AIB - European Banking Authority Stress Test
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For Immediate Release 15(th) July 2011
AIB - European Banking Authority Stress Test
Allied Irish Banks, p.l.c. ("AIB") [NYSE:AIB] notes today´s announcements of the
EU-wide stress testing exercise co-ordinated by the European Banking Authority
(EBA) under the supervision of the Central Bank of Ireland (CBI). The
Educational Building Society was not included in the EBA exercise.
The result of the EBA Stress test takes into account the recapitalisation
measures announced following the Prudential Capital Assessment Review (PCAR).
The EBA methodology includes a number of differences to the methodology applied
in the PCAR exercise conducted by the CBI in March 2011. The EBA stress test
set a 5% Core Tier 1 capital requirement in the stress scenario, while a level
of 6% was applied in PCAR. The PCAR was applied on a three year horizon from
2011-2013 compared to the two year 2011-2012 timeline applied by the EBA.
The EBA 2012 stress scenario expects AIB, post recapitalisation, to have a Core
Tier 1 capital ratio of 11.7% (including EUR1.4bn contingent capital). There were
also additional significant methodology differences applied to AIB in the EBA
stress test versus PCAR including future balance sheet size, higher risk
weightings, application of higher funding costs and treatment of sovereign and
bank credit losses.
The published results confirm that in all scenarios tested, AIB exceeds the EBA
stress test threshold of 5% Core Tier 1 capital ratio and a significant capital
surplus is evident in both the base and stress scenarios.
To view the summary results including the EBA disclosure templates for AIB
please click here.
- ENDS -
For further information, please contact:
Alan Kelly Catherine Burke
Director of Corporate Affairs & Head of Corporate Relations &
Marketing Communications
AIB Group AIB Group
Dublin Dublin
Tel: +353-1-6412162 Tel: +353-1-6413894
email: alan.j.kelly@aib.ie email: catherine.e.burke@aib.ie
AIB ? European Banking Authority Stress Test :
http://hugin.info/133324/R/1531402/466098.pdf
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Source: Allied Irish Banks, p.l.c. via Thomson Reuters ONE
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