Swedbank’s capital position further strengthened in EBA’s capital exercise03-10-2012
On the 3rd of October the European Banking Authority (EBA) published their final report on European banks’ implementation of capital plans following the capital exercise conducted during 2011.
This was a follow-up on the report that EBA published on the 8th of December 2011 which showed that Swedbank’s capitalisation was 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.
Swedbank’s core tier 1 ratio capital ratio has since strengthened further and was as of 30th of June 2012 15.0 percent in the exercise.
The part of Swedbank’s share capital consisting of preference shares (corresponding to about SEK 8.7bn) 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 during the first 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.