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NLB Capital/Financing Update 2019
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Capital/Financing Update
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Category: Inside information
Published on: SEOnet
Published at: 28.11.2019 19:00
Published document ID: INI-800/19
INI-789/19
NLB, d. d., Ljubljana
NLB d.d., Ljubljana discloses new ECB capital requirements
NLB d.d., Ljubljana has received new decision establishing prudential requirement from ECB, which is applicable from 1st January 2020, leading to total SREP capital requirement (TSCR) of 10.75%, that includes minimum own funds of 8% (P1R) and own funds requirement of 2.75% (P2R) to be held in excess of minimum own funds requirement on consolidated level.
Following the Supervisory Review and Evaluation Process (SREP), the ECB has formally notified NLB d.d., Ljubljana of its decision to decrease:
the pillar 2 requirement (P2R) from 3.25% to 2.75% CET1.
This decision together with applicable combined buffer requirement leads to overall capital requirement of 14.25%. More details on the composition of the new capital requirements can be found in the table below:
| SREP requirement | 2017 | 2018 | 2019 | 2020 | |
| Pillar 1 (P1R) | 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 (P2R) | CET1 | 3.50% | 3.50% | 3.25% | 2.75% |
| Total SREP Capital Requirement (TSCR) | CET1 | 8.00% | 8.00% | 7.75% | 7.25% |
| Tier 1 | 9.50% | 9.50% | 9.25% | 8.75% | |
| Total capital | 11.50% | 11.50% | 11.25% | 10.75% | |
| Combined Buffer Requirement (CBR) | |||||
| Conservation buffer | CET1 | 1.25% | 1.88% | 2.50% | 2.50% |
| O-SII buffer | CET1 | 0% | 0% | 1.00% | 1.00% |
| Countercyclical buffer | CET1 | 0% | 0% | 0% | 0% |
| Overall capital requirement (OCR) = MDA threshold | CET1 | 9.25% | 9.88% | 11.25% | 10.75% |
| Tier 1 | 10.75% | 11.38% | 12.75% | 12.25% | |
| Total capital | 12.75% | 13.38% | 14.75% | 14.25% |
Recommendation on Pillar 2 capital guidance:
Based on findings stemming from supervisory stress tests conducted in 2018, the ECB expects Nova Ljubljanska banka d.d. Ljubljana to adhere on a consolidated basis, to the Pillar 2 capital guidance of 1.00%, which should be comprised entirely of CET1 capital and held over and above the overall capital requirement (OCR).
This announcement will be available on the Bank's website (www.nlb.si) as of 28 November 2019.
Investor relations,
NLB d.d., Ljubljana
Date: 29.11.2019