The Swedish Financial Supervisory Authority ("SFSA") has informed the Bank of
its decision on the Supervisory Review and Evaluation Process ("SREP") 2023,
which applies from 29 September 2023.
The total effect of the decision implies small changes to the nominal capital
requirement compared to the previous year. The capital and liquidity
requirements are unchanged compared to the preliminary decision, for which
Swedbank published a press release on 1 July 2023.
The decision means that the Pillar 2 requirement ("P2R") increases by 0.32
percentage points for CET1 and by 0.40 percentage points for total capital
compared to last year's decision.
The change is mainly driven by a temporary 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 Pillar 2 guidance for risk-weighted assets decreases by 0.50 percentage
points.
The 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.
Contact
Annie Ho, (annie.ho@swedbank.se) Head of Investor Relations, telephone: +46 70
343 78 15
Charlotte Nilsson (charlotte.nilsson@swedbank.se), Press communicator,
telephone: +46 76 534 66 12
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