RCI Banque discloses Capital Requirements following the 2024 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:
Attentive to the needs of all its customers, Mobilize Financial Services, a subsidiary of Renault Group, creates innovative financial services to build sustainable mobility for all. Mobilize Financial Services, which began operations nearly 100 years ago, is the commercial brand of RCI Banque SA, a French bank specializing in automotive financing and services for customers and networks of Renault Group, and also for the brands Nissan and Mitsubishi in several countries.
With operations in 35 countries and nearly 4,000 employees, Mobilize Financial Services financed nearly 1.2 million contracts (new and used vehicles) in 2022 and sold 3.8 million services. At the end of December 2022, average earning assets stood at 44.7 billion euros of financing and pre-tax earnings at 1,050 million euros.
Since 2012, the Group has deployed a deposit-taking business in several countries. At the end of December 2022, net deposits amounted to 24.4 billion euros, or 49% of the company’s net assets.
To find out more about Mobilize Financial Services: www.mobilize-fs.com/
Follow us on X (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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