AFME Prudential Data Report 4Q2020 | AFME

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Data Research
AFME Prudential Data Report 4Q2020
22 Mar 2021
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Author Julio Suarez Director
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This report collates information on European GSIBs’ prudential capital, leverage and liquidity ratios with updated statistics as at 31 December 2020.


It also illustrates the recent performance of the debt and contingent convertibles (CoCo) markets and the funding structure for banks in Europe for the full year 2020 and updated as at March 2021.


Among the main findings of this report:

  • European systemically important banks (GSIBs) reported in 4Q20 new record CET1, T1 capital, TLAC, Leverage and Liquidity Coverage ratios allowing them to continue to support the economic recovery.
  • External capital raising in 2020 above 2019 amount: The amount of new capital raised during 2020FY by European banks totalled EUR 34.4 bn, slightly above the level observed in 2019 (EUR 34.3bn). The amount of fresh capital raised was predominantly in the form of contingent convertible (CoCo) bonds. Most recently, in 2021 YtD (as of mid-March) European banks have accumulated a total of EUR 5.2bn in new fresh capital, of which EUR 4.8bn was in the form of CoCos.
  • Banks continued to extended their debt maturity profile. The proportion of long-term debt (>10Y) has continued to increase in both relative and absolute terms over the last year, increasing from €360bn (17%) in 1Q20 to €387bn (18%) in 1Q21. The proportion of short-term debt (<1Y maturity) has decreased from 20% in 1Q20 of total market debt to 16% in 1Q21.
  • Contribution of the Banking sector and European capital markets in financing the recovery: The Box on pages 21-28 provides a summary with the contribution of the Banking sector and European capital markets in financing the recovery -  one year after the COVID-19 outbreak. Banks interacting in the European market have continued to support the economic recovery, with unprecedented volumes of loans to corporates and SMEs, record volumes of trading and primary markets origination, and orderly post-trade activities.
    • Corporate borrowers raised a record amount of debt from markets during 2020, with a total of EUR 495bn in investment grade bond issuance.
    • European governments issued a record of EUR 3.7 tn in bonds and bills from markets, as European sovereigns contend with the funding demands.
    • European ESG bond issuance totalled a record of EUR 252.6 bn in 2020, from EUR 133.9 bn in 2019.