KBC Group: KBC discloses new ECB capital requirements
(Thomson Reuters ONE) -
Press Release
Outside trading hours - Regulated information*
Brussels, 14 December 2016
KBC discloses new ECB capital requirements
KBC's capital remains well above the minimum requirements
KBC has been informed by the European Central Bank of its new minimum capital
requirements, leading to a combined overall fully loaded CET1 requirement for
KBC (under the Danish Compromise) of 10.40%.
At the close of the third quarter of 2016, KBC's fully loaded CET1 ratio came to
15.3%, well above the new CET1 requirement.
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
The total ECB decision of 2.75% CET1 equals the decision of last year, but no
split was made at that time between the P2R (which mandatorily restricts profit
distribution and therefore is relevant for AT1/ Additional Tier 1 investors) and
the P2G (which might affect dividend policy and hence is relevant for
shareholders). The fact that the requirement is unchanged reflects KBC's low
risk profile and its resilience to adverse economic conditions as demonstrated
in the stress tests, the results of which were published on 29 July 2016.
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.
As a matter of fact, the Czech and Slovak competent authorities' decision to
introduce a countercyclical buffer requirement of 0.5% in the first and third
quarters, respectively, of 2017 corresponds with an additional CET1 requirement
of 0.15% at KBC Group level. The objective of a countercyclical buffer is to
counteract the effects of the economic cycle on banks' lending activity.
The National Bank of Belgium already announced its capital buffers for Belgian
systemic banks last year. For KBC, it means that an additional capital buffer of
1.0% of CET1 is required for 2017, which is to be built up to 1.5% in 2018.
Finally, the conservation buffer currently stands at 1.25% for 2017, building up
to 2.50% in 2019. These buffers come on top of the minimum CET1 requirement of
4.5% under Pillar 1.
Altogether, this brings the fully loaded CET1 requirement (under the Danish
Compromise) to 10.40% (11.25% last year) with an additional 1% guidance. KBC
clearly exceeds this requirement: at the close of the third quarter of 2016, the
fully loaded CET1 ratio came to 15.3%. Furthermore, since part of the
requirements are gradually built up by 2019, the relevant requirement (under the
Danish Compromise) for 2017 on a phased-in basis is at a lower level, i.e.
8.65% CET1 (10.25% last year).
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 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.'
More details on the composition of the new capital requirements can be found in
the brief presentation and table attached to this press release and published on
www.kbc.com.
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 press release contains information provided in compliance with European
transparency legislation for listed companies.
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KBC Group NV
Havenlaan 2 - 1080 Press Office KBC press releases are
Brussels Tel. + 32 2 429 65 01 Stef available at www.kbc.com or
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Corporate De Muyer pressofficekbc(at)kbc.be
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Table JCD:
http://hugin.info/133947/R/2064802/775099.xlsx
Slides JCD:
http://hugin.info/133947/R/2064802/775098.pdf
Press release KBC Group dd 14-12-2016:
http://hugin.info/133947/R/2064802/775097.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: KBC Groep via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 14.12.2016 - 08:00 Uhr
Sprache: Deutsch
News-ID 512726
Anzahl Zeichen: 6701
contact information:
Town:
Brussels
Kategorie:
Business News
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