The FINANCIAL — Postbank has released the results from the EU-wide stress test coordinated by the CEBS (Committee of European Banking Supervisors).
Under the parameters laid down by the CEBS for a recession scenario ("adverse scenario with sovereign shock”) in fiscal year 2011, the Bank will achieve a calculated Tier 1 ratio of 6.6% (including market risks). As a result, it passed the stress test, which required a minimum Tier 1 ratio of 6%.
In determining the stress test’s results, the intended positive effects on the Tier 1 ratio from A-IRBA (Advanced Internal Rating Based Approach), which Postbank is planning to introduce for its principal credit portfolios in 2011 (provided the project is successfully concluded and approval is given by the national regulator), was not considered. A number of other European banks that underwent the stress test are already determining their Tier 1 ratio on the basis of A-IRBA. This makes it difficult to compare results. By applying A-IRBA, Postbank’s Tier 1 ratio would significantly improve.
Stefan Jütte, Chairman of the Management Board of Deutsche Postbank AG, said of the Bonn-based Bank’s performance: "By passing the stress test, Postbank has demonstrated that its retail-based business model is robust enough to withstand stronger pressure. We are focusing not only on adequate capitalization – which we intend to further expand according to plan – but also on a very solid liquidity position resulting from high customer deposits."
Postbank will continue with the program it introduced in 2008 to reduce capital-market-induced risks and portfolios. As of June 30, 2010, the Bank had decreased its portfolio of investment securities to about €63 billion, a reduction of nearly 23% since September 30, 2008. In addition, the Bank is working intensely to introduce advanced models to measure risk-weighted assets and is planning to use profits through 2012 to reinforce the Bank’s equity base. These steps are designed to further improve Postbank’s Tier 1 ratio. The Bank is also closely monitoring discussions and statements about further development in regulatory conditions in order to be able to introduce measures that respond to any changes at an early stage.
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