The Board of Financial Supervisory Authority has made decision on the level of systemic risk buffer requirement for the Savings Banks Amalgamation

Sp Mortgage Bank Plc
Stock Exchange Release
28.6.2019 at 14.30

The Board of Financial Supervisory Authority has made decision on the level of systemic risk buffer requirement for the Savings Banks Amalgamation in the meeting held 28 June 2019.  

In the beginning of the year, 2018 Credit Institution Act was updated to include a new macroprudential measure, Systemic Risk Buffer. Financial Supervisory Authority may impose Systemic Risk Buffer on the basis of the structural characteristics of the financial system. Financial Supervisory Authority made decision on the level of systemic risk buffer requirements for Finnish credit institutions 28 June 2019. The systemic risk buffer requirement for Savings Banks Amalgamation will be 1 % of risk weighted assets, and this requirement will be applied starting 1 July 2020.

At the end of 2018, the Savings Banks Amalgamation had a strong capital structure, consisting primarily of CET1 capital. Total own funds were EUR 978.0 million (984.6), of which CET1 capital accounted for EUR 948.2 million (939.1). The growth in CET1 capital was due to the profit for the period. The Savings Banks Amalgamation does not have additional Tier 1 capital. Tier 2 (T2) capital accounted for EUR 29.7 million (45.5), which consisted of debentures in the financial year. Risk-weighted assets amounted to EUR 5 385.6 million (5 165.7), i.e., they were 4.3 % higher than at the end of the previous year. The most significant change related to the increase in risk-weighted assets was the growth in the mortgage portfolio. The capital ratio of the Savings Banks Amalgamation was 18.2 % (19.1) and the CET1 capital ratio was 17.6 % (18.2).

SAVINGS BANKS GROUP

More info:

Tomi Närhinen, CEO, Saving Banks’ Union Coop
tomi.narhinen@saastopankki.fi