Bankinter‘s capital adequacy levels well above minimum required by European Central Bank
The ECB maintains the same capital adequacy requirements in terms of fully loaded CET1 capital.
The minimum required of Bankinter is the lowest among Spanish banks to date. It was also the lowest minimum requirement in the financial system last year.
According to the European Central Bank’s recent supervisory review and evaluation process (SREP), Bankinter’s capital adequacy levels are once again well above the EU supervisor’s minimum capital requirements set for 2018.
The ECB’s governing council notified Bankinter that it will not change its prudential requirements in terms of fully-loaded CET1 (Common Equity Tier 1) capital. These requirements attest to the bank’s full compliance with the capital adequacy regulations known as Basel III, which will take effect in 2019.
In terms of phased-in capital, the ECB’s requirement for Bankinter Group in 2018 is to maintain a ratio of 7.125%, with a Total Capital ratio of 10.625%. Bankinter’s capital ratio sits comfortably above this minimum, especially since it closed out September with a phased-in CET1 ratio of 11.82% and a Total Capital ratio of14.38%.
As the entry into force of the capital adequacy regulations approaches, Bankinter’s phased-in CET1 capital ratio moves closer year on year to its required fully-loaded CET1 level. The composition of Bankinter’s required ratio is as follows: Pillar 1 capital of 4.5% (the minimum threshold); Pillar 2 capital of 0.75% and a capital conservation buffer of 1.875%.
This required minimum level is the lowest set by the European Central Bank for Spanish banks thus far. It was also the lowest in the Spanish banking system last year.
With its capital levels well above ECB requirements, Bankinter will not have limitations on decisions regarding the payment of dividends, variable remuneration or coupons for Additional Tier 1 (AT1) instruments. Furthermore, this demonstrates the bank’s solid solvency and quality of assets, outperforming its peers in Spain and Europe.
Bankinter remains firm in its commitment to strengthening its capital while it continues to be one of the most solvent banks in the Spanish financial system.
