Rabobank has received notification of the ECB’s final decision concerning the own funds requirements that it has to meet as of 1 January 2027, following the results of the 2026 Supervisory Review and Evaluation Process (SREP).
The decision for Coöperatieve Rabobank U. A. (“Rabobank”) amounts to a total SREP capital requirement of 10.1% of the bank’s total risk exposure amount, applicable on a consolidated basis (Rabobank Group).
Requirements on a consolidated basis
The 10.1% requirement consists of an 8% Pillar 1 total capital requirement and a 2.1% Pillar 2 requirement. These requirements can be fulfilled by CET1 and partly by AT1 and/or Tier 2 capital. The Pillar 2 requirement for 2027 is equal to the requirement of 2026.
The CET1 minimum requirement is 5.7% consisting of the minimum Pillar 1 CET requirement (4.5%) and the Pillar 2 CET1 requirement (1.2%). In addition, Rabobank should comply with the combined buffer requirement consisting of a Capital Conservation Buffer (2.5%), a Total systemic buffer of 1.52% (consisting of an Other Systemically Important Institutions (“O-SII”) buffer as imposed by the Dutch Central Bank (“DNB”) of 1.5% and a Systemic risk buffer for specific exposures (0.02%)) and a Countercyclical Buffer (“CCyB”) of 1.2%, resulting in an overall CET1 requirement of 10.9% as of 1 January 2027.
The current 10.9% CET1 requirement does not include the ECB’s Pillar 2 guidance. The Pillar 2 guidance is not disclosed.
With a current CET1 ratio of 20.2% on 30 June 2026, Rabobank already complies with the SREP capital requirement for 2027 and also operates above its own CET1 ratio ambition of at least 14%. With a Tier 1 ratio of 21.5% and a Total capital ratio of 22.9% on 30 June 2026 Rabobank also comfortably meets its total SREP capital requirements.
Requirements on an individual basis
As of 1 January 2027, Rabobank is required to maintain a CET1 ratio of 8.4% on an individual basis. This consists of the minimum Pillar 1 CET requirement (4.5%), the Capital Conservation Buffer requirement (2.5%) the CCyB (1.42%) and a Systemic risk buffer for specific exposures (0.02%). The CET1 ratio of Rabobank on an individual basis amounted to 20.1% on 30 June 2026 which again is well above these requirements.
Parts of this press release are considered by Rabobank to be insider information that directly or indirectly relates to Rabobank as referred to in Article 7 of the Market Abuse Regulation (EU 596/2014) which is disclosed in accordance with Article 17 of the Market Abuse Regulation.
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