Nordea was subject to the 2016 EU‐wide stress test conducted by the European Banking Authority (EBA) in cooperation with the Swedish FSA, the European Commission (EC) and the European Systemic Risk Board (ESRB).
Nordea’s strong capital position and business model were confirmed by the EBA EU-wide common methodology stress test published yesterday on 29 July. In the adverse stress test scenario Nordea’s capital ratio fell from 16.5% at year-end 2015 to 14.1% at year-end 2018. The negative impact is comparable to stress tests with the same degree of severity carried out internally and by regulators, and it does not induce any changes to Nordea’s capital planning or capital targets. The stress test does not set any pre-defined level for passing or failing.
Nordea notes the announcements made today by the EBA on the EU‐wide stress test and acknowledges the outcomes of this stress test exercise as a benchmark for EU banks based on a common methodology.
The adverse stress test scenario was set by the ECB/ESRB and covers a three‐year time horizon (2016‐2018). The stress test has been carried out applying a static balance sheet assumption as at December 2015, and therefore does not take into account future business strategies and management actions. It is not a forecast of Nordea’s profits.
