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LHV Group Capital/Financing Update 2022
2219_iss_2022-01-19_79ef19ad-8a22-40cf-9ea9-84de722d3652.pdf
Capital/Financing Update
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Company Type Category Disclosure time AS LHV Group Company Release Other corporate action 19 Jan 2022 16:30:00 +0200
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Outcome of Supervisory Review and Evaluation Process by the FSA and AS LHV Group's Title
In January, the Estonian FSA, Finantsinspektsioon, presented LHV Group with the outcome of Supervisory Review and Evaluation Process (SREP) capital adequacy calculation. In comparison with earlier the Pillar 2 capital requirement and the systemic importance buffer have been raised.
According to the decision of the FSA, an additional requirement for own funds in the amount 2.74% applies to LHV Group, of which at least 1.54% must be covered by Core Tier 1 own funds and at least 2.06% by Tier 1 capital.
The Supervisory Board of LHV Group based on the FSA decision and adding to it internal buffers decided to set total CAD target ratio at 16.50%, Tier 1 ratio at 13.50% and Core Tier 1 ratio to 11.50%.
Underneath is the target split into components:
| ----------------------------------------------------------------------------- | Core Tier 1 | Tier 1 | Total CAD |
|---|---|---|---|
| Base requirement ----------------------------------------------------------------------------- |
4.50% | 6.00% | 8.00% |
| Pillar 2 capital requirement ----------------------------------------------------------------------------- |
1.54% | 2.06% | 2.74% |
| Total SREP requirement ----------------------------------------------------------------------------- |
6.04% | 8.06% | 10.74% |
| Capital conservation buffer ----------------------------------------------------------------------------- |
2.50% | 2.50% | 2.50% |
| Systemic importance buffer (O-SII) | 1.50% | 1.50% | 1.50% |
| ----------------------------------------------------------------------------- Systemic risk buffer |
0.00% | 0.00% | 0.00% |
| ----------------------------------------------------------------------------- Discretionary counter-cyclical buffer ----------------------------------------------------------------------------- |
0.00% | 0.00% | 0.00% |
| Total combined buffer | 4.00% | 4.00% | 4.00% |
| ----------------------------------------------------------------------------- |
Finantsinspektsioon http://www.fi.ee
| Total minimal regulatory requirement ----------------------------------------------------------------------------- |
10.04% | 12.06% | 14.74% |
|---|---|---|---|
| Additional internally decided buffers | 1.46% | 1.44% | 1.76% |
| ----------------------------------------------------------------------------- Group's internal capitalization targets |
11.50% | 13.50% | 16.50% |
Priit Rum LHV Communication Manager Phone: +372 502 0786 Email: [email protected] (mailto:[email protected])
Finantsinspektsioon http://www.fi.ee
