2017 EU-wide Transparency Exercise Summary
Core Content Overview
This document presents the results of the 2017 EU-wide Transparency Exercise for Landesbank Baden-Württemberg, including key financial metrics related to capital, leverage ratio, risk exposure amounts, and P&L (Profit and Loss) under the Standardised Approach for Credit Risk.
Key Financial Indicators
Own Funds (Transitional Period)
- As of 31/12/2016: 16,814 mln EUR
- As of 30/06/2017: 17,304 mln EUR
| Component |
As of 31/12/2016 |
As of 30/06/2017 |
COREP Code |
Regulation |
| CET1 Capital (net of deductions) |
12,033 |
12,101 |
C 0.00 (020,010) |
Article 50 of CRR |
| Capital instruments eligible as CET1 |
11,724 |
11,724 |
C 0.00 (030,010) |
Articles 26(1) (a) and (b), 27 to 29, 36(1) (f), 42 of CRR |
| Retained earnings |
751 |
623 |
C 0.00 (030,010) |
Articles 26(1) (c), 26(2), 36(1) (a) and (f) of CRR |
| Accumulated other comprehensive income |
731 |
662 |
C 0.00 (0180,010) |
Articles 4(100), 26(1) (d), 36(1) (f) of CRR |
| Additional Tier 1 Capital (net of deductions) |
789 |
941 |
C 0.00 (0530,010) |
Article 61 of CRR |
| Tier 1 Capital (net of deductions) |
12,822 |
13,042 |
C 0.00 (015,010) |
Article 25 of CRR |
| Tier 2 Capital (net of deductions) |
3,992 |
4,262 |
C 0.00 (0750,010) |
Article 71 of CRR |
Capital Ratios (Transitional Period)
- Common Equity Tier 1 (CET1) Ratio: 15.55% (31/12/2016) → 15.94% (30/06/2017)
- Tier 1 Ratio: 16.56% (31/12/2016) → 17.18% (30/06/2017)
- Total Capital Ratio: 21.72% (31/12/2016) → 22.79% (30/06/2017)
Leverage Ratio
- Using Transitional Definition of Tier 1 Capital: 5.0% (31/12/2016) → 4.7% (30/06/2017)
- Using Fully Phased-in Definition of Tier 1 Capital: 4.6% (31/12/2016) → 4.3% (30/06/2017)
Risk Exposure Amounts
| Risk Type |
As of 31/12/2016 |
As of 30/06/2017 |
| Credit risk |
77,406 mln EUR |
75,931 mln EUR |
| Securitisation and re-securitisations in the banking book |
1,115 mln EUR |
770 mln EUR |
| Contributions to the default fund of a CCP |
224 mln EUR |
191 mln EUR |
| Other credit risk |
61,048 mln EUR |
62,258 mln EUR |
| Market risk (foreign exchange and commodities) |
8,425 mln EUR |
6,354 mln EUR |
| Total Risk Exposure Amount |
77,406 mln EUR |
75,931 mln EUR |
P&L Summary (Net Profit or Loss)
| Item |
As of 31/12/2016 |
As of 30/06/2017 |
| Interest income |
12,488 mln EUR |
6,276 mln EUR |
| Interest expenses |
10,884 mln EUR |
5,484 mln EUR |
| Net Fee and commission income |
506 mln EUR |
258 mln EUR |
| Gains or losses on financial assets and liabilities |
91 mln EUR |
52 mln EUR |
| Gains or losses on financial assets held for trading |
190 mln EUR |
71 mln EUR |
| Gains or losses on financial assets designated at fair value through profit or loss |
-9 mln EUR |
63 mln EUR |
| Gains or losses from hedge accounting |
-20 mln EUR |
11 mln EUR |
| Exchange differences |
35 mln EUR |
-21 mln EUR |
| Net other operating income/(expenses) |
-142 mln EUR |
-58 mln EUR |
| Total Operating Income, Net |
2,267 mln EUR |
1,170 mln EUR |
| Profit or Loss Before Tax from Continuing Operations |
125 mln EUR |
267 mln EUR |
| Profit or Loss After Tax from Continuing Operations |
7 mln EUR |
191 mln EUR |
| Profit or Loss for the Year |
7 mln EUR |
191 mln EUR |
Market Risk (Standardised Approach)
| Risk Type |
As of 31/12/2016 |
As of 30/06/2017 |
| Total Risk Exposure Amount |
2,906 mln EUR |
1,948 mln EUR |
| VaR (Memorandum item) |
108 mln EUR |
5,262 mln EUR |
| Stressed VaR (Memorandum item) |
24 mln EUR |
4,002 mln EUR |
| Incremental Default and Migration Risk Capital Charge |
313 mln EUR |
74 mln EUR |
| All Price Risks Capital Charge for CTP |
12,706 mln EUR |
13,082 mln EUR |
Credit Risk - Standardised Approach
Germany
| Risk Type |
As of 31/12/2016 |
As of 30/06/2017 |
| Total Risk Exposure Amount |
70,003 mln EUR |
70,326 mln EUR |
| Value adjustments and provisions |
94 mln EUR |
68 mln EUR |
United Kingdom
| Risk Type |
As of 31/12/2016 |
As of 30/06/2017 |
| Total Risk Exposure Amount |
3 mln EUR |
5 mln EUR |
| Value adjustments and provisions |
94 mln EUR |
68 mln EUR |
United States
| Risk Type |
As of 31/12/2016 |
As of 30/06/2017 |
| Total Risk Exposure Amount |
3 mln EUR |
5 mln EUR |
| Value adjustments and provisions |
94 mln EUR |
68 mln EUR |
Key Information and Notes
- Own Funds: The bank's own funds increased from 16,814 mln EUR to 17,304 mln EUR during the transitional period.
- Capital Ratios: All capital ratios improved during the reporting period, indicating stronger capital adequacy.
- Leverage Ratio: The leverage ratio decreased slightly, showing a reduction in risk exposure relative to capital.
- Risk Exposure Amounts: Credit risk exposure decreased, while market risk exposure also declined.
- P&L: Net operating income decreased significantly, and profit after tax increased.
- Market Risk Components: VaR and stressed VaR were reported, as well as capital charges for different risk types.
- Credit Risk Components: Exposures were categorized into different sectors and risk types, with value adjustments and provisions reported for each.
Regulatory Context
- The data is aligned with the Capital Requirements Regulation (CRR).
- The Standardised Approach is used for calculating credit risk exposure and capital charges.
- COREP codes are used to reference specific regulatory requirements and calculations.
Conclusion
The document provides a comprehensive overview of Landesbank Baden-Württemberg's capital structure, leverage ratio, risk exposure amounts, and P&L under the 2017 EU-wide Transparency Exercise. The bank's capital ratios improved during the period, and risk exposure decreased across both credit and market risk categories. The data reflects the application of the Standardised Approach for credit risk, with detailed breakdowns of exposure by sector and risk type.
