KBC Group: KBC discloses new capital requirements
12 Dezembro 2023 - 2:00PM
KBC Group: KBC discloses new capital requirements
KBC's capital remains well above the minimum
requirements
KBC has been informed by the European
Central Bank (ECB) of its new minimum capital requirements.
Following the Supervisory Review and Evaluation Process (SREP)
performed for 2023, the ECB has
formally notified KBC of its decision to:
- maintain the Pillar 2 Requirement
(P2R) at
1.05%
CET11as a % of RWA;
- introduce a Pillar 2 Requirement (P2R) at
0.10%
Tier-1 as a % of Leverage Ratio
Exposure Amount;
- increase the Pillar 2 Guidance
(P2G) from 1.0%
to 1.25% CET1 as a % of
RWA.
The fully loaded overall CET1
requirement for KBC Group (under
the Danish Compromise) has gone up from
10.62% (at year-end
2022) to
10.92%, due
entirely to increased countercyclical buffers in some of KBC’s core
countries, partly offset by a lower systemic risk
buffer for Belgian mortgages.
At the end of the
third quarter of
2023, KBC Group’s fully loaded
CET1 ratio amounted to 14.6%, well
above the new CET1 requirement.
The changes in the ECB SREP decision compared to
previous year are twofold:
- introduction of a Pillar 2 Requirement (P2R) at a limited 0.10%
Tier-1 as a % of the Leverage Ratio Exposure Amount. This brings
the regulatory requirement for the leverage ratio at 3.1% Tier-1.
KBC clearly exceeds this requirement, as illustrated by its fully
loaded CET1 ratio of 5.4% at the end of the third quarter of
2023.
- Increase of the Pillar 2 Guidance (P2G) from 1.0% to 1.25% of
CET1 as a % of RWA, taking into consideration the outcome of the
supervisory stress test conducted in 2023.
The capital requirement for KBC Group is
determined not only by the ECB, but also by the decisions
taken by the various local competent authorities in KBC’s core
markets. A number of authorities have decided to change
the countercyclical capital buffers as follows:
- increase the countercyclical capital buffer in Belgium from
0.00% to 0.50% effective from 1 April 2024 and to 1.00% effective
from 1 October 2024
- lower the countercyclical capital buffer in the Czech Republic
from 2.50% to 2.25% effective from 1 July 2023 and to 2.00%
effective from 1 October 2024.
This corresponds to a fully loaded
countercyclical buffer of
1.24% at KBC group level (up from
0.75% at year-end 2022), including all announced decisions on
future changes.
As of 1st May 2022, the National Bank of
Belgium (NBB) introduced a sectorial systemic risk
buffer. This replaces the former risk-weighted assets
(RWA) add-on for exposures secured by residential real estate in
Belgium and is to be held by all banks that apply the Internal
Ratings Based approach (IRB). The NBB announced to lower the
Systemic Risk Buffer from 9% to 6%, which corresponds to a
reduction of 7 basis points to 14 basis points of
total RWA for KBC Group consolidated (based on RWAs at the end of
September 2023).
The other capital buffers for Belgian systemic
banks have not been changed. For KBC, the O-SII (other systemically
important institutions) capital buffer requirement is 1.5%, as
confirmed by the
NBB, while the capital
conservation buffer is 2.5%. These buffers are held in addition to
the minimum CET1 requirement of 4.5% under Pillar
1.
For KBC Group, this brings the overall
fully loaded CET1 requirement
(under the Danish Compromise) to
10.92%, with an
additional Pillar 2
Guidance of
1.25%
CET1. KBC clearly exceeds this requirement, as
illustrated by its fully loaded CET1 ratio
of 14.6% at the end of the
third quarter of
2023.
Johan Thijs, KBC Group
CEO, stated: 'The ECB's decision confirms KBC's medium-low
risk profile and its resilience to adverse economic conditions. Our
capital position is a very solid one, which sends out a reassuring
signal to all stakeholders placing their trust in us.
We aim to be amongst the better capitalised
financial institutions in Europe. As a consequence, the dividend
policy of KBC Group is tailored to that purpose. KBC Group has a
payout ratio policy (i.e. dividend plus AT1 coupon) of at least 50%
of consolidated profit of the accounting year. Each year, the Board
of Directors will decide, at its discretion, on the total dividend
based on the assessment of risks, forward looking profitability and
strategic opportunities. As of full-year 2023, on top of the payout
ratio of at least 50% of consolidated profit, each year (when
announcing the full-year results), the Board of Directors will take
a decision, at its discretion, on the distribution of the capital
above 15.0% fully loaded CET1 ratio, so-called surplus capital.
We will also continue to concentrate on our
sound fundamentals of having a dynamic customer-centric, data- and
solution-driven, digital-first bank-insurance business model, a
healthy risk profile, a robust liquidity position and a comfortable
solvency position, supported by a very solid and loyal customer
deposit base in our core markets. We will remain focused on
sustainable and profitable growth, enabling us to play a beneficial
role in society and the local economy for all our stakeholders, and
to maintain our place among the best performing and most trusted
financial institutions in Europe.’
More details on the composition of the
new capital requirements can be found in the table attached to this
press release and at
www.kbc.com.
For more information, please contact:
Kurt De Baenst, General Manager, Investor Relations, KBC
GroupTel.: +32 2 429 35 73 – E-mail: kurt.debaenst@kbc.be
Viviane Huybrecht, General Manager of Corporate
Communication/KBC Group SpokespersonTel.: + 32 2 429 85 45 –
E-mail: pressofficekbc@kbc.be
* This news item contains information that is subject to the
transparency regulations for listed companies. |
KBC Group NVHavenlaan 2 – 1080
BrusselsViviane HuybrechtGeneral
Manager of Corporate Communication/KBC Group
SpokespersonTel.:
+ 32 2 429 85 45 |
Press OfficeTel. +
32 2 429 65 01 Stef LeunensTel. + 32 2 429 29 15
Ilse De MuyerTel. + 32 2 429 32 88 Pieter
KusséTel. + 32 2 429 29 49 Tomas
Meyerspressofficekbc@kbc.be |
KBC press releases are available
at www.kbc.com or can be obtained
by sending an e-mail to
pressofficekbc@kbc.be Follow us
on www.twitter.com/kbc_group |
1 Including P2R split according to Article 104a of Capital
Requirement Directive V
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