Key facts
- European banks added €8.5 billion of Additional Tier 1 capital in Q2 2026.
- Total Additional Tier 1 capital reached €196.2 billion in Q2 2026.
- The share of AT1 capital in total regulatory capital is at its highest since Q2 2019.
- This indicates a rebuild of AT1 capital stock by European banks.
- The increase suggests renewed confidence in AT1 instruments.
European banks have demonstrated a strong recovery in their Additional Tier 1 (AT1) capital levels, adding €8.5 billion in the second quarter of 2026. This influx brings the total AT1 capital held by these institutions to €196.2 billion. The growth in AT1 capital is particularly noteworthy as it represents the highest share of total regulatory capital observed since the second quarter of 2019. This development suggests a significant rebuilding of this crucial capital buffer following periods of market stress and uncertainty surrounding AT1 instruments. The increase indicates a renewed confidence among European banks in utilizing and maintaining AT1 capital as a core component of their regulatory capital structure. The trend points towards a more stable and robust capital position for the European banking sector, with AT1 instruments playing a more prominent role than in recent years.