Decision (EU) 2015/656 (ECB/2015/4)

In force

This text since 31 Dec 2014law://eu/dec/2015/4/art_4@2026-11-12

Contents

Article 4Verification of the profits#

1.The ECB shall consider that the verification requirement under Article 26(2)(a) of Regulation (EU) No 575/2013 has been met if the notifying credit institution provides the ECB with a document signed by its external auditor that complies with the requirements set out in paragraphs 3 and 4.

2.Credit institutions notifying their intention to include interim or year-end profits as CET1 capital, at various levels of consolidation or on an individual basis, may provide the document referred to in paragraph 1 at the highest level of consolidation.

3.For year-end profits, the verification shall consist either of an audit report or of a comfort letter stating that the audit has not been completed and nothing has come to the attention of the auditors that causes them to believe that the final report will include a qualified opinion.

4.For interim profits, the verification shall consist either of an audit report or of a review report (as defined by the International Standard on Review Engagements 2410 issued by the International Auditing and Assurance Standards Board or a comparable standard applicable at national level) or, provided that the verification carried out by the credit institution consists of an audit report, a comfort letter along the lines set out in paragraph 3.

Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.

Key facts

Type: Decision · (EU) 2015/656
In force: 31 Dec 2014
Adopted: 4 Feb 2015
Applies from: 6 Feb 2015
Made by: European Central Bank
Official: EUR-Lex 32015D0004 · ELI

Topics

banking policy banking supervision capital movement credit institution financial legislation profit working capital Capital requirements Freedom of establishment

History · 1 version

31 Dec 2014Reading

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Defined terms · 8

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consolidated basis
has the same meaning as defined in point 48 of Article 4(1) of Regulation (EU) No 575/2013.
consolidating entity
means the credit institution which shall comply with the requirements laid down in Regulation (EU) No 575/2013 on consolidated basis or sub-consolidated basis, as applicable, in accordance with Articles 11 and 18 of Regulation (EU) No 575/2013.
credit institution
means a credit institution as defined in point 1 of Article 4(1) of Regulation (EU) No 575/2013 and which is supervised by the ECB.
interim profits
means profits as laid down in the applicable accounting framework, computed for a reference period shorter than a full financial year, and before the credit institution has taken a formal decision confirming such a profit or loss of the institution.
pay-out ratio at consolidated level
means the ratio between: (a) dividends, other than those paid in a form that does not reduce CET1 capital (e.g. scrip-dividends), distributed to owners of the consolidating entity;
pay-out ratio at solo level
means the ratio between: (a) dividends, other than those paid in a form that does not reduce CET1 capital (e.g. scrip-dividends), distributed to owners of the entity;
sub-consolidated basis
has the same meaning as defined in point 49 of Article 4(1) of Regulation (EU) No 575/2013.
year-end profits
means profits as defined in the applicable accounting framework, computed for a reference period equal to a full financial year, and before the credit institution has taken a formal decision confirming such a profit or loss of the institution.