NLB

Capital/Financing Update • Apr 10, 2020

Category: Inside information

Published on: SEOnet

Published at:  09.04.2020 18:00

Published document ID: INI-223/20

INI-219/20

NLB, d. d., Ljubljana

NLB d.d., Ljubljana discloses amendment of the composition of the Pillar 2 additional own funds requirement (P2R)

NLB d.d., Ljubljana has received new decision amending the composition of the Pillar 2 (P2R) additional own funds requirement of the currently applicable Decision establishing prudential requirements. 

Following the announcement of the measure in relation to the P2R composition in the press release of 12 March 2020, the ECB has formally notified NLB d.d., Ljubljana of its decision to amend the applicable decision establishing prudential requirement (Original Decision) in relation to P2R composition:

-       the Pillar 2 additional own funds requirement to be held in the form of Common Equity Tier 1 (CET1) capital, shall, instead, be held in the form of 56.25% of CET1 capital and 75% of Tier 1 capital, as a minimum.

SREP requirement		2018	2019	2020 (from 1 January to 11 March)	2020 (from 12 March)
Pillar 1 minimum own funds requirement (P1)	CET1	4.50%	4.50%	4.50%	4.50%
Tier1	6.00%	6.00%	6.00%	6.00%
Total capital	8.00%	8.00%	8.00%	8.00%
Pillar 2 additional own funds requirement (P2R)	CET1	3.50%	3.25%	2.75%	1.55%
Tier1				2.06%
Total capital				2.75%
Total SREP Capital Requirement (TSCR)	CET1	8.00%	7.75%	7.25%	6.05%
Tier 1	9.50%	9.25%	8.75%	8.06%
Total capital	11.50%	11.25%	10.75%	10.75%
Combined Buffer Requirement (CBR)
Conservation buffer	CET1	1.88%	2.50%	2.50%	2.50%
O-SII buffer	CET1	0%	1.00%	1.00%	1.00%
Countercyclical buffer	CET1	0%	0%	0%	0%
Overall capital requirement (OCR) = MDA threshold	CET1	9.88%	11.25%	10.75%	9.55%
Tier 1	11.38%	12.75%	12.25%	11.56%
Total capital	13.38%	14.75%	14.25%	14.25%

The TSCR and the Pillar 2 additional own funds requirement, as set out in the Original Decision, remain unchanged.

Decision shall apply retroactively from 12 March 2020.

This announcement will be available on the company’s website (www.nlb.si) as of 9 April 2020.

Investor relations

NLB d.d., Ljubljana

Date: 10.04.2020