Santander UK Group Holdings PLC Outcome of 2022/23 Bank of England Stress Test (7741F)
July 12 2023 - 2:46AM
UK Regulatory
TIDM95VC TIDMBN65
RNS Number : 7741F
Santander UK Group Holdings PLC
12 July 2023
12 July 2023
SANTANDER UK GROUP HOLDINGS PLC ("Santander UK")
STATEMENT ON THE OUTCOME OF THE 2022/23 BANK OF ENGLAND STRESS
TEST
Santander UK notes the publication of the results of the 2022/23
stress tests conducted on eight major UK banks and building
societies by the Bank of England.
As a result of the exercise, the Bank of England does not
require Santander UK to undertake any actions.
Since the introduction of IFRS 9 in January 2018, the stress
test results are published on an IFRS 9 transitional and
non-transitional basis, over a five-year stress period to 30 June
2027. For Santander UK the IFRS 9 transitional and non-transitional
results and hurdle rates are the same at the low points.
Santander UK's lowest post-stress common equity tier 1 ('CET 1')
capital ratio was modelled to be 11.3% before management actions.
This is defined as CET1 capital expressed as a percentage of
risk-weighted assets, where these are in line with CRR and the UK
implementation of CRD V via the PRA Rulebook.
These results are in excess of the CET 1 hurdle rate established
by the Bank of England of 8.1%.
Santander UK reported a CET 1 capital ratio of 15.4% as at 31
March 2023.
The Bank of England's CET1 hurdle rate comprises the CRR Pillar
1 minimum of 4.5% together with a Pillar 2A CET1 requirement, an
estimate of the applicable Systemic Risk Buffer and an adjustment
to offset the pro-cyclical impacts of IFRS 9.
Santander UK's lowest post-stress Tier 1 leverage ratio was
modelled to be 4.1% before management actions and 4.5% after
strategic management actions. The Tier 1 leverage ratio is Tier 1
capital expressed as a percentage of the leverage exposure measure
excluding central bank reserves, as defined in Rule 1.2 of the
Leverage Ratio part of the PRA Rulebook.
These results are in excess of the leverage hurdle rate
established by the Bank of England of 3.5%.
Santander UK reported a leverage ratio of 5.2% as at 31 March
2023.
- Ends -
Contacts
Paul Sharratt Head of Investor Relations ir@santander.co.uk
07715 087 829
For more information: www.santander.co.uk
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