BNP Paribas has received the notification by the European Central Bank of the outcome of the 2016 Supervisory Review and Evaluation Process (SREP). The notification is unchanged compared with the pre-notification disclosed by the Group in the third quarter 2016 results.
The phased-in Common equity tier 1 (CET1) requirement that the Group has to respect on a consolidated basis has been set at 8.0% in 2017, which includes 1% for the G-SIB buffer, 1.25% for the Conservation buffer and 1.25% for the Pillar 2 requirement (excluding the Pillar 2 guidance, which is not public). The requirement for the Tier 1 capital is set at 9.5% for 2017 and that for the Total capital is set at 11.5%.
With phased-in ratios as at 30 September 2016 of 11.6% for the CET1, 12.7% for the Tier 1 capital and 14.4% for the Total capital, the Group is well above the regulatory requirements for 2017.
Given the gradual phasing-in of the Conservation buffer to 2.5% and the assumption of a 2.0% G-SIB buffer, the anticipated level of fully loaded CET1 ratio is 10.25% in 2019 (excluding the Pillar 2 guidance). Likewise, the anticipated level of requirement for the Tier 1 capital is 11.75% and that for the Total capital is 13.75% in 2019[1].
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 74 countries, with more than 189,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
[1] Reminder: the Tier 1 and Total Capital ratios requirements are on a cumulated basis; they now include the Pillar 2 requirement but don’t include any Pillar 2 guidance