According to law, the Group and the Bank are required to maintain minimal values of capital ratios resulting from Pillar I level (CRR Regulation), capital requirement of Pillar II resulting from The Banking Act and combined buffer requirement resulting from Act on macro-prudential supervision.
Bank in 2023
Capital adequacy
Bank Pekao S.A. Group and Bank Pekao S.A.
Capital ratios are the basic measure applied for the measurement of capital adequacy according to Regulation of the European Parliament and of the Council (EU) No 575/2013 of June 26, 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012, which entered into force since January 1, 2014 together with further amendments, as well as Commission Implementing Regulations or Delegated Regulations (EU) (CRR Regulation).
Capital ratios, capital requirements and own funds have been calculated in accordance with the above mentioned CRR Regulation using national options defined in article 171a of The Banking Act, Act of 5 August 2015 on macro-prudential supervision over financial system and crisis management in financial system (Act on macro-prudential supervision), as well as regulations of minister in charge of the finance institutions.
- Total capital ratio (TCR) in amount of 8%,
- Tier I capital ratio (T1) in amount of 6%,
- Common Equity Tier I capital ratio (CET 1) in amount of 4.5%.
- Capital conservation buffer in amount of 2.50%,
- Countercyclical capital buffer in amount of 0.02%1,
- Other systemically important institution buffer in amount of 1.00%,
- Systemic risk buffer in amount of 0.00%2.
On Pillar II, Pekao Group has no additional capital requirement (P2R).
- Total capital ratio (TCR) in amount of 11.52%,
- Capital ratio Tier I (T1) in amount of 9.52%,
- Common Equity Tier (CET 1) in amount of 8.02%.
The capital ratios of the Group and the Bank were significantly above the minimum required by the law
1 Countercyclical capital buffer was calculated as of December 31, 2023 at the level 0.0247% for Bank and 0.0216% for Group.
2 According to the Regulation of the Minister of Finance, the systemic risk buffer was abolished on March 19, 2020. The buffer value applicable until that date was 3% of the total risk exposure amount for all exposures located only in the territory of the Republic of Poland.
Bank Pekao S.A. Group
As of December 31, 2023 Group total capital ratio amounted to 16.8% and common equity Tier I ratio amounted to 15.2%.
The table below presents the basic information concerning the Group capital adequacy as of 31 December, 2023 and 31 December, 2022.
(*) Data for December 31, 2022 have been recalculated taking into account the retrospective recognition of part of the profit for 2022, in accordance with the EBA position expressed in Q&A 2018_3822 and Q&A 2018_4085.
Total Capital Ratio of Pekao Group as at the end of December 2023 was lower by 1.0 p.p. compared to the end of December 2022, mainly due increase of total capital requirement by 5.2%. Common equity Tier I Capital Ratio of Pekao Group as at the end of December 2023 was lower by 0.8 p.p. compared to the end of December 2022.
Decrease of own funds for total capital ratio results mainly from amortization of subordinated bonds A series and B series (during final 5 years of maturity of the instrument).
Bank Pekao S.A.
As of 31 December, 2023 Bank total capital ratio amounted to 19.4% and common equity Tier I ratio amounted to 17.6%.
The table below presents the basic information concerning the Bank capital adequacy as of 31 December, 2023 and 31 December, 2022.
(*) Data for December 31, 2022 have been recalculated taking into account the retrospective recognition of part of the profit for 2022 (confirmation of the financial results by the General Shareholders Meeting), in accordance with the EBA position expressed in Q&A 2018_3822 and Q&A 2018_4085.
Total Capital Ratio of the Bank as at the end of December 2023 was lower by 0.5 p.p. compared to the end of December 2022,mainly due increase of total capital requirement by 3.2%. Common equity Tier 1 Capital Ratio of Bank as at the end of December 2023 was lower by 0.3 p.p. compared to the end of December 2022.
Decrease of own funds for total capital ratio results mainly from amortization of subordinated bonds A series and B series (during final 5 years of maturity of the instrument).