basel-capital

CAPITAL COMPONENTS

CET1 (Common Equity Tier 1)

CET1 = Ordinary share capital + Share premium account + Retained earnings + Accumulated other comprehensive income (AOCI) - Goodwill and other intangible assets (net of deferred tax) - Deferred tax assets dependent on future profitability - Significant investments in financial institutions (>10% threshold) - Excess of regulatory expected loss over IFRS provisions (IRB banks) - Other regulatory deductions (jurisdiction-specific — load overlay)

Additional Tier 1 (AT1)

Perpetual instruments with mandatory loss absorption. Must be: perpetual; fully discretionary distributions; absorb losses on going concern. Contingent convertibles (CoCos) / write-down instruments qualifying as AT1. AT1 coupons subject to MDA restrictions if CET1 in combined buffer requirement zone.