KBC Group: KBC discloses new ECB capital and liquidity requirements
(Thomson Reuters ONE) -
Press release
Outside trading hours - Regulated information*
Brussels, 20 March 2015 (08.00 a.m. CET)
KBC discloses new ECB capital and liquidity requirements
KBC has been informed by the European Central Bank of its decision establishing
prudential requirements, which sets the following minimum requirements for
capital and liquidity for the KBC group and its main banking entities:
* a common equity tier-1 ratio (CET1) of at least 10.5% on a fully loaded CRD
IV basis (including state aid)
* a LCR > 100% as from 1 October 2015.
KBC clearly exceeds the new targets.
Johan Thijs, KBC Group CEO, welcomed today's announcements stating: 'KBC
welcomes the outcome of the ECB decision because it brings clarity for the group
and its stakeholders. The capital target of 10.5% (CET1) set by the ECB is fully
in line with the target KBC had already set itself and which it clearly exceeds.
This is a reassuring signal to all stakeholders placing their trust in our
institution.
KBC wishes to continue to focus on its strong fundamentals: a healthy client-
driven bank-insurance business model, a strong risk profile, a robust liquidity
position supported by a very solid and loyal customer deposit base in our core
markets of Belgium and Central Europe 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. KBC will continue to ensure
that appropriate solid capital and liquidity levels are maintained within a
strict risk framework.
KBC Group has been informed of the requestto maintain a common equity tier-1
ratio (CET1) of at least 10.5% on a fully loaded CRD IV basis (including state
aid). In the previous joint capital decision, the minimum capital target for KBC
was set at 9.25%, excluding available-for-sale reserves.
Since KBC Group covers significant banking and insurance activities, it is
considered as a financial conglomerate and, therefore, is subject to a double
solvency test. This means that the minimum CET1 of 10.5% is required under:
a. the Danish compromise, in which the contribution by KBC Insurance is
deconsolidated and the participation of KBC Group NV in KBC Insurance NV is
risk-weighted at 370%;
b. the Financial Conglomerate Directive (FICOD). To meet this requirement, KBC
will align the already existing building block method (BBM) with the
accounting consolidation method in the FICOD. The difference between FICOD
and BBM is limited to the available capital. The available capital under
FICOD is a combination of the eligible elements of both banking (currently
CRR/CRD IV) and insurance (currently Solvency I) activities, while BBM also
applied the banking rules on insurance activities.
At 31 December 2014, KBC Group had a buffer of 3.5 billion euros relative to the
10.5% target under the Danish compromise (common equity tier-1 ratio of 14.3%)
and 3.8 billion euros under FICOD(common equity tier-1 ratio of 14.6%),
including state aid.
Furthermore, the ECB has set liquidity requirements, which are a LCR of above
100% as from 1 October 2015 (until that time, the existing NBB stress test ratio
of above 100% remains applicable). At its Investor Day in June 2014, KBC
announced a target for LCR and NSFR of 105% or higher.
Background
The European Central Bank has to ensure that credit institutions not only meet
the minimum prudential capital requirements set by the CRR/CRD IV but also have
an additional buffer reflecting their individual intrinsic risk profile. This is
organised through the Single Supervisory Mechanism (SSM).
To put it simply, the SSM has to ensure that credit institutions have sufficient
capital to cover unexpected losses or survive severe stressed economic and
market conditions.
The joint capital decision is the key outcome of the Supervisory Review and
Evaluation Process. In this process, the supervisor reviews the governance and
internal control arrangements used by each individual bank to manage its risks
(i.e. the Internal Capital Adequacy Assessment Process).
For more information, please contact:
Wim Allegaert, General Manager, Investor Relations, KBC Group
Tel +32 2 429 50 51 - E-mail: wim.allegaert(at)kbc.be
Viviane Huybrecht, General Manager, Corporate Communication/Spokesperson, KBC
Group
Tel +32 2 429 85 45 - E-mail: pressofficekbc(at)kbc.be
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* This news item contains information that is subject to the transparency
regulations for listed companies.
-----------------------------+----------------------+--------------------------
| |
KBC Group NV | |
Havenlaan 2 - 1080 Brussels |Press Office |KBC press releases are
Viviane Huybrecht |Tel. +32 2 429 65 01 |available at www.kbc.com
General Manager |Stef Leunens |or can be obtained by
Corporate |Tel. +32 2 429 29 15 |sending an e-mail to
Communication/Spokesperson |Ilse De Muyer |pressofficekbc(at)kbc.be
Tel. +32 2 429 85 45 |Fax +32 2 429 81 60 |
|E-mail: |Follow us on
|pressofficekbc(at)kbc.be |www.twitter.com/kbc_group
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Press Release KBC Group dd 20-03-2015:
http://hugin.info/133947/R/1904991/677799.pdf
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Source: KBC Groep via GlobeNewswire
[HUG#1904991]
Unternehmensinformation / Kurzprofil:
Datum: 20.03.2015 - 08:01 Uhr
Sprache: Deutsch
News-ID 379996
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