EBA欧洲银行-IT_V3AFM0G2D3A6E0QWDG59_16页_3mb

2014 EU-wide Stress Test Summary for IT - Banca Popolare di Vicenza - Società Cooperativa per Azioni

Core Information

• Bank Name: IT - Banca Popolare di Vicenza - Società Cooperativa per Azioni
• LEI Code: V3AFM0G2D3A6E0QWDG59

Summary: Adverse Scenario

Actual Figures (as of 31 December 2013)

• Operating profit before impairments: 438 mln EUR
• Impairment losses on financial and non-financial assets in the banking book: 1,205 mln EUR
• Common Equity Tier 1 (CET1) capital: 2,178 mln EUR
• Total Risk Exposure: 28,712 mln EUR
• CET1 ratio: 7.6%

Outcome (as of 31 December 2016)

• 3 yr cumulative operating profit before impairments: 129 mln EUR
• 3 yr cumulative impairment losses: 1,594 mln EUR
• 3 yr cumulative losses from the stress in the trading book: 41 mln EUR
• Valuation losses due to sovereign shock after tax and prudential filters: 163 mln EUR
• CET1 capital: 930 mln EUR
• Total Risk Exposure: 29,305 mln EUR
• CET1 ratio: 3.2%

Memorandum Items

• Common EU wide CET1 Threshold (5.5%): 1,612 mln EUR
• Total amount of instruments with mandatory conversion into ordinary shares (2014-2016): 253 mln EUR
• Additional Tier 1 and Tier 2 instruments eligible for CET1 or written down: 0 mln EUR
• Eligible instruments whose trigger is above CET1 ratio in adverse scenario: 0 mln EUR

Summary: Baseline Scenario

Actual Figures (as of 31 December 2013)

• Operating profit before impairments: 438 mln EUR
• Impairment losses on financial and non-financial assets in the banking book: 1,205 mln EUR
• CET1 capital: 2,178 mln EUR
• Total Risk Exposure: 28,712 mln EUR
• CET1 ratio: 7.6%

Outcome (as of 31 December 2016)

• 3 yr cumulative operating profit before impairments: 937 mln EUR
• 3 yr cumulative impairment losses: 740 mln EUR
• 3 yr cumulative losses from the stress in the trading book: 12 mln EUR
• CET1 capital: 2,238 mln EUR
• Total Risk Exposure: 29,097 mln EUR
• CET1 ratio: 7.7%

Memorandum Items

• Common EU wide CET1 Threshold (8.0%): 2,328 mln EUR

Exposure and Risk Analysis

Baseline Scenario (Exposure and Risk Exposure)

• Impairment rate: 0.01%, 0.11%, 1.71%, 0.75%, 0.24%, 0.51%, 0.22%, 2.22%, 1.33%, 1.73%, 0.51%, 0.82%, 0.92%
• Stock of Provisions: 1, 12, 1,314, 1,235, 1,308, 1,366, 1,366, 1,366, 1,366, 1,366, 1,366, 1,366, 1,366, 1,366, 1,366, 1,366, 1,366, 1,366
• Coverage Ratio - Default Stock: 10.22%, 20.06%, 26.85%, 34.80%, 13.43%, 12.38%, 13.61%, 27.00%, 26.85%, 26.85%, 26.85%, 31.35%, 30.33%, 31.35%, 30.33%, 31.35%, 30.33%, 31.35%, 30.33%

Adverse Scenario (Exposure and Risk Exposure)

• Impairment rate: 0.01%, 0.11%, 2.21%, 1.05%, 0.50%, 0.37%, 0.73%, 0.34%, 3.04%, 1.81%, 2.33%, 0.76%, 0.96%, 1.29%
• Stock of Provisions: 1, 12, 1,372, 1,598, 304, 42, 262, 108, 91, 967, 730, 237, 2,565, 2,979
• Coverage Ratio - Default Stock: 10.27%, 20.13%, 27.72%, 44.91%, 22.94%, 20.78%, 23.31%, 27.71%, 34.80%, 63.37%, 62.01%, 67.84%, 33.25%, 35.22%

Key Observations

• The CET1 ratio decreased significantly from 7.6% to 3.2% under the Adverse Scenario by 2016, indicating a severe impact on the bank's capital adequacy.
• In the Baseline Scenario, the CET1 ratio slightly increased to 7.7%, suggesting a more stable and less severe impact.
• The Common EU wide CET1 Threshold was 5.5% in the Adverse Scenario and 8.0% in the Baseline Scenario, highlighting the regulatory requirements for capital adequacy.
• Impairment losses increased in both scenarios, with a more pronounced rise under the Adverse Scenario.
• Trading book losses were minimal in the Baseline Scenario, while the Adverse Scenario showed a higher cumulative loss.
• Valuation losses due to sovereign shock were reported in the Adverse Scenario, reflecting the impact of external economic shocks on the bank's assets.
• The LTV (Loan-to-Value) ratio varied across different asset categories, with some categories showing higher risk exposure under adverse conditions.

Risk Exposure Breakdown

Baseline Scenario

Adverse Scenario