Business
Response to 2025 BOE Capital Stress Test Results
Nationwide Building Society has responded positively to the Bank of England's 2025 Bank Capital Stress Test, reporting that its calculated minimum CET1 ratio of 14.5% and minimum UK leverage ratio of 4.8% comfortably exceed the regulatory requirements of 6.5% and 3.25% respectively, even under a severe hypothetical stress scenario involving a 28% fall in house prices, 8.5% unemployment, and an 8% Bank Base Rate. Consequently, the Group is not required to submit a revised capital plan or take additional actions, demonstrating its resilience and continued support for the Bank's financial stability objectives. Disclaimer*
About this update from Nationwide Building Society
[{"type":"text","content":"\n\n2 DECEMBER 2025: NATIONWIDE'S RESPONSE TO THE RESULTS OF THE BANK OF ENGLAND CAPITAL STRESS TEST 2025\n \nThe Nationwide Group note the publication of the Bank of England's (\"the Bank\") 2025 Bank Capital Stress Test (BCST) results.\n \nThe hypothetical stress specified a fall in house prices of 28%; a peak in the unemployment rate of 8.5%; and a peak in Bank Base Rate of 8%. This is not a forecast of macroeconomic and financial conditions; rather it is intended to be a coherent 'tail risk' scenario designed to be severe and broad enough to support the Bank's assessment of the resilience of the UK banking sector to a range of adverse shocks.1\n \nThe Bank calculated the Group's minimum CET1 ratio as 14.5%, which reflected the continuation of distributions on all Tier 1 capital instruments and the application of strategic management actions. This is comfortably above the Bank's minimum requirement of 6.5%. The minimum UK leverage ratio was calculated as 4.8% after the application of strategic management actions, comfortably above the regulatory requirement of 3.25%.\n \nThe Bank has confirmed that the Group is not required to submit a revised capital plan or take additional actions as a result of this exercise.\n \nThe Group recognises the value of industry-wide stress testing and continues to support the financial stability objectives of the Bank and the Financial Policy Committee.\n \nFurther details on the results of BCST 2025 can be found on the Bank's website.\n \nContacts:\n\n\n\n\nMedia Queries:\nMatthew Fox\nMedia Relations\nT: +44 (0) 7876 817947\[email protected]\n \n\n\nInvestor Queries:\nVikas Sidhu\nHead of Investor Relations\nT: +44 (0)7738 273 287\[email protected]\n \n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n1 Source: Bank of England launches the 2025 Bank Capital Stress Test | Bank of England\n \n\n","length":4402,"tagName":"div"}]