Aug 7 (Reuters) - State-controlled Royal Bank of Scotland posted a 1 billion-pound ($1.7 billion) net loss in the first-half on Friday, as bad debts soared to 7.5 billion pounds, and warned of more "poor" results to come as its recovery would take time.
Following is a summary of the capital position of major British banks:
The core Tier 1 capital ratio or Tier 1 ratio are key measures of a bank's balance sheet strength. They measure the bank's equity capital and disclosed reserves as a percentage of its risk-weighted assets, so the higher the ratio, the more capital it is holding to enable it to absorb losses.
Many British and overseas banks allowed capital ratios to run too low and were forced to raise billion of pounds in the last year to ensure they have a big enough buffer to withstand potential losses in the future. Regulators have now lifted minimum capital requirements.
BARCLAYS (Pro forma June 30, 2009**):
-- Tier 1 capital - 47 billion pounds
-- Core Tier 1 capital ratio - 8.8 percent
-- Tier 1 capital ratio - 11.7 percent
** Presents the impact of the sale of the Barclays Global Investors business to BlackRock Inc.
HSBC (June 30, 2009):
-- Tier 1 capital - $117.35 billion
-- Core Tier 1 capital ratio - 8.8 percent
-- Tier 1 capital ratio - 10.1 percent (June 30, 2009)
LLOYDS BANKING GROUP (June 30, 2009):
-- Tier 1 capital - 41.60 billion pounds
-- Core Tier 1 capital ratio - 6.3 percent
-- Tier 1 capital ratio - 8.6 percent (June 30, 2009)
RBS:
-- Tier 1 capital - 69.84 billion pounds (2008) -- Core Tier 1 capital ratio - 6.4 percent (June 30, 2009)
-- Tier 1 capital ratio - 9.0 percent (June 30, 2009)
STANDARD CHARTERED:
-- Tier 1 capital - $21.51 billion (June 30, 2009)
-- Core Tier 1 capital ratio - 8.4 percent**
-- Tier 1 capital ratio - 11.5 percent**
** Pro forma August 4, 2009, reflecting 1 billion pound ($1.7 billion) fundraising
NORTHERN ROCK
-- Tier 1 capital after deductions - 0.5 million pounds
(June 30, 2009)
Sources; Reuters; Company reports; (Writing by Jijo Jacob and Carl Bagh, Bangalore Editorial Reference Unit; Editing by David Cutler)