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| 26 January 2022 |
AIB Group plc - SREP
Supervisory Review and Evaluation Process (SREP)
Following the Supervisory Review and Evaluation Process (SREP) performed by the ECB in 2021 and the re-introduction of the UK Countercyclical buffer in December 2022, the minimum requirement for the CET1 ratio for AIB Group plc (AIB) was set at 10.20% for FY 2022 (1) - see table below. The Pillar 2 Requirement reduced by 25bps to 2.75% from 3.00%.
AIB continues to have a very strong capital base with a fully loaded CET1 at September 2021 of 16.6%. The Group's reported capital ratios are materially in excess of minimum regulatory requirements and AIB continues to maintain a very significant buffer above maximum distributable amount (MDA) trigger levels.
AIB does not disclose Pillar 2 Guidance (P2G), however following the ECB's revised P2G methodology, AIB confirms it is in bucket 3 which has a P2G range of 1.00% - 2.75%.
The table below shows the total capital requirements of the Group and components based on an assumption of optimal usage of Tier 2 and AT1 instruments permitted under the Capital Requirements Regulation (CRR).
| SREP Requirements | AIB SREP Requirement 2021 | AIB SREP Requirement 2022 | AIB SREP Requirement 2023 | |
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| Pillar 1 CET1 | 4.50% | 4.50% | 4.50% | |
| Pillar 2 Requirement (P2R) CET1 (2) | 1.69% | 1.55% | 1.55% | |
| Capital Conservation Buffer (CCB) | 2.50% | 2.50% | 2.50% | |
| Other Systemically Important Institutions Buffer (O-SII) | 1.50% | 1.50% | 1.50% | |
| Countercyclical buffer (CCyB) (3) | 0.00% | 0.15% | 0.35% | |
| Total CET 1 requirement | 10.19% | 10.20% | 10.40% | |
| AT1 | 2.06% | 2.02% | 2.02% | |
| Tier 2 | 2.75% | 2.69% | 2.69% | |
| Total Capital Requirement (1) | 15.00% | 14.90% | 15.10% | |
| (1) Excludes Pillar 2 Guidance (P2G) (2) P2R of 2.75% of which 1.55% must be held in the form of CET1 assuming 52bps AT1 and 69bps Tier 2 to meet P2R requirement (3) Countercyclical buffer - re-introduction of the UK CCyB at 1% in December 2022, rising to 2% in 2023. It is estimated to equate to a Group requirement of c.0.15% in 2022 and c. 0.35% in 2023. |
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Figures presented may be subject to rounding
For further information, please contact:
| Niamh Hore | Siobhain Walsh |
| Head of Investor Relations | Head of Debt Investor Relations |
| AIB Group | AIB Group |
| Dublin | Dublin |
| Tel: +353-1-6411817 | Tel: +353-1-6411901 |
| email: niamh.a.hore@aib.ie | email: siobhain.m.walsh@aib.ie |
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