Retail Banking Financial Update
STRONG CAPITAL ADEQUACY POSITION
O NBG MEASURES AS A RESPONSE TO COVID-19
NBG's COVID-19 Supervisory Plan effective since March 2020:
B
"
Combined buffer - the conservation buffer requirement of 2.5% of
risk-weighted assets reduced to 0% indefinitely;
Pillar 2 requirements:
-
-
Currency induced credit risk buffer (CICR) requirement reduced by
2/3rds indefinitely;
The phase-in of additional credit portfolio concentration risk
buffer (HHI) and net GRAPE buffer requirements on Common
Equity Tier 1 (CET1) and Tier 1 capital, planned at the end of
March 2020, has been postponed indefinitely;
The possibility of fully or partially releasing the remaining
requirements of Pillar 2 buffers (HHI, CICR, net GRAPE), if
necessary, remains open;
-
Capital distribution during the period banks are allowed to partially
or fully use the Pillar 2 and conservation buffers, banks are restricted
to make capital distribution in any form;
General loan loss provisioning relating to COVID-19. The Bank has
recorded c.GEL 400 million general provision (approximately 3.3% of
the Bank's lending portfolio subject to provision under the local
regulatory accounting standards) under the Bank's local regulatory
accounting basis in March 2020, which is used for calculation of the
Bank's capital ratios, reflecting the NBG's expectations of estimated
credit losses on the Bank's lending book for the whole economic cycle.
CAPITAL ADEQUACY RATIOS
18.1%
17.4%
17.3%
17.6%
15.3%
13.6%
12.4%
10.6%
12.0%
12.0%
11.5%
9.9%
9.9%
10.4%
8.3%
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
CET1 Capital Adequacy Ratio
Total Capital Adequacy Ratio
Tier I Capital Adequacy Ratio
MINIMUM REGULATORY REQUIREMENTS
17.1%
12.2%
10.1%
13.3%
13.3%
13.3%
13.8%
9.2%
8.7%
8.7%
8.7%
7.4%
6.9%
6.9%
6.9%
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
■CET1 Capital Adequacy Ratio
■Total Capital Adequacy Ratio
Tier I Capital Adequacy Ratio
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