[2025] UKUT 00185 (TCC)

The papers provided in advance included a draft of the Q3 Update, which contained the paragraph on which this case turns (“the Paragraph”). It read (emphasis in original):

“Capital ratios remain robust. Common Equity Tier 1 Capital (“CET1”) of £1,164m as at 30 September 2018 is 15.7% as a percentage of risk weighted assets, currently exceeding our Tier 1 regulatory minimum of 9.7%. This was supported by the completion of a £300m equity raise in July. Risk weighted assets at 30 September 2018 were £7,398m. The Regulatory Leverage ratio is 5.7%. Our total capital as a percentage of risk weighted assets is 19.1%.”

The Paragraph thus began in the same way as the similar passage in the half-year update, see §111, by saying that capital ratios remained robust, but going on to give a higher figure for CET1 as a percentage of RWAs (15.7% compared to 12.7%).

In addition to the Paragraph, the draft Q3 Update also said that “total net loans as of 30 September were £13,121m” and that loans to commercial customers were 32% of that figure, or £4,166m.

The minutes of the meeting record that the Q3 Update was “noted and taken as read”. Various points were discussed, but these did not include the RWAs or the Bank’s capital ratios.