Barclays, RBS, Lloyds Above Threshold In BoE Stress Test

(RTTNews) - Barclays plc (BARC.L, BCS), Royal Bank of Scotland Group Plc. (RBS, RBS.L) and Lloyds Banking Group Plc. (LLOY.L, LYG) Tuesday announced that they are above threshold in the Bank of England or BoE Stress Test.

Eight financial institutions in the UK has been subject to the 2014 stress test conducted by the Prudential Regulation Authority or PRA. The test assesses banks' capital adequacy against a 4.5 per cent Common Equity Tier 1 or CET1 capital threshold.

Barclays said its capital position remained above the BoE threshold with a PRA Transitional Common Equity Tier 1 ratio of 7.0% pre management actions. Barclays' CET1 ratio did not fall below 7% at any time in the test period and exceeded the 4.5% minimum threshold by a significant margin. Barclays continues to target a Fully Loaded CET1 ratio of greater than 11% by the end of 2016. RBS said its Common Equity Tier 1 capital ratio under the hypothetical adverse scenario was 4.6%. After the impact of Management actions, the ratio was 5.2%. These results were above the 4.5% post-stress minimum ratio threshold set by the BoE. Lloyds said its estimated CET1 ratio on a CRD IV basis, as implemented by the PRA, was 5.3 percent post-mitigating actions and 5.0 percent pre-mitigating actions, compared with a reported CET1 ratio of 10.1 per cent at 31 December 2013.