CET1 of challenger banks in the UK 2021, by bank

Common Equity Tier One (CET1) ratio is a measurement of a bank’s core equity capital and gives insight as to how well a bank can withstand financial stress. All banks should have a minimum required CET1 ratio of 4.5 percent. Since 2014, the European Banking Authority has conducted the stress test in order to establish whether Europe's largest banks could withstand another financial crisis by measuring the fully loaded CET1 capital ratios of each bank over a 3-year adverse scenario. Even all but one of Europe’s worst performing banks in terms of CET1 capital ratio managed to stay above the minimum threshold.

Challenger bank cost to income ratio

The cost to income ratio (CIR) is an important financial metric in determining the profitability of banks. The measure looks at the cost of running operations as compared to a bank’s operating income. Lower ratios mean that a bank is running more profitably, whereas a higher CIR indicates the bank’s operating expenses are too high.

Challenger bank total assets

Total assets are one of the main measures of a bank's prosperity and is defined as all assets owned by a bank. This includes, but is not limited to cash and balances, loans and advances to banks and customers, as well as debt securities. With total assets valued at almost 91 billion British pounds, CYBG as a challenger is still some way reaching the size of the UK's largest banks.