BPER Banca S.p.A (“BPER or “the Bank”) would like to announce that, after completing its annual Supervisory Review and Evaluation Process ("SREP”), it received notification from the European Central Bank (“ECB”) of the new prudential requirements that it has to comply with on a consolidated basis under art. 16 Regulation (EU) 1024/2013.
Based on the outcome of the SREP performed in 2017 using 31 December 2016 as the reference date and all other pertinent information received subsequently, the ECB has established that, from 1 January 2018, BPER will have to maintain a minimum consolidated Common Equity Tier 1 (“CET1 ratio”) of 8.125% versus 7.25% in 2017, an increase of 87.5 bps; this is mainly attributable, for 62.5 bps, to the progressive application of the transitional arrangements to create the Capital Conservation Buffer foreseen by the Supervisory Authority for the banking system and 25 bps for the Pillar 2 requirement. The SREP requirement for 2018 therefore consists of the sum of the minimum regulatory Pillar 1 requirement of 4.50%, the additional Pillar 2 requirement of 1.75% (1.5% in 2017) and the Capital Conservation Buffer of 1.875% (1.25% in 2017). In the same communication, the ECB asked BPER to comply with a consolidated Total Capital Ratio of 11.625%.
BPER's consolidated capital ratios at 30 September 2017, based on the AIRB methodology for the credit risk requirement, are as follows:
CET 1 ratio under the transitional (Phased in) arrangements of 14.03%;
Total capital ratio under the transitional (Phased in) arrangements of 16.89%.
These figures are significantly higher than the ECB's minimum capital requirements