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Banco Comercial Portugues
Capital/Financing Update • Dec 5, 2023
1913_iss_2023-12-05_152a5e8b-f506-4a64-9077-d9c3a3c129c1.pdf
Capital/Financing Update
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BANCO BPI, S.A.
Registered office: Av. Boavista, 1117, Porto Registered at Commercial Registry of Porto under registration number PTIRNMJ 501 214 534 and tax identification number 501 214 534 Share capital: € 1 293 063 324.98
MINIMUM PRUDENTIAL REQUIREMENTS FOR 2024
Banco BPI hereby reports that it has been notified of the decision of the European Central Bank regarding minimum capital requirements and leverage ratio for 2024, following the outcome of the Supervisory Review and Evaluation Process (SREP), with the total Pillar 2 requirement1 remaining unchanged at 1.9%.
Thus, from 1st January 2024, Banco BPI must comply with the minimum requirements of 8.58% for the Common Equity Tier 1 (CET1) capital ratio, which includes the Pillar 1 regulatory minimum (4.5%), the Pillar 2 requirement (1.07%)1 , the capital conservation buffer (2.5%), the other systemically important institutions buffer (0.5%)1 and the Countercyclical buffer (0.01%)2 .
Likewise, the minimum requirements for the Tier 1 capital ratio and the total capital ratio are 10.43% and 12.91%, respectively.
Finally, from 1st January 2024, Banco BPI must comply with a minimum requirement of 3% for the leverage ratio, which includes a 3% Pillar 1 regulatory minimum and a Pillar 2 requirement of 0%.
In September 2023, as shown in the following table, BPI comfortably exceeded all requirements.
| Capital | Minimum requirements from 1st Jan. 2024 | ||||
|---|---|---|---|---|---|
| ratios 30.09.2023 |
TOTAL | Of which: | |||
| Pillar 1 | Pillar 2 | Buffers 3 | |||
| CET1 | 14.5% | 8.58% | 4.50% | 1.07% | 3.01% |
| T1 | 16.0% | 10.43% | 6.00% | 1.43% | 3.01% |
| Total capital | 18.4% | 12.91% | 8.00% | 1.90% | 3.01% |
| Leverage ratio | 7.3% | 3.00% | 3.00% | 0.00% | 0.00% 3 |
As communicated to the market on 22nd November 2023, in addition to the requirements described above, from the 1 st October 2024 Banco BPI will have to comply, through Common Equity Tier 1 capital (CET1), with an additional capital requirement for systemic risk in the residential real estate market in Portugal. This sectoral systemic risk buffer translates, on a proforma basis for September 2023, into an estimated 78 basis points increase in capital requirements.
5 th December 2023
Banco BPI, S.A.
1 Requirements applicable only on a consolidated basis.
2 As of 30 September 2023. Updated quarterly, may differ between consolidated and individual basis.
3 Capital conservation buffer (2.5%), other systemically important institutions buffer (0.5%) and countercyclical buffer (0.01%).