2014 EU-wide Stress Test Summary for IKB Deutsche Industriebank AG
Core Information
- Bank Name: IKB Deutsche Industriebank AG (DE)
- LEI Code: PWEFG14QWWESISQ84C69
- Test Period: 2014 EU-wide Stress Test
- Reporting Date: 31 December 2013
Key Metrics Overview
Actual Figures as of 31 December 2013
- Operating profit before impairments: 347 mln EUR
- Impairment losses on financial and non-financial assets in the banking book: 89 mln EUR
- Common Equity Tier 1 (CET1) capital: 1,295 mln EUR
- Total Risk Exposure: 14,316 mln EUR
- CET1 ratio: 9.0%
Outcome of the Adverse Scenario as of 31 December 2016
- 3-year cumulative operating profit before impairments: 22 mln EUR
- 3-year cumulative impairment losses on financial and non-financial assets in the banking book: 431 mln EUR
- 3-year cumulative losses from the stress in the trading book: 9 mln EUR
- Valuation losses due to sovereign shock after tax and prudential filters: 0 mln EUR
- CET1 capital: 922 mln EUR
- Total Risk Exposure: 14,129 mln EUR
- CET1 ratio: 6.5%
Outcome of the Baseline Scenario as of 31 December 2016
- 3-year cumulative operating profit before impairments: 235 mln EUR
- 3-year cumulative impairment losses on financial and non-financial assets in the banking book: 242 mln EUR
- 3-year cumulative losses from the stress in the trading book: 2 mln EUR
- CET1 capital: 1,236 mln EUR
- Total Risk Exposure: 14,019 mln EUR
- CET1 ratio: 8.8%
Memorandum Items
Adverse Scenario
- Common EU-wide CET1 Threshold (5.5%): 777 mln EUR
- Total Additional Tier 1 and Tier 2 instruments eligible as regulatory capital: 0 mln EUR
- Of which: eligible instruments whose trigger is above CET1 capital ratio in the adverse scenario: 0 mln EUR
Baseline Scenario
- Common EU-wide CET1 Threshold (8.0%): 1,122 mln EUR
Exposure and Risk Analysis
Baseline Scenario (as of 31 December 2014 - 2016)
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.07% |
4 mln EUR |
40.02% |
| 2015 |
0.07% |
7 mln EUR |
39.97% |
| 2016 |
0.07% |
9 mln EUR |
39.96% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.04% |
5 mln EUR |
42.84% |
| 2015 |
0.05% |
9 mln EUR |
44.44% |
| 2016 |
0.06% |
14 mln EUR |
45.84% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.63% |
592 mln EUR |
36.97% |
| 2015 |
0.49% |
662 mln EUR |
36.90% |
| 2016 |
0.44% |
721 mln EUR |
36.41% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.53% |
13 mln EUR |
18.87% |
| 2015 |
0.27% |
15 mln EUR |
16.69% |
| 2016 |
0.16% |
17 mln EUR |
14.84% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.51% |
4 mln EUR |
11.30% |
| 2015 |
0.22% |
5 mln EUR |
10.38% |
| 2016 |
0.08% |
5 mln EUR |
8.87% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.50% |
13 mln EUR |
11.05% |
| 2015 |
0.22% |
15 mln EUR |
10.20% |
| 2016 |
0.08% |
17 mln EUR |
8.73% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.34% |
374 mln EUR |
33.35% |
| 2015 |
0.26% |
417 mln EUR |
33.02% |
| 2016 |
0.23% |
452 mln EUR |
32.22% |
Adverse Scenario (as of 31 December 2014 - 2016)
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.83% |
33 mln EUR |
59.92% |
| 2015 |
0.85% |
65 mln EUR |
59.88% |
| 2016 |
0.86% |
97 mln EUR |
59.92% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.04% |
6 mln EUR |
44.29% |
| 2015 |
0.06% |
10 mln EUR |
48.16% |
| 2016 |
0.08% |
17 mln EUR |
51.60% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.79% |
612 mln EUR |
37.03% |
| 2015 |
0.69% |
717 mln EUR |
38.21% |
| 2016 |
0.62% |
806 mln EUR |
38.91% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.80% |
5 mln EUR |
19.73% |
| 2015 |
0.59% |
9 mln EUR |
21.26% |
| 2016 |
0.50% |
12 mln EUR |
22.17% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.53% |
12 mln EUR |
17.75% |
| 2015 |
0.27% |
14 mln EUR |
16.69% |
| 2016 |
0.16% |
16 mln EUR |
14.84% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.22% |
1 mln EUR |
78.53% |
| 2015 |
0.14% |
1 mln EUR |
73.32% |
| 2016 |
0.08% |
1 mln EUR |
68.73% |
| Year |
Impairment Rate |
Stock of Provisions |
Coverage Ratio - Default Stock |
| 2014 |
0.57% |
619 mln EUR |
36.33% |
| 2015 |
0.27% |
698 mln EUR |
36.05% |
| 2016 |
0.25% |
767 mln EUR |
35.46% |
Exposure Breakdown (as of 31 December 2013)
| Asset Type |
Exposure Values (F-IRB) |
Exposure Values (A-IRB) |
Exposure Values (STA) |
Risk Exposure Amounts (F-IRB) |
Risk Exposure Amounts (A-IRB) |
Risk Exposure Amounts (STA) |
Value Adjustments and Provisions (F-IRB) |
Value Adjustments and Provisions (A-IRB) |
Value Adjustments and Provisions (STA) |
| Non-defaulted |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Defaulted |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Corporates |
0 |
0 |
0 |
734 mln EUR |
709 mln EUR |
0 |
6 mln EUR |
8 mln EUR |
15 mln EUR |
| SME |
0 |
0 |
0 |
540 mln EUR |
540 mln EUR |
0 |
6 mln EUR |
6 mln EUR |
0 |
| Retail |
0 |
0 |
0 |
419 mln EUR |
240 mln EUR |
0 |
7 mln EUR |
10 mln EUR |
1 mln EUR |
| Other Retail |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Equity |
0 |
0 |
0 |
25 mln EUR |
27 mln EUR |
0 |
1 mln EUR |
1 mln EUR |
7 mln EUR |
| Securitisation |
0 |
0 |
0 |
241 mln EUR |
246 mln EUR |
0 |
42 mln EUR |
42 mln EUR |
0 |
| Other non-credit obligation assets |
0 |
0 |
0 |
316 mln EUR |
601 mln EUR |
0 |
3 mln EUR |
3 mln EUR |
0 |
Total Risk Exposure: 13,309 mln EUR
Securitisation and re-securitisations positions deducted from capital: 0 mln EUR
Summary of Key Observations
- The bank's CET1 capital decreased from 1,295 mln EUR in 2013 to 922 mln EUR in the adverse scenario by 2016, indicating a significant impact of the adverse scenario on capital levels.
- In the baseline scenario, CET1 capital remained at 1,236 mln EUR, slightly lower than the initial 1,295 mln EUR, but higher than the CET1 in the adverse scenario.
- The CET1 ratio dropped from 9.0% in 2013 to 6.5% in the adverse scenario by 2016, which is below the EU-wide threshold of 5.5%.
- The baseline CET1 ratio was 8.8% in 2016, which is above the 8.0% threshold.
- Impairment losses increased significantly in the adverse scenario compared to the baseline, particularly in the banking book.
- Risk exposure slightly decreased in the adverse scenario from 14,316 mln EUR in 2013 to 14,129 mln EUR in 2016, but remained relatively stable in the baseline scenario.
- Value adjustments and provisions increased in the adverse scenario, reflecting higher risk-related losses and provisions.
