Nordea shed a third of its credit valuation adjustment (CVA) capital requirement in the second quarter of the year, to its lowest level since Q3 2018.
The bank’s CVA charge decreased by €30 million ($34 million), to €58 million, in the three months to end-June – a 34% reduction on the quarter prior. Year-on-year, the drop was a more modest 8%.
The CVA requirement accounts for 0.5% of the bank’s total capital requirement, down 20 basis points quarter-on-quarter.
There were negative valuation