Rabobank Group

15-7-2011 | Press Releases

The results of the stress test for banks carried out by the European Banking Authority (EBA) have been announced today. As expected, Rabobank has come through the test very strongly. Rabobank's Core Tier 1 capital ratio amounted to 12.6% at the end of December 2010. The stress test revealed that in the worst case scenario Rabobank's Core Tier 1 capital ratio would still result in a solid 10.8% at the end of 2012. This is more than twice the level required to pass the stress test.

The results of the stress test for banks carried out by the European Banking Authority (EBA) have been announced today. As expected, Rabobank has come through the test very strongly. Rabobank's Core Tier 1 capital ratio amounted to 12.6% at the end of December 2010. The stress test revealed that in the worst case scenario Rabobank's Core Tier 1 capital ratio would still result in a solid 10.8% at the end of 2012. This is more than twice the  level required to pass the stress test.
 
The benchmark used to assess banks is the relative amount of Core Tier 1 capital. To pass the stress test, Core Tier 1 capital of at least 5.0% of the risk-weighted assets at year-end 2012 is required.
 
The good result is not surprising given Rabobank's sound capital position. This strong capital position also constitutes one of the main foundations underpinning the high credit rating awarded to Rabobank.
 
Rabobank was one of the banks subjected to the EBA's 2011 stress test. This test has been conducted by the EBA in co-operation with De Nederlandsche Bank (DNB), the European Central Bank (ECB), the European Commission (EC) and the European Systemic Risk Board (ESRB).
 
A total of 90 banks were assessed in the stress test, which together represent 65% of the total banking system in the European Union.
 
One of the items assessed in the stress test is the banks' exposure to the peripheral countries of the eurozone. As disclosed previously, Rabobank's exposure to the eurozone periphery is limited. At the end of June 2011, the bank's total exposure to Greece and Portugal amounted to EUR 240 million and EUR 19 million respectively.
 
The stress test has been carried out based on scenarios prescribed by the ECB and the methodologies prescribed by the EBA. The results of this test  must not be considered as a forecast or prediction.