2014 EU-wide Stress Test Summary for Deutsche Apotheker- und Ärztebank eG
Core Information
Bank Name: DE - Deutsche Apotheker- und Ärztebank eG
LEI Code: 5299007S3UH5RKUYDA52
Report Period: 2013 to 2016
Stress Test Scenarios: Baseline and Adverse Scenario
Key Financial Indicators
As of 31 December 2013
Metric
Value (mIn EUR, %)
Operating profit before impairments
315
Impairment losses on financial and non-financial assets in the banking book
-1
Common Equity Tier 1 capital (CET1)
1,738
Total Risk Exposure
10,593
CET1 ratio
16.4%
Outcome as of 31 December 2016
Baseline Scenario
Metric
Value (mIn EUR, %)
3 yr cumulative operating profit before impairments
755
3 yr cumulative impairment losses on financial and non-financial assets in the banking book
211
3 yr cumulative losses from the stress in the trading book
7
CET1 capital
2,007
Total Risk Exposure
10,883
CET1 ratio
18.4%
Adverse Scenario
Metric
Value (mIn EUR, %)
3 yr cumulative operating profit before impairments
520
3 yr cumulative impairment losses on financial and non-financial assets in the banking book
325
3 yr cumulative losses from the stress in the trading book
10
Valuation losses due to sovereign shock after tax and prudential filters
19
CET1 capital
1,731
Total Risk Exposure
11,816
CET1 ratio
14.7%
Memorandum Items
Item
Value (mln EUR)
Common EU wide CET1 Threshold (5.5%)
650
Total amount of instruments with mandatory conversion into ordinary shares (cumulative conversions)
0
Total Additional Tier 1 and Tier 2 instruments eligible as regulatory capital
0
Of which: eligible instruments whose trigger is above CET1 capital ratio in the adverse scenario
0
Risk Exposure Breakdown (as of 31 December 2013)
Category
F-IRB Exposure (Non-defaulted, Defaulted)
A-IRB Exposure (Non-defaulted, Defaulted)
STA Exposure (Non-defaulted, Defaulted)
Central banks and central governments
0, 0
0, 0
2,693, 0
Institutions
2,974, 0
0, 0
1,346, 0
Corporates
2,778, 82
0, 10
1,847, 0
Corporates - Specialised Lending
0, 0
0, 0
0, 0
Corporates - SME
583, 12
0, 0
387, 0
Retail
0, 0
31,676, 518
147, 0
Retail - Secured on real estate property
0.0%, 0
8,320, 151
0, 0
Retail - Secured on real estate property - Of Which: SME
0.0%, 0
4,992, 91
0, 0
Retail - Secured on real estate property - Of Which: non-SME
0.0%, 0
3,328, 60
0, 0
Retail - Qualifying Revolving
0, 0
0, 0
0, 0
Retail - Other Retail
0, 0
23,356, 367
147, 0
Retail - Other Retail - Of Which: SME
0, 0
2,716, 46
0, 0
Retail - Other Retail - Of Which: non-SME
0, 0
20,640, 321
147, 0
Equity
113, 4
0, 0
420, 16
Securitisation
245, 0
0, 0
574, 0
Other non-credit obligation assets
255, 0
0, 0
234, 0
TOTAL
6,364, 86
31,676, 518
4,710, 11
Risk Exposure Deductions
Securitisation and re-securitisations positions deducted from capital: 0
Impairment Rates and Coverage Ratios
Baseline Scenario
Year
Impairment Rate
Stock of Provisions
Coverage Ratio - Default Stock
2014
0.01%
1
35.94%
2015
0.11%
9
36.48%
2016
0.52%
114
68.17%
2014
0.15%
381
46.47%
2015
0.04%
84
30.82%
2016
0.03%
90
26.56%
2014
0.04%
32
27.11%
2015
0.03%
30
23.47%
2016
0.03%
32
21.85%
2014
0.05%
53
33.40%
2015
0.04%
54
31.29%
2016
0.04%
56
30.23%
2014
0.19%
297
55.48%
2015
0.18%
333
52.74%
2016
0.17%
373
51.84%
2014
0.14%
34
54.58%
2015
0.13%
36
51.14%
2016
0.12%
40
49.69%
2014
0.20%
255
55.14%
2015
0.18%
288
52.56%
2016
0.18%
325
51.77%
2014
2.40%
12
52.75%
2015
2.40%
17
64.90%
2016
2.47%
23
71.27%
2014
0.18%
516
49.70%
2015
0.17%
580
47.34%
2016
0.16%
649
46.46%
Adverse Scenario
Year
Impairment Rate
Stock of Provisions
Coverage Ratio - Default Stock
2014
0.04%
1
38.81%
2015
0.12%
10
36.24%
2016
0.14%
16
36.74%
2014
0.59%
116
67.96%
2015
0.65%
139
64.79%
2016
0.64%
163
64.57%
2014
0.17%
388
46.92%
2015
0.17%
464
48.03%
2016
0.17%
547
50.74%
2014
0.05%
86
31.22%
2015
0.06%
99
31.96%
2016
0.06%
116
33.84%
2014
0.04%
54
33.82%
2015
0.06%
60
35.08%
2016
0.07%
70
37.40%
2014
0.21%
294
55.51%
2015
0.21%
356
56.75%
2016
0.20%
422
59.07%
2014
0.15%
34
55.04%
2015
0.15%
40
55.53%
2016
0.15%
46
57.26%
2014
0.21%
260
56.03%
2015
0.22%
316
57.30%
2016
0.21%
376
59.31%
2014
2.63%
12
54.87%
2015
2.96%
20
69.85%
2016
3.05%
28
77.34%
2014
0.20%
528
50.08%
2015
0.21%
640
51.08%
2016
0.20%
764
53.20%
Key Observations
The bank's CET1 capital slightly decreased from 1,738 mIn EUR in 2013 to 1,731 mIn EUR in the Adverse Scenario by 2016, while it increased to 2,007 mIn EUR in the Baseline Scenario.
The CET1 ratio dropped from 16.4% in 2013 to 14.7% in the Adverse Scenario, but rose to 18.4% in the Baseline Scenario.
The total risk exposure increased from 10,593 mIn EUR in 2013 to 11,816 mIn EUR in the Adverse Scenario.
The impairment losses were higher in the Adverse Scenario compared to the Baseline Scenario.
The coverage ratio for default stock decreased in the Adverse Scenario, indicating a higher risk of default.
The bank's exposure to SMEs and non-SMEs in the retail sector was significant in both scenarios, with the Adverse Scenario showing more stress.
