Bloomberg News reports that RBS’s fully loaded common equity Tier 1 ratio, a measure of financial strength, should have been 5.7% in the adverse scenario used by the European Banking Authority instead of the 6.7% it reported on October 26, the lender said in a statement today. The minimum pass mark was 5.5%.
“It’s unhelpful, but it’s not particularly relevant,” said Joseph Dickerson, an analyst at Jefferies International in London with a buy rating on the stock. “In the case of RBS, the EBA stress test is particularly backward looking. It uses December 31, 2013 balance sheet data.”
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