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ECB sets 2017 CET1 requirement for Permanent TSB


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According to Market Intelligence, April 2023

ECB sets 2017 CET1 requirement for Permanent TSB

The ECB set a minimum transitional common equity Tier 1 requirement of 9.2% for Permanent TSB Group Holdings Plc for 2017 as part of its Supervisory Review and Evaluation Process.

The 9.2% figure comprises a Pillar 1 requirement of 4.50%, a Pillar 2 requirement of 3.45% and a capital conservation buffer of 1.25%.

The Dublin-based bank is also required to maintain a total transitional capital ratio of 12.7% until Dec. 31, 2017. The total capital ratio requirement consists of a minimum own funds CET1 requirement of 9.2% and a minimum own funds Tier 1 and Tier 2 requirement of 3.5%.

Pillar 2 guidance was not disclosed.

The group's transitional CET1 ratio and total capital ratio stood at 17.1% and 18.8%, respectively, as of Sept. 30. The ratios are adjusted for the effect of the sale of residual noncore U.K. assets that was completed in November.

The ECB set the maximum distributable amount threshold at 9.2% on a CET1 basis and prohibited the group from paying out dividends to shareholders.

Also, Permanent TSB said the group's capital requirement, in terms of CET1 capital, will increase by 0.25% in 2019 and 0.50% in 2020, after the Irish central bank labelled it an other systemically important institution.