UCB AQR & stress test results from ECB

UCB AQR & stress test results from ECB

UniCredit Bulbank was subject to Comprehensive Assessment carried out by the European Central Bank. The exercise was undertaken in the context of Bulgaria’s request to establish close cooperation with the ECB and comprises an asset quality review and stress test.

UniCredit Bulbank notes the announcements made today by ECB and fully acknowledges the outcomes of this exercise.

The thorough and extensive Comprehensive Assessment confirmed the UniCredit Bulbank's strong resilience to a stressed macroeconomic scenario underpinned by the Bank’s solid capital position, exceeding significantly all the thresholds set out in the Comprehensive Assessment. In the third-year of the adverse stress test scenario (2021) the CET1 of the Bank stands at 14.3% vs a pass threshold of 5.5%, while in the baseline scenario the CET1 is estimated to be 19.2% vs threshold of 8%.

The Asset Quality Review component of the Comprehensive Assessment confirmed UniCredit Bulbank's balance sheet strength and the conservative approach towards classification and provisioning of the Non-Performing Loans portfolio, an approach to which the Bank continuously adhere to, also in the period after the reference date of the Comprehensive Assessment (31 Dec 2018), while simultaneously it has already started to enhance the coverage of its performing loans book. The Bank will continue the constructive discussion with its external auditors and the Bulgarian National Bank on cases of borrowers with flawless multi-years performance, for which the very prudent AQR methodology have identified triggers for rе-classification.

UniCredit Bulbank’s strong results lead to no regulatory requirements for capital measures and allow the Bank to keep its focus on providing outstanding services to its extensive client franchise.

For more details please refer to ECB website here.

Additional media information:

Victoria Blajeva, tel +359 (0) 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Beatris Nikolova, tel +359 (0) 2 9232 528, cfbusjt/ojlpmpwbAvojdsfejuhspvq/ch

Ekaterina Ancheva, tel +359 (0) 2 9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch