RBS capital ratio falls to 8.1% after EU stress test

Royal Bank of Scotland said its capital ratio fell by 7.5 percentage points to 8.1% under an EU stress test of 51 lenders in the eurozone and the rest of the EU.

RBS is 73% owned by the UK taxpayer after being bailed out by the government after the financial crash of 2008.

The stress test was carried out by the European Banking Authority and does not contain a pass fail threshold. It covered a three‐year time horizon (2016‐2018).

Commenting on the results, Ewen Stevenson, Chief Financial Officer, said: "The EBA stress test results demonstrate our continued progress towards transforming the balance sheet to being safe and sustainable. Over recent years we have materially strengthened our CET1 ratio, substantially reduced our balance sheet and leverage, and continued to de-risk our asset exposures.”