Statement on results of the 2014 EBA EU-wide stress test
HSBC Holdings plc (‘HSBC’) notes the publication today of the results of the European Banking Authority (‘EBA’) stress test. The Group’s post-stress common equity tier 1 (‘CET1’) capital ratio under the transitional capital definition, economic scenarios and methodology prescribed for the exercise, is projected to reach a low point of 8.7% at the end of 2015. This exceeds the post-stress minimum CET1 capital ratio of 5.5% established by the EBA for this exercise. The transitional capital definition reflects the UK implementation of the CRD IV legislation. In addition to the transitional capital position, the results include a fully loaded CET1 capital ratio at the end of 2016 of 9.3% under stress.
Today’s results demonstrate HSBC’s continuing capital strength.
HSBC performs its own stress testing, which forms a key component of HSBC’s approach to capital management.
HSBC France and HSBC Bank Malta plc have additionally each been subject to an asset quality review and have passed the stress test as part of the European Central Bank’s comprehensive assessment (‘CA’). The CA exercise is subject to a separate disclosure by the ECB.
HSBC will issue its Interim Management Statement for the three-month period ended 30 September 2014 on 3 November 2014.
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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 over 6,200 offices in over 74 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of US$2,754bn at 30 June 2014, HSBC is one of the world’s largest banking and financial services organisations.
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