South Korean domestic banks' common equity Tier 1 (CET1) ratio reached 13.62% at the end of June, up 0.12 percentage points from the end of March, while the total capital ratio rose 0.03 percentage point to 15.77%, the Financial Supervisory Service said on the 31st. The Tier 1 capital ratio climbed 0.08 percentage point to 14.84%. Higher profits and an expansion in common equity linked to share sales supported the improvement. Combined second-quarter results at 20 domestic banks reached 7 trillion Korean won, compared with 6.8 trillion won in the first quarter. The FSS said all banks exceeded the regulatory minimums of 8.0% for CET1, 9.5% for Tier 1 capital and 11.5% for total capital. The latest statement refers to 20 domestic banks, while an earlier account cited 17 institutions. Ratios were above 16% at Woori, NongHyup, Citibank Korea, Standard Chartered Korea, K Bank, Kakao Bank, Toss Bank, Suhyup and the Export-Import Bank of Korea, while BNK was below 14%. The FSS warned that prolonged Middle East instability, higher interest rates and changing economic conditions could widen credit risk and weaken capital buffers.