2014 EU-wide Stress Test Summary for IT - Veneto Banca S.C.P.A.
Core Information
Bank Name: IT - Veneto Banca S.C.P.A.
LEI Code: 549300W9STRUCJ2DLU64
Summary Adverse Scenario (as of 31 December 2016)
Metric
Value (min EUR, %)
3 yr cumulative operating profit before impairments
154
3 yr cumulative impairment losses on financial and non-financial assets in the banking book
1,079
3 yr cumulative losses from the stress in the trading book
20
Valuation losses due to sovereign shock after tax and prudential filters
81
Common Equity Tier 1 capital
706
Total Risk Exposure
25,826
Common Equity Tier 1 ratio, %
2.7%
Summary Baseline Scenario (as of 31 December 2016)
Metric
Value (min EUR, %)
3 yr cumulative operating profit before impairments
660
3 yr cumulative impairment losses on financial and non-financial assets in the banking book
498
3 yr cumulative losses from the stress in the trading book
13
Common Equity Tier 1 capital
1,563
Total Risk Exposure
26,623
Common Equity Tier 1 ratio, %
5.9%
Memorandum Items
Adverse Scenario
Item
Value (min EUR)
Common EU wide CET1 Threshold (5.5%)
1,420
Total amount of instruments with mandatory conversion into ordinary shares upon a fixed date in the 2014 -2016 period (cumulative conversions)
0
Total Additional Tier 1 and Tier 2 instruments eligible as regulatory capital under the CRR provisions that convert into Common Equity Tier 1 or are written down upon a trigger event
0
Of which: eligible instruments whose trigger is above CET1 capital ratio in the adverse scenario
0
Baseline Scenario
Item
Value (min EUR)
Common EU wide CET1 Threshold (8.0%)
2,130
Exposure and Risk Breakdown (as of 31 December 2013)
LTV % and Exposure Values
Category
LTV %
F-IRB (Non-defaulted)
F-IRB (Defaulted)
A-IRB (Non-defaulted)
A-IRB (Defaulted)
STA (Non-defaulted)
STA (Defaulted)
Central banks and central governments
-
0
0
0
0
4,731
0
Institutions
-
0
0
0
0
2,644
19
Corporates
-
0
0
0
0
8,929
1,083
Corporates - Of Which: SME
-
0
0
0
0
5,623
777
Retail
-
0
0
0
0
12,426
2,317
Retail - Secured on real estate property
60.9%
0
0
0
0
7,115
727
Retail - Secured on real estate property - Of Which: SME
52.5%
0
0
0
0
1,386
269
Retail - Secured on real estate property - Of Which: non-SME
63.1%
0
0
0
0
5,729
458
Retail - Qualifying Revolving
-
0
0
0
0
134
21
Retail - Other Retail
-
0
0
0
0
5,177
1,569
Retail - Other Retail - Of Which: SME
-
0
0
0
0
3,661
1,308
Retail - Other Retail - Of Which: non-SME
-
0
0
0
0
1,517
261
Equity
-
0
0
0
0
628
2
Securitisation
-
0
0
0
0
385
0
Other non-credit obligation assets
-
0
0
0
0
1,395
0
TOTAL
-
0
0
0
0
31,140
3,421
Risk Exposure Amounts
Category
F-IRB (Non-defaulted)
F-IRB (Defaulted)
A-IRB (Non-defaulted)
A-IRB (Defaulted)
STA (Non-defaulted)
STA (Defaulted)
Central banks and central governments
0
0
0
0
4,731
0
Institutions
0
0
0
0
2,644
19
Corporates
0
0
0
0
8,929
1,083
Corporates - Of Which: SME
0
0
0
0
5,623
777
Retail
0
0
0
0
12,426
2,317
Retail - Secured on real estate property
0
0
0
0
7,115
727
Retail - Secured on real estate property - Of Which: SME
0
0
0
0
1,386
269
Retail - Secured on real estate property - Of Which: non-SME
0
0
0
0
5,729
458
Retail - Qualifying Revolving
0
0
0
0
134
21
Retail - Other Retail
0
0
0
0
5,177
1,569
Retail - Other Retail - Of Which: SME
0
0
0
0
3,661
1,308
Retail - Other Retail - Of Which: non-SME
0
0
0
0
1,517
261
Equity
0
0
0
0
628
2
Securitisation
0
0
0
0
385
0
Other non-credit obligation assets
0
0
0
0
1,395
0
TOTAL
0
0
0
0
29,576
3,130
Value Adjustments and Provisions
Category
F-IRB (Non-defaulted)
F-IRB (Defaulted)
A-IRB (Non-defaulted)
A-IRB (Defaulted)
STA (Non-defaulted)
STA (Defaulted)
Central banks and central governments
0
0
0
0
47
0
Institutions
0
0
0
0
957
21
Corporates
0
0
0
0
8,197
1,352
Corporates - Of Which: SME
0
0
0
0
5,071
990
Retail
0
0
0
0
6,585
2,849
Retail - Secured on real estate property
0
0
0
0
2,650
702
Retail - Secured on real estate property - Of Which: SME
0
0
0
0
574
258
Retail - Secured on real estate property - Of Which: non-SME
0
0
0
0
1,234
350
Retail - Qualifying Revolving
0
0
0
0
103
29
Retail - Other Retail
0
0
0
0
3,822
2,118
Retail - Other Retail - Of Which: SME
0
0
0
0
2,598
1,769
Retail - Other Retail - Of Which: non-SME
0
0
0
0
1,234
350
Equity
0
0
0
0
605
3
Securitisation
0
0
0
0
355
0
Other non-credit obligation assets
0
0
0
0
1,006
0
TOTAL
0
0
0
0
17,751
4,225
Value Adjustments and Provisions (Deducted from capital)
Category
Amount (min EUR)
Securitisation and re-securitisations positions deducted from capital
0
Impairment Rates and Provisions
Baseline Scenario
Year
Impairment Rate
Stock of Provisions
Coverage Ratio - Default Stock
2014
0.11%
1
40.00%
2015
0.11%
3
40.00%
2016
0.11%
4
40.00%
Adverse Scenario
Year
Impairment Rate
Stock of Provisions
Coverage Ratio - Default Stock
2014
0.82%
9
40.00%
2015
0.82%
19
40.00%
2016
0.82%
28
40.00%
Key Observations
Capital Adequacy: In the adverse scenario, the Common Equity Tier 1 ratio drops from 5.7% (as of 31/12/2013) to 2.7% (as of 31/12/2016), indicating a significant capital erosion.
Impairment Losses: The adverse scenario leads to higher impairment losses compared to the baseline scenario, with a cumulative loss of 1,079 million EUR versus 498 million EUR.
Operating Profit: The adverse scenario results in a lower operating profit before impairments (154 million EUR) compared to the baseline scenario (660 million EUR).
Risk Exposure: Total risk exposure increases in the adverse scenario (25,826 million EUR) compared to the baseline scenario (26,623 million EUR), but the CET1 capital remains relatively stable at 706 million EUR in the adverse scenario.
Valuation Losses: Valuation losses due to sovereign shock in the adverse scenario are 81 million EUR, which is not included in the baseline scenario.
Provisions and Coverage Ratio: In the adverse scenario, the coverage ratio of default stock remains at 40.00% for all years, indicating consistent provisioning levels despite higher impairment rates.
