June 30, up from 13.1% as at March 31.
The London-listed lender said the regulatory changes include amendments to the capital requirements regulation put in place in June, as well as transitional relief relating to IFRS 9 impairments and implementation of revised rules for the calculation of the prudential valuation adjustment to capital.
"In addition, risk weighted assets as at June 30 are expected to be lower than previously anticipated," Barclays said.
However, it said that there could be headwinds to the CET1 ratio in the second half due to the procyclical effects on risk weighted assets, as well as reduced transitional relief on IFRS 9 impairment.
Write to Sabela Ojea at email@example.com; @sabelaojeaguix