Business
Response to Results of BOE Stress Test 2019
Response to Results of BOE Stress Test 2019.
About this update from Nationwide Building Society
[{"type":"text","content":"\n \nRNS Number : 0581X Nationwide Building Society 16 December 2019 \n\n16 DECEMBER 2019\n \nNATIONWIDE'S RESPONSE TO THE RESULTS OF THE BANK OF ENGLAND STRESS TEST 2019\nToday the Bank of England issued the results of its latest Concurrent Stress Test. The specified hypothetical Annual Cyclical Scenario (ACS) 2019 was consistent with ACS 2018 with a 33% fall in house prices and 9.2% peak in unemployment, and a rapid increase in Bank Base Rate to 4% in the first year of the scenario. \nConsistent with the results of ACS 2018, the results of ACS 2019 confirm that Nationwide would remain profitable in such conditions and continue to make full distributions on all Tier 1 capital instruments, with a minimum stressed CET1 ratio of 13.1%, and a minimum UK leverage ratio of 4.8%, after the application of management actions. In each case the Society remains substantially above the regulatory hurdle rates set for this stress test of 7.9% CET1 ratio and 3.57% UK leverage ratio, both before and after the application of management actions.\nThe PRA has confirmed that Nationwide is not required to submit a revised capital plan or take additional actions as a result of this stress test exercise.\nNationwide recognises the value of industry-wide stress testing and continues to support the financial stability objectives of the Financial Policy Committee and the Bank of England.\n \n \n \nContacts:\n\n\n\n\nMedia Queries:\nStuart Williamson\nMobile: 07368 499629\[email protected]\n \n\n\nInvestor Queries:\nAlex Wall\nTel: 020 7261 6568\nMobile: 07917 093632\[email protected]\n \n\n\n\n\nMichelle Slade\nTel: 01793 657500\nMobile: 07725 680135\[email protected]\n\n\n \n\n\n\n\n \n\nThis information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com. END RSPGGGQCPUPBGMQ\n ","length":4000,"tagName":"div"}]