REG - Komercni Banka - Capital Ratio Requirement

Komercni Banka asAnnouncement

20/12/2022 07:00

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RNS Number : 2370K  Komercni Banka  19 December 2022

Komercni banka, a.s. http://www.kb.cz/en (http://www.kb.cz/en)

Prague 1, Na Prikope 33, building identification number 969, Post Code 114 07

Identification No.: 45 31 70 54

LEI Code: IYKCAVNFR8QGF00HV840

incorporated in the Commercial Register maintained with the Municipal Court in
Prague,

section B, insert 1360

Disclosed on 20 December 2022

The Information is available also at the following link:
https://www.kb.cz/en/about-the-bank (https://www.kb.cz/en/about-the-bank)

 

Subject:

R E G U L A T O R Y   I N F O R M A T I O N

Announcement on the Minimum Capital Ratio requirement as from 1 January 2023

 

Prague, 19 December 2022 - Komerční banka, a.s., with its registered office
at Na Příkopě 33/969, 114 07 Prague 1, registration No. 45317054, entered
in the register of companies maintained with the Metropolitan Court of Prague,
section B, file No.1360 (hereinafter also Komerční banka or the Bank),
announces that

 

the Bank received information on the minimum level of capital ratio set for
Komerční banka by the joint decision of the College of supervisors of the
Société Générale Group with the participation of the Czech National Bank.

 

According to this decision, Komerční banka is required to maintain a capital
ratio on a consolidated basis at the minimum level of 10.9% (TSCR - Total SREP
Capital Ratio) effective from 1 January 2023, representing an increase by 30
basis points in comparison with the ratio required today. This requirement
includes:

1. Minimum capital requirement according to the Article 92 (1) of the EU
regulation on prudential requirements for credit institutions and investment
firms, i.e. maintaining a Common Equity Tier 1 capital ratio of 4.5%, a Tier 1
capital ratio of 6% and a total capital ratio of 8%, and

2. Additional requirement of 2.9% set in Pillar 2 above the aforementioned
requirements. This additional requirement must be covered at least from 56.25%
by Common Equity Tier 1 capital and at least from 75% by Tier 1 capital.

 

Moreover, credit institutions in the Czech Republic are simultaneously subject
to the combined capital requirements, which are additive to the TSCR
requirement set in the aforementioned joint decision. As of today, KB is
required to maintain a combined capital buffer comprising the capital
conservation buffer at 2.5%, the O-SII capital buffer at 2.0%, and the
countercyclical buffer set by for exposures in particular countries (in the
Czech Republic currently at 1.5%). The CNB will increase its requirement for
countercyclical capital buffers on Czech exposures by 50 basis points to 2%
from January 2023 as the regulator announced in November 2021.

Thus, Komerční banka's overall capital requirements as of 1 January 2023
would reach approximately 17.40% in relation to the consolidated volume of
risk-weighted assets. The minimum Common Equity Tier 1 capital level would
stand at approximately 12.63% and the minimum Tier 1 capital ratio at
approximately 14.68%.

Furthermore, the CNB will increase its requirement for countercyclical capital
buffers on Czech exposures by additional 50 basis points from April 2023 as
the regulator announced in March 2022. As a result, the countercyclical
capital buffer on Czech exposures will reach level of 2.5%. Then Komerční
banka's overall capital requirements as of 1 April 2023 would reach
approximately 17.90% in relation to the consolidated volume of risk-weighted
assets (where minimum Common Equity Tier 1 capital ratio at 13.13% and minimum
Tier 1 capital ratio at 15.18%).

Komerční banka will continue in its capital planning to apply prudent
assumptions about the future development of regulatory capital requirements.

 

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