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European banks rebuild AT1 capital stock

Created at 17 Aug · 3:41 AM1 source↑ Market-relevant
IN SHORT

European banks added €8.5 billion of Additional Tier 1 capital in Q2 2026, bringing the total to €196.2 billion. This represents the highest share of total regulatory capital since Q2 2019.

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Key Numbers

€8.5 billionAT1 capital added in Q2 2026
$9.7 billionAT1 capital added in Q2 2026 (USD equivalent)
€196.2 billionTotal AT1 capital stock
15%AT1 capital share of total regulatory capital
Q2 2019Last time AT1 share was this high
$23.7 billionHSBC's AT1 capital stock
13%HSBC's AT1 capital as share of total capital

Who's Involved

Risk Quantum
Provided analysis on European banks' AT1 capital
HSBC
Held the largest AT1 capital stock

↳ Why This Matters

The increase in AT1 capital strengthens the resilience of European banks, providing a larger buffer against potential financial shocks and improving their overall capital adequacy.

Key facts

  • European banks increased Additional Tier 1 (AT1) capital by €8.5 billion in the second quarter of 2026.
  • The total AT1 capital stock across 22 sampled banks reached €196.2 billion.
  • AT1 capital now represents 15% of total regulatory capital for these banks, the highest proportion since the second quarter of 2019.
  • HSBC reported the largest AT1 capital stock, amounting to $23.7 billion.
  • European banks have significantly bolstered their Additional Tier 1 (AT1) capital reserves, adding €8.5 billion ($9.7 billion) in the second quarter of 2026. This influx has pushed the total AT1 capital stock to €196.2 billion, marking the highest proportion of total regulatory capital since the second quarter of 2019. The analysis, conducted by Risk Quantum, covered 22 European banks. AT1 capital now constitutes 15% of their overall regulatory capital. Among the institutions, HSBC reported the largest AT1 capital stock, valued at $23.7 billion, which represents 13% of its total capital.

    Frequently asked questions

    AT1 capital is a type of regulatory capital that banks must hold to absorb losses in times of stress. It is subordinate to other debt but senior to common equity.

    A strong AT1 capital base enhances a bank's financial stability and its ability to withstand economic downturns, thereby reducing systemic risk.

    The analysis covered 22 European banks.

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    How It Developed

    European banks added €8.5 billion of AT1 capital in Q2 2026.
    Total AT1 capital reached €196.2 billion.
    AT1 capital now accounts for 15% of total regulatory capital for 22 sampled banks.
    This is the highest AT1 share since Q2 2019.
    HSBC holds the largest AT1 capital stock at $23.7 billion.

    Sources

    T1
    European banks rebuild AT1 capital stockRisk.net

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