KBC Group: KBC discloses new capital requirements - KBC's capital remains well above the minimum requirements
16 Dezember 2022 - 6:00PM
KBC Group: KBC discloses new capital requirements - KBC's capital
remains well above the minimum requirements
Press Release
Outside trading hours - Regulated information*
Brussels, 16 December 2022 (6 p.m. CET)
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 2022, the ECB has formally notified KBC of its
decision to maintain:
- the Pillar 2 Requirement (P2R) at 1.86% of
CET1
- the Pillar 2 Guidance (P2G) at 1.0% of
CET1
The fully loaded overall CET1
requirement for KBC Group (under the Danish Compromise) has gone up
from 10.81% (at year-end 2021) to 11.43%, due entirely to increased
countercyclical buffers in some of KBC’s core countries and the
introduction of a systemic risk buffer for Belgian
mortgages.
At the end of the third quarter of 2022,
KBC Group’s fully loaded CET1 ratio amounted to 15%, well above the
new CET1 requirement.
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 the Czech
Republic from 2.00% to 2.50% effective from 1 April 2023
- increase the countercyclical capital buffer in Slovakia from
1.00% to 1.50% effective from 1 August 2023
- increase the countercyclical capital buffer in Bulgaria from
1.00% to 1.50% effective from 1 January 2023 and to 2.00% effective
from 1 October 2023
- increase the countercyclical capital buffer in Hungary from
0.00% to 0.50% effective from 1 July 2023.
This corresponds to a fully loaded
countercyclical buffer of
0.75% at KBC
group level (up from 0.45% at year-end 2021), 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 amount of the CET1 capital buffer
corresponds to 9% of the RWA for the exposures secured by
residential real estate in Belgium, which corresponds to 32
basis points of total RWA for KBC Group consolidated
(based on RWAs at the end of September 2022).
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
11.43%, with an additional Pillar 2 Guidance of 1% CET1.
KBC clearly exceeds this requirement, as illustrated by its
fully loaded CET1 ratio of 15% at the end of the third quarter of
2022.
Note that the overall fully loaded CET1
requirement (under the Danish Compromise) would be
10.62% instead of 11.43% were the P2R
split according to Article 104a of Capital Requirement Directive V
to be applied.
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 an extremely 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 2022, 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 Group
Tel.: +32 2 429 35 73 – E-mail:
kurt.debaenst@kbc.be
Viviane Huybrecht, General Manager of Corporate
Communication/KBC Group Spokesperson
Tel.: + 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 NV Havenlaan 2 – 1080
Brussels Viviane Huybrecht
General Manager Corporate
Communication /Spokesperson Tel. +32 2 429
85 45 |
Press Office Tel. +32 2 429 65 01 Stef
Leunens Tel. +32 2 429 29 15 Ilse De
Muyer Tel. +32 2 429 32 88 Pieter
Kussé Tel. +32 2 429 85 44 Sofie
Spiessens E-mail:
pressofficekbc@kbc.be |
KBC press releases are available at
www.kbc.com or can be obtained by sending
an e-mail to pressofficekbc@kbc.be
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