Lloyds capital ratio falls to 10.1% under EU stress test

Lloyds Bank said its core equity Tier 1 (CET1) capital ratio fell to 10.1% under an EU-wide stress test of 51 banks, compared with a 2015 year-end position of 13%.

The adverse stress test scenario, which does not have a pass/fail threshold was set by the European Central Bank and European Systemic Risk Board and covers a three‐year time horizon (2016‐2018).

At the same time the group's fully loaded leverage ratio moves from 5.2% to 4.6% Lloyds, which is said.

“These results are significantly above the group's minimum capital requirements. This outcome reflects the de-risking undertaken and re-affirms the strong capital and balance sheet position of the group,” the bank added.