The Committee of European Banking Supervisors (CEBS) published results from stress tests of 91 European banks late Friday. SEB, like the other Nordic banks tested, passed with a broad margin in all of the three scenarios used.
“These stress tests, like those performed by Swedish authorities, confirm SEB’s strong capitalisation,” says Anders Kvist, head of Group Treasury at SEB.
The tests cover three scenarios with increasing levels of economic problems and shocks. Despite very conservative assumptions in the stress scenarios , SEB cleared the test by a wide margin.
“SEB has assumed high credit losses, quite conservative profitability, and in addition the test includes our German retail business which we have since sold. Yet, the tests confirm that SEB is a well capitalised and very stable bank. Since the tests were performed, SEB’s capital ratios have strengthened further,” says Anders Kvist, head of Group Treasury at SEB.
As of 30 June 2010, SEB’s Tier I capital ratio (Basel II transitional rules with floor, and after adjusting to the same methodology used in the tests regarding some exposures for which risk-weighted assets are not calculated) stood at 12,4 per cent, which compares with 10,3 per cent on 31 December 2011 in the most adverse test scenario that includes an additional sovereign shock.
CEBS have tested 91 banks around Europe as requested by the European Union, in order to determine if they can deal with both possible losses stemming from a recession and losses related to valuation changes to sovereign bonds.
See SEB's test results and exposure (pdf)
See full test results at CEBS
For additional information:
Anders Kvist, Head of Group Treasury, SEB
Telephone: +46 8 763 94 58
SEB’s media relations department
press@seb.se
Telephone: +46 8 763 91 10