Sberbank expects core Tier 1 capital adequacy to Basel III to be 8-8.5% on Feb 1
MOSCOW. Jan 31 (Interfax) - Sberbank's core Tier 1 capital adequacy ratio to Basel III standards will be about 8-8.5%, the deputy CEO of Russia's biggest lender, Alexander Morozov told reporters on Friday.
"Under the new requirements of the Central Bank, what we will disclose in our financial statement for February 1 is Basel III, core Tier 1. We expect that our level will be in the range of 8-8.5%. If one takes Basel I to IFRS, there core Tier 1 will be above 10.5% in any case," Morozov said.
"Management expects core capital to exceed 1.33 trillion rubles by February 1, 2014, so the capital adequacy ratio will be more than 8% excluding the bank's profit from the second half of 2013," Sberbank said in a statement released later on Friday.
New requirements for banks' capital adequacy to Basel III standards went into effect in Russia on January 1. The minimum adequacy ratios are 5% for common equity, 5.5% for Tier 1 capital and 10% for total capital. Banks will report according to the new capital rules for the first time on February 1.
