Groupe BPCE confirms its financial strength by exceeding its prudential capital requirements for 2017

December 9, 2016

With phased-in CET1 and total capital ratios of 14.0% and 18.4% respectively at September 30, 2016, Groupe BPCE is positioned well above the prudential requirements applicable in 2017 as laid down by the European Central Bank within the framework of the Supervisory Review and Evaluation Process (SREP).

 

Groupe BPCE has received notification[1] from the European Central Bank concerning the results of the Supervisory Review and Evaluation Process (SREP) for 2016, setting the level of prudential capital requirements for 2017.

The phased-in Common Equity Tier 1 (CET1) ratio applicable to Groupe BPCE on a consolidated basis has been fixed at 7.75% in 2017, including:

  • 1.5% with respect to “Pillar 2 requirement” (excluding “Pillar 2 guidance”[2]),

  • 1.25% with respect to the capital conservation buffer,

  • 0.5% with respect to the capital buffer for global systemically important banks (G-SIB).

    The total capital requirement has been set at 11.25% (excluding “Pillar 2 guidance”).

    With phased-in ratios at September 30, 2016 of 14.0% for its CET1 ratio and 18.4% for its total capital ratio, Groupe BPCE is positioned well above the prudential requirements due to be applied on January 1st, 2017.

    For 2019, it is anticipated that the level of fully-loaded CET1 will rise to 9.5% (excluding “Pillar 2 guidance”) on the basis of a gradual increase in the capital conservation buffer to 2.5% and the assumption that the G-SIB buffer will be 1.0%. Similarly, it is estimated that the fully-loaded total capital requirement (excluding “Pillar 2 guidance”) will be 13% in 2019.


[1] This notification remains unchanged vs. the advance notification disclosed by the Group on November 8, 2016 when it published its results for the 3rd quarter and first 9 months of 2016.

[2] The total requirement for the CET1 ratio drawn up by the ECB, including the “Pillar 2 Guidance” element, is not intended for publication.

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