Swedbank meets the requirements in EBA’s capital exercise08-12-2011
The final results of the European Banking Authority’s (EBA) capital exercise shows that Swedbanks capitalisation is well above the minimum core tier 1 capital ratio of 9 per cent, Swedbank's core Tier 1 capital ratio calculated as of September 30 amounted to 13.35 per cent in the exercise.
The preliminary result from EBA (published October 27), which has now been adjusted, showed that Swedbank's core Tier 1 capital ratio was 8.7 per cent calculated as of June 30. The main difference between the final and preliminary results is derived from how risk-weighted assets are calculated. In addition, the figures are updated with developments in the third quarter of 2011.
The part of Swedbank’s share capital consisting of preference shares (corresponding to about SEK 8.8bn) was not included as core Tier 1 capital in EBA’s exercise. This means that the core Tier 1 capital EBA uses in its calculations is lower than the figure Swedbank normally reports.
Swedbank’s preference shares will be converted to ordinary shares at the latest during the second quarter of 2013.
“EBA's exercise shows that Swedbank is well capitalised and has a low exposure towards states with fiscal challenges,” said Johannes Rudbeck, Head of Investor Relations at Swedbank.