INTESA SANPAOLO: 2018 EU-WIDE STRESS TEST RESULTS
Turin - Milan, 2 November 2018 – Intesa Sanpaolo was subject to the 2018 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Bank of Italy, the European Central Bank (ECB), and the European Systemic Risk Board (ESRB).
Intesa Sanpaolo notes the announcements made today by the EBA on the EU-wide stress test and fully acknowledges the outcomes of this exercise.
The 2018 EU-wide stress test does not contain a pass fail threshold and instead is designed to be used as an important source of information for the purposes of the SREP. The results will assist competent authorities in assessing Intesa Sanpaolo’s ability to meet applicable prudential requirements under stressed scenarios.
The adverse stress test scenario was set by the ECB/ESRB and covers a three-year time horizon (2018-2020). The stress test has been carried out applying a static balance sheet assumption as at December 2017, and therefore does not take into account future business strategies and management actions. It is not a forecast of Intesa Sanpaolo profits.
The Intesa Sanpaolo Common Equity Tier 1 ratio (CET1 ratio) resulting from the stress test for 2020, the final year considered in the exercise, would stand at:
• 13.04% on a phased-in basis, in accordance with the transitional arrangements for 2020, and 12.28% on a fully loaded basis, under the baseline scenario;
• 10.40% on a phased-in basis, in accordance with the transitional arrangements for 2020, and 9.66% on a fully loaded basis, under the adverse scenario.
This compares with the starting-point figure of 13.24% on a phased-in basis and 11.85% on a fully loaded basis, as at 31 December 2017 taking the impact of the first time adoption of IFRS 9 into account.
The CET1 ratio resulting from the stress test for 2020 under the adverse scenario would be 10.99% on a phased-in basis and 10.26% on a fully loaded basis when considering the capital increase executed on 11 July 2018 under the 2018-2021 LECOIP 2.0 Long-term Incentive Plan and the conversion of savings shares into ordinary shares finalised on 7 August 2018, other things being equal.
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Last updated 2 November 2018 at 18:00
