The Financial Supervisory Authority of Norway has completed the evaluation of Bank Norwegian's capital adequacy assessment process (SREP) for 2016. The Pillar 2-requirement for the bank is set at 4.2 per cent of risk-weighted assets. This additional requirement must be covered by common equity tier 1 capital.
The minimum requirement for common equity tier 1 capital for Bank Norwegian becomes after this clarification 15.7 percent at the end of Q3 2017. The bank communicated a target common equity tier 1 capital level of around 16.0 percent at the end of Q2 2017 in connection with the presentation of fourth quarter 2016 results. The common equity tier 1 capital at the end of Q4 2016 was 13.7 percent and has been strengthened during the quarter as a result of a private placement of NOK 500 million and the sale of a portfolio of non-performing loans in Sweden.
Bank Norwegian considers the Pilar 2-requirement to be excessive high and will appeal the Financial Supervisory Authority's decision.
Interim CEO Pål Svenkerud; +4793403904
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Source: Norwegian Finans Holding ASA via Globenewswire