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| Date | 26 Jan 2022 |
| Time | 07:06:56 |
| Category | Miscellaneous |
| ID | 6801Z |
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26 January 2022 |
AIB Group plc - SREP
Supervisory Review and Evaluation Process (SREP)
Following the Supervisory Review and Evaluation Process (SREP) performed by the ECB in 2021 and the re-introduction of the UK Countercyclical buffer in December 2022, the minimum requirement for the CET1 ratio for AIB Group plc (AIB) was set at 10.20% for FY 2022 (1) - see table below. The Pillar 2 Requirement reduced by 25bps to 2.75% from 3.00%.
AIB continues to have a very strong capital base with a fully loaded CET1 at September 2021 of 16.6%. The Group's reported capital ratios are materially in excess of minimum regulatory requirements and AIB continues to maintain a very significant buffer above maximum distributable amount (MDA) trigger levels.
AIB does not disclose Pillar 2 Guidance (P2G), however following the ECB's revised P2G methodology, AIB confirms it is in bucket 3 which has a P2G range of 1.00% - 2.75%.
The table below shows the total capital requirements of the Group and components based on an assumption of optimal usage of Tier 2 and AT1 instruments permitted under the Capital Requirements Regulation (CRR).
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SREP Requirements |
AIB SREP Requirement 2021 |
AIB SREP Requirement 2022 |
AIB SREP Requirement 2023 |
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Pillar 1 CET1 |
4.50% |
4.50% |
4.50% |
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Pillar 2 Requirement (P2R) CET1 (2) |
1.69% |
1.55% |
1.55% |
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|
Capital Conservation Buffer (CCB) |
2.50% |
2.50% |
2.50% |
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Other Systemically Important Institutions Buffer (O-SII) |
1.50% |
1.50% |
1.50% |
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Countercyclical buffer (CCyB) (3) |
0.00% |
0.15% |
0.35% |
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Total CET 1 requirement |
10.19% |
10.20% |
10.40% |
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AT1 |
2.06% |
2.02% |
2.02% |
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Tier 2 |
2.75% |
2.69% |
2.69% |
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Total Capital Requirement (1) |
15.00% |
14.90% |
15.10% |
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(1) Excludes Pillar 2 Guidance (P2G) (2) P2R of 2.75% of which 1.55% must be held in the form of CET1 assuming 52bps AT1 and 69bps Tier 2 to meet P2R requirement (3) Countercyclical buffer - re-introduction of the UK CCyB at 1% in December 2022, rising to 2% in 2023. It is estimated to equate to a Group requirement of c.0.15% in 2022 and c. 0.35% in 2023. |
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Figures presented may be subject to rounding
For further information, please contact:
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Niamh Hore |
Siobhain Walsh |
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Head of Investor Relations |
Head of Debt Investor Relations |
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AIB Group |
AIB Group |
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Dublin |
Dublin |
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Tel: +353-1-6411817 |
Tel: +353-1-6411901 |
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email: [email protected] |
email: [email protected] |