ZURICH, Nov 14 (Reuters) - The Vienna-based international arms of Russian lenders Sberbank and VTB raised capital to head off a looming shortfall under ECB-led stress tests of their balance sheets, Austrian watchdogs said on Saturday. Sberbank Europe (SBE) and VTB Bank Austria fall under direct supervision of the European Central Bank and were among nine lenders subjected to health checks and stress tests that most other big euro zone lenders went through last year. Under the baseline scenario and including the impact of an asset quality review, both banks remained above the 8 percent threshold for core equity as a percentage of risk-weighted assets, with SBE at 8.9 percent and VTB and 8.8 percent, Austria’s Financial Market Authority and the Austrian National Bank said in a joint release. Under an adverse scenario, however, both banks lagged the 5.5 percent threshold, with SBE reaching a common equity tier 1 ratio of 4.2 percent and VTB at 4.1 percent. “However, both Sberbank Europe and VTB Bank Austria were able to more than cover the shortfall through material capital increases (SBE: 240 million euros ($258.5 million) and VTB: 200 million euros) already before the conclusion of the comprehensive assessment,” the statement said. In tests of the other banks, the ECB ordered Portugal’s Novo Banco to fill a 1.4 billion euro capital hole, threatening to delay its planned sale and hampering the country’s efforts to draw a line under its biggest banking collapse. $1 = 0.9285 euros Reporting by Michael Shields; Editing by James Dalgleish
Sberbank Europe and VTB Austria have raised capital to head off a potential shortfall under ECB-led stress tests, according to Austria's Financial Market Authority and the Austrian National Bank. Until recently, both banks lagged behind the 5.5% threshold, with Sberbank Europe reaching a common equity tier 1 ratio of 4.2% and VTB Austria at 4.1%; however, both were able to more than cover the shortfall through material capital increases of $258.5m and $215m respectively. Tests of other banks revealed that Portugal's Novo Banco needed to fill a $1.5bn capital hole, resulting in the ECB threatening to delay the bank's planned sale.