UBB acknowledges the results of the Comprehensive assessment based on the data as of 31.12.2018, conducted by ECB.

The results confirm the strong and solid capital position of UBB under the prudential ECB methodology and hypothetical stressed economic scenarios. They show that UBB is very well prepared and has robust capital buffers to meet extreme economic shocks. As can be seen from the AQR results in the table below, there is a negligible impact over the 2018 CET1 capital ratio, as well as stable performance from the conducted stress tests in the following years. UBB is not only meeting the minimum capital requirements in the different scenarios but largely exceeding them.

Base scenario – CET1

 Adverse scenario – CET1

(1)    CET1 capital ratio before impact of the AQR findings

(2)    CET1 capital ratio after impact of the AQR findings

(3)    Minimum level of CET1 capital ratio set by ECB

The Asset Quality Review did not reveal any accounting misalignments. The indicated adjustments are being tackled in the normal capital assessment process of UBB.

“We are very proud with the results which confirm the prudent risk management policies and accounting principles applied by UBB in full compliance with Regulatory standards and IFRS. It is without doubt a result of the application of the Group policies and standards of our shareholder, the Belgian KBC Group.

The results provide us with confidence that UBB will continue to support the growth of the Bulgarian economy, as well as the success and prosperity of our clients.

In addition I would like to express my deep satisfaction with our fruitful partnership and excellent cooperation with ECB”, Peter Andronov, Country Manager of KBC Group for Bulgaria and CEO of UBB said commenting on the results.