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KBC’s capital remains well above the European Central Bank’s minimum requirements.

IBOS member KBC has been informed by the ECB of its new minimum capital requirements, in which KBC’s fully loaded CET1 ratio came to 15.3%, well above the new CET1 10.40% requirement. The capital requirement for KBC Group is not only determined by the ECB, but also by decisions of the various local competent authorities in KBC’s core markets.

Johan Thijs, CEO, KBC Group, commented:

“KBC welcomes the outcome of the ECB decision because it brings clarity for the group and its stakeholders. The new capital decision is more refined than the previous one and is a slight decrease. Our capital position is very solid. This sends out a reassuring signal to all stakeholders placing their trust in us.

KBC will maintain its policy of holding a dynamic management buffer above the regulatory requirements, which reflects amongst other things our view regarding possible adverse economic conditions, possible upcoming new capital requirements and our position relative to our peers. KBC will also continue to focus on its strong fundamentals of a dynamic client-driven bank-insurance business model, a healthy risk profile, a robust liquidity position supported by a very solid and loyal customer deposit base in our core markets, and a comfortable solvency position that enables us to continue to increase lending to our clients and actively support the communities and economies in which we operate.”

Following the Supervisory Review and Evaluation Process (SREP) performed for 2016, the ECB has formally notified KBC of its decision to set:

  • a pillar 2 requirement (P2R) of 1.75% CET1
  • a pillar 2 guidance (P2G) of 1.0% CET1

Read the full report, via KBC, here.