AFME is pleased to circulate its Prudential quarterly data report for the third quarter of 2024. The report presents the latest data on prudential capital, leverage, and liquidity ratios for European GSIBs, and illustrates the performance of debt and contingent convertible (CoCo) securities issued by European banks.

Among the main findings of this report: 

Key capital and liquidity ratios, high and stable : 

• The CET1 ratio of European GSIBs finalised Q3 2024 at 14.17%, 1bp below levels observed in Q2 2024.

• The end-point T1 ratio slightly increased during Q3 2024 (+2bps).

• The leverage ratio of EU banks has been virtually unchanged since 2023, fluctuating around 4.3%

Strong AT1 bond issuance:

• As of 2024 year-to-date, European banks have issued a total of €19.26bn in AT1 capital. Issuance in Q3 2024 accounted for 44.7% of this total, reaching €8.7 bn. This reflects a 127% year-over-year increase and a 44% rise compared to the previous quarter.

• AT1 risk premia stable to pre-turbulence levels, standing at 339bps, 57bps below the levels observed prior the turbulence episode in March 2023.

AFME priorities for banking regulations

AFME has recently published a new report setting out a proposal for priorities for banking regulation in the new EU legislative Cycle. This comes at a pivotal moment, as the new EU policy cycle provides an opportunity to assess the current regulatory framework and align it with the EU’s broader strategic objectives. This should be done with the objective of enabling all banks operating in the EU to remain competitive in an increasingly fragmented global landscape. With that in mind, AFME has identified some of the key issues with respect to the EU’s banking regulatory framework.

See full paper here