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SEB model shifts nearly treble standardised RWAs

Created at 28 Jul · 3:36 AM1 source
IN SHORT

Skandinaviska Enskilda Banken (SEB) reported a near threefold increase in standardised credit risk-weighted assets (RWAs) in the second quarter, following the transfer of portfolios from its internal ratings-based approach.

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Key Numbers

Skr169.7 billionSEB's standardised credit RWAs as of June 30
$17.7 billionSEB's standardised credit RWAs as of June 30
Skr59.3 billionSEB's standardised credit RWAs three months prior
9.2%Decrease in IRB RWAs
Skr482.3 billionSEB's IRB RWAs

Who's Involved

Skandinaviska Enskilda Banken (SEB)
Bank that nearly trebled standardised credit RWAs

↳ Why This Matters

The shift in how SEB calculates its risk-weighted assets impacts its regulatory capital requirements and financial reporting, potentially affecting its capital ratios and risk profile.

Key facts

  • SEB's standardised credit RWAs nearly trebled in Q2.
  • Standardised credit RWAs reached Skr169.7 billion ($17.7 billion) by June 30.
  • This is up from Skr59.3 billion in the prior quarter.
  • Internal ratings-based RWAs decreased by 9.2% to Skr482.3 billion.

Skandinaviska Enskilda Banken (SEB) saw its standardised credit risk-weighted assets (RWAs) nearly triple in the second quarter. This significant increase, from Skr59.3 billion to Skr169.7 billion ($17.7 billion) as of June 30, resulted from the transfer of several portfolios from the bank's internal ratings-based (IRB) approach to the standardised approach. Concurrently, SEB's IRB RWAs decreased by 9.2%, falling to Skr482.3 billion.

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How It Developed

Standardised credit RWAs at SEB rose to Skr169.7 billion as of June 30.
This represents an increase from Skr59.3 billion in the previous quarter.
Internal ratings-based RWAs fell 9.2% to Skr482.3 billion.

Sources

T1
SEB model shifts nearly treble standardised RWAsRisk.net

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