TIDMFAP TIDMRBS
RNS Number : 3335V
Ulster Bank Ireland Limited
27 October 2014
Ulster Bank Ireland Limited
Statement on the publication of the 2014 European Central Bank
Comprehensive Assessment
26 October 2014
Ulster Bank Ireland Limited ("UBIL") notes the announcement made
today by the European Central Bank ("ECB") regarding the results of
the 2014 ECB Comprehensive Assessment.
UBIL's transitional Common Equity Tier 1 ("CET1") ratio under
the modelled adverse scenario was 6.2%, which is based on the ECB's
published capital definitions and prescribed approach. This was
0.7% above the post-stress minimum ratio requirement of 5.5%.
The capital position of UBIL has strengthened considerably
during 2014, reflecting actions taken to reduce legacy asset
exposures coupled with a significant improvement in trading
performance.
As outlined in RBS Group's trading update on 30 September 2014,
Ulster Bank Group expects significant net provision releases in Q3
2014, driven by rising asset prices and proactive debt management,
resulting in lower arrears. The potential exists for further
releases in future if market conditions continue to improve.
The preliminary estimated transitional CET1 ratio at 30
September 2014 is circa 17% (including interim profits verified by
UBIL's independent auditors), an increase of over 540bps compared
with 11.6% at 31 December 2013.
These ratios, including December 2013, are on the basis of the
definition of Common Equity Tier 1 that is valid during the time
horizon of the stress test (i.e. CRR/CRD IV definition of capital
with transitional arrangements as per the Methodological Note EU
Wide Stress Test 2014).
The Royal Bank of Scotland Group plc will announce its Q3 2014
Results on Friday, 31 October 2014.
The detailed results of the ECB Comprehensive Assessment can be
found via the following link:
http://www.ecb.europa.eu/ssm/assessment/html/index.en.html
For further information, please contact:
Investor Relations
Richard O'Connor
Head of Investor Relations
+44 (0) 20 7672 1758
Ulster Bank Media Relations
Pauline Dooley
Senior Media Relations Manager, Ulster Bank
+353 (0) 87 7739 750
RBS Media Relations
+44 (0) 131 523 4205
Notes
The ECB Comprehensive Assessment results are based on
hypothetical adverse and baseline macroeconomic scenarios and a
common methodology developed by the ECB (including a static balance
sheet) applied across all participating banks. Neither the baseline
scenario nor the adverse scenario should in any way be construed as
an RBS forecast or directly compared to other information prepared
by RBS.
Forward Looking Statements
This announcement contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including those related to UBIL and RBS's regulatory capital
position, risk-weighted assets, impairment losses and credit
exposures under certain specified scenarios. In addition,
forward-looking statements may include, without limitation,
statements typically containing words such as "intends", "expects",
"anticipates", "targets", "plans", "estimates" and words of similar
import. These statements concern or may affect future matters, such
as UBIL and RBS's future economic results, business plans and
current strategies. Forward-looking statements are subject to a
number of risks and uncertainties that might cause actual results
and performance to differ materially from any expected future
results or performance expressed or implied by the forward-looking
statements. Factors that could cause or contribute to differences
in current expectations include, but are not limited to,
legislative, fiscal and regulatory developments, competitive
conditions, technological developments, exchange rate fluctuations
and general economic conditions. These and other factors, risks and
uncertainties that may impact any forward-looking statement or the
RBS's actual results are discussed in RBS's UK Annual Report and
materials filed with, or furnished to, the US Securities
and Exchange Commission, including, but not limited to, RBS's
Reports on Form 6-K and most recent Annual Report on Form 20-F. The
forward-looking statements contained in this announcement speak
only as of the date of this announcement and neither UBIL nor RBS
neither assumes nor undertakes any obligation or responsibility to
update any of the forward-looking statements contained in this
announcement, whether as a result of new information, future events
or otherwise, except to the extent legally required.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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