HSBC Holdings PLC HSBA Statement on EBA Capital Exercise

  HSBC Holdings PLC (HSBA) - Statement on EBA Capital Exercise

RNS Number : 8713N
HSBC Holdings PLC
03 October 2012

3 October 2012


HSBC Holdings plc notes the announcements made today by the European Banking
Authority and the Financial Services Authority regarding the final assessment
of the capital exercise and fulfilment of the EBA December 2011
Recommendation, which shows the following result for HSBC Holdings plc.

HSBC's consolidated Core Tier 1 ('CT1') ratio under the EBA's published
capital definitions and prescribed approach was 11.3% as at 30 June 2012.
Accordingly HSBC meets the 9% Core Tier 1 ratio including the sovereign buffer
as stated in the EBA December 2011 recommendation.

The appendices, via the link below and also available at, provide further details, based on
positions as at 31 December 2011 and 30 June 2012 of: (A) the composition of
CT1 capital based on EBA's published capital definitions and prescribed
approach; (B) risk-weighted assets; and (C) European Sovereign exposures -
central, regional and local government in the EEA.

HSBC will issue an Interim Management Statement for the third quarter of 2012
on 5 November 2012.

Media enquiries to:

Patrick Humphris +44 (0)20 7992 1631
Investor Relations enquiries to:
Guy Lewis         +44 (0)20 7992 1938
Robert Quinlan    +44 (0)20 7991 3643
Hong Kong
Hugh Pye          +852 2822 4908

Notes to editors:

1. Background on the EBA capital exercise

The EBA Recommendation on the creation of temporary capital buffers to restore
market confidence was adopted by the Board of Supervisors on 8 December 2011
to address the difficult situation in the EU banking system, especially with
regard to the sovereign exposures, by restoring stability and confidence in
the markets. The Recommendation was part of a suite of measures agreed at EU

The Recommendation called on National Authorities to require banks included in
the sample to strengthen their capital positions by building up an exceptional
and temporary buffer such that their Core Tier 1 capital ratio reaches a level
of 9% by the end of June 2012. In addition, banks were required to hold an
exceptional and temporary capital buffer against sovereign debt exposures to
reflect market prices as at the end of September 2011. The amount of the
sovereign capital buffer has not been revised.

The initial sample of the Capital Exercise included 71 banks. However, the 6
Greek banks were treated separately as the country is currently under an
EU/IMF assistance programme. Moreover, four banks (ÖesterreichischeVolksbank
AG, Dexia, WestLB AG and Bankia) from the original sample have been identified
as undergoing a significant restructuring process, and are being monitored
separately. Therefore, the final assessment published today refers to 61

2. HSBC Holdings plc

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in
London. The Group serves customers worldwide from around 6,900 offices in over
80 countries and territories in Europe, the Asia-Pacific region, North and
Latin America, and the Middle East and North Africa. With assets of US$2,652bn
at 30 June 2012, the HSBC Group is one of the world's largest banking and
financial services organisations.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


MSCMJBATMBTMBRT -0- Oct/03/2012 16:20 GMT
Press spacebar to pause and continue. Press esc to stop.