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Sweden's Nordea says it must increase core capital after FSA review
October 3, 2016 / 5:21 AM / a year ago

Sweden's Nordea says it must increase core capital after FSA review

STOCKHOLM, Oct 3 (Reuters) - Nordea must increase core capital from its end-June level, the Nordic region’s biggest bank said on Monday after a review by Sweden’s financial watchdog.

The bank said it had received its final capital joint decision from the Financial Supervisory Authority and that the expected common equity tier 1 ratio requirement by Sept. 30 was 17.3 percent.

Nordea said it had a common equity tier 1 ratio of 16.8 percent and a pro forma ratio of 17.2 percent including synthetic securitisation as at June 30.

In June, an internal FSA document leaked to daily Svenska Dagbladet showed that Nordea had underestimated risks in its corporate lending and could need as much as 80 billion Swedish crowns ($9.32 billion) in new capital.

The FSA later said the document significantly overstated the extra capital Nordea needed. ($1 = 8.5825 Swedish crowns) (Reporting by Daniel Dickson)

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