TSB performs an annual capital assessment as part of its "Internal Capital Adequacy Assessment Process" (ICAAP). This assessment becomes the basis for TSB's Pillar 2a requirement advised by PRA through "Individual Capital Guidance" (ICG).
As at 30 September 2018, TSB's total Pillar 1 plus Pillar 2a capital guidance was 14.9% of RWAs (8% Pillar 1 plus 6.9% Pillar 2a). At least 56.25% of this requirement needs to be met in "Common Equity Tier 1" (CET1) form equating to approximately 8.4% of RWAs. Certain elements of the Pillar 2a requirement are a fixed quantum whilst others are a proportion of RWA's and are based on a point in time assessment.
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