37 banks supervised by ECB has 13% tier one capital

In the adverse scenario of the stress test the average drop was 3.9 percentage points. There was no pass/fail function in the test.

Where tier one capital falls in the ECB's adverse-scenario:

  • Deutsche Bank 7.8%
  • Monte Paschi -2.44%
  • Allied Irish 4.31%
  • Banco Popular 6.62%
  • Bank of Ireland 6.15%
  • Barclays 7.3%
  • Unicredit 7.1%
  • Soc Gen 7.5%
  • ING 9%
  • RBS 8.1%
  • Nordea 14.1%
  • ABM Amro 9.53%

Deutsche Bank's PR team is highlighting that it came out better than in 2014; that sounds like some weak spin but shares of the ADR are up 1.6% after hours.

The point of a stress test should be transparency but they're largely run as confidence-building exercises. Aside from Monte Paschi, which we already knew was in trouble, the numbers look ok. National regulators are touting domestic results so it looks to be positive.

That said, shares of banks roared today with many of the names on that list up 5%, so the numbers may have leaked.