Q3 2020 Business Update amid Covid-19
Assets and liabilities: MREL for the Austrian resolution group
MREL requirement based on RWA fulfilled
MREL ratio based on TREA (RWA)*
30.07%
Other Senior Unsec> 1yr ---4.82%
27.49%
NPS > 1yr\
-0.68%
1.12%
Other subordinated > 1yr
T2
4.68%
18.94%
AT1
2.69%
CET1
16.08%
*) TREA... total risk exposure amount
ERSTEŚ
Group
Jun 20
in %
•
.
•
•
•
•
Key take-aways
Erste Group's setup is based on a multiple point of entry
(MPE) resolution approach
In April 2020, Erste Group Bank AG received its MREL
requirement calibrated on balance sheet data as of 31 Dec
2017 and based on BRRD1
Erste Group Bank AG, as the Point of Entry of the Austrian
resolution group, must comply with a MREL requirement of
14.90% of TLOF and a subordination requirement of 10.27%,
which equals RWAs of 27.49% and 18.94% for the
subordination requirement based on BRRD1
Based on the Austrian resolution group's RWAs as of June
2020 of approx. EUR 74bn, the current MREL ratio stands at
30.07%, thereof 25.25% being subordinated eligible liabilities.
Both ratios are well above the minimum requirements
A new MREL requirement based on SRB's 2020 MREL policy
and BRRD2 is expected in H1 2021
Potential changes in the MREL requirement will be reflected
in Erste Group Bank AG's funding plan as to ensure
compliance with MREL & subordination targets
Page 48View entire presentation