Unione di Banche Italiane SpA said it will be required to maintain a common equity Tier 1 ratio of 8.625% in 2018 following the European Central Bank's latest annual supervisory review and evaluation process.
The CET1 requirement comprises a 4.5% Pillar 1 capital ratio, a 2.25% Pillar 2 requirement and a 1.875% capital conservation buffer. The Italian lender will also have a total capital requirement of 12.125%, including an 8% Pillar 1 capital ratio, a 2.25% Pillar 2 requirement and a 1.875% capital conservation buffer.
UBI Banca said it is "well above" the requirements set by the ECB for 2018. As of Sept. 30, the bank's phased-in and fully loaded CET1 ratios stood at 11.65% and 11.54%, respectively, while its phased-in and fully loaded total capital ratios were 14.32% and 14.20%, respectively.
The lender noted that the requirements also take into account the inclusion of the three banks it acquired in May.