Bankinter widely exceeds its ECB minimum capital requirements

Bankinter comfortably exceeds the European Central Bank’s minimum capital requirements for 2017 following the results of its supervisory review and evaluation (SREP) process.

According to the Governing Council of the ECB, Bankinter would be required to maintain a minimum CET1 (Common Equity Tier 1) phased-in capital ratio of 6.5%. This ratio includes the minimum regulatory capital ratio of 4.5% under Pillar 1 (which sets the minimum regulatory capital level), a Pillar 2 component of 0.75% and a capital conservation buffer of 1.25%. Therefore, the required ratio for Bankinter is the lowest set for Spanish banks by the ECB.

By late September, Bankinter’s CET 1 capital ratio stood at 11.89%, almost six points higher than the ratio required by the European banking supervisor.

As regards total capital levels, the ECB is requiring a minimum ratio of 10.0%. Nonetheless, as of 30 September, Bankinter registered a total capital ratio of 12.88%.

By meeting these required capital levels with such a wide margin, Bankinter will be able to distribute dividends, variable remuneration and coupons to holders of Additional Tier 1 (AT1) instruments without any prior restrictions. Furthermore, it reveals the bank’s strong position in terms of capital adequacy and quality of assets, above its peers in Spain and Europe.

Bankinter welcomes the publication of these ratios as an act of transparency for banks in Spain and Europe. Furthermore, despite having exceeded capital requirements, Bankinter remains firmly committed to its shareholders as it continues in its efforts to enhance its capital levels. Just this year, the bank closed out the third quarter with a fully loaded CET 1 capital ratio (the required ratio for 2019 when the Basel III reforms take effect) of 11.5%.