HSBC Holdings plc (‘HSBC’) notes the publication today of the results of the EU-wide stress test which has been co-ordinated by the European Banking Authority (‘EBA’). The Group’s post-stress common equity tier 1 (‘CET1’) capital ratio, under the fully loaded capital definition, economic scenarios and methodology prescribed for the exercise, is projected to reach a low point of 8.7% at the end of 2017 rising to 8.8% at the end of 2018. The exercise does not contain a CET1 capital ratio threshold and is instead designed to be used as an input into the 2016 Supervisory Review and Evaluation Process (‘SREP’) and allow supervisors to assess banks’ ability to meet applicable minimum and additional capital requirements under stress.
Today’s results demonstrate HSBC’s continuing capital strength.
HSBC also performs its own internal stress testing, which forms a key component of HSBC’s approach to risk and capital management.
HSBC will issue its 2016 Interim Results for the half-year to 30 June 2016 on 3 August 2016.
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HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 6,000 offices in 71 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of US$2,596bn at 31 March 2016, HSBC is one of the world’s largest banking and financial services organisations.