Banco Bpm exceeds the capital requirements set by the ECB. For 2018, the Frankfurt institute had set for Bpm bank the following capital requirements to be met on a consolidated basis: 8,875% Common Equity Tier 1 ratio, according to the transitional criteria in force for 2018: 12,375% of the Total Capital ratio, according to the transitional criteria in force for 2018. This was communicated by the bank following the notification received from the ECB.
“As of September 30, 2017, the Banco Bpm Group largely exceeded these prudential requirements, recording respectively the following effective capital ratios: 11,01% Common Equity Tier 1 ratio, according to the transitional criteria in force for 2017: 13,86% Total Capital ratio, according to the transitional criteria in force for 2017” is written in the Banco Bpm note.
On the other hand, taking into account the significant extraordinary bancassurance and asset management transactions, the pro-forma values would rise respectively to: 12,58% of the Common Equity Tier 1 ratio, according to the transitory criteria in force (12,23% in a fully phased perspective); 15,59% of Total Capital ratio, according to the transitional criteria in force (14,89% in a fully phased perspective).
“It should also be noted that the Group's current ratios do not yet benefit from the positive impact expected from the extension of the adoption of the AIRB models to the portfolio of the former BPM. All the transitional requirements indicated above include the Pillar 2 capital requirement (P2R) equal to 2,50% (entirely in terms of CET 1 Capital, up by 10bp compared to the previously assigned requirement) and the capital conservation buffer equal to '1,875% (1,25% in 2017, up by 62,5bps due to the gradual application of the transitional regime envisaged for the entire banking system)”.
"It should also be recalled that, following the communication from the Bank of Italy of 30 November 2017, said Authority identified the Banco Bpm banking group as a systemically important institution (Other Systemically Important Institution, O-SII) authorized in Italy for 2018; in this regard, it should be noted that the O-SII reserve is zero for 2018, while Banco BPM is required to gradually reach a reserve equal to 0,25% with linear increases starting from 1 January 2019 to 1 January 2022” concludes the note.
Today in the mid-morning Banco Bpm stock stands on top of the Ftse Mib, gaining almost 4% at 2,7 euros per share.
