SNS Bank Only Dutch Bank With Shortfall in EBA Scenario

The banking arm of the Netherlands' SNS Reaal NV (SR.AE) Thursday reported a shortfall of EUR159 million in the European Banking Association capital exercise, making it the only Dutch lender that didn't meet the EBA capital requirements.

SNS Reaal said that the core Tier I ratio of its bank stood at 8.6% at the end of September under the EBA scenario, below the new requirement of 9% that must be met by the end of June 2012. However, the bancassurer said it currently complies with the new rules following a debt exchange and a further decrease of its troubled real-estate portfolio.

Utrecht-based SNS Reaal is considered one of the weaklings in the Dutch financial sector. The firm, the Netherlands' fifth-biggest financial company, received EUR750 million in state aid in the financial crisis after its insurance business was hit by investment losses. How or when that money will be repaid remains unclear because the bancassurer is struggling with persistent losses at its real-estate finance unit.

The Netherlands' biggest bank, ING NV (INGA.AE), said its core Tier I ratio came in at 9.2%, but would be 10.2% if taking into account the proceeds from disposals.

Non-listed Rabobank, No. 2 in the Netherlands, said it meets the requirement but didn't elaborate on its core Tier I ratio.

State-owned ABN Amro Bank NV, the third-largest bank, also said its meeting the requirement with an EBA Core Tier 1 ratio of 10.6%.

-By Archibald Preuschat, Dow Jones Newswires; +31 20 5715 218; archibald.preuschat@dowjones.com

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