Germany’s Commerzbank AG (CBKG.DE) on Friday said an EU test of banks’ financial health showed its capital is robust, after it posted a weaker reading than most of its European peers under an “adverse” financial stress scenario.
Germany’s second biggest bank showed a capital strength measure that was eighth from the bottom among 51 European lenders tested against a theoretical economic shock spanning three years to see how much their core capital would be depleted, according to data from the European Banking Authority published on Friday.
Commerzbank’s core equity Tier 1 ratio (CET1) was 7.4 percent in this adverse scenario, the data showed.
“Commerzbank is robust and stress resistant” Commerzbank Chief Risk Officer Marcus Chromik said in a statement reacting to the EBA’s test results.
“Even under the adverse conditions of the EBA stress scenario, the stability of the Bank would be guaranteed,” Chromik said.
There was no formal pass or fail mark in the latest stress tests but analysts say they would compare the result against a 5.5 percent CET1 threshold for all banks in previous stress testing.