KBC Groupe NV

Quarterly Report • Jul 15, 2011

Persbericht - Buiten beurstijd - Gereglementeerde informatie*

15 juli 2011

KBC Bank kapitaalupdate – Resultaten van de EU-stresstest

KBC Bank werd onderworpen aan de EU-stresstest 2011 die door de European Banking Authority (EBA) werd uitgevoerd in samenwerking met de Nationale Bank van België, de Europese Centrale Bank (ECB), de Europese Commissie (EC) en het Europees Comité voor Systeemrisico's (European Systemic Risk Board – ESRB).

KBC Bank neemt nota van de vandaag door de EBA en de Nationale Bank van België uitgebrachte mededeling over de EU-stresstest en erkent de resultaten van die oefening volledig.

De EU-stresstest, die werd uitgevoerd bij 91 banken die meer dan 65% van de totale activa van het EUbankwezen bezitten, tracht de veerkracht van Europese banken bij zware schokken te beoordelen, alsook hun specifieke solvabiliteit bij hypothetische stressrijke gebeurtenissen in bepaalde restrictieve omstandigheden.

Er werden hypothesen en een methodologie vastgesteld waarbij de kapitaaltoereikendheid van banken wordt beoordeeld tegen een Core Tier 1-kapitaalratio van 5%. Ze zijn bedoeld om het vertrouwen in de weerbaarheid van de geteste banken te versterken. De ECB werkte een ongunstig stresstestscenario uit dat een tijdspanne van twee jaar bestrijkt (2011-2012). Voor de stresstest werd uitgegaan van een vanaf december 2010 stabiel blijvende balans. De stresstest houdt geen rekening met toekomstige bedrijfsstrategieën en beleidsacties en vormt geen voorspelling van de winsten van KBC Bank.

Als gevolg van de veronderstelde schok zou de geraamde geconsolideerde Core Tier 1-kapitaalratio van KBC Bank bij het ongunstige scenario uitkomen op 10,0% in 2012, tegen 10,5% eind 2010. Dit resultaat omvat de effecten van de verplichte herstructureringsplannen die vóór 31 december 2010 met de Europese Commissie werden overeengekomen.

Details van de voor KBC Bank opgetekende resultaten:

De EU-stresstest vereist dat aan de vastgestelde resultaten en zwakke punten, die aan de markt zullen worden bekendgemaakt, gevolg wordt gegeven om de veerkracht van het financiële systeem te versterken. Na afloop van de EU-stresstest blijkt uit de resultaten dat KBC Bank voldoet aan de voor die stresstest vastgelegde kapitaalmaatstaf. De bank zal er blijven voor zorgen dat het kapitaal op een passend niveau wordt gehandhaafd.

Jan Vanhevel, groeps-CEO: 'KBC is tevreden dat het resultaat van de stresstests andermaal bewijst dat de bank in dergelijke stressscenario's voldoende beantwoordt aan de vereisten op het vlak van solvabiliteit. Dat zowel het basisscenario als het ongunstige scenario van EBA veeleisend is – zelfs nog meer dan vorig jaar – geeft extra voldoening aan het resultaat van KBC. Dat moet ook alle stakeholders geruststellen die hun vertrouwen stellen in onze instelling.'

Toelichting voor de redacteuren:

De uitgebreide resultaten van de stresstest volgens het basisscenario en het ongunstige scenario werden samen met informatie over de kredietportefeuilles van KBC Bank en haar blootstelling ten aanzien van centrale en lokale overheden opgenomen in de bijgevoegde tabellen die zijn opgemaakt in het gebruikelijke EBA-formaat.

(https://multimediafiles.kbcgroup.eu/ng/published/KBCCOM/EXCEL/COM\RVG\_xls\_Results\_Stress\_test\ 2011.xlsx)

De stresstest werd uitgevoerd op basis van de gangbare EBA-methodologie en de belangrijkste algemene hypothesen (bijv. een constant blijvende balans, een uniforme behandeling van effectiseringsrisico's) zoals die in de methodologische nota van de EBA gepubliceerd zijn. De informatie over de basisscenario's wordt derhalve enkel ter vergelijking verstrekt. Noch het basisscenario noch het ongunstige scenario mag op enigerlei wijze worden opgevat als een voorspelling van de bank of rechtstreeks worden vergeleken met andere door de bank gepubliceerde financiële informatie.

Voor meer details over de scenario's, hypothesen en methodologie wordt verwezen naar de EBA-website: http://www.eba.europa.eu/EU-wide-stress-testing/2011.aspx

Contactgegevens:

• Wim Allegaert, directeur Investor Relations, KBC-groep Tel. +32 2 429 40 51 wim.allegaert@kbc.be

• Viviane Huybrecht, directeur Communicatie Groep en woordvoerster KBC-groep Tel +32 2 429 85 45 pressofficekbc@kbc.be

KBC (www.kbc.com) is een bank-verzekeraar die zich concentreert op zijn thuismarkten in België en Centraal- en Oost-Europa. Het hoofdkantoor van KBC is gevestigd in Brussel (België), het hart van Europa. De groep stelt ongeveer 53 000 voltijdse medewerkers tewerk en bedient circa 12 miljoen cliënten. KBC Groep NV is genoteerd aan NYSE Euronext Brussels (tickersymbool 'KBC'). De persberichten van KBC zijn beschikbaar op http://www.kbc.com. Volg KBC op www.twitter.com/kbc\_groep.

KBC Groep NV

Havenlaan 2 – 1080 Brussel Viviane Huybrecht: directeur Communicatie Groep en Persdienst /woordvoerster Tel. 02 429 85 45

Persdienst Tel. 02 429 65 01 Fax 02 429 81 60 E-mail:pressofficekbc@kbc.be

* Dit nieuwsbericht bevat informatie waarop de Europese transparantieregelgeving voor beursgenoteerde bedrijven van toepassing is.

KBC persberichten zijn beschikbaar op www.kbc.com of kunnen verkregen worden door een mail te zenden naar pressofficekbc@kbc.be

Actual results at 31 December 2010	million EUR, %
Operating profit before impairments	3.029
Impairment losses on financial and non-financial assets in the banking book	-1.497
Risk weighted assets (4)	111.922
Core Tier 1 capital (4)	11.705
Core Tier 1 capital ratio, % (4)	10,5%
Additional capital needed to reach a 5 % Core Tier 1 capital benchmark
Outcomes of the adverse scenario at 31 December 2012, excluding all mitigating actions	%
taken in 2011
Core Tier 1 Capital ratio	10,0%
Outcomes of the adverse scenario at 31 December 2012, including recognised mitigating	million EUR, %
measures as of 30 April 2011
2 yr cumulative operating profit before impairments	3.075
2 yr cumulative impairment losses on financial and non-financial assets in the banking book	-3.503
2 yr cumulative losses from the stress in the trading book	-782
of which valuation losses due to sovereign shock	-71
Risk weighted assets	126.260
Core Tier 1 Capital	12.682
Core Tier 1 Capital ratio (%)	10,0%
Additional capital needed to reach a 5 % Core Tier 1 capital benchmark
Effects from the recognised mitigating measures put in place until 30 April 2011 (5)
Equity raisings announced and fully committed between 31 December 2010 and 30 April 2011
(CT1 million EUR)	0
Effect of government support publicly announced and fully committed in period from 31	0,0
December 2010 to 30 April 2011 on Core Tier 1 capital ratio (percentage points of CT1 ratio)
Effect of mandatory restructuring plans, publicly announced and fully committed in period from
31 December 2010 to 30 April 2011 on Core Tier 1 capital ratio (percentage points of CT1	0,0
ratio)

	percentage points contributing
Additional taken or planned mitigating measures	to capital ratio
Use of provisions and/or other reserves (including release of countercyclical provisions)
Divestments and other management actions taken by 30 April 2011
Other disinvestments and restructuring measures, including also future mandatory restructuring
not yet approved with the EU Commission under the EU State Aid rules
Future planned issuances of common equity instruments (private issuances)
Future planned government subscriptions of capital instruments (including hybrids)
Other (existing and future) instruments recognised as appropriate back-stop measures by
national supervisory authorities
Supervisory recognised capital ratio after all current and future mitigating actions as of 31
December 2012, % (6)	10,0%

Notes

(6) The supervisory recognised capital ratio computed on the basis of additional mitigating measures presented in this section. The ratio is based primarily on the EBA definition, but may include other mitigating measures not recognised by the EBA methodology as having impacts in the Core Tier 1 capital, but which are considered by the national supervisory authorities as appropriate mitigating measures for the stressed conditions. Where applicable, such measures are explained in the additional announcements issued by banks/national supervisory authorities. Details of all mitigating measures are presented in the worksheet "3 - Mitigating measures).

(1) The stress test was carried using the EBA common methodology, which includes a static balance sheet assumption and incorporates regulatory transitional floors, where binding (see http://www.eba.europa.eu/EU-wide-stress-testing/2011.aspx for the details on the EBA methodology).

(2) All capital elements and ratios are presented in accordance with the EBA definition of Core Tier 1 capital set up for the purposes of the EU-wide stress test, and therefore may differ from the definitions used by national supervisory authorities

and/or reported by institutions in public disclosures.

(4) Full static balance sheet assumption excluding any mitigating management actions, mandatory restructuring or capital raisings post 31 December 2010 (all government support measures and capital raisings fully paid in before 31 December 2010 are included).

Results of the 2011 EBA EU-wide stress test: Summary (1-3)

(5) Effects of capital raisings, government support and mandatory restructuring plans publicly announced and fully committed in period from 31 December 2010 to 30 April 2011, which are incorporated in the Core Tier 1 capital ratio reported as the outcome of the stress test.

Name of the bank: KBC Bank

(3) Neither baseline scenario nor the adverse scenario and results of the stress test should in any way be construed as a bank's forecast or directly compared to bank's other published information.

Name of the bank: KBC Bank

All in million EUR, or %

		Baseline scenario		Adverse scenario
Capital adequacy	2010	2011	2012	2011	2012
Risk weighted assets (full static balance sheet assumption)	111.922	124.533	125.586	127.980	135.837
Common equity according to EBA definition	11.352	12.295	13.351	11.681	11.249
of which ordinary shares subscribed by government	0	0	0	0	0
Other existing subscribed government capital (before 31 December
2010)	354	356	358	361	368
Core Tier 1 capital (full static balance sheet assumption)	11.705	12.651	13.708	12.042	11.617
Core Tier 1 capital ratio (%)	10,5%	10,2%	10,9%	9,4%	8,6%

	Baseline scenario		Adverse scenario
Capital adequacy	2010	2011	2012	2011	2012
Risk weighted assets (full static balance sheet assumption)	111.922	124.533	125.586	127.980	135.837
Effect of mandatory restructuring plans, publicly announced and
fully committed before 31 December 2010 on RWA (+/-)		-8.153	-8.901	-8.355	-9.577
Risk weighted assets after the effects of mandatory restructuring
plans publicly announced and fully committed before 31 December
2010	111.922	116.380	116.685	119.625	126.260
Core Tier 1 Capital (full static balance sheet assumption)	11.705	12.651	13.708	12.042	11.617
Effect of mandatory restructuring plans, publicly announced and
fully committed before 31 December 2010 on Core Tier 1 capital
(+/-)		1.745	2.049	1.118	1.065
Core Tier 1 capital after the effects of mandatory restructuring plans
publicly announced and fully committed before 31 December 2010	11.705	14.396	15.758	13.160	12.682
Core Tier 1 capital ratio (%)	10,5%	12,4%	13,5%	11,0%	10,0%

		Baseline scenario		Adverse scenario
Capital adequacy	2010	2011	2012	2011	2012
Risk weighted assets after the effects of mandatory restructuring
plans publicly announced and fully committed before 31 December
2010	111.922	116.380	116.685	119.625	126.260
Effect of mandatory restructuring plans, publicly announced and
fully committed in period from 31 December 2010 to 30 April 2011
on RWA (+/-)		0	0	0	0
Risk weighted assets after the effects of mandatory restructuring
plans publicly announced and fully committed before 30 April 2011		116.380	116.685	119.625	126.260
of which RWA in banking book		94.668	94.974	97.982	104.617
of which RWA in trading book		10.963	10.963	10.893	10.893
RWA on securitisation positions (banking and trading book)		20.672	21.645	23.212	26.218
Total assets after the effects of mandatory restructuring plans publicly
announced and fully committed and equity raised and fully committed
by 30 April 2011	276.723	267.053	267.355	266.426	266.371
Core Tier 1 capital after the effects of mandatory restructuring plans
publicly announced and fully committed before 31 December 2010	11.705	14.396	15.758	13.160	12.682
Equity raised between 31 December 2010 and 30 April 2011		0	0	0	0
Equity raisings fully committed (but not paid in) between 31
December 2010 and 30 April 2011		0	0	0	0
Effect of government support publicly announced and fully
committed in period from 31 December 2010 to 30 April 2011 on
Core Tier 1 capital (+/-)		0	0	0	0
Effect of mandatory restructuring plans, publicly announced and
fully committed in period from 31 December 2010 to 30 April 2011
on Core Tier 1 capital (+/-)		0	0	0	0
Core Tier 1 capital after government support, capital raisings and
effects of restructuring plans fully committed by 30 April 2011		14.396	15.758	13.160	12.682
Tier 1 capital after government support, capital raisings and effects of
restructuring plans fully committed by 30 April 2011		16.496	17.858	15.260	14.782
Total regulatory capital after government support, capital raisings and
effects of restructuring plans fully committed by 30 April 2011		20.099	20.499	18.863	17.423
Core Tier 1 capital ratio (%)	10,5%	12,4%	13,5%	11,0%	10,0%
Additional capital needed to reach a 5% Core Tier 1 capital
benchmark

		Baseline scenario			Adverse scenario
Profit and losses	2010	2011	2012	2011	2012
Net interest income	5.279	4.958	4.590	4.233	3.736
Trading income	21	-59	-69	-333	-339
of which trading losses from stress scenarios		-174	-174	-391	-391
of which valuation losses due to sovereign shock				-35	-35
Other operating income (5)	-49	-7	-9	-12	-14
Operating profit before impairments	3.029	2.766	2.452	1.762	1.313
Impairments on financial and non-financial assets in the banking
book (6)	-1.497	-933	-919	-1.472	-2.031
Operating profit after impairments and other losses from the stress	1.532	1.833	1.533	290	-718
Other income (5,6)	-87	200	5	154	5
Net profit after tax (7)	1.533	1.607	1.209	417	-481
of which carried over to capital (retained earnings)	910	1.047	879	417	-481
of which distributed as dividends	623	560	330	0	0

Results of the 2011 EBA EU-wide stress test: Aggregate information and evolution of capital (1-4)

		Baseline scenario		Adverse scenario
Additional information	2010	2011	2012	2011	2012
Deferred Tax Assets (8)	845	845	845	845	845
Stock of provisions (9)	4.756	5.643	6.516	6.057	7.870
of which stock of provisions for non-defaulted assets	351	266	224	499	646
of which Sovereigns (10)	1	1	1	110	219
of which Institutions (10)	5	3	2	43	82
of which Corporate (excluding Commercial real estate)	176	135	116	176	176
of which Retail (excluding Commercial real estate)	136	104	88	136	136
of which Commercial real estate (11)	33	23	18	33	33

A. Results of the stress test based on the full static balance sheet assumption without any mitigating actions, mandatory restructuring or capital raisings post 31 December 2010 (all government support measures fully paid in before 31 December 2010 are included)

B. Results of the stress test recognising capital issuance and mandatory restructuring plans publicly announced and fully committed before 31 December 2010

C. Results of the stress test recognising capital issuance and mandatory restructuring plans publicly announced and fully committed before 30 April 2011

Other operating income:	2011	2012
BASE
- dividend income:	46	45
- AFS capital gains/losses:	-5	-5
- gains/losses on FA-FL at fair value:	-48	-50
ADVERSE
- dividend income:	41	40
- AFS capital gains/losses:	-5	-5
- gains/losses on FA-FL at fair value:	-48	-50

Other income:	2011	2012
BASE
- Capital gain divestments	196	0
- Equity method	4	5
ADVERSE:
- Capital gain divestments	150	0
- Equity method	4	5

(6) If under the national legislation, the release of countercyclical provisions and/or other similar reserves is allowed, this figure for 2010 could be included either in rows "Impairments on financial assets in the banking book" or "Other income" for 2010, whereas under the EU-wide stress test methodology such release for 2011-2012 should be reported in Section D as other mitigating measures.

Notes and definitions

D. Other mitigating measures (see Mitigating measures worksheet for details), million EUR (14)

of which stock of provisions for defaulted assets	4.405	5.378	6.292	5.558	7.224
of which Corporate (excluding Commercial real estate)	2.132	2.681	3.149	2.757	3.495
of which Retail (excluding commercial real estate)	1.905	2.187	2.516	2.248	2.924
of which Commercial real estate	369	489	582	527	756
Coverage ratio (%) (12)
Corporate (excluding Commercial real estate)	35,6%	33,9%	32,7%	33,9%	33,7%
Retail (excluding Commercial real estate)	61,3%	47,2%	40,4%	47,1%	43,8%
Commercial real estate	33,6%	34,4%	34,1%	36,4%	42,1%
Loss rates (%) (13)
Corporate (excluding Commercial real estate)	1,0%	0,8%	0,7%	1,0%	1,2%
Retail (excluding Commercial real estate)	0,7%	0,3%	0,4%	0,4%	0,8%
Commercial real estate	1,4%	1,5%	1,2%	2,0%	2,9%
Funding cost (bps)	144			265	329

All effects as compared to regulatory aggregates as reported in	Baseline scenario		Adverse scenario
Section C	2011	2012	2011	2012
A) Use of provisions and/or other reserves (including release of
countercyclical provisions), capital ratio effect (6)
B) Divestments and other management actions taken by 30 April
2011, RWA effect (+/-)
B1) Divestments and other business decisions taken by 30 April 2011,
capital ratio effect (+/-)
C) Other disinvestments and restructuring measures, including also
future mandatory restructuring not yet approved with the EU
Commission under the EU State Aid rules, RWA effect (+/-)
C1) Other disinvestments and restructuring measures, including also
future mandatory restructuring not yet approved with the EU
Commission under the EU State Aid rules, capital ratio effect (+/-)
D) Future planned issuances of common equity instruments (private
issuances), capital ratio effect
E) Future planned government subscriptions of capital instruments
(including hybrids), capital ratio effect
F) Other (existing and future) instruments recognised as appropriate
back-stop measures by national supervisory authorities, RWA effect
(+/-)
F1) Other (existing and future) instruments recognised as appropriate
back-stop measures by national supervisory authorities, capital ratio
effect (+/-)
Risk weighted assets after other mitigating measures (B+C+F)	116.380	116.685	119.625	126.260
Capital after other mitigating measures (A+B1+C1+D+E+F1)	14.396	15.758	13.160	12.682
Supervisory recognised capital ratio (%) (15)	12,4%	13,5%	11,0%	10,0%

(15) The supervisory recognised capital ratio computed on the basis of additional mitigating measures presented in this section. The ratio is based primarily on the EBA definition, but may include other mitigating measures not recognised by the EBA methodology as having impacts in the Core Tier 1 capital, but which are considered by the national supervisory authorities as appropriate mitigating measures for the stressed conditions. Where applicable, such measures are explained in the additional announcements issued by banks/national supervisory authorities. Details of all mitigating measures are presented in the worksheet "3 - Mitigating measures).

(4) Regulatory transitional floors are applied where binding. RWA for credit risk have been calculated in accordance with the EBA methodology assuming an additional floor imposed at a level of RWA, before regulatory transitional floors, for December 2010 for both IRB and STA portfolios.

(14) All elements are be reported net of tax effects.

(3) Neither baseline scenario nor the adverse scenario and results of the stress test should in any way be construed as a bank's forecast or directly compared to bank's other published information.

(5) Banks are required to provide explanations of what "Other operating income" and "Other income" constitutes for.

Composition of "Other operating income" and "Other income": cf. seperate tables below

(9) Stock of provisions includes collective and specific provisions as well as countercyclical provisions, in the jurisdictions, where required by the national legislation.

(13) Loss rate = total impairment flow (specific and collective impairment flow) for a year / total EAD for the specific portfolio (including defaulted and nondefaulted assets but excluding securitisation and counterparty credit risk exposures).

(12) Coverage ratio = stock of provisions on defaulted assets / stock of defaulted assets expressed in EAD for the specific portfolio.

(2) All capital elements and ratios are presented in accordance with the EBA definition of Core Tier 1 capital set up for the purposes of the EU-wide stress test, and therefore may differ from the definitions used by national supervisory authorities and/or reported by institutions in public disclosures.

(1) The stress test was carried using the EBA common methodology, which includes a static balance sheet assumption (see http://www.eba.europa.eu/EUwide-stress-testing/2011.aspx for the details on the EBA methodology).

(10) Provisions for non-defaulted exposures to sovereigns and financial institutions have been computed taking into account benchmark risk parameters (PDs and LGDs) provided by the EBA and referring to external credit ratings and assuming hypothetical scenario of rating agency downgrades of sovereigns.

(11) For definition of commercial real estate please refer to footnote (5) in the worksheet "4 - EADs".

(8) Deferred tax assets as referred to in paragraph 69 of BCBS publication dated December 2010 : "Basel 3 – a global regulatory framework for more resilient banks and banking systems".

(7) Net profit includes profit attributable to minority interests.

Results of the 2011 EBA EU-wide stress test: Composition of capital as of 31 December 2010

Name of the bank: KBC Bank

		December 2010
Situation at December 2010	Million EUR	% RWA	References to COREP reporting
A) Common equity before deductions (Original own funds without hybrid instruments			COREP CA 1.1 - hybrid instruments and government support measures other than
and government support measures other than ordinary shares) (+)	11.700	10,5%	ordinary shares
Of which: (+) eligible capital and reserves	12.985	11,6%	COREP CA 1.1.1 + COREP line 1.1.2.1
Of which: (-) intangibles assets (including goodwill)	-1.711	-1,5%	Net amount included in T1 own funds (COREP line 1.1.5.1)
Of which: (-/+) adjustment to valuation differences in other AFS assets (1)	477	0,4%	Prudential filters for regulatory capital (COREP line 1.1.2.6.06)
B) Deductions from common equity (Elements deducted from original own funds) (-)	-349	-0,3%	COREP CA 1.3.T1* (negative amount)
			Total of items as defined by Article 57 (l), (m), (n) (o) and (p) of Directive 2006/48/EC
Of which: (-) deductions of participations and subordinated claims	-349	-0,3%	and deducted from original own funds (COREP lines from 1.3.1 to 1.3.5 included in
			line 1.3.T1*)
Of which: (-) securitisation exposures not included in RWA	0	0,0%	COREP line 1.3.7 included in line 1.3.T1*
			As defined by Article 57 (q) of Directive 2006/48/EC (COREP line 1.3.8 included in
Of which: (-) IRB provision shortfall and IRB equity expected loss amounts (before tax)	0	0,0%	1.3.T1*)
C) Common equity (A+B)	11.352	10,1%
Of which: ordinary shares subscribed by government	0	0,0%	Paid up ordinary shares subscribed by government
D) Other Existing government support measures (+)	354	0,3%
E) Core Tier 1 including existing government support measures (C+D)	11.705	10,5%	Common equity + Existing government support measures included in T1 other than
Difference from benchmark capital threshold (CT1 5%)	6.109	5,5%	ordinary shares Core tier 1 including government support measures - (RWA*5%)
			Net amount included in T1 own funds (COREP line 1.1.4.1a + COREP lines from
F) Hybrid instruments not subscribed by government	2.103	1,9%	1.1.2.201 to 1.1.2.205 + COREP line 1.1.5.2a (negative amount)) not
			subscribed by government
Tier 1 Capital (E+F) (Total original own funds for general solvency purposes)	13.809	12,3%	COREP CA 1.4 = COREP CA 1.1 + COREP CA 1.3.T1* (negative amount)
Tier 2 Capital (Total additional own funds for general solvency purposes)	4.561	4,1%	COREP CA 1.5
Tier 3 Capital (Total additional own funds specific to cover market risks)	182	0,2%	COREP CA 1.6
Total Capital (Total own funds for solvency purposes)	18.551	16,6%	COREP CA 1
Memorandum items
Amount of holdings, participations and subordinated claims in credit, financial and insurance			Total of items as defined by Article 57 (l), (m), (n) (o) and (p) of Directive 2006/48/EC
institutions not deducted for the computation of core tier 1 but deducted for the computation of	698	0,6%	not deducted for the computation of original own funds
total own funds
Amount of securitisation exposures not included in RWA and not deducted for the computation	0	0,0%	Total of items as defined by Article 57 (r) of Directive 2006/48/EC not deducted for
of core tier 1 but deducted for the computation of total own funds			the computation of original own funds
Deferred tax assets (2)	845	0,8%	As referred to in paragraph 69 of BCBS publication dated December 2010 : "Basel 3 – a global regulatory framework for more resilient banks and banking systems"
Minority interests (excluding hybrid instruments) (2)	488	0,4%	Gross amount of minority interests as defined by Article 65 1. (a) of Directive
			2006/48/EC
Valuation differences eligible as original own funds (-/+) (3)	-190	-0,2%	COREP line 1.1.2.6

Notes and definitions

(3) This item represents the impact in original own funds of valuation differences arising from the application of fair value measurement to certain financial instruments (AFS/FVO) and property assets after the application of prudential filters. (2) According to the Basel 3 framework specific rules apply for the treatment of these items under the Basel 3 framework, no full deduction is required for the computation of common equity.

(1) The amount is already included in the computation of the eligible capital and reserves and it is provided separately for information purposes.

Results of the 2011 EBA EU-wide stress test: Overview of mitigating measures (1-2)

Name of the bank: KBC Bank

Future capital raisings and other back stop measures

Notes and definitions

(3) If under the national legislation, the release of countercyclical provisions and/or other similar reserves is allowed, this figure for 2010 could be included either in rows "Impairments on financial assets in the banking book" or "Other income" for 2010, whereas under the EU-wide stress test methodology such release for 2011-2012 should be reported in Section D of the worksheet "1- Aggregate information" as other mitigating measures and explained in this worksheet. (4) If dated please insert the maturity date (dd/mm/yy) otherwise specify undated.

Please fill in the table using a separate row for each measure	Narrative description	Date of completion (actual or planned for future issuances)	Capital / P&L impact (in million EUR)	RWA impact (in million EUR)	Capital ratio impact (as of 31 December 2012) %
A) Use of provisions and/or other reserves (including release of countercyclical provisions), (3)
B) Divestments and other management actions taken by 30 April 2011
1)
2)
	C) Other disinvestments and restructuring measures, including also future mandatory restructuring not yet approved with the EU Commission under the EU State Aid rules
1)
2)

	Date of issuance				Flexibility of	Permanence		Conversion clause (where appropriate)
	(actual or planned	Amount	Maturity	Loss absorbency in going concern	payments (capacity to	(Undated and without incentive to	Nature of conversion	Date of conversion	Triggers	Conversion in common equity
Please fill in the table using a separate row for each measure	for future issuances, dd/mm/yy)	(in million EUR)	(dated/ undated) (4)	(Yes/No)	(Yes/No)	(Yes/No)	(mandatory/ discretionary)	(at any time/from a specific date: dd/mm/yy)	(description of the triggers)	(Yes/No)
D) Future planned issuances of common equity instruments (private issuances)
E) Future planned government subscriptions of capital instruments (including hybrids)
1) Denomination of the instrument
2)
F) Other (existing and future) instruments recognised as back stop measures by national supervisory authorities (including hybrids)
1) Denomination of the instrument
2)

(1) The order of the measures follows the order of mitigating measures reported in the Section D of the worksheet "1 - Aggregate information".

(2) All elements are be reported net of tax effects.

Use of countercyclical provisions, divestments and other management actions

Results of the 2011 EBA EU-wide stress test: Credit risk exposures (EAD - exposure at default), as of 31 December 2010, mln EUR, (1-5)

Name of the bank: KBC Bank

All values in million EUR, or %

	Non-defaulted exposures
		Corporate (excluding commercial real estate)	Retail (excluding commercial real estate)						Commercial Real Estate		Defaulted exposures
	Institutions				mortgages	of which Residential Loan to Value (LTV) ratio (%), (6)	of which Revolving	of which SME	of which other		Loan to Value (LTV) ratio (%) (6)	(excluding sovereign)
Austria	79	99	0	0		0	0		0		98	734
Belgium	1.000	21.856	48.332	32.821	51	436	15.075		5.403		2.846	108.576
Bulgaria	3	255	213	213	62	0	0		0		293	791
Cyprus	4	37	0	0		0	0		0		23	66
Czech Republic	3.276	7.683	10.231	6.482	67	0	3.749		0		865	37.946
Denmark	147	83	0	0		0	0		0		0	230
Estonia	0	0	0	0		0	0		0		0	0
Finland	108	0	0	0		0	0		0		18	219
France	3.341	1.625	3	1		0	3		75		50	6.789
Germany	1.846	2.736	25	2		0	24		102		156	5.244
Greece	84	32	0	0		0	0		0		0	559
Hungary	1.083	2.846	3.042	2.661	74	0	381		1		720	12.021
Iceland			0									0
Ireland	119	2.539	11.931	11.930	98	0	0		893		2.428	18.232
Italy	534	152	0	0		0	0		5		17	6.083
Latvia	1	0	0	0		0	0		0		0	1
Liechtenstein			0									0
Lithuania	2 54	0 1.672	0 3	0 0		0 0	0 2		0 51		0 78	2
Luxembourg Malta	6	0	0	0		0	0		0		14	1.870 20
Netherlands	276	1.621	6	1		0	5		110		218	2.399
Norway	5	66	0	0		0	0		0		0	70
Poland	696	2.543	5.373	4.431	86	0	942		0		612	12.004
Portugal	33	21	0	0		0	0		0		15	218
Romania	1	114	0	0		0	0		11		105	231
Slovakia	196	2.033	1.480	1.210	57	0	269		12		260	5.444
Slovenia	104	4	0	0		0	0		0		0	261
Spain	667	761	1	0		0	1		3		55	2.918
Sweden	38	12	0	0		0	0		0		0	49
United Kingdom	5.986	2.282	1	0		0	1		159		206	9.004
United States	1.011	4.151	0	0		0	0		298		283	7.802
Japan			0									0
Other non EEA non
Emerging countries			0									0
Asia	1.176	1.310	0	0		0	0		44		121	3.000
Middle and South
America			0									0
Eastern Europe non
EEA	278	776	1.030	945	53	0	84		0		478	2.562
Others	1.717	2.306	2	0		0	2		3		346	4.508
Total	23.871	59.612	81.673	60.697		436	20.539	0	7.170		10.303	249.855

Notes and definitions

(1) EAD - Exposure at Default or exposure value in the meaning of the CRD.

(7) Total exposures is the total EAD according to the CRD definition based on which the bank computes RWA for credit risk. Total exposures, in addition to the exposures broken down by regulatory portfolios in this table, include EAD for securitisation transactions, counterparty credit risk, sovereigns, guaranteed by sovereigns, public sector entities and central banks.

(6) Loan to value ratio - ratio of EAD to the market value of real estate used as collateral for such exposures. Given the different methodologies applied to assessing the value, the bank is required to explain the computation of the ratio. In particular (a) whether collateral values is marked-to-market or any other valuation method is used, (b) whether the amount has been adjusted for principal repayments, and (c) how guarantees other than the underlying property are treated. Definition of Loan to Value ratio used:

KBC definition:

(a) collateral values are marked-to-market (indexation based on national property price index)

(b) yes, the EAD takes the repayment schedule into account

(c) only actual mortgages are considered, other collateral (such as mandates to mortgage, pledges, etc.) are not taken into account for LTV calculation

(2) The EAD reported here are based on the methodologies and portfolio breakdowns used in the 2011 EU-wide stress test, and hence may differ from the EAD reported by banks in their Pillar 3 disclosures, which can vary based on national regulation. For example, this would affect breakdown of EAD for real estate exposures and SME exposures.

(3) Breakdown by country and macro area (e.g. Asia) when EAD >=5%. In any case coverage 100% of total EAD should be ensured (if exact mapping of some exposures to geographies is not possible, they should be allocated to the group "others").

(4) The allocation of countries and exposures to macro areas and emerging/non-emerging is according to the IMF WEO country groupings. See: http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/groups.htm (5) Residential real estate property which is or will be occupied or let by the owner, or the beneficial owner in the case of personal investment companies, and commercial real estate property, that is, offices and other commercial premises, which are recognised as eligible collateral in the meaning of the CRD, with the following criteria, which need to be met:

(a) the value of the property does not materially depend upon the credit quality of the obligor. This requirement does not preclude situations where purely macro economic factors affect both the value of the property and the performance of the borrower; and

(b) the risk of the borrower does not materially depend upon the performance of the underlying property or project, but rather on the underlying capacity of the borrower to repay the debt from other sources. As such, repayment of the facility does not materially depend on any cash flow generated by the underlying property serving as collateral.

Results of the 2011 EBA EU-wide stress test: Exposures to sovereigns (central and local governments), as of 31 December 2010, mln EUR (1,2)

All values in million EUR

DIRECT SOVEREIGN EXPOSURES IN DERIVATIVES	INDIRECT SOVEREIGN EXPOSURES IN THE TRADING BOOK
Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)

Name of the bank: KBC Bank

Residual Maturity	Country/Region	value gross of specific provisions)	GROSS DIRECT LONG EXPOSURES (accounting		NET DIRECT POSITIONS (gross exposures (long) net of cash short position of sovereign debt to other counterparties only where there is maturity matching)	DIRECT SOVEREIGN EXPOSURES IN DERIVATIVES
			of which: loans and advances		of which: AFS banking book	of which: FVO (designated at fair value through profit&loss) banking book	of which: Trading book (3)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)
3M		165		165	165	0	0		0 0
1Y 2Y		0 89		0 89	0 11	0 0	0 1		0
3Y		9		9	5	0	0		0
5Y	Austria	0		0	0	0	0		0
10Y		159		159	123	0	0		0
15Y		9	9	0	0	0	0		0
3M		431 670	9	422 670	304 457	0 504	1 0	0	0 0
1Y		4.018		4.018	3.112	513	359		0
2Y		4.950		4.950	3.443	901	50		0
3Y	Belgium	3.317		3.317	2.580	1.149	0		0
5Y		4.267		4.267	2.686	1.427	46		0
10Y 15Y		3.912 3.483	2.804	3.912 679	2.893 648	911 113	0 11		0 -1
		24.617	2.804	21.813	15.819	5.518	466	0	-1
3M		6		6	6	0	0		0
1Y		4		4	4	0	0		0
2Y		6		6	6	0	0		0
3Y	Bulgaria	2 9		2 9	2 9	0 0	0 0		0 0
5Y 10Y		0		0	0	0	0		0
15Y		0	0	0	0	0	0		0
		27	0	27	27	0	0	0	0
3M		0		0	0	0	0		0
1Y		0 1		0 1	0 0	0 0	0 1		0 0
2Y 3Y		0		0	0	0	0		0
5Y	Cyprus	0		0	0	0	0		0
10Y		0		0	0	0	0		0
15Y		0	0	0	0	0	0		0
3M		1 946	0	1 946	0 486	0 0	1 402	0	0 0
1Y		1.090		1.090	126	0	428		0
2Y		819		819	456	32	92		0
3Y	Czech Republic	580		580	252	33	74		0
5Y		1.766		1.766	496	18	131		0
10Y		3.305		3.305	459	52	40		0 0
15Y		914 9.420	303 303	611 9.117	17 2.291	49 184	0 1.167	0	0
3M		0		0	0	0	0		0
1Y		1		1	0	0	1		0
2Y		0		0	0	0	0		0 0
3Y 5Y	Denmark	0 0		0 0	0 0	0 0	0 0		0
10Y		0		0	0	0	0		0
15Y		0	0	0	0	0	0		0
		1	0	1	0	0	1	0	0
3M		0		0	0	0	0		0
1Y 2Y		0 0		0 0	0 0	0 0	0 0		0 0
3Y		0		0	0	0	0		0
5Y	Estonia	0		0	0	0	0		0
10Y		0		0	0	0	0		0
15Y		0	0	0	0	0	0		0
		0 70	0	0 70	0 60	0 0	0 0	0	0 0
3M 1Y		0		0	0	0	0		0
2Y		0		0	0	0	0		0
3Y	Finland	2		2	0	0	0		0

						NET DIRECT POSITIONS
Residual Maturity	Country/Region	GROSS DIRECT LONG EXPOSURES (accounting value gross of specific provisions)			(gross exposures (long) net of cash short position of sovereign debt to other counterparties only where there is maturity matching)	DIRECT SOVEREIGN EXPOSURES IN DERIVATIVES
	Finland		of which: loans and advances		of which: AFS banking book	of which: FVO (designated at fair value through profit&loss) banking book	of which: Trading book (3)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)
5Y		9		9	5	0	5		0
10Y		17		17	17	0	0		0 0
15Y		0 98	0 0	0 98	0 82	0 0	0 5	0	0
3M		15		15	0	0	15		0
1Y		23		23	0	0	23		0
2Y		1		1	1	0	1		0
3Y	France	483		483	523	0	0		0 0
5Y 10Y		214 112		214 112	221 106	0 0	0 0		0
15Y		611	0	611	689	0	0		0
		1.461	0	1.461	1.539	0	40	0	0
3M		18		18	0	0	18		0
1Y		735		735	0	0	733		0 -216
2Y 3Y		360 136		360 136	0 0	0 0	325 131		0
5Y	Germany	145		145	16	0	132		-137
10Y		14		14	2	0	14		132
15Y		249	248	0	1	0	0		-2
		1.656	248	1.408	18	0	1.353	0	-223
3M		13		13	0	0	0		0 0
1Y 2Y		133 95		133 95	119 34	0 39	0 0		0
3Y		140		140	32	79	0		0
5Y	Greece	57		57	21	0	0		0
10Y		5		5	0	0	0		0
15Y		0	0	0	0	0	0		0
		444	0	444	206	118	1	0	0 0
3M 1Y		1.063 520		1.063 520	185 32	6 0	265 183		0
2Y		382		382	63	50	38		0
3Y	Hungary	544		544	48	0	24		0
5Y		459		459	125	10	22		0
10Y		253		253	64	0	14		0 0
15Y		284 3.505	281 281	3 3.224	0 517	0 67	0 546	0	0
3M		0		0	0	0	0		0
1Y		0		0	0	0	0		0
2Y		0		0	0	0	0		0
3Y	Iceland	0		0	0	0	0		0 0
5Y 10Y		0 0		0 0	0 0	0 0	0 0		0
15Y		10	10	0	0	0	0		0
		10	10	0	0	0	0	0	0
3M		0		0	0	0	0		0
1Y		0		0	0	0	0		0
2Y		0 0		0 0	0 0	0 0	0 0		0 0
3Y 5Y	Ireland	37		37	0	0	0		0
10Y		191		191	92	0	0		0
15Y		41	0	41	0	0	0		0
		269	0	269	92	0	0	0	0
3M		214		214	0	0	214		0 0
1Y 2Y		1.149 298		1.149 298	87 204	358 61	22 15		0
3Y		732		732	392	343	0		0
5Y	Italy	954		954	367	448	0		0
10Y		2.114		2.114	574	1.409	6		-82
15Y		108	8	100	124	0	0		0
		5.569	8	5.561	1.748	2.620	257	0	-82 0
3M 1Y		0 0		0 0	0 0	0 0	0 0		0
2Y		0		0	0	0	0		0
3Y	Latvia	0		0	0	0	0		0
5Y		0		0	0	0	0		0
10Y		0		0	0	0	0		0
15Y		0	0	0	0	0	0		0

Residual Maturity	Country/Region	GROSS DIRECT LONG EXPOSURES (accounting value gross of specific provisions) of which: loans and advances			NET DIRECT POSITIONS (gross exposures (long) net of cash short position of sovereign debt to other counterparties only where there is maturity matching)	DIRECT SOVEREIGN EXPOSURES IN DERIVATIVES
					of which: AFS banking book	of which: FVO (designated at fair value through profit&loss) banking book	of which: Trading book (3)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)
		0	0	0	0	0	0	0	0
3M		0		0	0	0	0		0 0
1Y 2Y		0 0		0 0	0 0	0 0	0 0		0
3Y		0		0	0	0	0		0
5Y	Liechtenstein	0		0	0	0	0		0
10Y		0		0	0	0	0		0
15Y		0 0	0 0	0 0	0 0	0 0	0 0	0	0 0
3M		0		0	0	0	0		0
1Y		0		0	0	0	0		0
2Y		4		4	0	0	4		0
3Y	Lithuania	0		0	0	0	0		0
5Y 10Y		0 0		0 0	0 0	0 0	0 0		0 0
15Y		0	0	0	0	0	0		0
		4	0	4	0	0	4	0	0
3M		0		0	0	0	0		0
1Y		0		0	0	0	0		0 0
2Y 3Y		0 0		0 0	0 0	0 0	0 0		0
5Y	Luxembourg	0		0	0	0	0		0
10Y		7		7	7	0	0		0
15Y		5	5	0	0	0	0		0
		12	5	7	7	0	0	0	0 0
3M 1Y		0 0		0 0	0 0	0 0	0 0		0
2Y		0		0	0	0	0		0
3Y	Malta	0		0	0	0	0		0
5Y		0		0	0	0	0		0
10Y		0 0	0	0 0	0 0	0 0	0 0		0 0
15Y		0	0	0	0	0	0	0	0
3M		1		1	0	0	1		0
1Y		1		1	0	0	1		0
2Y		2		2	1	0	2		0 0
3Y 5Y	Netherlands	1 52		1 52	0 49	0 0	1 3		0
10Y		29		29	29	0	3		0
15Y		14	14	0	0	0	0		0
		98	14	85	78	0	10	0	0
3M		0 0		0 0	0 0	0 0	0 0		0 0
1Y 2Y		0		0	0	0	0		0
3Y	Norway	0		0	0	0	0		0
5Y		0		0	0	0	0		0
10Y		0		0	0	0	0		0 0
15Y		0 0	0 0	0 0	0 0	0 0	0 0	0	0
3M		518		518	151	0	167		0
1Y		283		283	140	0	116		0
2Y		396		396	134	0	39		0
3Y	Poland	765 885		765 885	300 653	7 0	0 1		0 0
5Y 10Y		250		250	164	0	23		0
15Y		20	19	1	0	0	0		0
		3.118	19	3.098	1.542	7	346	0	0
3M		51		51	0	0	11		0 0
1Y 2Y		12 0		12 0	0 0	0 0	0 0		0
3Y		33		33	0	0	0		0
5Y	Portugal	11		11	0	0	0		0
10Y		39		39	0	0	0		0
15Y		13	0	13	0	11	0	0	0 0
3M		159 0	0	159 0	0 0	11 0	11 0		0
1Y		0		0	0	0	0		0

		GROSS DIRECT LONG EXPOSURES (accounting value gross of specific provisions)			NET DIRECT POSITIONS (gross exposures (long) net of cash short position of sovereign debt to other counterparties only where there is maturity matching)	DIRECT SOVEREIGN EXPOSURES IN DERIVATIVES
Residual Maturity	Country/Region		of which: loans and advances		of which: AFS banking book	of which: FVO (designated at fair value through profit&loss) banking book	of which: Trading book (3)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)
2Y		0		0	0	0	0		0
3Y	Romania	0		0	0	0	0		0 0
5Y 10Y		0 0		0 0	0 0	0 0	0 0		0
15Y		3	3	0	0	0	0		0
		3	3	0	0	0	0	0	0
3M		144		144	124	0	60		0 0
	1Y 2Y	264 187		264 187	166 105	0 0	25 32		0
3Y		338		338	22	0	111		0
5Y	Slovakia	711		711	204	0	216		0
10Y		368		368	31	0	113		0
15Y		95 2.107	77 77	18 2.030	2 654	0 0	9 566	0	0 0
3M		34		34	0	0	29		0
1Y		129		129	0	0	49		0
2Y		0		0	0	0	0		0
3Y	Slovenia	71		71	0	0	9		0
5Y 10Y		29 19		29 19	0 0	0 0	27 19		0 0
15Y		0	0	0	0	0	0		0
		283	0	283	0	0	133	0	0
3M		21		21	0	0	21		0
1Y		398		398	383	0	12		0 0
2Y 3Y		343 254		343 254	315 243	0 0	18 0		0
5Y	Spain	-1		-1	0	0	0		0
10Y		169		169	140	0	3		0
15Y		235	0	235	222	14	1		0
		1.419 0	0	1.419 0	1.302 0	14 0	55 0	0	0 0
3M 1Y		0		0	0	0	0		0
2Y		0		0	0	0	0		0
3Y	Sweden	0		0	0	0	0		0
5Y		0		0	0	0	0		0 0
10Y 15Y		0 0	0	0 0	0 0	0 0	0 0		0
		0	0	0	0	0	0	0	0
3M		0		0	0	0	0		0
1Y		0		0	0	0	0		0
2Y		0 0		0 0	0 0	0 0	0 0		0 0
3Y 5Y	United Kingdom	-21		-21	0	0	0		0
10Y		17		17	0	0	17		0
15Y		20	20	0	0	0	0		0
		16	20	-4	0	0	17	0	0
	TOTAL EEA 30	54.726	3.801	50.925	26.227	8.537	4.982	0	-306
3M		0		0	0	0	0		0 0
1Y 2Y		5 5		5 5	0 0	0 0	0 0		62
3Y		12		12	113	0	0		0
5Y	United States	4		4	0	0	0		-7
10Y		0		0	0	0	0		3
15Y		250 276	250 250	0 25	0 113	0 0	0 0	0	0 58
3M		0		0	0	0	0		0
1Y		0		0	0	0	0		0
2Y		0		0	0	0	0		0
3Y	Japan	0		0	0	0	0		0
5Y 10Y		0 0		0 0	0 0	0 0	0 0		0 0
15Y		0	0	0	0	0	0		0
		0	0	0	0	0	0	0	0
3M		252		252	2	0	250		0

Residual Maturity	Country/Region	GROSS DIRECT LONG EXPOSURES (accounting value gross of specific provisions)			(gross exposures (long) net of cash short position of sovereign debt to other counterparties only	NET DIRECT POSITIONS where there is maturity matching)	DIRECT SOVEREIGN EXPOSURES IN DERIVATIVES	INDIRECT SOVEREIGN EXPOSURES IN THE TRADING BOOK
			of which: loans and advances		of which: AFS banking book	of which: FVO (designated at fair value through profit&loss) banking book	of which: Trading book (3)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)
1Y		2		2	2	0	0		0
2Y		2		2	2	0	0		0
3Y	Other non EEA non	2		2	2	0	0		0
5Y	Emerging countries	4		4	5	0	1		0
10Y		0		0	0	0	0		0 0
15Y		0 261	0 0	0 261	0 13	0 0	0 251	0	0
3M		57		57	0	0	0		0
1Y		0		0	0	0	0		0
2Y		0		0	0	0	0		0
3Y		0		0	0	0	0		0
5Y	Asia	0		0	0	0	0		0
10Y		0		0	0	0	0		0
15Y		109	109	0	0	0	0		0
		166	109	57	0	0	0	0	0
3M		0		0	0	0	0		0
1Y		0		0	0	0	0		0
2Y		0		0	0	0	0		0
3Y	Middle and South	0		0	0	0	0		0
5Y	America	0		0	0	0	0		0
10Y		0		0	0	0	0		0
15Y		22	22	0	0	0	0		0
		22	22	0	0	0	0	0	0
3M		42		42	29	0	0		0
1Y		15		16	16	0	0		0
2Y		4		4	0	0	0		0
3Y	Eastern Europe non	0		0	0	0	0		0
5Y	EEA	0		0	0	0	0		0
10Y		0		0	0	0	0		0 0
15Y		25 86	25 25	0 62	0 45	0 0	0 0	0	0
									0
3M		0		0	0	0	0		0
1Y		0		0	0	0	0		0
2Y 3Y		0 0		0 0	0 0	0 0	0 0		0
5Y	Others	0		0	0	0	0		0
10Y		0		0	0	0	0		0
15Y		350	350	0	0	0	0		0
		350	350	0	0	0	0	0	0
	TOTAL	55.888	4.557	51.331	26.400	8.537	5.233	0	-248

(3) According to the EBA methodologies, for the trading book assets banks have been allowed to offset only cash short positions having the same maturities (paragraph 202 of the Methodological note).

(1) The allocation of countries and exposures to macro areas and emerging/non-emerging is according to the IMF WEO country groupings. See: http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/groups.htm

(2) The exposures reported in this worksheet cover only exposures to central and local governments on immediate borrower basis, and do not include exposures to other counterparts with full or partial government guarantees (such exposures are however included in the total EAD reported in the worksheet "4 - EADs").

Notes and definitions