2014 EU-wide Stress Test Summary - FR - La Banque Postale
Core Information
Bank Name: FR - La Banque Postale
LEI Code: 96950066U5XAAIRCPA78
Summary Adverse Scenario (as of 31 December 2016)
Metric
Value (min EUR, %)
3 yr cumulative operating profit before impairments
1,440
3 yr cumulative impairment losses on financial and non-financial assets in the banking book
1,890
3 yr cumulative losses from the stress in the trading book
204
Valuation losses due to sovereign shock after tax and prudential filters
-70
Common Equity Tier 1 capital (CET1)
5,839
Total Risk Exposure
63,748
Common Equity Tier 1 ratio
9.2%
Memorandum Items:
Common EU wide CET1 Threshold (5.5%) | 3,506
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 under CRR provisions that convert into CET1 or are written down upon a trigger event | 800
Of which: eligible instruments whose trigger is above CET1 capital ratio in the adverse scenario | 0
Summary Baseline Scenario (as of 31 December 2016)
Metric
Value (min EUR, %)
3 yr cumulative operating profit before impairments
1,477
3 yr cumulative impairment losses on financial and non-financial assets in the banking book
713
3 yr cumulative losses from the stress in the trading book
110
Common Equity Tier 1 capital (CET1)
6,429
Total Risk Exposure
59,816
Common Equity Tier 1 ratio
10.7%
Memorandum Items:
Common EU wide CET1 Threshold (8.0%) | 4,785
Key Financial Metrics Over Time
Actual Figures as of 31 December 2013
Operating profit before impairments: 974
Impairment losses on financial and non-financial assets in the banking book: 274
CET1 capital: 5,748
Total Risk Exposure: 57,239
CET1 ratio: 10.0%
Exposure and Risk Breakdown (as of 31 December 2013)
Category
LTV %
Exposure Values (F-IRB, A-IRB, STA)
Risk Exposure Amounts (F-IRB, A-IRB, STA)
Value Adjustments and Provisions (F-IRB, A-IRB, STA)
Non-defaulted
-
F-IRB: 196,116, A-IRB: 46,514, STA: 43,920
F-IRB: 43,920, A-IRB: 586, STA: 257
F-IRB: 26, A-IRB: 285, STA: 0
Defaulted
-
F-IRB: 474, A-IRB: 586, STA: 586
F-IRB: 0, A-IRB: 0, STA: 0
F-IRB: 0, A-IRB: 0, STA: 0
Impairment Rate and Coverage Ratio (Baseline and Adverse Scenarios)
Baseline Scenario
Year
Impairment Rate
Stock of Provisions
Coverage Ratio - Default Stock
2014
0.00%
1
5.30%
2015
0.00%
1
5.30%
2016
0.00%
1
5.30%
Adverse Scenario
Year
Impairment Rate
Stock of Provisions
Coverage Ratio - Default Stock
2014
0.05%
25
40.00%
2015
0.05%
38
40.00%
2016
0.05%
51
40.00%
Summary of Key Observations
The Common Equity Tier 1 ratio decreased from 10.0% (as of 31 December 2013) to 9.2% in the adverse scenario and remained at 10.7% in the baseline scenario.
Impairment losses increased significantly in the adverse scenario compared to the baseline scenario, indicating a higher financial stress impact.
The valuation losses due to sovereign shock were reported as -70 million EUR, showing the impact of such shocks on the bank's financial position.
The CET1 capital increased slightly in both scenarios, suggesting the bank's capital base was resilient to stress conditions.
Risk exposure amounts rose in the adverse scenario, reflecting the increased risk under the stress test conditions.
There were no instruments with mandatory conversion or trigger events in the adverse scenario, which implies the bank did not need to convert any instruments into common equity or write them down.
