DNB – Supervisory Review and Evaluation Process (SREP) 2024

The Financial Supervisory Authority of Norway (“the FSA”) regularly carries out a Supervisory Review and Evaluation Process (“SREP”), where they evaluate the risks and capital needs of DNB. The SREP includes a decision regarding the Pillar 2 Requirement and the Pillar 2 Guidance, which comes in addition to the minimum requirements and combined buffer requirements under Pillar 1. DNB has now received this year’s decision from the FSA, which will apply from 31 December 2024.
 
The FSA has decided that the Pillar 2 Requirement for DNB (on a group level) shall be reduced from 2.0 % to 1.7 % of the total risk exposure amount (TREA). At least 56.25 % of the requirement shall be met with common equity tier 1 (CET1) capital, while 75 % must be met with tier 1 capital. The new Pillar 2 Requirement will therefore reduce the total capital requirement by 0.3 percentage points, the tier 1 requirement by 0.23 percentage points and the CET1 requirement by 0.17 percentage points. 
 
The Pillar 2 Guidance is unchanged at 1.25 % of TREA.