AFD - 2018 Registration document

RISK MANAGEMENT

Basel III Pillar 3

When itemised, the capital breaks down as follows: ❙ Consolidated capital

31/12/2018

In millions of euros

Equity

2,808 2,397

Consolidated reserves

Earnings

73

Projected distribution (20% company income statement)

0

FRBG

460 143

Equity method diff.

Unrealised capital gains and losses

56

Minority interests Intangible assets

236

-39

Exclusion of unrealised gains entered in KP

0

Prudent valuation

-4

CET1 capital

6,131

CET1 deductions

0

CET1 capital after deductions T1 subordinated securities

6,131

4

840

T1 capital

6,971

T1 deductions

0

T1 capital after deductions

6,971

RCS

208

Subordinated loans, Art. 4d Subordinated loans, Art. 4c

0 0

T2 capital

208

T2 deductions

0

T2 capital after deductions

208

TOTAL CONSOLIDATED CAPITAL

7,179

❙ Deductions and prudential restatements under CRR/CRD4

31/12/2017

31/12/2018

In millions of euros

Cut back of non-eligible minority interests Exclusion of unrealised gains entered in equity

19.2

-96.5 -29.9

0.0

Prudent Value Adjustment

-4.1

-3.5

TOTAL -129.9 Articles 81 and 479 of the CRR provide for the deduction from capital of the minority interests in entities not governed by the CRR and CRDIV, or equivalent requirements, with a transition period. 4.2.4.2 Capital adequacy 15.1

a firm of consultants and involving teams from the departments concerned, several workshops were held in late 2016 and in the first quarter of 2017 to finalise the definition, approach, methodology and results of the calculations relating to material risks and to formalise the planning and capital allocation process. The formalisation of this first ICAAP was approved by AFD.’s Board of Directors in April 2017. The work will continue in 2019.

AFD easily meets the minimum capital requirements set out in Pillar 1, with an increase in its capital taking its capital adequacy ratio to 18.37% at 31 December 2018, compared with 16.44% at 31 December 2017. Under Pillar 2, AFD began its Internal Capital Adequacy Assessment Process (ICAAP) in November 2016. Supported by

73

REGISTRATION DOCUMENT 2018