KBC Group Update on the 2016 Joint Capital Decision
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- This presentation is provided for information purposes only. It does not constitute an offer to sell or the solicitation to buy any security issued by the KBC Group.
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KBC's capital remains well above the minimum requirements
0,15% -1,00% 11.25% 10.40%
Countercyclical buffer move to P2 Guidance
Pro forma fully loaded minimum CET1 under previous JCD Pro forma fully loaded minimum CET1 under new JCD
KBC was informed by the European Central Bank of its new minimum capital requirements, leading to a combined overall fully loaded regulatory CET1 requirement (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 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
For more information, see the press release of 14 December 2016 on www.kbc.com
Minimum CET1 requirements in detail AT1 coupon non-payment level falling to 8.65% in 2017
1
The National Bank of Belgium decided upon a systemic buffer (CET1 phased-in of 0.5% in 2016 under the Danish Compromise) that gradually increases over a 3-year period, reaching 1.5% in 2018
2
The Czech and Slovak competent authorities decided to introduce a countercyclical buffer requirement of 0.5% in 1Q2017 and 3Q2017 respectively, corresponding to an additional 0.15% CET1 requirement at KBC Group level (0.10% + 0.05% respectively)
3
Under the new framework on Maximum Distributable Amounts (MDA), the restriction to pay coupons on AT1 instruments falls from 10.25% in 2016 to 8.65% in 2017. (assuming that the T1 and T2 minimum capital bucket continue to be adequately filled with externally placed instruments)
Capital Conservation buffer
- P2 Requirement
- P1 Requirement 4
Strong capital position
CET1 RATIO AT KBC GROUP BASED ON THE DANISH COMPROMISE
- Common equity ratio (phased-in) of 15.1% based on the Danish Compromise at end 9M16, which clearly exceeds the minimum capital requirements of 8.65% based on the 2016 Joint Capital Decision (JCD)
- A pro forma fully loaded minimum common equity ratio translation to 10.40% based on the 2016 Joint Capital Decision (JCD) was clearly exceeded with a fully loaded common equity ratio of 15.3% based on the Danish Compromise at end 9M16
- Including the 1% Pillar 2 Guidance the implied fully loaded minimum CET1 requirement stands at 11.40% (9.65% phased-in for 2017), which is also amply exceeded by the actual CET1 ratio at end 9M16
Contact information Investor Relations Office E-mail: [email protected]
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