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11/02/2018

DZ BANK Group: Results of the 2018 EBA stress test

  • Stress test results: common equity Tier 1 ratio of 14.3 % in baseline scenario and 9.0 % in adverse scenario as at 31.12.2020

The DZ BANK Group took part in the EU-wide stress test conducted by the European Banking Authority (EBA), which was carried out in cooperation with the European Central Bank (ECB). DZ BANK obtained a satisfactory result. In the baseline scenario the bank recorded a common equity Tier 1 ratio of 14.3 %, in the adverse scenario a ratio of 9.0 % as at 31.12.2020. With the DZ BANK Group’s common equity Tier 1 ratio of 13.7 % as per 31.12.2017, the maximum negative stress effect is thus 4.7 percentage points. 

The stress test was based on a three-year adverse scenario formulated by the European Systemic Risk Board (ESRB), which was significantly stricter than in 2014 and 2016. For Germany a more negative development of GDP growth, unemployment and real estate markets than for the EU average was given. In addition there were new methodological requirements (especially the formation of valuation allowances for the first time in accordance with IFRS 9).

“In the current stress test, our banking group once again proved to be robust and resilient,” said Wolfgang Kirsch, Chairman of the Board of Managing Directors of DZ BANK AG. “The results of the stress test illustrate the stability and capital strength of the DZ BANK Group but also show the need to strengthen capital from own resources in view of the future regulatory requirements.”

The full results of the stress test are available on the website of the European Banking Authority (EBA).