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Last checked at 
12 Dec 2024 07:00
12 December 2024 |
AIB Group plc - SREP
Supervisory Review and Evaluation Process (SREP)
Following the Supervisory Review and Evaluation Process (SREP) performed by the ECB in 2024, the Pillar 2 Requirement reduced by 20bps to 2.40% from 2.60%.
AIB continues to have a very strong capital base with a fully loaded CET1 of 15.8%(1) at September 2024. The reported capital ratios are in excess of minimum regulatory requirements and AIB continues to maintain a very significant buffer above Maximum Distributable Amount (MDA) trigger levels.
AIB does not disclose Pillar 2 Guidance (P2G), however following the ECB's revised P2G methodology, AIB confirms it is in bucket 3 which has a P2G range of 1.00% - 2.75%.
The table below shows the total capital requirements of the Group and components based on an assumption of optimal usage of Tier 2 and AT1 instruments permitted under the Capital Requirements Regulation (CRR).
SREP Requirements | AIB SREP 2023 | AIB SREP 2024 | AIB SREP 2025 |
Pillar 1 CET1 | 4.50% | 4.50% | 4.50% |
Pillar 2 Requirement (P2R) CET1 (2) | 1.55% | 1.46% | 1.35% |
Capital Conservation Buffer (CCB) | 2.50% | 2.50% | 2.50% |
Other Systemically Important Institutions Buffer (O-SII) | 1.50% | 1.50% | 1.50% |
Countercyclical buffer (CCyB) (3) | 1.08% | 1.43% | 1.43% |
Total CET 1 requirement | 11.13% | 11.39% | 11.28% |
AT1 | 2.02% | 1.99% | 1.95% |
Tier 2 | 2.69% | 2.65% | 2.60% |
Total Capital Requirement (4) | 15.84% | 16.03% | 15.83% |
(1) In accordance with ECB guidance under Article 26(2), year to date to profits have not yet been recognised in September regulatory reported CET1 of 14.9%. The regulatory reported CET1 of 14.9% is net of the mid-year €505m share buyback.
(2) P2R of 2.4% of which 1.35% must be held in the form of CET1 assuming 45bps AT1 and 60bps Tier 2 to meet P2R requirement
(3) Countercylical buffer - UK CCyB at 2% as at December 2024 and Irish CCyB of 1.5%
(4) Excludes Pillar 2 Guidance (P2G)
For further information, please contact:
Niamh Hore | Siobhain Walsh |
Head of Investor Relations | Head of Debt Investor Relations |
AIB Group | AIB Group |
Dublin | Dublin |
Tel: +353 863135647 | Tel: +353 873956864 |
email: niamh.a.hore@aib.ie | email: siobhain.m.walsh@aib.ie |
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