Aabenraa, Denmark, 2011-07-15 18:00 CEST (GLOBE NEWSWIRE) -- Dear Sirs
| 2011 EU-wide stress test |
Sydbank has participated in the 2011 EU-wide stress test conducted by the European Banking Authority (EBA) in cooperation with national authorities, the European Central Bank (ECB), the European Commission and the European Systemic Risk Board (ESRB). Danmarks Nationalbank and the Danish FSA participated as the national authorities from Denmark.
The stress test, carried out across 90 banks, seeks to assess the resilience of European banks, including their solvency, to severe shocks under hypothetical stress events.
Assumptions and methodology were established to assess banks’ Core Tier 1 capital against a fixed minimum of 5%.
The stress test is based on the EBA common methodology and guidelines (eg constant balance sheet) as published in the EBA Methodological Note. The information relative to the baseline scenario is provided only for comparison purposes as regards the adverse scenario. Neither the result of the baseline scenario nor the result of the adverse scenario can in any way be construed as Sydbank’s forecast or be directly compared to other information published by Sydbank.
Sydbank is pleased with the outcome of the EU-wide stress test and the Group’s individual results indicating
- great resilience to adverse economic developments in 2011 and 2012
- no appreciable exposure to governments and banks in countries with increased risk
- a very robust capital structure.
Sydbank’s Core Tier 1 capital ratio increases to 13.6% under the adverse scenario in 2012 compared with 12.4% at end-2010, equal to 8.6 percentage points above the fixed minimum of 5%.
Detailed results
The detailed results of the stress test under the baseline and adverse scenarios as well as information on banks’ credit exposures and exposures to central and local governments are provided in the accompanying disclosure templates based on the common format provided by the EBA.
Macroeconomic scenarios
The stress test uses a baseline and an adverse scenario that covers the period 2011-2012. The baseline scenario is mainly based on the Autumn 2010 European Commission forecast but remains broadly in line with the currently expected economic development in the case of Denmark. The adverse scenario represents a significantly more negative economic development.
Further information
See more details on the scenarios, assumptions and methodology on the EBA website: www.eba.europa.eu/EU-wide-stress-testing/2011.aspx
Yours sincerely
Karen Frøsig Preben L. Hansen
CEO Deputy Group Chief Executive
Contact
Karen Frøsig, CEO
Tel +45 7437 2000
Encls:
EBA’s disclosure templates
