In the 2023 EU-wide stress test conducted by the
The positive contribution of earnings before stress impacts is higher than in 2021, reflecting the bank's significantly improved profitability
The overall impact of the adverse scenario on the CET1 capital ratio is a 5.3% decline, down from 6.1% in the 2021 stress test, indicating greater resilience in hypothetical stress conditions
The CET1 capital ratio in the third year of the adverse scenario, of 8.1%, is stronger by some 50 basis points compared to 7.6% in the 2021 exercise.
'The 2023 stress test underlines how
The stress test is based on a common scenario definition and methodology for all participating banks. The balance sheet as of
The macro-economic specifications for the adverse scenario were significantly more rigorous in 2023 than in previous EBA stress tests. Assumptions include a three-year recession from year-end 2022 with a delayed recovery in the third year (2025); a 4.1 percentage point increase in unemployment; a 6.4% cumulative three-year decline in German Gross Domestic Product; and declines in German real estate prices by 26% (residential) and 33% (commercial) over the three-year stress period.
Baseline scenario
Supervisory
requirement
2023 2024 2025
CET1 Ratio 11.13 14.39 14.86 15.01
Tier 1 Ratio 13.14 16.73 17.19 17.31
Total Capital Ratio 15.81 19.74 20.17 20.27
Leverage Ratio transitional 3.75 4.90 5.07 5.16
Adverse scenario
Regulatory minimum
requirement
2023 2024 2025
CET1 Ratio 6.02 8.01 8.19 8.08
Tier 1 Ratio 8.03 9.96 10.13 9.90
Total Capital Ratio 10.70 12.54 12.68 12.28
Leverage Ratio transitional 3.00 3.51 3.58 3.73
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