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Results comprehensive assessment published by the ECB; SNS Bank meets the capital thresholds set out by the EU-wide stress test

Sunday, October 26, 2014

Today the European Central Bank (ECB) published the results of the comprehensive assessment for 128 European banks, including SNS Bank. The comprehensive assessment consists of an asset quality review (AQR), an EU-wide stress test and a combination of the two, the so-called join-up.

For SNS Bank, calculation of capital according to the AQR approach would result in a limited adjustment in its Common Equity Tier 1 (CET1) ratio on a stand-alone basis. This ratio would decline from 15.5% as of year-end 2013 (calculated in accordance with CRD IV on a transitional basis) to 14.9%, mainly driven by a small number of differences in parameters and assumptions between loan provisioning models used in the AQR and by SNS Bank.

SNS Bank will study the outcome of the AQR and may in the course of the second half of 2014 decide to align some assumptions used in its loan provisioning models wholly or partly with those used in the AQR.

The EU-wide stress test assesses the resilience of the European banking sector to hypothetical external shocks over a three-year period for two economic scenarios. Under the assumptions and methodological restrictions of the baseline scenario, the CET1 ratio of SNS Bank (including the AQR adjustment) remains virtually stable at 15.0%, well above the 8% threshold. Applying the adverse scenario of the EU-wide stress test to SNS Bank, in combination with the AQR, would lead to a reduction of the adjusted CET1 ratio from 14.9% in 2013 to 6.8% in 2016. This outcome meets the 5.5% threshold set by the ECB.

The outcome of the EU-wide stress test shows the resilience of SNS Bank under adverse economic circumstances and severe methodological restrictions. The comprehensive assessment demonstrates that there are no capital shortfalls for SNS Bank and does not lead to a requirement for SNS Bank to present capital plans to the ECB.

For more information please contact

Corporate Communications

Hilbert Bredemeijer

Hilbert Bredemeijer

+31 (0)6 - 13 88 03 81

corporatecommunicatie@snsreaal.nl

Marcel Paapst

Marcel Paapst

+31 (0)6 - 30 89 74 32

corporatecommunicatie@snsreaal.nl

 

Investor Relations

Jacob Bosscha

Jacob Bosscha

+31 (0)30 291 42 46

jacob.bosscha@snsreaal.nl

Kagan Köktas

Kagan Köktas

+31 (0)30 291 42 47

kagan.koktas@snsreaal.nl