2014 EU-wide Stress Test Summary for IE - Permanent tsb plc.
Core Information
Bank Name: IE - Permanent tsb plc.
LEI Code: 635400DTNHVYGZODKQ93
Test Period: 2014 EU-wide Stress Test
Key Metrics
As of 31 December 2013 (Actual Figures)
Metric
Value (min EUR, %)
Operating profit before impairments
230
Impairment losses on financial and non-financial assets in the banking book
952
Common Equity Tier 1 capital
2,155
Total Risk Exposure
16,792
Common Equity Tier 1 ratio
12.8%
As of 31 December 2016 (Outcome of the Stress Test)
Metric
Value (min EUR, %)
3 yr cumulative operating profit before impairments
-882
3 yr cumulative impairment losses on financial and non-financial assets in the banking book
1,300
3 yr cumulative losses from the stress in the trading book
4
Valuation losses due to sovereign shock after tax and prudential filters
-1
Common Equity Tier 1 capital
182
Total Risk Exposure
18,852
Common Equity Tier 1 ratio
1.0%
Memorandum Items
Item
Value (min EUR)
Common EU wide CET1 Threshold (5.5%)
1,037
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
400
Of which: eligible instruments whose trigger is above CET1 capital ratio in the adverse scenario
400
Adverse Scenario
CET1 Threshold: 5.5%
CET1 Capital (2016): 182 min EUR
Total Risk Exposure (2016): 18,852 min EUR
CET1 Ratio (2016): 1.0%
Baseline Scenario
CET1 Threshold: 8.0%
CET1 Capital (2016): 1,563 min EUR
Total Risk Exposure (2016): 17,725 min EUR
CET1 Ratio (2016): 8.8%
Exposure Breakdown (as of 31 December 2013)
Category
LTV %
Exposure Values (F-IRB)
Exposure Values (A-IRB)
Exposure Values (STA)
Risk Exposure (F-IRB)
Risk Exposure (A-IRB)
Risk Exposure (STA)
Value Adjustments and Provisions (F-IRB)
Value Adjustments and Provisions (A-IRB)
Value Adjustments and Provisions (STA)
Central banks and central governments
-
0
0
0
12,920
0
0
0
0
0
Institutions
-
0
0
0
22
0
0
0
0
0
Corporates
-
638
1,337
3
1,120
0
0
3
2
0
Corporates - Of Which: Specialised Lending
-
0
0
0
0
0
0
0
0
0
Corporates - Of Which: SME
-
0
0
0
0
0
0
0
0
0
Retail
-
0
0
23,931
0
0
335
0
0
0
Retail - Secured on real estate property
109.2%
0
23,097
6,933
0
8,795
4,520
0
101
251
Retail - Secured on real estate property - Of Which: Specialised Lending
233.2%
0
116
139
0
127
64
0
0
0
Retail - Secured on real estate property - Of Which: SME
114.2%
0
17,047
6,553
0
127
64
0
0
0
Retail - Qualifying Revolving
-
0
650
42
0
125
51
0
4
39
Retail - Other Retail
-
0
184
35
0
125
17
0
44
51
Retail - Other Retail - Of Which: SME
-
0
14
5
0
13
4
0
0
0
Retail - Other Retail - Of Which: non-SME
-
0
170
30
0
112
13
0
44
51
Equity
-
0
0
0
0
0
0
0
0
0
Securitisation
-
206
0
0
127
0
0
0
0
0
Other non-credit obligation assets
-
0
17,997
6,770
0
6,909
4,221
0
104
652
TOTAL
-
2,632
23,931
13,118
2,051
8,795
4,520
135
717
335
Additional Notes
Securitisation and re-securitisations positions deducted from capital: Not included in RWA.
CRR/CRD4 Transitional Arrangements: Figures as of 31/12/2013 are computed as of 01/01/2014.
Summary of Key Findings
The Common Equity Tier 1 (CET1) ratio of IE - Permanent tsb plc. dropped significantly from 12.8% in 2013 to 1.0% in 2016 under the Adverse Scenario, indicating a severe stress impact.
Under the Baseline Scenario, the CET1 ratio decreased to 8.8% by 2016, showing a less severe but still negative impact on capital levels.
The 3-year cumulative operating profit before impairments was negative in both scenarios, with -882 min EUR under the Adverse Scenario and -81 min EUR under the Baseline Scenario.
Impairment losses increased significantly in both scenarios, with 1,300 min EUR under the Adverse Scenario and 550 min EUR under the Baseline Scenario.
Risk exposure increased in both scenarios, with 18,852 min EUR under the Adverse Scenario and 17,725 min EUR under the Baseline Scenario.
Securitisation and re-securitisations positions were deducted from capital and not included in Risk Weighted Assets (RWA).
The CET1 Threshold for the EU is 5.5% for the Adverse Scenario and 8.0% for the Baseline Scenario.
The bank's CET1 capital was 2,155 min EUR in 2013 and 182 min EUR under the Adverse Scenario, showing a significant capital erosion.
