When we discussed our full-year 2015 results on 28 January, we confirmed that we expected to have sufficient payment capacity to service the coupons on our Additional Tier 1 (AT1) capital. Today, against a backdrop of volatile markets, we issued further clarification about our capacity to service these coupons in both 2016 and 2017.
In 2016, our payment capacity is expected to be approximately EUR 1 billion, more than sufficient to service an AT1 coupon of approximately EUR 350 million on 30 April 2016. In 2017, we anticipate that our AT1 payment capacity will be approximately EUR 4.3 billion before the effect of this year’s operating results, driven in part by the disposal of our 19.99% stake in Hua Xia Bank, which we anticipate in mid-year 2016, in addition to our existing reserves.
Today, our capital and risk position remains strong, and this enables us to address these requirements from a position of strength.
Chief Financial Officer