SREP - capital requirement for 2023 remain unchanged

• Regulatory minimum requirements on tier 1 capital (CET 1) at 8.41%
• Expected additional capital buffer increased due to a sector-wide increase in the countercyclical capital buffer and the introduction of the systemic risk buffer for the sector
• pbb’s capital basis comfortable with CET1 at 16.3%, already calibrated at Basel IV-level (30 September 2022)

Munich, 16 January 2023 – The European Central Bank (ECB) informed Deutsche Pfandbriefbank AG (pbb) of the outcome of its Supervisory Review and Evaluation Process (SREP) 2022.

The bank-specific, pillar 2 additional capital requirement (P2R) with effect from 01 January 2023 remains unchanged at 2.5%, where a minimum of 56.25% is to be covered by CET1 capital and 75% with Tier 1 Capital.

The SREP-capital requirement on CET1 capital was set at 8.41% on a consolidated basis. It is made up of a pillar 1 minimum regulatory capital requirement of 4.50%, a pillar 2 capital requirement of 1.41% (Total SREP Capital Requirement – TSCR: 5.91%) and the capital conservation buffer of 2.50%. The relevant capital requirements for the additional capital forms also remain unchanged at 10.38% for Tier 1 and a Total Capital Ratio of 13.00%.

As a result of the sector-wide increase in the countercyclical capital buffer and introduction of a systemic risk buffer for the sector, pbb has adjusted the relevant anticipated additional capital buffer from 45 bp to 90 bp.

pbb’s capital basis significantly exceeds the capital requirements as set out by the ECB and national regulatory authorities – also when taking into account the anticipated regulatory effects from the EBA Guidelines and Basel IV. CET1 is comprised of share capital and capital reserves; it is the highest quality capital and a measurement for the capital strength of a bank.