The European Banking Authority (EBA) included Danske Bank in the group of 71 European Banks that was part of the EU capital exercise in December 2011 and in the group of 90 European banks covered by the July 2011 EU-wide stress testing exercise.
The purpose of the stress test in July 2011 was to assess the resilience of banks in the European Union, whereas the purpose of the capital exercise in December 2011 was to clarify whether there is a need for recapitalisation among European Banks.
Danske Bank passed both the capital and stress tests
Danske Bank passed the July 2011 stress test with flying colours. Even in the adverse scenario the bank’s core tier 1 capital ratio by far exceeds the EBA limit. In the December 2011 capital exercise, Danske Banks core tier 1 capital was 13.8% and thus well above the EBA limit of 9 %.
Danske Bank also did well in the 2010 stress test. Two years in a row, the EBA stress tests have confirmed the Danske Bank Group’s considerable financial strength.
Company announcements and results
Last updated on 8 December 2011