AIB Group plc - SREP

RNS Number : 6801Z
AIB Group PLC
26 January 2022
 

 

 

 

26 January 2022

AIB Group plc - SREP

 

 

Supervisory Review and Evaluation Process (SREP)

 

Following the Supervisory Review and Evaluation Process (SREP) performed by the ECB in 2021 and the re-introduction of the UK Countercyclical buffer in December 2022, the minimum requirement for the CET1 ratio for AIB Group plc (AIB) was set at 10.20% for FY 2022 (1) - see table below.  The Pillar 2 Requirement reduced by 25bps to 2.75% from 3.00%.

 

AIB continues to have a very strong capital base with a fully loaded CET1 at September 2021 of 16.6%.  The Group's reported capital ratios are materially in excess of minimum regulatory requirements and AIB continues to maintain a very significant buffer above maximum distributable amount (MDA) trigger levels.

 

AIB does not disclose Pillar 2 Guidance (P2G), however following the ECB's revised P2G methodology, AIB confirms it is in bucket 3 which has a P2G range of 1.00% - 2.75%.

 

The table below shows the total capital requirements of the Group and components based on an assumption of optimal usage of Tier 2 and AT1 instruments permitted under the Capital Requirements Regulation (CRR).

 

SREP Requirements

AIB SREP Requirement 2021

AIB SREP Requirement 2022

AIB SREP Requirement 2023

 

 

 

 

Pillar 1 CET1

4.50%

4.50%

4.50%

Pillar 2 Requirement (P2R) CET1 (2)

1.69%

1.55%

1.55%

Capital Conservation Buffer (CCB)

2.50%

2.50%

2.50%

Other Systemically Important Institutions Buffer (O-SII)

1.50%

1.50%

1.50%

Countercyclical buffer (CCyB) (3)

0.00%

0.15%

0.35%

Total CET 1 requirement

10.19%

10.20%

10.40%

AT1

2.06%

2.02%

2.02%

Tier 2

2.75%

2.69%

2.69%

Total Capital Requirement (1)

15.00%

14.90%

15.10%

(1)  Excludes Pillar 2 Guidance (P2G)

(2)  P2R of 2.75% of which 1.55% must be held in the form of CET1 assuming 52bps AT1 and 69bps Tier 2 to meet P2R requirement

(3)  Countercyclical buffer - re-introduction of the UK CCyB at 1% in December 2022, rising to 2% in 2023. It is estimated to equate to a Group requirement of c.0.15% in 2022 and c. 0.35% in 2023.

 

         

Figures presented may be subject to rounding

 

For further information, please contact:

Niamh Hore

Siobhain Walsh

Head of Investor Relations

Head of Debt Investor Relations

AIB Group

AIB Group

Dublin

Dublin

Tel: +353-1-6411817

Tel: +353-1-6411901

email: niamh.a.hore@aib.ie

email: siobhain.m.walsh@aib.ie

 

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