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2022/23 Bank of England stress test results
2022/23 Bank of England stress test results.
About this update from Natwest Group Plc
[{"type":"text","content":"\n\n \nNatWest Group plc\n12 July 2023\n \nNatWest Group plc\n \n2022/23 Bank of England stress test results\n \n12 July 2023\n \nNatWest Group (\"the Group\") notes the announcement made today by the Bank of England (\"BoE\") regarding the results of its 2022 stress test. The test explores whether the Group has sufficient capital to withstand a severe but plausible outcome starting with the Group's balance sheet as at 30 June 2022, and compares the theoretical Common Equity Tier 1 (\"CET1\") ratio and Tier 1 leverage ratio positions of the Group before and after the impact of strategic management actions.\n \nThe 2022/23 stress test also assesses NatWest Holdings Group (\"NWH Group\") against the same scenarios.\n \nIFRS 9 Transitional basis\nThe Group's low point CET1 ratio would have been 11.1% on a minimum stressed ratio basis after the impact of strategic management actions. This is above the Group's 7.0% hurdle rate (please refer to definitions in notes below the table).\n \nThe Group's Tier 1 leverage ratio would have been 5.2% after the impact of strategic management actions. This is above the hurdle rate of 3.7%.\n \nNWH Group's low point CET1 ratio would have been 9.7% on a minimum stressed ratio basis after the impact of strategic management actions. This is above NWH Group's 7.2% hurdle rate.\n \nNWH Group's Tier 1 leverage ratio would have been 5.2% after the impact of strategic management actions. This is above the hurdle rate of 3.8%.\n \nIFRS 9 Non-transitional basis (fully loaded)\nThe Group's low point CET1 ratio would have been 11.1% on a minimum stressed ratio basis after the impact of strategic management actions. This is above the Group's 6.2% hurdle rate (please refer to definitions in notes below the table).\n \nThe Group's Tier 1 leverage ratio would have been 5.1% after the impact of strategic management actions. This is above the hurdle rate of 3.3%.\n \nNWH Group's low point CET1 ratio would have been 9.7% on a minimum stressed ratio basis after the impact of strategic management actions. This is above NWH Group's 7.2% hurdle rate.\n \nNWH Group's Tier 1 leverage ratio would have been 5.0% after the impact of strategic management actions. This is above the hurdle rate of 3.3%.\n \nCommenting on the results, Katie Murr...