Article 7c Calculation of the Payout Ratio for the Purpose of Point (b) of Article 7b(8) | Prudential Regulation Authority Handbook & Rulebook
Prudential Regulation Authority Rulebook

Prudential Regulation Authority Rulebook

Part

Own Funds and Eligible Liabilities (CRR)

Article

Article 7c Calculation of the Payout Ratio for the Purpose of Point (b) of Article 7b(8)

Printed on: 21/06/2025

Rulebook at: 31/10/2023


Article 7c Calculation of the Payout Ratio for the Purpose of Point (b) of Article 7b(8)

1.

For the purposes of point (b) of Article 7b(8), institutions shall calculate the payout ratio as the sum of distributions related to total Common Equity Tier 1 instruments over the previous five year periods, divided by the sum of profits related to the previous five year periods.

[Note: This rule corresponds to point (a) of Article 7c(1) of Part 2 of Regulation (EU) No 241/2014 as it applied immediately before revocation by the PRA.]

  • 01/01/2023

2.

For the purposes of paragraph 1, profits shall mean the amount reported in row 0670 of template F 02.00 of Part 1 of Annex III of the Reporting (CRR) Part of the PRA Rulebook, or, where applicable, the amount reported in row 0670 of template F 02.00 of Part 1 of Annex IV of the Reporting (CRR) Part of the PRA Rulebook, with regard to supervisory reporting of institutions according to the CRR.

[Note: This rule corresponds to Article 7c(2) of Part 2 of Regulation (EU) No 241/2014 as it applied immediately before revocation by the PRA.]

  • 01/01/2023