News Release Details
Financial Press Release
PNC Releases Results of Annual Dodd-Frank Company-Run Stress Test
The supervisory severely adverse scenario provided by the Federal Reserve and OCC for the 2015 annual company-run stress test assumes a severe recession that begins in the fourth quarter of 2014 followed by a recovery starting in the first quarter of 2016. This year's test incorporates a transition from Basel I to Basel III that aligns with the Basel III transition schedule adopted in
Tier 1 Common
Transitional Basel III:
Common Equity Tier 1
Tier 1 Risk-Based Capital
Total Risk-Based Capital
Tier 1 Leverage
Each ratio also represents the minimum quarterly ratio for the metric over the projection period. These results are the product of a forward-looking regulatory exercise using hypothetical macroeconomic assumptions that are far more adverse than currently expected by the Federal Reserve or PNC, and do not represent a forecast of PNC's future capital levels or anticipated economic conditions.
As required by applicable regulations, all capital ratios were calculated using PNC's actual capital actions undertaken in the fourth quarter of 2014 and applying the capital action assumptions specified by the regulations for the remaining eight quarters. These assumptions include no issuances or redemptions of regulatory capital instruments (other than issuances pursuant to expensed employee compensation programs) and a quarterly common stock dividend calculated as the quarterly average of the common stock dividend paid in 2014, or
The Basel I Tier 1 Common ratio was calculated for all quarters using the Basel I risk-based capital approach which applied to PNC through 2013. The Transitional Basel III ratios, which came into effect for PNC as of
Results of PNC's annual Dodd-Frank company-run stress test, including PNC's estimates of pre-provision net revenue, other revenue, loan and other losses, net income before taxes, and regulatory capital ratios for PNC, as well as additional information on the methodologies used in conducting the stress test, may be found on the Investor Relations page of PNC's corporate website at www.pnc.com/regulatorydisclosures.
William H. Callihan
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pnc-releases-results-of-annual-dodd-frank-company-run-stress-test-300046538.html