ABN AMRO (AS:ABNd) Bank has disclosed the preliminary outcome of its capital requirements for 2024, following the Supervisory Review and Evaluation Process (SREP) conducted by the European Central Bank in 2023. The bank's Pillar 2 requirement (P2R) is proposed to increase by 0.25% to reach 2.25%, as revealed on Tuesday. This increase mainly reflects the necessary improvements in the area of BCBS 239 compliance and the internal rating-based approach.
Under this preliminary outcome, ABN AMRO's pro forma Common Equity Tier 1 (CET1) requirement at the end of the second quarter of 2023 would be adjusted to become 10.7%. This figure comprises a Pillar 1 requirement of 4.5%, a Pillar 2 requirement of 2.25%, a capital conservation buffer of 2.5%, a 1.5% Other Systemically Important Institution (O-SII) buffer, and a 0.9% countercyclical buffer. The Pillar 2 requirement can be partially met by Additional Tier 1 (AT1) and Tier 2 (T2) capital instruments.
As of the end of the second quarter in 2023, ABN AMRO's CET1 position was at a robust level of 14.9%, which exceeds the CET1 requirement of 10.7% under this preliminary SREP outcome.
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