EBA interpretation impacts certain capital ratios of ABN AMRO Group N.V., ABN AMRO Bank N.V. unaffected

Press release -

The European Banking Authority (EBA) published today its interpretation of certain capital regulations , applicable to European banks. This impacts the Tier 1, Total capital and leverage ratios of ABN AMRO Group N.V. The CET1 capital ratio of ABN AMRO Group N.V. remains unaffected. There is also no impact on the capital ratios, depositors and debt holders of ABN AMRO Bank N.V.

The EBA interpretation impacts bank holding companies with a single subsidiary, and a high level of total capital as is the case for ABN AMRO. It implies that the portion of outstanding AT1 and T2 instruments, issued by ABN AMRO Bank N.V. (the resolution entity) exceeding the minimum own funds requirement, can no longer fully contribute to the consolidated capital ratios of ABN AMRO Group N.V. This effect is to be reflected in the capital ratios of Q4 2017.

On a fully loaded basis (and including the recently issued AT1), the revised pro forma capital ratios of ABN AMRO Group N.V. at 30 June 2017 are currently estimated to be: Tier 1 ratio 18.9% (down from 19.5% pro forma), Total Capital ratio 22.4% (down from 25.7% pro forma) and leverage ratio 4.0% (down from 4.1% pro forma)iii.

ABN AMRO Group’s fully loaded CET1 ratio of 17.6% at 30 June 2017 remains unaffected. ABN AMRO Group N.V. continues to meet the regulatory capital requirements. There is no impact on the dividend policy of 50% payout. Also, there is no impact on the ability to pay AT1 coupons. The outstanding instruments remain relevant in the management of capital ratios of the group and the bank and consequently no regulatory calls will be exercised as a result of this EBA interpretation.


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