Hamburg Commercial Bank: ECB stress test result confirms robust business model
- Lower than average capital depletion of 4.0 percentage points in the adverse scenario due to earnings strength, sound portfolio quality and diversification
- Robust CET1 ratio of 16.5% in the adverse scenario – significantly above the 10.4% average
- Very strong leverage ratio of 8.2% underlines resilient capital position
Hamburg, July 31, 2023 - Hamburg Commercial Bank (HCOB) participated in this year's European Central Bank (ECB) EU-wide stress test and is one of the most resilient and well capitalized banks in Europe. With a capital depletion of 4.0 percentage points over the period 2023 – 2025 in the adverse scenario, HCOB performed better than the average of the other banks participating in the ECB stress test (-4.8 percentage points). HCOB's strong post-stress CET1 ratio of 16.5% is significantly above the average of 10.4% of the banks directly supervised by the ECB and substantially above the regulatory capital requirements.
“Hamburg Commercial Bank’s solid performance in this year’s stress test confirms our diversified business model and shows that our forward-looking and conservative risk policy of recent years is bearing fruit. The sound asset quality and our earnings and capital strength make HCOB one of the most resilient and capital strong banks in Europe," said Ian Banwell, CEO of Hamburg Commercial Bank. "The low cumulated capital depletion of four percentage points over the period 2023 - 2025 shows how robustly the bank is prepared for possible adverse economic developments.”
HCOB's leverage ratio remains at a very high level of 8.2% in the simulated adverse scenario, with a depletion of 1.6 percentage points. For comparison: The average leverage ratio of the other banks participating in the ECB stress test is 4.4%, with 1.1 percentage points deducted in the adverse scenario.
Europe-wide stress test simulates impact of adverse scenarios on banks
Hamburg Commercial Bank is one of 41 medium-sized European banks directly supervised by the ECB under the Single Supervisory Mechanism (SSM) that participated in the latest ECB stress test. The ECB stress test is conducted every two years in parallel with the European Banking Authority (EBA) stress test. The results provide information on the resilience on banks to potential negative developments in a difficult macroeconomic environment. This year's calculations of the results were calculated on business figures as at end of 2022.
About Hamburg Commercial Bank
Hamburg Commercial Bank AG (HCOB) is a private commercial bank headquartered in Hamburg, Germany. HCOB offers its clients a high level of structuring expertise in real estate financing and has a strong market position in international shipping.The bank is one of the pioneers in the pan-European project financing of renewable energies and digital infrastructure. HCOB offers individual solutions for German and international corporate clients. Reliable and timely payment products as well as other trade finance solutions also support the need of the bank's customers. HCOB is aligning its activities with established ESG criteria. For further information about HCOB, .
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