The Nordea Group’s Pillar 2 requirement (P2R) will be reduced to 1.60% from the current 1.75%. The P2R is a bank-specific capital requirement which applies in addition to the minimum capital requirement known as Pillar 1. The Common Equity Tier 1 (CET1) requirement in the P2R is therefore reduced from 0.98% to 0.90%.
On 21 December Nordea received the European Central Bank’s (ECB) Joint Decision on the Supervisory Review and Evaluation Process (SREP). The Joint Decision on SREP is the annual process where the ECB concludes on the assessment of banks under its supervision, and also includes the decision on the P2R.
As outlined in the Capital Requirements Directive, banks must meet the P2R with at least 75% of Tier 1 capital and at least 56.25% of CET1 capital.
With the new, lower P2R, the CET1 requirement for the Nordea Group will be reduced by 8bp. In the third quarter of 2022 the CET1 requirement for Nordea was 10.8%.
The new P2R will apply from 1 January 2023.
For further information:
Matti Ahokas, Head of Investor Relations, +358 9 5300 8011
Group Communication, +358 10 416 8023 or press [at] nordea.com
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