UniCredit was subject to the 2021 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Single Supervisory Mechanism (SSM), the European Central Bank (ECB), and the European Systemic Risk Board (ESRB).
UniCredit notes the announcements made today by the EBA and the ECB on the EU-wide stress test and fully acknowledges the outcomes of this exercise.
The 2021 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's 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 (2021-2023). The stress test has been carried out applying a static balance sheet assumption as of December 2020 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:
- 2023 fully loaded CET1r at 15.66% corresponding to 52bps higher than fully loaded CET1r as of December 2020
- 2023 transitional CET1r at 15.80% corresponding to 16bps lower than transitional CET1r as of December 2020
- adverse scenario:
- 2023 fully loaded CET1r at 9.22% corresponding to 592bps lower than fully loaded CET1r as of December 2020
- 2023 transitional CET1r at 9.59%, corresponding to 637bps lower than transitional CET1r as of December 2020.
As a reminder, UniCredit's 2Q 2021 fully loaded CET1r is at 15.50% (transitional CET1r at 16.11%).
Milan, July 30, 2021
For more details please refer to EBA website (http://www.eba.europa.eu)
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Investor Relations: e-mail: InvestorRelations@unicredit.eu