Financial and ESG Performance Review
5
Compliant with MREL binding target as of January 1st 2022 and to
continue to build MREL going forward
MREL requirements:
(BdP notification of May 2022; %)
MREL ratio
(% RWA; Preliminary)
Jan-22
Jan-26
TREA¹
15.14%
23.16%
Combined Buffer
2.52%
n.a.2
Total
LRE³
20.8%
17.7%
0.8%
Other senior liabilities ≥ 1 year
4.1% Senior Bonds ≥ 1 year
2.3% Own Funds - Tier 2
17.66%
23.16% + CBR
Jan-22 Binding
Dec-22
5.91%
5.91%
5.91%
9.24%
13.7% Own Funds - Tier 1
■
Organic capital generation and balance sheet optimisation expected to satisfy MREL (interim) needs in 2023.
New market issuance subject to novobanco's improved credit quality being reflected in tighter credit spreads and/or in
context of optimising capital structure.
novobanco
(1) TREA - Total Risk Exposure Amount; includes O-SII defined at LSF Nani Investments as communicated by Banco de Portugal on its website on 30 Nov 2021, the O-SII increased from 0.375%
to 0.5%; (2) As of Jan-26 applicable combined buffer requirement; (3) LRE - Total Leverage Exposure
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