The Swedish Financial Supervisory Authority ("SFSA") has informed the Bank of
its preliminary decision on the Supervisory Review and Evaluation Process
("SREP") 2023.
The total effect of the preliminary decision implies small changes to the
nominal capital requirement compared to the previous year.
The preliminary decision means that the Pillar 2 requirement ("P2R") increases
by 0.3 percentage points for CET1 and by 0.4 percentage points for total capital
compared to last year's decision.
The change is mainly driven by an add-on related to the on-going review of IRB
models, which will be partly offset by a decrease of the risk exposure amount
("REA") voluntarily held by the bank in line with Article 3 in the Capital
Requirements Regulations. Meanwhile, the risk weight floor for commercial real
estate is transferred from P2R to REA in Pillar 1. In total, REA is expected to
increase slightly.
The proposed Pillar 2 guidance for risk-weighted assets decreases by 0.5
percentage points.
The proposed Pillar 2 guidance for leverage ratio increases by 0.05 percentage
points due to an updated method for the SFSA's stress test.
No changes have been made in requirements or guidance for liquidity ratios.
Swedbank will provide its comments to the SFSA after which the authority will
make its final decision, effective as of 30 September 2023.
Contact
Annie Ho, Head of Investor Relations, annie.ho@swedbank.com, +46 70 343 78 15
Hannes Mård, Media Relations Manager hannes.mard@swedbank.se, +46 73 057 41 95
This information constitutes inside information that Swedbank is obliged to make
public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The
information was submitted for publication, through the agency of the contact
person set out above, on 1 July 2023, at 10:30 CEST.
Swedbank empowers the many people and businesses to create a better future. Our
vision is a financially sound and sustainable society. Swedbank Group is the
leading bank with over 7 million retail customers and 550 000 corporate
customers in our four home markets Sweden, Estonia, Latvia and Lithuania.
Swedbank Group is also present in other Nordic countries, the U.S. and China.
Together we make your financial life easier. Find out more: www.swedbank.com