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Friday 15 July, 2011

IL&P Group Holdings

Results of European Banking Authority stress tests

RNS Number : 5131K
Irish Life & Permanent Grp HldgsPLC
15 July 2011

15 July 2011



Irish Life & Permanent Group Holdings p.l.c.



Results of European Banking Authority stress tests



The results of the European Banking Authority (EBA) stress tests on Irish Life & Permanent p.l.c. (IL&P), the Group's banking subsidiary, are published by the Central Bank of Ireland today.


The results of the EBA stress tests for IL&P, including the recapitalisation of €3.6 billion in Core Tier 1 (including €0.3 billion of buffer capital) required under the Prudential Capital Assessment Review (PCAR) announced in March, show capital ratios for the bank in 2012 of 28.4% under the baseline scenario and 20.4% under the adverse scenario.


The EBA stress tests methodology differs in a number of respects from that applied in the PCAR exercise. The EBA tests cover the two years to end 2012 whereas PCAR extended over the 3 years to the end of 2013. Accordingly, the EBA test results do not include IL&P's loan losses for 2013 or the expected losses from asset disposals, arising from deleveraging in 2013. These items together with differing assumptions in relation to balance sheet growth, funding costs and timing of actions account for the difference in the EBA result for end 2012 and the PCAR result for end 2013.


For the purposes of meeting the bank's capital requirement under PCAR an Extraordinary General Meeting will be held on 20 July 2011 to approve, inter alia, the issue of up to €3.4 billion of Ordinary Shares and €0.4 billion in Contingent Capital Notes to the Minister for Finance.


Full details of the results of the EBA stress tests for IL&P are available on the Group's website,  and are also published on the Central Bank of Ireland's web site .






Investor Relations


Barry Walsh

Tel: +353 1 704 2678


Orla Brannigan  

Tel: +353 1 704 1345     




Ray Gordon, Gordon MRM

Tel: +353 1 665 0450


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