Brussels, 26/10/14 Press Release AXA Bank Europe has strengthened its capital and is compliant with the requirements of the European Central Bank (ECB) Key messages: • AXA Group has anticipated the outcome of the adverse macro scenario of the ECB stress test by providing the necessary capital resources for AXA Bank Europe to comply with the ECB Comprehensive Assessment requirements. This confirms AXA Bank Europe as a trustworthy partner and financially reliable bank for its 800.000 Belgian clients. Following a Tier 1 capital increase of EUR 225 million in September 2014, AXA Bank Europe complies with the ECB Comprehensive Assessment capital requirements. • “AXA Bank Europe is stronger today than ever before. It is part of a performing and solid AXA Group, which has confirmed its trust in the strategy and future of the Bank,” said Jacques de Vaucleroy, CEO for the NORCEE region and head of the Group's Life & Savings and Health businesses. • Two legacy portfolios have had a significant impact on the result: a structured bonds portfolio being in run-off since 2008, which has been completely sold in September 2014 and a mortgage credit portfolio in Hungary which is in run-off since 2011. A financially sound AXA Bank Europe … In September 2014, AXA Group, as shareholder, has strengthened AXA Bank Europe capital through an injection of EUR 135 million Common Equity Tier 1 capital and a EUR 90 million intra-group Contingent Convertible, permitting AXA Bank Europe to comply with the requirements of the ECB Comprehensive Assessment. As indicated by the ECB and the NBB, no additional measures to strengthen the solvency position of AXA Bank Europe are required. With an overall Tier 1 capital of EUR 992 million and a forecasted Tier 1 ratio of 20,8% as at September 30, 2014 AXA Bank Europe hereby strengthens its Tier One Equity ratio by 5% from 15.2% at yearstart 2014 to 20,8% as at September 2014. “AXA Bank Europe is stronger today than ever before. It is part of a performing and solid AXA Group, which has confirmed its trust in the strategy and future of the Bank,” said Jacques de Vaucleroy, CEO for the NORCEE region and head of the Group's Life & Savings and Health businesses. AXA Group is a worldwide leader in insurance and asset management, with 157,000 employees serving 102 million clients in 56 countries. In 2013, IFRS revenues amounted to EUR 91.2 billion and IFRS underlying earnings to EUR 4.7 billion. AXA Bank Europe has a history of strong ratings and benefits today from a Standard & Poor’s rating of A (positive outlook)/ A-1 and a Moody's A2 / P-1 rating with stable outlook. Brussels, 26/10/14 Press Release … built upon a solid strategy Jef Van In, CEO of AXA Bank Europe: “Our structured bonds portfolio has been in run off since 2008 and our Hungarian loans portfolio has been in run-off since 2011. In 2013, we closed down the EasternEuropean branches in Czech Republic and Slovakia. The transformation of AXA Bank Europe culminated with the launch of the repositioning of the Belgian retail operations announced in February 2014. This transformation plan refocuses AXA Bank Europe on the Belgian territory. All of this is part of a solid strategy fully supported by our shareholder, employees and bank agents.” Jef Van In: “With EUR 16 billion of deposits on AXA Bank retail accounts to finance EUR 16 billion of retail credits to Belgian households, independents and micro-companies, we are fully auto-funded and we show proofs of a solid and reliable strategy, which puts fairness, simplicity and transparency towards our clients forward.” Significant impact in stress test due to two legacy portfolios Jef Van In: “Under the rules of the ECB Comprehensive Assessment AXA Bank Europe needs to simulate as if it was still producing new mortgage credits in Hungary until 2016 – although new credit has been stopped since 2011 – and as if the structured credits portfolio was maintained – although completely sold in September 2014. Those two static balance sheet assumptions by themselves have required a capital allocation of EUR 224 million. ” Please find attached an infographic (FR) illustrating: AXA Bank Europe complies with the ECB Comprehensive Assessments requirements - The Tier 1 capital injection of EUR 225 million capital increase brings overall capital of AXA Bank Europe to EUR 992 million and a forecasted Tier 1 ratio of 20,8% end of September 2014 - With EUR 16 billion saving deposits to finance EUR 16 billion retail credits to Belgian households, AXA Bank Europe shows proof to be an auto-funding and reliable retail bank - As a result of a coherent strategy since 2008, AXA Bank Europe now fully focuses on its retail banking activities in Belgium AXA Bank Europe has put in run-off its structured bonds portfolio in 2008 and sold it in totality in September 2014 AXA Bank Europe has put in run-off its mortgage credit activities in Hungary since 2011 resulting in a continuously decreasing risk exposure Please note that Jef Van In, CEO of AXA Bank Europe, is available to respond to press questions. Please contact Wim Pauwels (+32 479 65 17 12) to schedule a time slot. More information: Wim PAUWELS Head of Communications AXA Bank Europe [email protected] Tel : +32 2 678 64 63 GSM: +32 479 65 17 12
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