Mediobanca: capital requirement set by ECB easily met

Mediobanca has received notice from the ECB regarding the Pillar 2 Capital Requirement (P2R) to be met at the consolidated level starting from 1 January 2025, in accordance with the outcome of the Supervisory Review and Evaluation Process (SREP) for 2024.

In particular, the Pillar 2 requirement has been confirmed at 1.75%. The overall capital requirements to be met are 9.03% for the Common Equity Tier 1 ratio, 10.86% for the Tier 1 Ratio, and 13.30% for the Total Capital ratio.[1]

The requirement is made up of the following:

• 4.5% Common Equity Tier 1 ratio;

• Pillar 2 requirement, unchanged at 1.75%,[2] 0.98% of which by way of Common Equity Tier 1 ratio and 1.31% of Tier 1 ratio;

• Capital Conservation Buffer (CCB) of 2.5%, all of which Common Equity Tier 1 ratio;

• Other Systemically Important Institution Buffer (O-SII), fully loaded, 0.25% (last year phase-in, 0.125%), all of which Common Equity Tier 1 ratio, following Mediobanca's inclusion as one of the systemically important institutions starting from 2024;

• A new Systemic Risk Buffer (SyRB) of 0.8%,^[3] all of which Common Equity Tier 1 ratio.

The Mediobanca Group’s regulatory capital ratios on a consolidated basis as at 30 September 2024, without including earnings generated for 1Q FY 2024-25, were comfortably above the requirements set, as follows:

• 15.2% for the Common Equity Tier 1 ratio;

• 17.7% for the Total Capital Ratio.

Milan, 12 December 2024