(Finance) – In the basic hypothesis of the ECB-EBA stress test, Banca Popolare di Sondrio it does not reveal any critical issues as it would continue to produce significant profits capable of both fueling the assets through self-financing and remunerating the capital contributed by the shareholders. In the adverse scenario, there is an erosion of primary capital at the end of the three-year period 2023-25 such as to place the group in the median values of the impact band between 300 and 599 basis points, in line with the average reduction recorded for banks supervised by the ECB. This was stated by the institute after the dissemination of the results of the ECB-EBA stress tests.
The CET1 ratio at the end of the period is positioned in the upper part of the range of values between 8% and 11%. Such results highlight better ranking than in the 2021 Stress Test exercisewhen in the unfavorable scenario the impact was included, albeit minimally, in the range between 600 and 899 basis points of primary capital.
The leverage ratio in the worst-case scenario it stands at just under 4% at the end of the three-year period 2023-25, showing a more contained erosion than that resigned in the 2021 stress test.
“Overall, the values in question testify to the presence for BPS of significant margins with respect to the SREP requirements and therefore the capital strength – reads the note – The exercise, in confirm the resilience of the business model adoptedhighlights the ability of available capital to absorb the losses associated with a markedly unfavorable hypothetical scenario”.