RCI Banque discloses Capital Requirements following the 2022 SREP draft decision
December 14, 2022
RCI Banque discloses Capital Requirements following the 2022 SREP draft decision
As part of the 2022 exercise of the supervisory review and evaluation process (“SREP”), the European Central Bank has notified RCI Banque of its draft decision regarding the capital requirement the Bank must respect in 2023.
As of January 1, 2023*, the Pillar 2 requirement (P2R) will be 2.01% compared to 2.05% in January 2022. Requirements linked to the provisioning old non-performing receivables1 has been reduced from 0.05% to 0.01%.
RCI Banque did not exercise its “right to be heard” and no major change is expected in the final decision.
Starting from January 1, 2023*, RCI Banque will be required to meet the following capital requirements:
| Minimum capital requirements | |||||
| Total | Pillar 1 | Pillar 22 | Buffers3 | ||
| CET14 | 10.65% | 6.03% | 2.01% | 2.61% | |
| ow CET1 (Regulatory) | 8.24% | 4.50% | 1.131% | 2.61% | |
| ow RCI AT1 Shortfall5 | 1.877% | 1.50% | 0.377% | 0.00% | |
| ow RCI T2 Shortfall6 | 0.53% | 0.03% | 0.50% | 0.00% | |
| Total ratio | 12.62% | 8.00% | 2.01% | 2.61% | |
As a reminder, RCI Banque CET1 and Total Capital ratios stood at 14.71% and 17.18% respectively on 30 June 2022.
* unless otherwise specified in the final SREP decision
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About Mobilize Financial Services:
As a partner caring for all its customers, Mobilize Financial Services builds innovative financial services to create sustainable mobility for all. A subsidiary of the Renault Group whose activity started almost 100 years ago, Mobilize Financial Services is the commercial brand of RCI Banque SA, a French Bank specializing in automotive financing and services for Alliance customers and dealers.
With operations in 36 countries and nearly 4,000 employees, the group financed over 1.4 million contracts (new and used vehicles) in 2021 and sold 4.7 million services. At end 2021, average performing assets stood at €44.8 billion in financing and pre-tax income at 1,194 million.
Since 2012, the group has rolled out a deposits collection business in several countries. At the end of December 2021, net deposits collected totaled €21 billion or 47% of the company’s net assets.
Find out more about Mobilize Financial Services: www.mobilize-fs.com
Follow us on Twitter: @Mobilize_FS
1 the amount of provisions on these contracts indeed shows a slight shortfall compared to the quantitative expectations published by the regulator in “Addendum to the ECB Guidance to banks on non-performing loans: supervisory expectations for the prudential provisioning of non-performing exposures.
2 Pillar 2 requirement or P2R. Does not include undisclosed Pillar 2 Guidance.
3 Capital Conservation buffer (“CCB”) 2.5 %, Counter-cyclical buffer (“CCyB”) 0.11 % as of January 2023. The CCyB depends on the bank exposure towards countries where countercyclical buffer rates are or will be set and may therefore vary on a quarterly basis. CCyB is expected to reach 0.52 % by year end 2023.
4 Assuming AT1 and T2 shortfalls filled with CET1 and shortfalls at their 30/06/2022 levels.
5 AT1 shortfalls (1.5% on Pillar 1 and 18,75 % of P2R on Pillar 2) filled with CET1.
6 T2 shortfalls (including 25 % of P2R) filled with CET1 (calculation as of 30/6/2022).
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