Banco BPM SpA is required to meet a phased-in common equity Tier 1 ratio of 8.875% and a total capital ratio of 12.375% in 2018, following the European Central Bank's Supervisory Review and Evaluation Process.
The phased-in requirements include a 2.50% Pillar 2 requirement and a 1.875% capital conservation buffer, while its other systemically important institution buffer for 2018 is zero. However, the Italian lender noted that it is required to gradually reach an O-SII buffer of 0.25% through linear increases between Jan. 1, 2019, and Jan. 1, 2022.
Banco BPM said it "exceeds" the requirements set by the ECB for 2018, with its phased-in CET1 and total capital ratios standing at 11.01% and 13.86%, respectively, at the end of September. This is even without taking into account the impact from the finalization of the disposal of Aletti Gestielle SGR SpA and the bancassurance partnership agreement with Società Cattolica di Assicurazione -Società Cooperativa, the lender said.