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Summary of Landesbank Baden-Württemberg's 2018 EU-wide Transparency Exercise

Core Content Overview

The document provides detailed financial and regulatory data for Landesbank Baden-Württemberg as part of the 2018 EU-wide Transparency Exercise. It includes information on capital structure, capital ratios, risk exposure, and profit and loss (P&L), aligned with the regulatory requirements of the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD). The data is presented for two reporting periods: As of 31/12/2017 and As of 30/06/2018.

Capital Structure and Ratios

Own Funds (Transitional Period)

• Total Own Funds: Increased from 16,869 mln EUR (31/12/2017) to 17,121 mln EUR (30/06/2018).
• CET1 Capital:
  • Net CET1 Capital: Decreased from 11,955 mln EUR to 11,864 mln EUR.
  • CET1 Fully Loaded: Decreased from 11,866 mln EUR to 11,807 mln EUR.
• Tier 1 Capital: Decreased slightly from 12,795 mln EUR to 12,784 mln EUR.
• Tier 2 Capital: Increased from 4,075 mln EUR to 4,336 mln EUR.
• Capital Ratios:
  • CET1 Ratio (Fully Loaded): Decreased from 15.67% to 14.93%.
  • Tier 1 Ratio: Decreased from 16.90% to 16.16%.
  • Total Capital Ratio: Decreased from 22.28% to 21.64%.
  • Leverage Ratio:
    • Using Transitional Tier 1 Definition: Decreased from 5.0% to 4.6%.
    • Using Fully Phased-in Tier 1 Definition: Decreased from 4.6% to 4.3%.

Transitional Adjustments

• CET1 Transitional Adjustments: Increased from 89 mln EUR to 57 mln EUR.
• Additional Tier 1 Transitional Adjustments: Increased from 840 mln EUR to 920 mln EUR.

Risk Exposure Amounts

• Total Risk Exposure Amount: Increased from 75,728 mln EUR (31/12/2017) to 79,100 mln EUR (30/06/2018).
• Credit Risk Exposure:
  • Original Exposure: 63,684 mln EUR (31/12/2017) to 66,333 mln EUR (30/06/2018).
  • Exposure Value: 63,684 mln EUR (31/12/2017) to 66,333 mln EUR (30/06/2018).
  • Risk Exposure Amount: 13,603 mln EUR (31/12/2017) to 10,883 mln EUR (30/06/2018).
• Market Risk Exposure:
  • Traded Debt Instruments: Increased from 1,226 mln EUR to 1,255 mln EUR.
  • Equities: Increased from 83 mln EUR to 227 mln EUR.
  • Foreign Exchange Risk: Increased from 387 mln EUR to 459 mln EUR.
  • Commodities Risk: Increased from 40 mln EUR to 52 mln EUR.
  • Total Market Risk Exposure: Increased from 1,737 mln EUR to 1,993 mln EUR.

Profit and Loss (P&L) Overview

• Total Operating Income, Net: Decreased from 2,291 mln EUR (31/12/2017) to 1,152 mln EUR (30/06/2018).
• Net Fee and Commission Income: Decreased from 510 mln EUR to 249 mln EUR.
• Gains or (-) Losses on Financial Assets and Liabilities:
  • At Fair Value Through Profit or Loss: Decreased from 87 mln EUR to 70 mln EUR.
  • On Derecognition: Decreased from 54 mln EUR to 12 mln EUR.
  • From Hedge Accounting: Decreased from 4 mln EUR to -11 mln EUR.
• Operating Expenses:
  • Administrative Expenses: Decreased from 1,669 mln EUR to 804 mln EUR.
  • Depreciation: Decreased from 105 mln EUR to 50 mln EUR.
  • Provisions or Reversals: Decreased from 114 mln EUR to 1 mln EUR.
• Profit or Loss for the Year: Decreased from 389 mln EUR to 196 mln EUR.

Key Regulatory References

• CET1 Capital: Governed by Articles 26(1) points (a) and (b), 27 to 29, 36(1) point (f) and 42 of CRR.
• Tier 1 Capital: Based on Article 25 of CRR.
• Tier 2 Capital: Governed by Article 71 of CRR.
• Leverage Ratio: Based on Article 429 of CRR and Delegated Regulation (EU) 2015/62.
• Risk Exposure Amounts: Covered under Articles 8(3), 95, 96 and 98 of CRR.

Notes and Clarifications

• The fully loaded CET1 ratio is an estimate based on supervisory reporting and may differ from the figures disclosed by the bank in Pillar 3.
• Original Exposure is reported before credit conversion factors or mitigation techniques are applied.
• Value adjustments and provisions are included in the calculation of risk exposure amounts, but securitisation provisions and additional valuation adjustments (AVAs) are excluded.
• Other risk exposure amounts include adjustments due to internal model updates and may be omitted in 2018.
• IFRS 9 transitional arrangements are referenced in several items, but no adjustments were reported for the period.

Conclusion

The 2018 EU-wide Transparency Exercise highlights a decline in capital ratios and operating income, alongside an increase in total risk exposure. These figures reflect the bank's capital structure and risk profile under the transitional period defined by the CRR. The data is structured for regulatory transparency and compliance, with clear references to applicable EU regulations.