Coventry Building Society has made an accounting error and overstated its capital ratios.
When updating the models used to calculate its risk weighted assets, the society noticed a mistake in its calculation.
Coventry corrected its calculation of risk weighted assets.
This lowers its Common Equity Tier 1 ratio by 1.6% to 32.6%.
A statement from the society said: “During the process of transitioning models, the Society has identified an omission in connection with its historic calculation of its RWAs.
“Specifically, the necessary 6% scalar was not applied to the core IRB model outputs.
“The core IRB models themselves are not impacted.
“Application of the 6% scalar would have increased total RWAs by 4.6%, resulting in the 1.6% reduction in the CET1 ratio as at 30 June 2019.
“The society maintains a simple and low risk business model and expects that its CET1 ratio will continue to be one of the highest reported in the UK, reflecting a considerable capital surplus above regulatory requirements.”