Deutsche Bank meets requirements of ECB Comprehensive Assessment
Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) confirmed today the results of the Comprehensive Assessment exercise carried out by the European Central Bank (ECB) in close collaboration with the European Banking Authority (EBA). This exercise comprised both an Asset Quality Review (AQR) and a Stress Test in which the capital adequacy of banks under review was tested under different stress scenarios, and measured against minimum threshold levels in each scenario.
As at December 31, 2013, Deutsche Bank’s pro-forma CRD4 Common Equity Tier 1 (CET1) Ratio was 14.57% before phase-in. Allowing for 20% phase-in as per CRD4 requirements which took effect from January 1, 2014, and including adjustments for Prudential Valuation, this ratio was 13.40%.
For Deutsche Bank, the principal findings of the Comprehensive Assessment were as follows:
- Deutsche Bank successfully met all requirements of the Comprehensive Assessment.
- The Asset Quality Review found that no significant adjustments were required to Deutsche Bank’s values or ratios. The Bank’s pro-forma CRD4 CET1 ratio as at January 1, 2014 after AQR thus remained almost unchanged at 13.33%. This ratio exceeds the required threshold ratio of 8% by 533 basis points.
- The Stress Test found that under the ‘baseline’ scenario, Deutsche Bank’s pro-forma CRD4 CET1 Ratio would be 12.55%. This ratio exceeds the required threshold ratio of 8% by 455 basis points.
- The Stress Test found that under the ‘adverse’ scenario, Deutsche Bank’s pro-forma CRD4 CET1 Ratio would be 8.78%. This ratio exceeds the required threshold ratio of 5.5% by 328 basis points.
|Pro-forma ratios as of 1 January 2014||Deutsche Bank result||Threshold||Difference|
|AQR-adjusted CRD4 CET1 ratio||13.33%||8.00%||533 bps|
|Stress Test "baseline" scenario CRD4 CET1 ratio||12.55%||8.00%||455 bps|
|Stress Test "adverse" scenario||8.78%||5.50%||328 bps|
Deutsche Bank’s raising of EUR 8.5 billion of common equity in the second quarter of 2014 would have further strengthened the Bank’s results in the Comprehensive Assessment.
Potential costs for litigations were not part of the Stress Test. For the first nine months of 2014 Deutsche Bank announced litigation costs of EUR 1.36 billion. This figure includes litigation costs of EUR 894 million which Deutsche Bank expects to report for the third quarter.
Jürgen Fitschen and Anshu Jain, Co-Chief Executive Officers, said: “The Comprehensive Assessment reaffirms that, even in scenarios of severe market stress, our capital base would substantially exceed regulatory capital requirements. Our capital raising in the second quarter of this year, which was not factored into the Comprehensive Assessment, has since further strengthened Deutsche Bank’s capital position.”
They added: “The Comprehensive Assessment also demonstrates the value of regulators and banks working together in a rigorous, consistent assessment process.This contributes to transparency and strengthens confidence in the stability of the European banking system and its regulatory framework.”
For further information, please contact:
Deutsche Bank AG
Press and Media Relations
Dr. Ronald Weichert +49 69 910 38664
Christian Streckert +49 69 910 38079
+49 69 910 35395 (Frankfurt)
+44 20 754 50279 (London)