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RNS Number : 3331V
Royal Bank of Scotland NV (The)
27 October 2014
The Royal Bank of Scotland N.V.
Statement on the publication of the results of the 2014 European
Central Bank Comprehensive Assessment
26 October 2014
The Royal Bank of Scotland N.V. ("RBS N.V.") notes the
announcement made today by the European Central Bank ("ECB")
regarding the results of the 2014 ECB Comprehensive Assessment.
RBS N.V.'s transitional Common Equity Tier 1 ratio under the
modelled adverse scenario was 7.2%, which is based on the ECB's
published capital definitions and prescribed approach. This is 1.7%
above the post-stress minimum ratio requirement of 5.5%.
The Asset Quality Review - which was part of the Comprehensive
Assessment - has not resulted in any material adjustment to the
loan loss provisions and the fair value of financial instruments of
RBS N.V.
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
RBS Media Relations
+44 (0) 131 523 4205
+31 (0) 20 4641150
Notes
It should be noted that the ECB methodology, which includes the
assumption of a static balance sheet, provides limited insight into
banks - including RBS N.V. - which have recently taken significant
actions to reduce their balance sheet. In this context we refer to
The Royal Bank of Scotland Group plc trading update of 30 September
2014 which mentioned RBS N.V.'s disposal of cEUR9bn legacy
Available For Sale securities and this disposal is expected to be
moderately capital accretive.
The ECB announcement includes capital ratios and asset quality
indicators based on the Capital Requirements Directive IV/Capital
Requirements Regulation (CRDIV/CRR) and ECB definitions, which
differ from the reporting standards used in the Annual Report and
Accounts of RBS N.V. for the year ended 31 December 2013. In
particular the reporting of its associated undertaking Saudi
Hollandi Bank (SHB), of which RBS N.V. holds a 40% equity interest,
is different. In the Annual Report, SHB is accounted for using the
equity method, but under CRDIV/CRR it is proportionally
consolidated. As a consequence, capital and other ratios
differ.
Neither the baseline scenario nor the adverse scenario should in
any way be construed as an RBS N. V. forecast or directly compared
to other information prepared by RBS N. V.
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 RBS N.V.'s 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 RBS N.V.'s 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
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 and RBS
Holdings N.V.'s (the immediate parent company of RBS N.V.) 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 RBS N.V. nor
RBS 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
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The company news service from the London Stock Exchange
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