First Horizon Announces Results of its 2025 Company-Run Stress Test
First Horizon (NYSE:FHN) has released its 2025 company-run capital stress test results, demonstrating strong financial resilience under hypothetical severe economic scenarios. The bank's minimum Common Equity Tier 1 (CET1) Capital ratio would remain at 9.7%, significantly above the required 4.5% regulatory minimum, providing approximately $4 billion of additional pre-tax loss absorption capacity.
The stress test revealed a loan portfolio stressed loss rate of 2.3%, considerably lower than the Federal Reserve-published median DFAST result of 6.1%. The company's pre-provision net revenue as a percentage of total assets stands at 4.7%, outperforming the peer median of 2.3%, supported by its counter-cyclical businesses.
First Horizon (NYSE:FHN) ha pubblicato i risultati del test di stress sul capitale aziendale per il 2025, dimostrando una solida resilienza finanziaria anche in scenari economici ipoteticamente severi. Il rapporto minimo di Common Equity Tier 1 (CET1) rimarrebbe al 9,7%, ben al di sopra del minimo regolamentare richiesto del 4,5%, garantendo una capacità aggiuntiva di assorbimento delle perdite ante imposte di circa 4 miliardi di dollari.
Il test di stress ha evidenziato un tasso di perdita sul portafoglio prestiti stressato del 2,3%, significativamente inferiore al risultato mediano DFAST pubblicato dalla Federal Reserve del 6,1%. Il reddito netto ante accantonamenti in percentuale del totale attivi è pari al 4,7%, superando la mediana dei concorrenti del 2,3%, grazie al supporto delle sue attività contro-cicliche.
First Horizon (NYSE:FHN) ha publicado los resultados de su prueba de estrés de capital interna para 2025, demostrando una fuerte resiliencia financiera bajo escenarios económicos hipotéticamente severos. La proporción mínima de Capital Común de Nivel 1 (CET1) se mantendría en 9,7%, muy por encima del mínimo regulatorio requerido del 4,5%, proporcionando una capacidad adicional de absorción de pérdidas antes de impuestos de aproximadamente 4 mil millones de dólares.
La prueba de estrés reveló una tasa de pérdida estresada de la cartera de préstamos del 2,3%, considerablemente menor que el resultado mediano DFAST publicado por la Reserva Federal del 6,1%. Los ingresos netos antes de provisiones como porcentaje del total de activos es del 4,7%, superando la mediana de sus pares del 2,3%, apoyado por sus negocios contracíclicos.
First Horizon (NYSE:FHN)은 2025년 자체 자본 스트레스 테스트 결과를 발표하며 가상의 심각한 경제 시나리오에서도 강한 재무 탄력성을 보였습니다. 은행의 최소 보통주자본비율(Common Equity Tier 1, CET1)은 9.7%로 유지되어, 규제상 요구되는 최소 4.5%를 크게 상회하며 약 40억 달러의 세전 손실 흡수 능력을 제공합니다.
스트레스 테스트 결과 대출 포트폴리오 스트레스 손실률은 2.3%로, 연방준비제도(Fed)가 발표한 DFAST 중간값인 6.1%보다 훨씬 낮았습니다. 회사의 충당금 전 순수익률은 총자산 대비 4.7%로, 동종업계 중간값인 2.3%를 능가하며 경기순응형 사업들이 이를 뒷받침하고 있습니다.
First Horizon (NYSE:FHN) a publié les résultats de son test de résistance interne sur le capital pour 2025, démontrant une forte résilience financière face à des scénarios économiques hypothétiquement sévères. Le ratio minimal de Common Equity Tier 1 (CET1) resterait à 9,7%, bien au-dessus du minimum réglementaire requis de 4,5%, offrant une capacité supplémentaire d'absorption des pertes avant impôts d'environ 4 milliards de dollars.
Le test de résistance a révélé un taux de perte stressé sur le portefeuille de prêts de 2,3%, nettement inférieur au résultat médian DFAST publié par la Réserve fédérale de 6,1%. Le revenu net avant provisions en pourcentage du total des actifs est de 4,7%, surpassant la médiane des pairs de 2,3%, soutenu par ses activités contracycliques.
First Horizon (NYSE:FHN) hat die Ergebnisse seines unternehmenseigenen Kapitalstresstests für 2025 veröffentlicht und zeigt damit eine starke finanzielle Widerstandsfähigkeit unter hypothetisch schweren wirtschaftlichen Szenarien. Die minimale Common Equity Tier 1 (CET1) Kapitalquote würde bei 9,7% bleiben, deutlich über dem vorgeschriebenen regulatorischen Mindestwert von 4,5%, und bietet eine zusätzliche Vorsteuer-Verlustabsorptionskapazität von etwa 4 Milliarden US-Dollar.
Der Stresstest ergab eine gestresste Verlustquote im Kreditportfolio von 2,3%, die deutlich unter dem von der Federal Reserve veröffentlichten medianen DFAST-Ergebnis von 6,1% liegt. Der Nettoertrag vor Rückstellungen als Prozentsatz der Gesamtaktiva liegt bei 4,7% und übertrifft damit den Peer-Medianwert von 2,3%, unterstützt durch seine antizyklischen Geschäftsbereiche.
- CET1 ratio of 9.7% significantly exceeds 4.5% regulatory minimum
- Strong $4 billion pre-tax loss absorption capacity
- Low loan portfolio stressed loss rate of 2.3% vs. 6.1% industry median
- Pre-provision net revenue of 4.7% exceeds peer median of 2.3%
- Maintains $0.15 quarterly dividend throughout stress scenario
- None.
Insights
First Horizon's stress test shows exceptional resilience with CET1 ratio of 9.7% under severe scenarios, demonstrating strong risk management and capital position.
First Horizon's 2025 stress test results reveal impressive capital resilience under hypothetical severe economic conditions. The bank's minimum Common Equity Tier 1 (CET1) ratio of
The bank's stress test performance demonstrates several competitive advantages. Their loan portfolio stressed loss rate of just
Additionally, First Horizon's pre-provision net revenue as a percentage of assets reached
First Horizon maintained strong capital ratios across all regulatory metrics. Beyond CET1, the bank's Tier 1 Risk-based Capital ratio reached
"Our 2025 capital stress test results reflect the resilience of our diversified business model, prudent risk management, and strong capital position," said Chief Financial Officer Hope Dmuchowski. "Our minimum Common Equity Tier 1 Capital ratio of
The following table reflects the Company's actual and projected stressed capital ratios under the Federal Reserve's Severely Adverse Scenario compared to required regulatory minimums.
% Regulatory Ratio | Actual | Projected Stressed Capital Ratios | Regulatory Capital Ratios |
4Q24 | Minimum | Minimum | |
Common Equity Tier 1 Capital ratio | 11.2 % | 9.7 % | 4.5 % |
Tier 1 Risk-based Capital ratio | 12.2 % | 10.7 % | 6.0 % |
Total Risk-based Capital ratio | 14.2 % | 12.8 % | 8.0 % |
Tier 1 Leverage ratio | 10.6 % | 9.5 % | 4.0 % |
These results include a
First Horizon's loan portfolio stressed loss rate of
For more information, please see First Horizon's 2025 stress test disclosure at https://ir.firsthorizon.com/fixed-income/stress-test-results/default.aspx.
About First Horizon
First Horizon Corporation (NYSE: FHN), with
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SOURCE First Horizon Corporation
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