Additional cushion from deferred tax! This ensures the passing of the stress tests.
"The deferred tax from the PSI is 12 billion of which 2.4 billion have already been included and the remaining 9.6 billion constituting an additional cushion.
Due to the full calculation of deferred tax, the four Greek banks ( National , Alpha, Piraeus , Eurobank) showed on the basis of the EBA on 30/6/2013 a higher Core Tier I in relation to the financial statements 6months ago.
Specifically , based on estimates of Euroxx, the Core Tier I ratio of Alpha Bank can be enhanced to 14.5 % (from 13.5 %) Piraeus to 15 % (from 13.5 %) National to 15.5 % (from 9.4 %) and Eurobank to 13.5 % (from 8.1 %).
Therefore the decision of the BoG ensures, according to bank officials, that the amount of the final capital needs will not exceed the levels that have already been reached."
confirmed on the sites: banksnewsgr, Euro2daygr, Ethnosgr, inewsgr
Unemon1, I guess you paid a pretty penny for the bank report and don’t want to elaborate more on this topic in reply to my post under “Check out NBG Preferreds.”. In addition to NBG Capital Tier I of 9.4% at end of 9 mos 2013, I neglected to mention that NBG could raise addl capital by buyback of the Greek bonds if the offer is accepted. Also, why wouldn’t they issue preferreds instead of common to raise capital?
it said that the banks can use it if they need to use it, right now they all used very little of the deferred capital to boost core tier one ratios, but in the event they need extra capital from the stress test results, they can tap the deferred tax instead of diluting shares and shareholders.