RBS 2015 Annual Report Download - page 50

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Current assessment of appropriate buffers
Target CET1 ratio versus maximum distributable amount (“MDA”), %
Illustration, based on assumption of static regulatory requirements
10.8
8.3
4.5
4.5
2.8
2.8
2.5
1.0
2.2
7.2
Estimated
"Fully Phased"
2019 MDA
10.8
2016 Initial
"Phase In"
MDA
8.3
0.6 0.4
FY 2015
15.5
Management
CET1 Target
13.0
Pillar 1 minimum requirement
Capital Conservation Buffer
Pillar 2A (varies at least annually)
G-SIB / Systemic Risk Buffer
Illustrative
headroom
(4)
(6)
(5)
(1) Headroom may vary over time and may be less in future. (2) 2016 G-SIB initial phase-in based on 1.5% current requirement. RBS’ G-SIB requirement will reduce to 1.0% on 1 Jan 2017. (3) RBS’s Pillar 2A requirement was
5.0% of RWAs as at 31 December 2015. 56% of the total Pillar 2A requirement, or 2.8% of RWAs, must be met from CET1 capital. (4) Pillar 2A requirement held constant over the period for illustration purposes. Requirement is
expected to vary over time and is subject to at least annual review. Following our announced changes to pension accounting and planned scheme contributions in response to amendments to IFRIC 14, RBS anticipates a reduction
in RBS’s future core capital requirements. The timing of any such core capital offsets are likely to occur at the earliest 1 January 2017 and will depend on the PRA’s assessment of RBS’s core capital position in future. (5) Assumes
no material Counter Cyclical Buffer requirement. (6) Based on 13% CET1 target during the period of CIB restructuring. (7) Please refer to Note 1 on page 359 of the Annual Report and Accounts.
Illustrative
headroom
(2)
(3)
41
(1)
(1)
FY 2015 RBSG (HoldCo) Distributable Reserves £16.3bn vs £17.5bn at FY 2014
(4)
(7)