UniCredit was subject to the 2018 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Single Supervisory Mechanism, the European Central Bank (ECB), and the European Systemic Risk Board (ESRB).
UniCredit notes the announcements made today by the EBA on the EU-wide stress test and fully acknowledges the outcomes of this exercise.
The 2018 EU-wide stress test does not contain a pass fail threshold and instead is designed to be used as an important source of information for the purposes of the SREP. The results will assist competent authorities in assessing UniCredit ability to meet applicable prudential requirements under stressed scenarios.
The adverse stress test scenario was set by the ECB/ESRB and covers a three-year time horizon (2018-2020). The stress test has been carried out applying a static balance sheet assumption as at December 2017, and therefore does not take into account future business strategies and management actions. It is not a forecast of UniCredit profits.
UniCredit's results are summarised below:
- baseline scenario: 2020 CET1 ratio at 13.76%, corresponding to 96bps higher than CET1 ratio transitional (IFRS9-restated) as of Dec-2017,
- adverse scenario: 2020 CET1 ratio at 9.34%, corresponding to 346bps lower than CET1 ratio transitional (IFRS9-restated) as of Dec-2017.
As a reminder, UniCredit's 3Q18 results will be released on November 8, 2018.
Milan, November 2, 2018
For more details please refer to EBA website (http://www.eba.europa.eu)
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