EBA欧洲银行-IT_F1T87K3OQ2OV1UORLH26_16页_3mb

2014 EU-wide Stress Test Summary for IT - Banca Carige S.P.A. - Cassa di Risparmio di Genova e Imperia

Core Information

• Bank Name: IT - Banca Carige S.P.A. - Cassa di Risparmio di Genova e Imperia
• LEI Code: F1T87K3OQ2OV1UORLH26
• Stress Test Period: 2014 EU-wide Stress Test
• Reporting Date: 31 December 2013
• Test Outcome Date: 31 December 2016

Key Financial Metrics

Actual Figures (as of 31 December 2013)

• Operating profit before impairments: 208 million EUR
• Impairment losses on financial and non-financial assets in the banking book: 3,141 million EUR
• Common Equity Tier 1 (CET1) capital: 898 million EUR
• Total Risk Exposure: 22,989 million EUR
• CET1 ratio: 3.9%

Baseline Scenario (as of 31 December 2016)

• 3-year cumulative operating profit before impairments: 492 million EUR
• 3-year cumulative impairment losses on financial and non-financial assets in the banking book: 959 million EUR
• 3-year cumulative losses from the stress in the trading book: 31 million EUR
• CET1 capital: 547 million EUR
• Total Risk Exposure: 23,346 million EUR
• CET1 ratio: 2.3%

Adverse Scenario (as of 31 December 2016)

• 3-year cumulative operating profit before impairments: 167 million EUR
• 3-year cumulative impairment losses on financial and non-financial assets in the banking book: 1,922 million EUR
• 3-year cumulative losses from the stress in the trading book: 66 million EUR
• Valuation losses due to sovereign shock after tax and prudential filters: 97 million EUR
• CET1 capital: -551 million EUR
• Total Risk Exposure: 23,337 million EUR
• CET1 ratio: -2.4%

Memorandum Items

Common EU-wide CET1 Threshold

• Baseline Scenario: 1,868 million EUR (8.0%)
• Adverse Scenario: 1,284 million EUR (5.5%)

Mandatory Conversion of Instruments

• Baseline Scenario: 0 million EUR
• Adverse Scenario: 0 million EUR

Additional Tier 1 and Tier 2 Instruments

• Baseline Scenario: 0 million EUR
• Adverse Scenario: 0 million EUR

Risk Exposure and Value Adjustments

Baseline Scenario (as of 31 December 2013)

Adverse Scenario (as of 31 December 2013)

Summary of Key Observations

• CET1 Capital: In the baseline scenario, CET1 capital increased from 898 million EUR to 547 million EUR, while in the adverse scenario, it decreased to -551 million EUR, indicating a significant capital erosion under adverse conditions.
• CET1 Ratio: The CET1 ratio dropped from 3.9% to 2.3% in the baseline scenario and further to -2.4% in the adverse scenario, showing a decline in capital adequacy.
• Impairment Losses: Under the baseline scenario, impairment losses on financial and non-financial assets in the banking book decreased over time, whereas in the adverse scenario, they increased significantly, affecting the bank's profitability.
• Risk Exposure: The total risk exposure increased slightly in both scenarios, with a more pronounced effect in the adverse scenario.
• Sovereign Shock: The adverse scenario included valuation losses due to sovereign shock, which negatively impacted the CET1 ratio.
• Value Adjustments and Provisions: The value adjustments and provisions increased in the adverse scenario, contributing to the decline in CET1 capital.

Conclusion

The 2014 EU-wide Stress Test highlights the vulnerability of Banca Carige S.P.A. under adverse conditions. While the baseline scenario showed a more stable performance with some recovery in CET1 capital, the adverse scenario revealed a significant deterioration in financial health, with a negative CET1 capital and a severely reduced CET1 ratio. The test underscores the importance of robust risk management and capital planning in the banking sector.