Turin - Milan, 19 September 2016 – Intesa Sanpaolo was subject to the 2016 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Bank of Italy, the European Central Bank (ECB), the European Commission (EC) and the European Systemic Risk Board (ESRB).
Intesa Sanpaolo notes the announcements made today by the EBA on the EU-wide stress test and fully acknowledges the outcomes of this exercise. The 2016 EU-wide stress test does not contain a pass fail threshold and instead is designed to be used as a crucial piece of information for the supervisory review process in 2016.
The results will thus allow competent authorities to assess Intesa Sanpaolo’s ability to meet applicable minimum and additional own funds requirements under stressed scenarios based on a common methodology and assumptions.
The adverse stress test scenario was set by the ECB/ESRB and covers a three-year time horizon (2016-2018). The stress test has been carried out applying a static balance sheet assumption as at December 2015, and therefore does not take into account future business strategies and management actions. It is not a forecast of Intesa Sanpaolo profits.
The Intesa Sanpaolo Common Equity Tier 1 ratio (CET1 ratio) resulting from the stress test for 2018, the final year considered in the exercise, would stand at:
- 12.8% under the baseline scenario
- 10.2% under the adverse scenario
This compares with the starting-point figure of 13% as at 31 December 2015, and includes a 50 basis-point reduction, under both scenarios, due to the transition from the calculation criteria applicable in 2015 to those applicable in 2018.