SANTANDER UK GROUP HOLDINGS PLC
STATEMENT ON THE OUTCOME OF THE 2021 BANK OF ENGLAND STRESS TEST
Santander UK notes the publication of the results of the 2021 stress tests conducted on eight major UK banks and building societies by the Bank of England.
As a result of the exercise, the Bank of England does not require Santander UK to undertake any actions.
Since the introduction of IFRS 9 in January 2018 the stress test results are published on an IFRS 9 transitional and non-transitional basis, over a five-year stress period to the end of 2025. For Santander UK the IFRS 9 transitional and non-transitional results and reference rates are the same.
Santander UK's lowest post-stress common equity tier 1 ('CET 1') capital ratio was modelled to be 11.2% before management actions. This is defined as CET1 capital expressed as a percentage of risk-weighted assets, where these are in line with CRR and the UK implementation of CRD V via the PRA Rulebook.
These results are in excess of the CET 1 reference rate established by the Bank of England of 8.2%.
Santander UK reported a CET 1 capital ratio of 16.6% as at 30 September 2021, up from 15.2% as at 31 December 2020.
The Bank of England’s CET1 reference rate comprises the CRR Pillar 1 minimum of 4.5% together with a Pillar 2A CET1 requirement, an estimate of the applicable Systemic Risk Buffer and an adjustment to offset the pro-cyclical impacts of IFRS 9.
Santander UK's lowest post-stress Tier 1 leverage ratio was modelled to be 4.1% before management actions. The Tier 1 leverage ratio is Tier 1 capital expressed as a percentage of the leverage exposure measure excluding central bank reserves, as defined in Rule 1.2 of the Leverage Ratio part of the PRA Rulebook.
These results are in excess of the leverage reference rate established by the Bank of England of 3.5%.
Santander UK reported a leverage ratio of 5.4% as at 30 September 2021, up from 5.1% as at 31 December 2020.
Paul Sharratt Head of Investor Relations 07715 087 829
Adam Williams Head of Media Relations 07711 783 118