Quarterly Report • Aug 5, 2021
Quarterly Report
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Summary 3 Financial highlights 4 Overview of results and balance sheet 5 Analysis of the quarter 6 Analysis of the year-to-date period 9 Risk statement, economic views and guidance 10
Consolidated income statement 13 Consolidated statement of comprehensive income 15 Consolidated balance sheet 16 Consolidated statement of changes in equity 17 Consolidated cashflow statement 20 Notes on statement of compliance and changes in accounting policies 22 Notes on segment reporting 27 Other notes 28 Additional information
Credit risk 41 Solvency 47 Income statement, volumes and ratios per business unit 53 Details of ratios and terms 61
The expectations, forecasts and statements regarding future developments that are contained in this report are, of course, based on assumptions and are contingent on a number of factors that will come into play in the future. Consequently, the actual situation may turn out to be (substantially) different.
[email protected] KBC Group NV, Investor Relations Office, Havenlaan 2, 1080 Brussels, Belgium
This report contains information that is subject to transparency regulations for listed companies. Date of release: 5 August 2021
'I Luc Popelier, Chief Financial Officer of the KBC Group, certify on behalf of the Executive Committee of KBC Group NV that, to the best of my knowledge, the abbreviated financial statements included in the quarterly report are based on the relevant accounting standards and fairly present in all material respects the financial condition and results of KBC Group NV including its consolidated subsidiaries, and that the quarterly report provides a fair view of the main events, the main transactions with related parties in the period under review and their impact on the abbreviated financial statements, and an overview of the main risks and uncertainties for the remainder of the current year.'
| KBC Group – overview (consolidated, IFRS) | 2Q2021 | 1Q2021 | 2Q2020 | 1H2021 | 1H2020 |
|---|---|---|---|---|---|
| Net result (in millions of EUR) | 793 | 557 | 210 | 1 350 | 205 |
| Basic earnings per share (in EUR) | 1.87 | 1.31 | 0.47 | 3.18 | 0.43 |
| Breakdown of the net result by business unit (in millions of EUR) | |||||
| Belgium | 528 | 380 | 204 | 908 | 119 |
| Czech Republic | 168 | 123 | 77 | 291 | 165 |
| International Markets | 140 | 88 | -45 | 228 | -11 |
| Group Centre | -42 | -35 | -26 | -76 | -68 |
| Parent shareholders' equity per share (in EUR, end of period) | 51.8 | 49.8 | 44.6 | 51.8 | 44.6 |
In many countries, the large-scale rollout of vaccines that started in the first quarter of 2021 is now running at full speed. While caution is still paramount, the general feeling is one of anticipation for a long-awaited, full resumption of social activities, and optimism for a worldwide economic recovery. From the start of this crisis almost a year and a half ago, we have taken responsibility in safeguarding the health of our staff and customers, while ensuring that services continue to be provided. We have also worked closely with government agencies to support all customers impacted by the coronavirus, implementing various measures such as loan deferrals. Besides the turmoil caused by the coronavirus crisis, various areas in Europe have been hit by recent extreme weather conditions. Parts of the Czech Republic were hit by a tornado in June, while a number of Belgian provinces recently suffered the devastating consequences of heavy flooding. Our thoughts are very much with the thousands of people who have been affected by these disasters.
More than ever, we believe that the world emerging from these crises has to be a more sustainable one and we are working tirelessly towards that scenario and are fully committed to putting climate change at the top of our agenda. In that respect, following the gradual reduction in our direct exposure to the thermal coal sector since 2016, we completely eliminated our remaining direct exposure to coal in June 2021, a good six months ahead of our own schedule. At the same time, we are continuing our efforts to support investments in green energy infrastructure. In the past quarter, for example, we signed an important new project financing transaction for the first Belgian subsidy-free wind farm in Ghent. This fits into our overall target of expanding our share of renewables to 65% of our energy loan portfolio by 2030.
As regards our financial performance in the past quarter, we delivered an excellent net result of 793 million euros. Total income fell somewhat quarter-on-quarter, due primarily to a lower trading and fair value result. Net interest income and net fee and commission income, however, increased quarter-on-quarter, as did our earned non-life insurance premiums and life insurance sales. Costs decreased significantly, as the bulk of bank taxes for the full year had been recorded in the previous quarter. Lastly, we were able to reverse a significant amount of previously booked loan loss impairment charges. Our solvency position remained very strong, with a common equity ratio of 17.5% on a fully loaded basis. It is the intention of our Board to distribute, in November 2021, an additional gross dividend of 2 euros per share for financial year 2020 and – in line with our general dividend policy – pay an interim dividend of 1 euro as an advance on the total dividend for financial year 2021.
In closing, I would like to take this opportunity to thank all stakeholders who have continued to put their trust in us. I especially wish to express my appreciation to all our staff who have also ensured that our group has been able to operate solidly and efficiently in these challenging times and was able to continue providing high-quality services to our customers. We will reflect that appreciation by providing an exceptional Covid-related bonus to all staff as recognition of their unrelenting efforts in ensuring that our group remains the reference in bank-insurance in all our home markets.
| Consolidated income statement, IFRS KBC Group (in millions of EUR) |
2Q2021 | 1Q2021 | 4Q2020 | 3Q2020 | 2Q2020 | 1H2021 | 1H2020 |
|---|---|---|---|---|---|---|---|
| Net interest income | 1 094 | 1 068 | 1 067 | 1 122 | 1 083 | 2 162 | 2 278 |
| Non-life insurance (before reinsurance) | 213 | 238 | 192 | 233 | 255 | 451 | 440 |
| Earned premiums | 463 | 453 | 450 | 448 | 435 | 916 | 879 |
| Technical charges | -250 | -215 | -258 | -215 | -180 | -464 | -439 |
| Life insurance (before reinsurance) | 10 | 12 | 4 | 1 | 6 | 22 | 6 |
| Earned premiums | 272 | 292 | 382 | 267 | 276 | 564 | 574 |
| Technical charges | -262 | -280 | -378 | -266 | -271 | -542 | -568 |
| Ceded reinsurance result | 1 | -13 | 10 | -9 | -13 | -12 | -21 |
| Dividend income Net result from financial instruments at fair value through P&L1 |
18 29 |
7 127 |
11 80 |
12 85 |
17 253 |
25 156 |
30 -132 |
| Net realised result from debt instruments at fair value through other comprehensive income |
-1 | 2 | -1 | 1 | 2 | 1 | 3 |
| Net fee and commission income | 450 | 441 | 403 | 390 | 388 | 890 | 816 |
| Net other income | 38 | 53 | 37 | 37 | 53 | 91 | 102 |
| Total income | 1 853 | 1 933 | 1 802 | 1 872 | 2 043 | 3 786 | 3 522 |
| Operating expenses | -972 | -1 320 | -988 | -926 | -904 | -2 293 | -2 242 |
| Impairment | 123 | 77 | -122 | -63 | -857 | 200 | -997 |
| Of which: on financial assets at amortised cost and at fair value through other comprehensive income2 |
130 | 76 | -57 | -52 | -845 | 206 | -966 |
| Share in results of associated companies & joint ventures |
1 | -2 | -2 | -2 | -3 | -1 | -7 |
| Result before tax | 1 005 | 688 | 690 | 881 | 279 | 1 693 | 276 |
| Income tax expense | -211 | -131 | -152 | -184 | -69 | -342 | -71 |
| Result after tax | 793 | 557 | 538 | 697 | 210 | 1 350 | 205 |
| attributable to minority interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| attributable to equity holders of the parent | 793 | 557 | 538 | 697 | 210 | 1 350 | 205 |
| Basic earnings per share (EUR) Diluted earnings per share (EUR) |
1.87 1.87 |
1.31 1.31 |
1.26 1.26 |
1.64 1.64 |
0.47 0.47 |
3.18 3.18 |
0.43 0.43 |
| Key consolidated balance sheet figures KBC Group (in millions of EUR) |
30-06-2021 | 31-03-2021 | 31-12-2020 | 30-09-2020 | 30-06-2020 | ||
| Total assets | 368 596 | 351 818 | 320 743 | 321 053 | 317 246 | ||
| Loans & advances to customers, excl. reverse repos | 164 344 | 160 960 | 159 621 | 157 773 | 157 563 | ||
| Securities (equity and debt instruments) | 71 098 | 71 981 | 71 784 | 71 310 | 72 131 | ||
| Deposits from customers & debt cert., excl. repos | 243 304 | 231 838 | 215 430 | 211 672 | 210 811 | ||
| Technical provisions, before reinsurance | 18 976 | 18 939 | 18 718 | 18 613 | 18 775 | ||
| Liabilities under investment contracts, insurance | 13 128 | 12 922 | 12 724 | 12 482 | 12 505 | ||
| Parent shareholders' equity | 21 600 | 20 768 | 20 030 | 19 244 | 18 570 | ||
| Selected ratios KBC group (consolidated) |
1H2021 | FY2020 | |||||
| Return on equity3 | 14% | 8% | |||||
| Cost/income ratio, group [when excluding certain non-operating items and |
61% [54%] | 58% [57%] | |||||
| spreading bank taxes evenly throughout the year] Combined ratio, non-life insurance |
82% | 85% | |||||
| Common equity ratio, Basel III | 17.5% [18.0%] | 17.6% [18.1%] | |||||
| Danish Compromise, fully loaded [transitional] Common equity ratio, FICOD fully loaded [transitional] |
16.6% [17.1%] | 16.4% [16.9%] | |||||
| Credit cost ratio4 | -0.22% | 0.60% | |||||
| Impaired loans ratio | 3.2% | 3.3% | |||||
| for loans more than 90 days past due | 1.7% | 1.8% | |||||
| Net stable funding ratio (NSFR) | 152% | 146% | |||||
| Liquidity coverage ratio (LCR) | 166% | 147% |
2 Also referred to as 'Loan loss impairment'.
3 15% when bank taxes are spread evenly throughout the year.
4 A negative figure indicates a net impairment release (positively affecting results).
We provide a full overview of our IFRS consolidated income statement and balance sheet in the 'Consolidated financial statements' section of the quarterly report. Condensed statements of comprehensive income, changes in shareholders' equity, as well as several notes to the accounts, are also available in the same section. As regards the (changes in) definition of ratios, see 'Details of ratios and terms' in the quarterly report.
Net interest income amounted to 1 094 million euros in the quarter under review, up 2% and 1%, respectively, on its level in the previous and year-earlier quarters.
income and net other income down quarter-on-quarter.
Quarter-on-quarter, net interest income benefited from the continued growth of lending volumes (see below), more extensive charging of negative interest rates on certain current accounts held by corporate entities and SMEs, lower funding costs, a higher number of days in the period under review, higher interest income from the insurer's bond portfolio (inflation-linked bonds) and a positive forex-related impact. These effects were partly offset by a number of factors, including the negative impact of lower reinvestment yields, margin pressure on the mortgage loan portfolio (particularly in the Czech Republic and Hungary) and a slightly lower netted positive impact of ALM forex swaps. Year-on-year, the increase in net interest income was due to a number of items, such as the increase in the loan portfolio, lower funding cost (including the positive impact of TLTRO III), the higher netted positive impact of ALM forex swaps, the consolidation of OTP Banka Slovensko (included in the group result as of 2021), more extensive charging of negative interest rates on certain current accounts held by corporate entities and SMEs, and a positive forex effect, partly offset by the negative impact of past CNB rate cuts in the Czech Republic and lower reinvestment yields in general. The net interest margin for the quarter under review amounted to 1.79%, up 1 basis point on the previous quarter and down 3 basis points on the year-earlier quarter. For an indication of the expected net interest income for full-year 2021, see 'Guidance' on page 11 of this publication.
Customer deposits including debt certificates (243 billion euros) were up 4% quarter-on-quarter and 14% year-on-year on an organic basis (eliminating the forex-related impact and the effects of changes in the scope of consolidation). The total volume of customer lending (164 billion euros) rose 2% quarter-on-quarter and 3% year-on-year on an organic basis. The volume of loans that were granted payment holidays under the various relief schemes amounted to 12.7 billion euros (including EBA-compliant moratoria and the no longer EBA-compliant scheme in Hungary). As a large part of the EBA-compliant moratoria have meanwhile expired, loans still falling under them decreased by 95% by the end of June 2021. For 97% of loans under meanwhile expired EBA-compliant moratoria, payments have fully resumed. In addition, we granted some 0.9 billion euros in loans that fall under the various coronavirus-related government guarantee schemes in our home markets.
Technical income from our non-life insurance activities (earned premiums less technical charges, plus the ceded reinsurance result) contributed 213 million euros to total income, down 6% and 14% on its performance in the previous and year-earlier quarters, respectively. In both cases, the increase in earned premiums (+2% quarter-on-quarter and +6% year-on-year) and better reinsurance result were more than offset by a rise in technical charges, as – inter alia – the quarter under review was adversely impacted by claims related to the extreme weather (windstorms/tornado) in the Czech Republic and the fact that claims had been quite low in the second quarter of 2020 as a result of the strict lockdown measures at that time. Overall, the combined ratio for the first six months of 2021 came to an excellent 82%, compared to 85% for full-year 2020. Note that the impact of the recent floods in Belgium will only become apparent in the results as of the third quarter. We have provided an estimate of that impact under 'Guidance' on page 11 of this publication.
Technical income from our life insurance activities (earned premiums less technical charges, plus the ceded reinsurance result) amounted to 10 million euros, compared to 11 million euros in the previous quarter and 1 million euros in the year-earlier quarter. Sales of life insurance products in the quarter under review (494 million euros) were up 5% on the level recorded in the previous quarter, with the decline in guaranteed-interest products being more than offset by increased sales of unit-linked insurance products. Sales were down 12% on the relatively high level recorded in the year-earlier quarter, due primarily to lower sales of unit-linked products. Overall, the share of unit-linked products in our total life insurance sales amounted to 55% in the quarter under review, with guaranteed-interest products accounting for the remaining 45%.
In the quarter under review, net fee and commission income amounted to 450 million euros, up 2% on its level in the previous quarter. This is due to a combination of higher fees for our asset management business (especially management fees) and for our banking services (increased fees for payment services more than offsetting lower securities-related fees). Net fee and commission income was up by as much as 16% on its level in the year-earlier quarter, thanks to significantly higher fees for both our asset management services (+20%) and our banking services (+9%, due mainly to higher fees for payment services), only slightly offset by higher distribution fees paid. At the end of June 2021, our total assets under management amounted to 228 billion euros, up 3% quarter-on-quarter and 13% year-on-year. In both cases, the increase was due primarily to a further recovery in asset prices, coupled with small net inflows.
The net result from financial instruments at fair value (trading & fair value income) amounted to 29 million euros, down 77% and 89% on the level recorded in the previous and year-earlier quarters, respectively. In both cases, the decrease was due to a combination of a lower dealing room result, a drop in the market value of derivatives used for asset/liability management purposes, a lower realised result on shares in the insurer's portfolio, and lower positive market value adjustments.
The other remaining income items included dividend income of 18 million euros (in line with the year-earlier figure and up on the figure recorded in the previous quarter, as the second quarter of the year traditionally includes the bulk of received dividends) and 38 million euros in net other income (somewhat below the normal run rate for this item, due in part to some negative one-off items).
| Operating expenses million euros |
• | Operating expenses, excluding bank taxes, were up 5% and 7% quarter-on-quarter and year-on-year, respectively, partly due to the booking of an exceptional Covid related bonus for staff, forex effects and the consolidation of OTP Banka Slovensko |
|---|---|---|
| 972 | • | (year-on-year). Group cost/income ratio for first six months of 2021 amounted to 54% (when certain non-operating items are excluded and bank taxes spread evenly over the year) or 49% (when bank taxes are fully excluded). |
Operating expenses in the second quarter of 2021 amounted to 972 million euros. The quarter-on-quarter comparison is distorted by the upfront recognition in the first quarter of most of the bank taxes for the full year (bank taxes amounted to 424 million euros in the first quarter of 2021, compared to just 30 million euros in the second quarter of 2021).
Excluding these taxes, expenses were up 5% on their level of the previous quarter due to a number of factors, including the booking of an exceptional Covid-related bonus for staff, wage inflation, increased ICT costs and higher expenses for facilities, marketing campaigns and professional fees (partly seasonal), as well as a negative forex effect. Year-on-year, expenses excluding bank taxes were up 7% chiefly on account of the Covid-related bonus for staff, the consolidation of OTP Banka Slovensko, the lower accruals for variable remuneration in the reference period, wage inflation, higher ICT expenses, higher marketing expenses and a negative forex effect.
The cost/income ratio for the group came to 61% for the first six months of 2021. Evenly spreading the bank taxes over the full year and excluding certain non-operating items, the ratio amounted to 54%, compared to 57% for full-year 2020. When excluding all bank taxes, the cost-income ratio for the first six months of the year fell to 49%.
For an indication of the expected increase in costs for full-year 2021, see 'Guidance' on page 11 of this publication.
-million-euro net release
130 • Credit cost ratio for the first six months of 2021 at -0.22%.
In the second quarter of 2021, we recorded a 130-million-euro net release of loan loss impairment, compared with a net release of 76 million euros in the previous quarter and a net charge of 845 million euros in the second quarter of 2020 (almost 90% of that 845 million euros related to collective impairment charges for the coronavirus crisis). The net release in the quarter under review includes the release of 129 million euros in collective coronavirus-related impairment. As a consequence, collective impairment charges for the coronavirus crisis recorded on the books at end of June 2021 amounted to 628 million euros (down from 757 million euros three months earlier). Of that amount, 592 million euros was based on a 'management overlay' and 36 million euros captured by the ECL models through updated macroeconomic variables. A detailed calculation and background information regarding collective impairment charges for the coronavirus crisis is provided in Note 1.4 of the 'Consolidated financial statements' section of the quarterly report.
Broken down by country, net reversals of loan loss impairment came to 56 million euros in Belgium, 53 million euros in the Czech Republic, 6 million euros in Slovakia, 19 million euros in Hungary, 1 million euros in Bulgaria and 0 million euros in Ireland, with only the Group Centre recording a small increase in loan loss impairment (6 million euros).
For the entire group, the credit cost ratio amounted to -0.22% for the first six months of 2021 (-0.06% excluding the amount recorded for the coronavirus crisis), up from 0.60% for full-year 2020 (0.16% excluding the amount for the coronavirus crisis). A negative figure implies a positive impact on the result. At the end of June 2021, some 3.2% of our total loan book was classified as impaired (Stage 3), compared to 3.3% at year-end 2020. Impaired loans that are more than 90 days past due amounted to 1.7% of the loan book, compared to 1.8% at year-end 2020.
For an indication of the expected impact of loan loss impairment for full-year 2021, see 'Guidance' on page 11 of this publication.
Impairment on assets other than loans amounted to a net charge of 6 million euros, compared to a net reversal of 1 million euros in the previous quarter and a net charge of 12 million euros in the second quarter of 2020. This 2020 figure related principally to the accounting treatment (modification loss) of payment moratoria in our home countries.
| Net result | Belgium | Czech Republic | International Markets | Group Centre |
|---|---|---|---|---|
| by business unit | ||||
| 528 million euros |
168 million euros |
140 million euros |
-42 million euros |
Belgium: the net result (528 million euros) was up 39% quarter-on-quarter. Excluding bank taxes (the bulk of which are recorded in the first quarter and distort the quarter-on-quarter comparison), the result fell by 13% due to the combined effect of slightly lower total income (the increase in net interest income and dividend income was more than offset by a significant decline in trading & fair value income and smaller decreases in net fee & commission income and other net income), higher costs (partly related to the exceptional Covid-related bonus for staff) and slightly lower level of loan loss impairment reversals compared to the previous quarter.
Czech Republic: the net result (168 million euros) was up 34% on its level for the previous quarter, excluding forex effects. When bank taxes are also excluded, the net result was virtually the same as in the previous quarter. This was due to a combination of lower total income (the increase in net interest income and net fee and commission income was more than offset by a significant decrease in trading & fair value income and lower non-life insurance income owing to the impact of extreme weather) and increased costs (partly related to the exceptional Covid-related bonus for staff), offset by a higher level of loan loss impairment reversals compared to the previous quarter.
International Markets: the 140-million-euro net result breaks down as follows: 22 million euros in Slovakia, 75 million euros in Hungary, 30 million euros in Bulgaria and 13 million euros in Ireland. For the business unit as a whole, the net result was up 58% quarter-on-quarter, or 11% when bank taxes are excluded. The latter increase came about mainly on account of the slightly higher level of total income (thanks to increased net interest income and net fee and commission income) and a net reversal of loan loss impairment (unlike the previous quarter when there was no impairment impact), somewhat offset by increased costs (partly related to the exceptional Covid-related bonus for staff).
Group Centre: the net result (-42 million euros) was 7 million euros lower than the figure recorded in the previous quarter, due in part to higher loan loss impairment charges and a slightly lower level of total income (owing mainly to lower non-life technical insurance income) in the quarter under review, partly offset by lower costs.
| Belgium | Czech Republic | International Markets | |||||
|---|---|---|---|---|---|---|---|
| Selected ratios by business unit | 1H2021 | FY2020 | 1H2021 | FY2020 | 1H2021 | FY2020 | |
| Cost/income ratio, group (when excluding certain non-operating items and spreading bank taxes evenly throughout the year) |
50% | 54% | 55% | 52% | 63% | 64% | |
| Combined ratio, non-life insurance | 81% | 84% | 85% | 87% | 80% | 84% | |
| Credit cost ratio* | -0.20% | 0.57% | -0.41% | 0.67% | -0.18% | 0.78% | |
| Impaired loans ratio | 2.5% | 2.3% | 2.1% | 2.3% | 6.3% | 6.9% |
* A negative figure indicates a net impairment release (positively affecting results). See 'Details of ratios and terms' in the quarterly report.
A full results table is provided in the 'Additional information' section of the quarterly report. A short analysis of the results per business unit is provided in the analyst presentation (available at www.kbc.com).
| Equity, solvency and liquidity |
Total equity |
Common equity ratio (fully loaded) |
Liquidity coverage ratio |
Net stable funding ratio |
|---|---|---|---|---|
| 23.1 billion euros | 17.5% | 166% | 152% |
At the end of June 2021, total equity amounted to 23.1 billion euros, comprising 21.6 billion euros in parent shareholders' equity and 1.5 billion euros in additional tier-1 instruments. Total equity was up 1.6 billion euros on its level at the end of 2020. This was accounted for by the combined effect of a number of items, including the profit for the first six months of 2021 (+1.4 billion euros), payment of the dividend to shareholders in May 2021 (-0.2 billion euros), an increase in the revaluation reserves (+0.4 billion euros) and a number of minor items. We have provided details of these changes under 'Consolidated statement of changes in equity' in the 'Consolidated financial statements' section of the quarterly report.
For information on future dividend payments, see 'Guidance' on page 11 of this publication.
At 30 June 2021, our fully loaded common equity ratio (Basel III, under the Danish compromise) amounted to 17.5%, compared to 17.6% at the end of 2020 (fully due to an increase in risk-weighted assets). Our fully loaded leverage ratio (Basel III) came to 5.5%. The solvency ratio for KBC Insurance under the Solvency II framework was 221% at the end of June 2021, compared to 222% at the end of 2020. We have provided more details and additional information on solvency under 'Solvency' in the 'Additional information' section of the quarterly report.
Our liquidity position remained excellent too, as reflected in an LCR ratio of 166% and an NSFR ratio of 152%, compared to 147% and 146%, respectively, at the end of 2020.
| Net profit | • | Net profit significantly up by 1 145 million euros year-on-year to 1 350 million euros. |
|---|---|---|
| • | The 2020 reference period had included high collective loan loss impairment charges related to the coronavirus crisis (789 million euros compared to a net release of 155 million euros in the current year-to-date period). |
|
| 1 350 million euros |
• | Additionally, net fee and commission income, the technical insurance result and trading & fair value income were all up. Net interest income, dividend income and net other income were down. Costs increased year-on-year. |
Highlights (compared to the first half of 2020):
As we are mainly active in banking, insurance and asset management, we are exposed to a number of typical risks for these financial sectors such as – but not limited to – credit default risk, counterparty credit risk, concentration risk, movements in interest rates, currency risk, market risk, liquidity and funding risk, insurance underwriting risk, changes in regulations, operational risk, customer litigation, competition from other and new players, as well as the economy in general. KBC closely monitors and manages each of these risks within a strict risk framework, but they may all have a negative impact on asset values or could generate additional charges beyond anticipated levels.
At present, a number of items are considered to constitute the main challenges for the financial sector. These stem primarily from the impact of the coronavirus crisis on the global economy and, in particular, the financial sector. These risks come on top of risks relating to macroeconomic and political developments, which affect global and European economies, including KBC's home markets. Regulatory and compliance risks (including anti-money laundering regulations and GDPR) remain a dominant theme for the sector, as does enhanced consumer protection. Digitalisation (with technology as a catalyst) presents both opportunities and threats to the business model of traditional financial institutions, while climate-related risks are becoming increasingly prevalent, as evidenced by the tornado that hit the Czech Republic in June and the recent floods in Western Europe, including in Belgium. Finally, cyber risk has become one of the main threats during the past few years, not just for the financial sector, but for the economy as a whole.
We provide risk management data in our annual reports, quarterly reports and dedicated risk reports, all of which are available at www.kbc.com.
The progress of the vaccination campaigns was the main driver of global economic growth in the second quarter, leading to positive quarter-on-quarter growth in the euro area and in the KBC home markets that have already reported 2Q-growth (Belgium and the Czech Republic). We expect reported quarterly growth in the other home markets to be positive as well. Despite the emergence of new infectious variants of the virus, recent data suggest a decoupling of the rate of infections from the rates of hospitalization and Intensive Care Unit occupancy, thanks to the availability of vaccines. We therefore expect that, in the second half of 2021, the European economies will re-open further by gradually easing the remaining pandemic-related restrictions that still weigh on them. As a result, European economic growth is expected to accelerate in the second half of 2021. European economic activity is likely to return to its pre-pandemic level in early-2022.
Coordinated monetary and fiscal policy stimuli continue to support the US and euro area economies. While the start of the tapering of asset purchases in 2021-2022 by the Federal Reserve (Fed) is a possibility, we expect both the Fed and the ECB to keep their policy rates unchanged for 2021-2022. The ECB strategy review and first policy meeting suggests that these rates may remain unchanged at their current low levels (or lower) for longer than so far anticipated.
Ten-year government bond yields in the US fell markedly in the second quarter of 2021 and continued to decrease at the beginning of the third quarter. This decline was partly driven by falling inflation expectations and market concerns about the growth outlook beyond the immediate past-pandemic recovery. However, we expect US yields to moderately increase again from their current levels in the third quarter on the back of the ongoing economic recovery and unsustainable low real yields. This will also lead to moderate upward pressure on German yields. Underlying medium-term inflation in the euro area is expected to gradually increase, helped by the announced gradual inclusion of owner-occupied housing costs in the definition of the harmonised consumer price index. As a result of continued ample liquidity provision by the ECB and low policy rates, we expect intra-EMU sovereign spreads to remain broadly stable at their current compressed levels.
As regards exchange rates, we expect the Hungarian forint to strengthen somewhat in the third quarter from its current level. This is in line with the tightening cycle started by the Hungarian central bank, which was continued on its latest policy meeting of 27 July. From the fourth quarter on, however, we expect the forint to resume its fundamental gradual depreciation against the euro. The Czech koruna is also likely to appreciate moderately against the euro. In contrast to the Hungarian forint, this appreciation is likely to be longer lived. We expect the Czech National Bank to raise its policy rate by another 50 basis points by the end of 2021, followed by another increase of 75 basis points in 2022, mainly as a result of the outlook for Czech inflation. As far as the US dollar is concerned, we expect the US dollar to depreciate to a moderate extent against the euro, driven by the continued improving outlook for global growth and inflation, high US budget and current account deficits and the higher inflation differential between the US and the euro area.
| Guidance | Full-year 2021 guidance |
|---|---|
| ▪ Net interest income: we are increasing our full year 2021 guidance from 4.3 billion euros to approximately 4.4 billion euros. ▪ Operating expenses excluding bank taxes: our 2021 full year guidance remains unchanged at +2% year-on-year like-for-like, despite the negative forex effect. Note however that, next to the impact of the acquisition of OTP Banka Slovensko as of 2021, the one-off -18 million euros Covid-related bonus comes on top. ▪ Credit cost ratio (CCR): the full year 2021 CCR is expected to be around 0 basis points (excluding potential further coronavirus crisis ECL reversals in the second half of 2021) instead of the low end of our average through-the-cycle CCR of 30-40bps. This does not take into account any potential impact of the signing of the two pending loan sales transactions (performing and non-performing loan portfolios) at KBC Bank Ireland. ▪ Starting mid-July, Belgium (and particularly the eastern part) was severely hit by several floods. This will have a negative impact on KBC in the third quarter 2021, in the non-life technical result. The true extent of the human loss and material damage caused by these extreme weather conditions will become clear in the coming weeks. Nevertheless, the first estimated impact after reinsurance (before tax) is around -41 million euros (under current legislation). |
|
| Dividend | |
| ▪ It is the intention of our Board of Directors to distribute, in November 2021: |
|
| an additional gross dividend of 2 euros per share for 2020, and • |
|
| in line with our general dividend policy, an interim dividend 1 euro as an advance on the • total dividend for financial year 2021. |
| Upcoming events |
3Q2021 results: 12 November 2021 |
|---|---|
| More information on 2Q2021 |
Quarterly report: www.kbc.com / Investor Relations / Reports Company presentation: www.kbc.com / Investor Relations / Presentations |
| Detailed impact of coronavirus crisis |
Quarterly report, Note 1.4 in 'Consolidated financial statements according to IFRS' Company presentation, section 2 on 'Covid-19' |
| Definitions of ratios |
'Details of ratios and terms at KBC Group level' in the last section of the quarterly report. |
Consolidated financial statements according to IFRS
2Q 2021 and 1H 2021
Section reviewed by the Auditor
AC: Amortised Cost AFS: Available For Sale (IAS 39) ALM: Asset Liability Management ECL: Expected Credit Loss FA: Financial Assets FV: Fair Value FVO: Fair Value Option (designated upon initial recognition at Fair Value through Profit or Loss) FVOCI: Fair Value through Other Comprehensive Income FVPL: Fair Value through Profit or Loss FVPL – overlay: Fair Value through Profit or Loss - overlay GCA: Gross Carrying Amount HFT: Held For Trading MFVPL: Mandatorily Measured at Fair Value through Profit or Loss (including HFT) OCI: Other Comprehensive Income POCI: Purchased or Originated Credit Impaired Assets SPPI: Solely payments of principal and interest SRB: Single Resolution Board R/E: Retained Earnings
| (in millions of EUR) | Note | 1H 2021 | 1H 2020 | 2Q 2021 | 1Q 2021 | 2Q 2020 |
|---|---|---|---|---|---|---|
| Net interest income | 3.1 | 2 1 6 2 | 2 2 7 8 | 1 0 9 4 | 1 0 6 8 | 1 0 8 3 |
| Interest income | 3.1 | 3009 | 3 3 3 2 | 1529 | 1480 | 1497 |
| Interest expense | 3.1 | $-847$ | $-1054$ | $-434$ | $-413$ | $-415$ |
| Non-life insurance (before reinsurance) | 3.7 | 451 | 440 | 213 | 238 | 255 |
| Earned premiums | 3.7 | 916 | 879 | 463 | 453 | 435 |
| Technical charges | 3.7 | 464 | 439 ÷. |
250 | 215 | 180 |
| Life insurance (before reinsurance) | 3.7 | 22 | 6 | 10 | 12 | 6 |
| Earned premiums | 3.7 | 564 | 574 | 272 | 292 | 276 |
| Technical charges | 3.7 | 542 ÷. |
568 ä. |
262 | 280 | 271 |
| Ceded reinsurance result | 3.7 | $-12$ | $-21$ | 1 | $-13$ | $-13$ |
| Dividend income | 25 | 30 | 18 | 7 | 17 | |
| Net result from financial instruments at fair value through profit or loss | 3.3 | 156 | 132 ÷. |
29 | 127 | 253 |
| of which result on equity instruments (overlay approach) | 59 | $-51$ | 24 | 35 | 31 | |
| Net realised result from debt instruments at fair value through OCI | -1 | 3 | $-1$ | $\overline{2}$ | $\overline{2}$ | |
| Net fee and commission income | 3.5 | 890 | 816 | 450 | 441 | 388 |
| Fee and commission income | 3.5 | 1 2 8 9 | 1 1 8 8 | 650 | 639 | 559 |
| Fee and commission expense | 3.5 | $-399$ | $-371$ | $-200$ | $-198$ | 172 |
| Net other income | 3.6 | 91 | 102 | 38 | 53 | 53 |
| TOTAL INCOME | 3786 | 3522 | 1853 | 1933 | 2 0 4 3 | |
| Operating expenses | 3.8 | $-2293$ | $-2242$ | $-972$ | $-1320$ | $-904$ |
| Staff expenses | 3.8 | $-1184$ | $-1139$ | $-607$ | $-577$ | $-545$ |
| General administrative expenses | 3.8 | 944 Ξ |
$-925$ | $-283$ | $-662$ | $-270$ |
| Depreciation and amortisation of fixed assets | 3.8 | $-164$ | $-178$ | $-83$ | $-81$ | $-89$ |
| Impairment | 3.10 | 200 | 997 ÷. |
123 | 77 | 857 |
| on financial assets at AC and at FVOCI | 3.10 | 206 | 966 L, |
130 | 76 | 845 |
| on goodwill | 3.10 | $\boldsymbol{0}$ | 0 | $\boldsymbol{0}$ | 0 | 0 |
| other | 3.10 | $\overline{5}$ ä, |
$-32$ | $6\phantom{1}6$ ÷. |
$\mathbf{1}$ | $-12$ |
| Share in results of associated companies and joint ventures | $\overline{1}$ ä, |
$-7$ | $\mathbf{1}$ | $\overline{2}$ $\sim$ |
$-3$ | |
| RESULT BEFORE TAX | 1693 | 276 | 1 0 0 5 | 688 | 279 | |
| Income tax expense | 342 | - 71 | $-211$ | 131 a. |
$-69$ | |
| Net post-tax result from discontinued operations | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | 0 | $\bf{0}$ | |
| RESULT AFTER TAX | 1 3 5 0 | 205 | 793 | 557 | 210 | |
| attributable to minority interests | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | 0 | $\mathbf 0$ | |
| of which relating to discontinued operations | $\mathcal{O}$ | 0 | $\boldsymbol{0}$ | 0 | 0 | |
| attributable to equity holders of the parent | 1 3 5 0 | 205 | 793 | 557 | 210 | |
| of which relating to discontinued operations | $\mathcal{O}$ | 0 | $\mathcal{O}$ | 0 | 0 | |
| Earnings per share (in EUR) | ||||||
| Ordinary | 3.18 | 0.43 | 1.87 | 1.31 | 0.47 | |
| Diluted | 3.18 | 0.43 | 1.87 | 1.31 | 0.47 |
The consolidated income statement as of 1Q 2021 contains figures of OTP Banka Slovensko (Slovakia), of which 99.44% ownership was acquired by KBC Bank NV in 4Q 2020. For more information see note 'Main changes in the scope of consolidation' (note 6.6) further in this report.
The equity instruments of the insurance companies within the group are designated under the overlay approach. These equity instruments, mainly classified as AFS under IAS 39, would have been measured at fair value through P&L under IFRS 9. The overlay approach reclassifies from the income statement to OCI the extra volatility related to the adoption of IFRS 9 as long as IFRS 17 is not in place, until 31 December 2022 (subject to EU endorsement).
The extra volatility due to IFRS 9, reclassified out of the net result from financial instruments at fair value through profit or loss to the revaluation reserves of equity instruments (overlay approach) refers to the unrealised fair value fluctuations amounting to +109 million euros in 1H 2021. It can be summarized as the difference between :
| (in millions of EUR) | 1H 2021 | 1H 2020 | 2Q 2021 | 1Q 2021 | 2Q 2020 |
|---|---|---|---|---|---|
| RESULT AFTER TAX | 1 3 5 0 | 205 | 793 | 557 | 210 |
| Attributable to minority interests | $\Omega$ | $\Omega$ | $\Omega$ | ||
| Attributable to equity holders of the parent | 1 350 | 205 | 793 | 557 | 210 |
| OCI THAT MAY BE RECYCLED TO PROFIT OR LOSS | 124 | $-337$ | 141 | $-16$ | 405 |
| Net change in revaluation reserve (FVOCI debt instruments) | $-304$ | 10 | $-79$ | $-225$ | 192 |
| Net change in revaluation reserve (FVPL equity instruments) - overlay | 109 | $-87$ | 59 | 50 | 138 |
| Net change in hedging reserve (cashflow hedges) | 162 | $-19$ | 24 | 138 | 5 |
| Net change in translation differences | 200 | $-307$ | 160 | 40 | 85 |
| Hedge of net investments in foreign operations | $-42$ | 65 | $-24$ | $-18$ | $-15$ |
| Net change in respect of associated companies and joint ventures | ŋ | $\Omega$ | $\bf{0}$ | ||
| Other movements | ٠ | - 1 | 0 | ||
| OCI THAT WILL NOT BE RECYCLED TO PROFIT OR LOSS | 302 | 3 | 97 | 205 | $-110$ |
| Net change in revaluation reserve (FVOCI equity instruments) | 50 | -1 ш. |
5 | 44 | 3 |
| Net change in defined benefit plans | 255 | 91 | 163 | $-98$ | |
| Net change in own credit risk | $\overline{2}$ ÷ |
4 | $-2$ | $-13$ | |
| Net change in respect of associated companies and joint ventures | ი | $-2$ | $\Omega$ | $-2$ | |
| TOTAL COMPREHENSIVE INCOME | 1777 | $-128$ | 1 0 3 1 | 746 | 505 |
| Attributable to minority interests | 0 | $\Omega$ | $\mathbf 0$ | ||
| Attributable to equity holders of the parent | 1777 | $-128$ | 1 0 3 1 | 746 | 505 |
The largest movements in other comprehensive income (1H 2021 vs. 1H 2020):
| (in millions of EUR) | Note 30-06-2021 31-12-2020 | ||
|---|---|---|---|
| ASSETS | |||
| Cash, cash balances with central banks and other demand deposits with credit institutions | 68 0 34 | 24 583 | |
| Financial assets | 4.0 | 291 320 | 286 386 |
| Amortised cost | 4.0 | 248 390 | 243 527 |
| Fair value through OCI | 4.0 | 16846 | 18451 |
| Fair value through profit or loss | 4.0 | 25932 | 24 248 |
| of which held for trading | 4.0 | 9728 | 8695 |
| Hedging derivatives | 4.0 | 152 | 160 |
| Reinsurers' share in technical provisions, insurance | 171 | 145 | |
| Profit/loss on positions in portfolios hedged for interest rate risk | 525 | 1 360 | |
| Tax assets | 1508 | 1624 | |
| Current tax assets | 208 | 125 | |
| Deferred tax assets | 1 300 | 1499 | |
| Non-current assets held for sale and disposal groups | 19 | 19 | |
| Investments in associated companies and joint ventures | 34 | 24 | |
| Property, equipment and investment property | 3646 | 3691 | |
| Goodwill and other intangible assets | 1656 | 1551 | |
| Other assets | 1684 | 1 361 | |
| TOTAL ASSETS | 368 596 | 320 743 | |
| LIABILITIES AND EQUITY | |||
| Financial liabilities | 4.0 | 323 266 | 276 781 |
| Amortised cost | 4.0 | 301 525 | 254 053 |
| Fair value through profit or loss | 4.0 | 20681 | 21 409 |
| of which held for trading | 4.0 | 6 1 8 3 | 7 157 |
| Hedging derivatives | 4.0 | 1061 | 1319 |
| Technical provisions, before reinsurance | 18976 | 18718 | |
| Profit/loss on positions in portfolios hedged for interest rate risk | $-38$ | 99 | |
| Tax liabilities | 408 | 498 | |
| Current tax liabilities | 56 | 79 | |
| Deferred tax liabilies | 352 | 419 | |
| Provisions for risks and charges | 188 | 209 | |
| Other liabilities | 2696 | 2908 | |
| TOTAL LIABILITIES | 345 496 | 299 214 | |
| Total equity | 5.10 | 23 100 | 21 530 |
| Parent shareholders' equity | 5.10 | 21 600 | 20 030 |
| Additional tier-1 instruments included in equity | 5.10 | 1500 | 1500 |
| Minority interests | $\overline{0}$ | 0 | |
| TOTAL LIABILITIES AND EQUITY | 368 596 | 320 743 |
The increase of the balance sheet total in 1H 2021 can for the largest part be explained by the issued certificates of deposit and repos with credit institutions and investment firms, leading to higher cash balances with central banks related to increased shortterm money market & repo opportunities.
| Issued and | Total | Parent | Additional tier-1 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| paid up | Share | Treasury | Retained | revaluation | shareholders' | instruments | Minority | Total | |
| (in millions of EUR) 30-06-2021 |
share capital | premium | shares | earnings | reserves | equity included in equity | interests | equity | |
| Balance at the end of the previous period | 1 4 5 9 | 5514 | $-1$ | 13 146 | $-88$ | 20 030 | 1500 | 0 | 21 530 |
| Net result for the period | $\Omega$ | $\overline{0}$ | $\mathbf{0}$ | 1 3 5 0 | $\mathbf{0}$ | 1 3 5 0 | $\Omega$ | $\Omega$ | 1 3 5 0 |
| Other comprehensive income for the period | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $-1$ | 427 | 427 | $\Omega$ | $\Omega$ | 427 |
| Subtotal | $\mathbf 0$ | $\mathbf{0}$ | $\bf{0}$ | 1 3 4 9 | 427 | 1777 | $\mathbf{0}$ | $\mathbf{0}$ | 1777 |
| Dividends | $\Omega$ | $\mathbf{0}$ | $\mathbf{0}$ | $-183$ | $\mathbf{0}$ | $-183$ | $\Omega$ | $\mathbf{0}$ | $-183$ |
| Coupon on AT1 | $\Omega$ | $\Omega$ | $-25$ | $\Omega$ | $-25$ | $\Omega$ | $-25$ | ||
| Transfer from revaluation reserves to retained earnings on realisation | $\Omega$ | 5 | $-5$ | $\Omega$ | $\Omega$ | ||||
| Purchase/sale of treasury shares | $\Omega$ | ||||||||
| Change in minorities interests | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ | ||||
| Total change | $\Omega$ | $\Omega$ | 1 1 4 6 | 422 | 1570 | $\Omega$ | 1570 | ||
| Balance at the end of the period | 1459 | 5514 | $\bf{0}$ | 14 293 | 334 | 21 600 | 1500 | $\mathbf{0}$ | 23 100 |
| 2020 | |||||||||
| Balance at the end of the previous period | 1458 | 5498 | $-2$ | 11732 | 37 | 18722 | 1500 | o | 20 222 |
| Net result for the period | 0 | $\Omega$ | 0 | 1440 | $\mathbf 0$ | 1440 | $\Omega$ | 0 | 1440 |
| Other comprehensive income for the period | $\mathbf{0}$ | $\mathbf 0$ | 0 | $\mathbf{0}$ | $-102$ | $-102$ | $\Omega$ | $\mathbf{0}$ | $-102$ |
| Subtotal | 0 | $\mathbf{0}$ | 0 | 1440 | $-102$ | 1 3 3 9 | $\mathbf{0}$ | 0 | 1 3 3 9 |
| Dividends | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\Omega$ | |
| Coupon on AT1 | $\Omega$ | $-50$ | $-50$ | $\Omega$ | $-50$ | ||||
| Capital increase | 17 | $\mathbf 0$ | n | 18 | O | 18 | |||
| Transfer from revaluation reserves to retained earnings on realisation | $\Omega$ | 23 | $-23$ | ||||||
| Purchase/sale of treasury shares | -0 | n | |||||||
| Change in minorities interests | $\Omega$ | $\Omega$ | 0 | ||||||
| Total change | 17 | 1414 | $-125$ | 1 3 0 8 | $\Omega$ | 1 3 0 8 | |||
| Balance at the end of the period | 1459 | 5514 | - 1 | 13 146 | $-88$ | 20 030 | 1500 | 0 | 21 530 |
| (in millions of EUR) | Issued and paid up share capital |
Share premium |
Treasury shares |
Retained earnings |
Total revaluation reserves |
Parent shareholders' |
Additional tier-1 instruments equity included in equity |
Minority interests |
Total equity |
|---|---|---|---|---|---|---|---|---|---|
| 30-06-2020 | |||||||||
| Balance at the end of the previous period | 1458 | 5498 | $-2$ | 11732 | 37 | 18722 | 1500 | 0 | 20 222 |
| Net result for the period | 205 | $\mathbf 0$ | 205 | 0 | 205 | ||||
| OCI for the period | $\Omega$ | $-335$ | $-333$ | $\Omega$ | $-333$ | ||||
| Subtotal | o | 206 | $-335$ | $-128$ | 0 | $-128$ | |||
| Dividends | $\Omega$ | $\Omega$ | 0 | ||||||
| Coupon on AT1 | $-25$ | $\mathbf 0$ | $-25$ | $\Omega$ | $-25$ | ||||
| Transfer from revaluation reserves to retained earnings on realisation | - 1 | $\Omega$ | $\Omega$ | $\mathbf{0}$ | |||||
| Purchase/sale of treasury shares | O | $\Omega$ | |||||||
| Change in minorities interests | 0 | 0 | |||||||
| Total change | 183 | $-336$ | $-152$ | $\Omega$ | $-152$ | ||||
| Balance at the end of the period | 1458 | 5498 | - 1 | 11915 | $-299$ | 18570 | 1500 | o | 20 070 |
Please note that, for 2020, and taking into account the ECB recommendation of 15 December 2020 to limit dividend payments re. 2019 and 2020 profits to the lower of 15% of cumulated 2019-2020 profits and 20 basis points of RWA:
The changes in equity in 2020 include a transfer from revaluation reserves (FVOCI equity instruments) to retained earnings for 23 million euros on realisation, mainly related to a corporate action.
In 4Q 2020, KBC made a change in accounting policy for intangible assets. Following the requirements of IAS 8, the change in accounting policy has been applied retrospectively (as if the new accounting policy had always been applied). Consequently, parent shareholders' equity of 30 June 2020 has been retrospectively restated (decrease of 140 million euros). For more information, see Statement of compliance (note 1.1) of the annual report of 2020.
| (in millions of EUR) | 30-06-2021 | 31-12-2020 |
|---|---|---|
| Revaluation reserve (FVOCI debt instruments) | 826 | 1 130 |
| Revaluation reserve (FVPL equity instruments) - overlay | 434 | 325 |
| Revaluation reserve (FVOCI equity instruments) | 59 | 15 |
| Hedging reserve (cashflow hedges) | $-1132$ | $-1294$ |
| Translation differences | 183 $\Delta \sim 10^{-1}$ |
$-382$ |
| Hedge of net investments in foreign operations | 121 | 163 |
| Remeasurement of defined benefit plans | 210 | 45 |
| Own credit risk through OCI | $\blacksquare$ | |
| Total revaluation reserves | 334 | 88 |
| (in millions of EUR) | Note (1) | 1H 2021 | 1H 2020 |
|---|---|---|---|
| OPERATING ACTIVITIES | |||
| Consolidated income | |||
| Result before tax | statement | 1693 | 276 |
| Adjustments for non-cash items in profit & loss | 47 | 1 2 1 3 | |
| Changes in operating assets (excluding cash and cash equivalents) | $-1296$ | $-10236$ | |
| Changes in operating liabilities (excluding cash and cash equivalents) | 44 216 | 27 161 | |
| Income taxes paid | $-235$ | $-303$ | |
| Net cash from or used in operating activities | 44 4 24 | 18 112 | |
| INVESTING ACTIVITIES | |||
| Purchase and proceeds of debt securities at amortised cost | 4.1 | 281 | $-4958$ |
| Acquisition of a subsidiary or a business unit, net of cash acquired (including | |||
| increases in percentage interest held) | $\mathbf 0$ | 0 | |
| Proceeds from the disposal of a subsidiary or business unit, net of cash disposed of | |||
| (including decreases in percentage interest held) | $\Omega$ | 28 | |
| Purchase and proceeds from the sale of intangible fixed assets (excluding goodwill) |
$-138$ | $-152$ | |
| Purchase and proceeds from the sale of property, plant and equipment (excluding | |||
| goodwill) | - 13 | 25 | |
| Other | 5 | 43 | |
| Net cash from or used in investing activities | 135 | $-5014$ | |
| FINANCING ACTIVITIES | |||
| Consolidated | |||
| statement of changes | |||
| Purchase or sale of treasury shares | in equity | 1 | |
| Issue or repayment of promissory notes and other debt securities | 4.1 | $-576$ | 576 |
| Proceeds from or repayment of subordinated liabilities | 4.1 | $-12$ | $-65$ |
| Principal payments under finance lease obligations | $\Omega$ | 0 | |
| Consolidated | |||
| statement of changes | |||
| Proceeds from the issuance of share capital | in equity | $\mathbf{0}$ | $\mathbf{0}$ |
| Consolidated | |||
| statement of changes | $\Omega$ | ||
| Proceeds from the issuance of preference shares | in equity | $\mathbf 0$ | |
| Consolidated statement of changes |
|||
| Dividends paid | in equity | $-183$ | 0 |
| Consolidated | |||
| statement of changes | |||
| Coupon additional Tier-1 instruments | in equity | - 25 | - 25 |
| Net cash from or used in financing activities | $-795$ | 486 |
| (in millions of EUR) | Note $(1)$ | 1H 2021 | 1H 2020 |
|---|---|---|---|
| CHANGE IN CASH AND CASH EQUIVALENTS | |||
| Net increase or decrease in cash and cash equivalents | 43 764 | 13 5 84 | |
| Cash and cash equivalents at the beginning of the period | 47 794 | 29 118 | |
| Effects of exchange rate changes on opening cash and cash equivalents | 790 | $-1330$ | |
| Cash and cash equivalents at the end of the period | 92 348 | 41 372 | |
| COMPONENTS OF CASH AND CASH EQUIVALENTS | |||
| Cash and cash balances with central banks and other demand deposits with credit institutions |
Consolidated balance sheet |
68 034 | 23 578 |
| Term loans to banks at not more than three months (excl. reverse repos) Reverse repos with credit institutions and investment firms at not more than three |
4.1 | 2 4 0 7 | 1667 |
| months | 4.1 | 28 118 | 22 307 |
| Deposits from banks repayable on demand | 4.1 | $-6211$ | $-6180$ |
| Cash and cash equivalents belonging to disposal groups | 0 | ||
| Total | 92 348 | 41 372 | |
| of which not available | 0 |
The net cash from operating activities in 1H 2021 (+44 424 million euros) mainly includes a significant growth of deposits, amongst others thanks to higher certificates of deposit, demand deposits, repos and deposits from credit institutions and investment firms. 1H 2021 also includes 2.5 billion euros additional TLTRO III funding (bringing the total TLTRO III funding at 24.5 billion euros).
The net cash from operating activities in 1H 2020 (+18 112 million euros) is mainly explained by +19.5 billion euros TLTRO III funding.
The net cash from investing activities in 1H 2021 (+135 million euros) is a.o. explained by maturing investments in debt securities at amortised cost.
The net cash from investing activities in 1H 2020 (-5 014 million euros) is mainly explained by additional investments in debt securities at amortised cost.
The net cash flow from financing activities in 1H 2021 (-795 million euros) mainly includes matured covered bonds (1.1 billion euros) and Senior Holdco instruments (750 million euros), and a dividend payment (183 million euros) being partly compensated by the issue of Senior Holdco instruments (1.7 billion euros, including a floating rate note of 450 million euros).
The net cash flow from financing activities in 1H 2020 (+486 million euros) mainly includes the issue of Senior Holdco instruments for 1 billion euros (including the issue of a green bond for 500 million euros), partly offset by repayments. Matured covered bond position of 1 billion euros in May is fully renewed in June.
The condensed interim financial statements of the KBC Group for the period ended 30 June 2021 have been prepared in accordance with IAS 34, 'Interim financial reporting'. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2020, which have been prepared in accordance with the International Financial Reporting Standards as adopted for use in the European Union ('endorsed IFRS').
The following IFRS standards became effective on 1 January 2021, but KBC decided to early adopt in 2020:
The following IFRS standards were issued but not yet effective in 2021. KBC will apply these standards when they become mandatory.
• IFRS 17:
In May 2017, the IASB issued IFRS 17 (Insurance Contracts), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 (Insurance Contracts) that was issued in 2005. IFRS 17 applies to all types of insurance contracts, regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. A few scope exceptions will apply. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects.
The core of IFRS 17 is the general model, supplemented by a specific adaptation for contracts with direct participation features (the variable fee approach) and a simplified approach (the premium allocation approach) mainly for short-duration contracts. IFRS 17 will become effective for reporting periods beginning on or after 1 January 2023 (subject to EU endorsement), with comparative figures being required. KBC launched a group-wide project to implement IFRS 17 in 2018. The project is composed of sub-projects such as data delivery, local reporting, impact on business and strategic implications, guidance and support, consolidated reporting and IFRS 17 calculation tool.
The project is driven by the insurance business and Finance together and involves all departments and entities at group and local level that are affected. In the past year the focus has been on the further development of an unambiguous interpretation of the IFRS 17 standard and the further implementation of an IFRS 17-compliant process for the closing of the accounts. The interpretation of the IFRS 17 standard was gradually adjusted where necessary when new information became available from external sources or internal sources. Thus, we now also take into account the amendments to the original standard that were published by the IASB in June 2020.
The EFRAG (European Financial Reporting Advisory Group) final endorsement advice on IFRS 17 including the June 2020 amendments was submitted to the European Commission on March 31, 2021. Similar to the draft endorsement advice, in their final advice EFRAG Board members did not reach a consensus on the annual cohort requirement for specific types of insurance contracts. On 16 July 2021, the Accounting Regulatory Committee (ARC) voted in favor of endorsing IFRS 17 'Insurance Contracts' for use in the European Union. Final endorsement is currently expected in the fourth quarter of 2021. A solution for the annual cohort issue for certain types of insurances contracts is included in this endorsement.
A summary of the main accounting policies is provided in the group's annual accounts as at 31 December 2020.
| Exchange rate at 30-06-2021 |
Average exchange rate in 1H 2021 | |||
|---|---|---|---|---|
| Changes relative to 31-12-2020 |
Changes relative to the average 1H 2020 | |||
| 1 EUR = … | Positive: appreciation relative to EUR | 1 EUR = … | Positive: appreciation relative to EUR | |
| … currency | egative: depreciation relative to EUR | … currency | Negative: depreciation relative to EUR | |
| CZK | 25.488 | 3% | 25.927 | 2% |
| HUF | 351.68 | 3% | 358.06 | -3% |
The Coronavirus pandemic significantly affected the global economy in 2020. The substantial deterioration in the economic outlook has resulted in an unprecedented monetary policy response from central banks and governments around the world.
Meanwhile, we have been working hard with government agencies to support all customers impacted by coronavirus, by efficiently implementing various relief measures, including loan deferrals. In our six home countries combined, we have granted a total of 12.7 billion euros in loan payment deferrals by the end of June 2021 (according to the EBA definition and including opt-out of Hungary). A large part of these moratoria have meanwhile expired (95% by the end of June 2021, excl. opt-out of Hungary). For 97% of the loan amount under expired moratoria, payments meanwhile were resumed. In addition, we granted some 0.9 billion euros in loans that fall under the various public Covid-19 guarantee schemes in our home markets.
In Hungary, the blanket moratorium was extended another time under the same conditions, till September 2021. The extension by 3 months resulted in a modification loss booked in 2Q 2021 of 2 million euros (see note 3.10).
Regarding the public Covid-19 guarantee schemes, a second extension has been approved by the Belgium government of the Covid II program (launched in 3Q 2020 of up to 10 billion EUR) to cover losses on future SME loans granted before 31 December 2021 (instead of 30 June 2021). This government guarantee covers 80% of all losses, in total.
Otherwise, there are no changes in the different government and sector measures in our core countries in 2Q 2021. For the full overview, we refer to the annual report of 2020.
For more information, see the note 1.4 in the annual report of 2020.
Referring to the disclosure in our annual report of 2020, our Expected Credit Loss (ECL) models are not able to adequately reflect all the specifics of the Covid-19 crisis or the various government measures implemented in the different countries to support households, SMEs and Corporates through this crisis.
Therefore, an expert-based calculation at portfolio level is required via a management overlay. In the second quarter of 2021, KBC performed an update of its Covid-19 impact assessment which resulted in a total collective Covid-19 ECL of 628 million euros (versus 757 million euros at the end of the first quarter of 2021). The latter implies a ECL decrease of 129 million euros in 2Q 2021 compared to the 26 million euros ECL decrease of 1Q 2021.
This q-o-q decrease is mainly driven by a change in the applied sector stress which is further explained below causing a decrease of 66 million euros and an update of the scenario probabilities towards 80% for the base-case, 10% for the pessimistic and 10% for the optimistic scenario (versus 60%-30%-10% at the end of 1Q21) resulting in a decrease of 59 million euros.
As outlined in the disclosure in our annual report of 2020, a sectoral risk effect is incorporated in the calculation of the Covid-19 ECL impact. All exposures in the SME & Corporate portfolio are classified as high, medium or low risk based on the expected impact of the Covid-19 crisis on the sector affected. Based on the latest developments, we redefined the high risk sectors in two groups:
The total collective Covid-19 ECL of 628 million euros consists of 1% stage 1, 88% stage 2 and 11% stage 3 impairments. The higher relative share of stage 2 and stage 3 impairments was driven by the decrease in stage 1 impairments resulting from the improvement of the macro-economic assumptions.
Similar to previous quarters, the management overlay is presented mainly as stage 2 when it concerns the existing performing portfolio and stage 3 when it concerns the existing non-performing portfolio. Additional impairments due to Covid-19 on individually assessed stage 3 loans are already reflected in the specific allowance of the exposure (hence already included in P&L impairments) and thus not included in the management overlay.
Including the collective Covid-19 ECL, the Credit Cost Ratio amounted to -0.22% in 1H 2021 and -0.06% excluding collective Covid-19 ECL.
| End of June'21 | Performing portfolio impact | Non | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Optimistic | Base | Pessimistic Probability | Performing | 1H21 | 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 | |||||||
| EUR m | 10% | 80% | 10% | weigthed | portfolio | |||||||
| KBC Group | 447 | 542 | 837 | 562 | 66 | 628 | -129 | -26 | -1 | -5 | 746 | 43 |
| By country: | ||||||||||||
| Belgium | 283 | 300 | 391 | 307 | 20 | 327 | -66 | -20 | 3 | -3 | 378 | 35 |
| Czech Republic | 87 | 123 | 175 | 125 | 9 | 134 | -30 | 2 | -5 | 9 | 152 | 6 |
| Slovakia | 21 | 30 | 43 | 30 | 0 | 30 | -6 | -1 | 0 | -3 | 39 | 1 |
| Hungary | 25 | 42 | 78 | 44 | 0 | 44 | -9 | -3 | 2 | -1 | 54 | 1 |
| Bulgaria | 6 | 15 | 23 | 15 | 5 | 20 | -4 | 0 | 1 | -5 | 28 | n/a |
| Ireland | 25 | 32 | 127 | 41 | 32 | 73 | -14 | -4 | -2 | -2 | 95 | n/a |
| versus 1Q21 : | 501 | 609 | 917 | 691 | 66 | 757 |
COVID-19 ECL sector* driven – per scenario:
| KBC Group | Performing portfolio | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Base-case scenario | High risk | Medium | Low risk | Mortgages | ||||||
| sectors | risk | sectors | & | TOTAL | ||||||
| EUR m | 150% | 100% | 50% | other retail | ||||||
| 6M21 | ||||||||||
| Base-case scenario | 45 | 319 | 55 | 123 | 542 | |||||
| Optimistic scenario | 37 | 264 | 49 | 97 | 447 | |||||
| Pessimistic scenario | 65 | 446 | 74 | 252 | 837 |
The economic outlook is more optimistic compared to the first quarter of 2021 driven by the largely resolved uncertainties regarding vaccine supplies in the EU. Recent developments increasingly confirm a re-opening of the economy aligned with the increase of the vaccination rate. However, the outlook remains subject to considerable risks, largely related to new virus variants undermining effectiveness of existing vaccines and shortfalls in vaccination demand. Because of this uncertainty, we continue to work with three alternative scenarios: a base-case scenario, a more optimistic scenario and a more pessimistic scenario.
The definition of each scenario reflects the latest virus-related and economic developments, with the following probabilities assigned for the second quarter of 2021: 80% for the base-case, 10% for the pessimistic and 10% for the optimistic scenario (versus 60% - 30% -10% at the end of 1Q 2021).
The following table (in line with the KBC forecast of June 2021) gives these three scenarios for three key indicators (GDP growth, unemployment rate and house price index):
| Macroeconomic scenario – key indicators (June 2021) |
2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Scenario | Optimistic | Base | Pessimistic | Optimistic | Base | Pessimistic |
| Real GDP growth | ||||||
| Euro area | 5.2% | 3.9% | 2.1% | 5.6% | 4.4% | 2.2% |
| Belgium | 5.8% | 4.5% | 3.3% | 5.1% | 4.1% | 2.1% |
| Czech Republic | 4.2% | 3.5% | 1.8% | 5.8% | 4.5% | 1.7% |
| Hungary | 5.5% | 4.5% | 3.8% | 6.0% | 5.3% | 4.0% |
| Slovakia | 5.0% | 3.7% | 2.5% | 5.2% | 4.5% | 3.0% |
| Bulgaria | 4.0% | 3.0% | 1.0% | 4.0% | 4.0% | 2.0% |
| Ireland | 8.0% | 5.0% | 1.0% | 7.0% | 4.0% | 1.0% |
| Unemployment rate (*) | ||||||
| Belgium | 6.5% | 7.0% | 7.5% | 6.2% | 6.7% | 7.2% |
| Czech Republic | 3.1% | 3.4% | 4.2% | 2.9% | 3.2% | 4.0% |
| Hungary | 3.8% | 4.0% | 4.5% | 3.5% | 3.7% | 4.2% |
| Slovakia | 8.5% | 9.5% | 10.0% | 7.8% | 8.0% | 9.5% |
| Bulgaria | 5.0% | 5.0% | 8.0% | 4.3% | 4.8% | 7.0% |
| Ireland | 6.5% | 8.0% | 14.0% | 5.0% | 6.0% | 10.0% |
| House price index | ||||||
| Belgium | 3.5% | 1.0% | -1.0% | 3.0% | 1.5% | -3.0% |
| Czech Republic | 8.1% | 6.2% | 2.0% | 5.2% | 2.5% | -3.5% |
| Hungary | 5.5% | 3.5% | 0.0% | 6.0% | 3.0% | -1.0% |
| Slovakia | 8.0% | 4.0% | 2.0% | 5.0% | 2.5% | -2.0% |
| Bulgaria | 4.5% | 4.0% | 3.8% | 4.0% | 3.8% | 3.5% |
| Ireland | 5.0% | 3.0% | 0.0% | 5.0% | 2.0% | -1.0% |
Note:
(*) Eurostat definition, except for Ireland (national Covid-19 unemployment rate)
For a description on the management structure and linked reporting presentation, reference is made to note 2.1 in the annual accounts 2020.
| Czech International | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (in millions of EUR) | Belgium Business |
Republic Business |
Markets Business Of which: |
Group | |||||
| unit | unit | unit | Hungary | Slovakia | Bulgaria | Ireland | Centre | Total | |
| 1H 2021 | |||||||||
| Net interest income | 1 2 6 3 | 435 | 470 | 144 | 115 | 69 | 142 | $-6$ | 2 1 6 2 |
| Non-life insurance (before reinsurance) | 283 | 73 | 86 | 29 | 20 | 37 | $\boldsymbol{0}$ | 9 | 451 |
| Earned premiums | 582 | 160 | 166 | 72 | 29 | 64 | $\mathcal{O}$ | $\overline{7}$ | 916 |
| Technical charges | 299 | $-87$ | $-80$ | $-43$ | $-10$ | 27 ÷ |
$\mathcal{O}$ | $\overline{2}$ | $-464$ |
| Life insurance (before reinsurance) | $-25$ | 29 | 19 | $\overline{4}$ | $\overline{7}$ | 8 | $\boldsymbol{0}$ | $\mathbf{0}$ | 22 |
| Earned premiums | 416 | 94 | 54 | 19 | 16 | 19 | $\mathcal{O}$ | $\mathbf{0}$ | 564 |
| Technical charges | $-442$ | $-65$ | $-35$ | - 15 | $-9$ | $-11$ | $\boldsymbol{0}$ | $\mathbf{0}$ | $-542$ |
| Ceded reinsurance result | $-4$ | 5 | - 9 | $-2$ | $-5$ | $-2$ | $\mathcal{O}$ | $-5$ | $-12$ |
| Dividend income | 21 | $\mathbf{1}$ | $\mathbf{0}$ | $\boldsymbol{0}$ | $\mathcal{O}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | 3 | 25 |
| Net result from financial instruments at fair value through profit or loss | 158 | 36 | 24 | 24 | 3 | $\boldsymbol{0}$ | $-3$ | $-62$ | 156 |
| Net realised result from debt instruments at fair value through OCI | $\overline{2}$ | - 1 | $\overline{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | 1 |
| Net fee and commission income | 649 | 105 | 140 | 92 | 35 | 15 | $-2$ | $-3$ | 890 |
| Net other income | 74 | 13 | 5 | $\mathbf{1}$ | $\overline{2}$ | $\overline{2}$ | $-1$ | $-1$ | 91 |
| TOTAL INCOME | 2 4 2 1 | 695 | 735 | 294 | 177 | 129 | 135 | $-65$ | 3786 |
| Operating expenses | $-1359$ | $-415$ | 485 ä, |
$-175$ | $-128$ | $-72$ | $-109$ | $-33$ | $-2293$ |
| Impairment | 121 | 62 | 23 | 19 | $\mathfrak{3}$ | $\mathbf{1}$ | $\boldsymbol{o}$ | $-5$ | 200 |
| of which on FA at amortised cost and at fair value through OCI | 118 | 66 | 27 | 22 | 3 | $\overline{2}$ | $\mathcal{O}$ | $-5$ | 206 |
| Share in results of associated companies and joint ventures | $\overline{0}$ | - 1 | $\bf{0}$ | $\pmb{\mathit{0}}$ | $\boldsymbol{o}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | $-1$ |
| RESULT BEFORE TAX | 1 1 8 3 | 340 | 273 | 137 | 51 | 58 | 26 | $-103$ | 1693 |
| Income tax expense | $-275$ | $-50$ | $-44$ | $-20$ | $-13$ | $-6$ | $-5$ | 27 | $-342$ |
| Net post-tax result from discontinued operations | Ō | $\mathbf 0$ | $\overline{0}$ | $\mathcal{O}$ | $\mathcal{O}$ | 0 | $\boldsymbol{0}$ | $\mathbf{0}$ | $\Omega$ |
| RESULT AFTER TAX | 908 | 291 | 228 | 118 | 38 | 52 | 21 | $-76$ | 1 3 5 0 |
| attributable to minority interests | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{o}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | $\Omega$ |
| attributable to equity holders of the parent | 908 | 291 | 228 | 118 | 38 | 52 | 21 | $-76$ | 1 3 5 0 |
| 1H 2020 | |||||||||
| Net interest income | 1 2 7 5 | 587 | 438 | 127 | 100 | 72 | 140 | $-22$ | 2 2 7 8 |
| Non-life insurance (before reinsurance) | 278 | 69 | 85 | 32 | 15 | 38 | 0 | $\overline{7}$ | 440 |
| Earned premiums | 564 | 148 | 161 | 73 | 25 | 62 | 0 | $\overline{7}$ | 879 |
| Technical charges | 285 | $-79$ | $-76$ | $-42$ | $-10$ | 24 ÷. |
0 | $\overline{1}$ | $-439$ |
| Life insurance (before reinsurance) | $-37$ | 26 | 17 | 3 | 6 | 8 | $\boldsymbol{0}$ | $\mathbf 0$ | 6 |
| Earned premiums | 424 | 97 | 53 | 17 | 17 | 19 | $\boldsymbol{0}$ | $-1$ | 574 |
| Technical charges | 461 | $-70$ | 36 | $-13$ | $-12$ | 11 | $\boldsymbol{0}$ | $\mathbf{0}$ | $-568$ |
| Ceded reinsurance result | $-19$ | $\mathbf{0}$ | $-6$ | $-2$ | $-1$ | $-3$ | $\boldsymbol{0}$ | $\overline{4}$ | $-21$ |
| Dividend income | 27 | $\overline{1}$ | $\mathbf 0$ | 0 | 0 | 0 | $\boldsymbol{0}$ | $\overline{2}$ | 30 |
| Net result from financial instruments at fair value through profit or loss | 68 | $-35$ | 9 | 12 | $-1$ | $\boldsymbol{0}$ | $-2$ | 39 | $-132$ |
| Net realised result from debt instruments at fair value through OCI | 1 | 0 | 1 | 0 | $\mathbf{1}$ | $\boldsymbol{0}$ | 0 | $\mathbf{0}$ | 3 |
| Net fee and commission income | 579 | 106 | 135 | 95 | 29 | 12 | $-1$ | $-3$ | 816 |
| Net other income | 79 | 12 | 11 | $\overline{2}$ | 5 | $\overline{2}$ | $\pmb{o}$ | $\mathbf 0$ | 102 |
| TOTAL INCOME | 2 1 1 4 | 766 | 692 | 270 | 154 | 129 | 137 | $-51$ | 3522 |
| Operating expenses | $-1349$ | $-385$ | 463 | $-170$ | $-110$ | 76 ä, |
$-107$ | $-45$ | $-2242$ |
| Impairment | $-586$ | $-184$ | $-236$ | $-66$ | $-48$ | $-28$ | $-95$ | $\overline{9}$ | $-997$ |
| of which on FA at amortised cost and at fair value through OCI | $-574$ | $-178$ | 222 ä, |
$-54$ | - 48 | $-26$ | $-95$ | 9 | $-966$ |
| Share in results of associated companies and joint ventures | $-6$ | $-1$ | $\mathbf 0$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | - 7 |
| RESULT BEFORE TAX | 174 | 196 | $-8$ | 34 | $-4$ | 26 | $-66$ | $-86$ | 276 |
| Income tax expense | 55 | $-30$ | $-3$ | - 9 | $\mathbf{1}$ | $-3$ | 8 | 18 | $-71$ |
| Net post-tax result from discontinued operations | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\boldsymbol{0}$ | 0 | $\boldsymbol{o}$ | 0 | $\mathbf 0$ | $\mathbf 0$ |
| RESULT AFTER TAX | 119 | 165 | $-11$ | 25 | $-3$ | 24 | $-58$ | $-68$ | 205 |
| attributable to minority interests | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\boldsymbol{o}$ | 0 | $\boldsymbol{o}$ | $\boldsymbol{0}$ | $\mathbf 0$ | $\mathbf 0$ |
| attributable to equity holders of the parent | 119 | 165 | $-11$ | 25 | $-3$ | 24 | $-58$ | $-68$ | 205 |
| (in millions of EUR) | 1H 2021 | 1H 2020 | 2Q 2021 | 1Q 2021 | 2Q 2020 |
|---|---|---|---|---|---|
| Total | 2 1 6 2 | 2 2 7 8 | 1 0 9 4 | 1 0 6 8 | 1 0 8 3 |
| Interest income | 3 0 0 9 | 3 3 3 2 | 1529 | 1480 | 1497 |
| Interest income on financial instruments calculated using the effective interest rate method | |||||
| Financial assets at AC | 2 2 7 3 | 2 5 6 8 | 1 1 4 8 | 1 1 2 4 | 1 1 8 1 |
| Financial assets at FVOCI | 147 | 163 | 73 | 74 | 80 |
| Hedging derivatives | 137 | 235 | 53 | 84 | 101 |
| Financial liabilities (negative interest) | 194 | 55 | 98 | 96 | 34 |
| Other | 14 | 6 | 9 | 6 | 3 |
| Interest income on other financial instruments | |||||
| Financial assets MFVPL other than held for trading | 11 | 5 | 5 | 6 | 3 |
| Financial assets held for trading | 233 | 300 | 142 | 91 | 95 |
| Of which economic hedges | 216 | 279 | 133 | 83 | 82 |
| Other financial assets at FVPL | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | 0 | 0 |
| Interest expense | $-847$ | $-1054$ | $-434$ | $-413$ | $-415$ |
| Interest expense on financial instruments calculated using the effective interest rate method | |||||
| Financial liabilities at AC | $-229$ | $-455$ | $-118$ | $-111$ | $-171$ |
| Financial assets (negative interest) | $-117$ | $-18$ | $-61$ | $-56$ | $-8$ |
| Hedging derivatives | $-286$ | $-335$ | $-121$ | $-165$ | $-158$ |
| Other | $-2$ | $-3$ | - 1 | $-1$ | $-1$ |
| Interest expense on other financial instruments | |||||
| Financial liabilities held for trading | $-206$ | $-222$ | $-130$ | $-76$ | $-67$ |
| Of which economic hedges | $-187$ | $-205$ | $-120$ | $-67$ | $-60$ |
| Other financial liabilities at FVPL | $-6$ | $-19$ | $-3$ | $-3$ | $-9$ |
| Net interest expense relating to defined benefit plans | - 1 | $-2$ | $\mathbf{0}$ | 0 | $-1$ |
The vast majority of negative interest on financial liabilities and financial assets relates to transactions with central banks, interbank and professional counterparties as well as the TLTRO (for more information on the TLTRO III, see note 'Financial assets and liabilities: breakdown by portfolio and product' (note 4.1) further in this report).
| (in millions of EUR) | 1H 2021 | 1H 2020 | 2Q 2021 | 1Q 2021 | 2Q 2020 |
|---|---|---|---|---|---|
| Total | 156 | $-132$ | 29 | 127 | 253 |
| Breakdown by driver | |||||
| Market value adjustments (xVA) | 37 | $-87$ | 12 | 25 | 100 |
| MTM ALM derivatives | $-59$ | $-63$ | $-52$ | $-7$ | $-3$ |
| Financial instruments to which the overlay is applied | 59 | $-51$ | 24 | 35 | 31 |
| Dealing room and other | 119 | 68 | 44 | 75 | 126 |
The result from financial instruments at fair value through profit or loss in 2Q 2021 is 98 million euros lower compared to 1Q 2021. The quarter-on-quarter decrease is due to:
The result from financial instruments at fair value through profit or loss in 1H 2021 is 288 million euros higher compared to 1H 2020, for a large part explained by:
• Positive impact from market value adjustments in 1H 2021 compared to negative impact in 1H 2020. The positive amount in 1H 2021 can be explained for a large part by a decreasing credit exposure. The substantial negative amount in 1H 2020 was caused mainly as a result of changes in the underlying market value of the derivatives portfolio due to lower long-term interest rates, decreasing equity markets and increasing counterparty credit spreads and KBC funding spreads in 1Q 2020. This was only partly recovered in 2Q 2020, with decreasing counterparty credit spreads and KBC funding spreads, while further decrease of long-term interest rates is levelled out by increasing equity markets
| (in millions of EUR) | 1H 2021 | 1H 2020 | 2Q 2021 | 1Q 2021 | 2Q 2020 |
|---|---|---|---|---|---|
| Total | 890 | 816 | 450 | 441 | 388 |
| Fee and commission income | 1 2 8 9 | 1 1 8 8 | 650 | 639 | 559 |
| Fee and commission expense | $-399$ | $-371$ | $-200$ | $-198$ | $-172$ |
| Breakdown by type | |||||
| Asset Management Services | 572 | 507 | 288 | 284 | 237 |
| Fee and commission income | 608 | 535 | 308 | 300 | 250 |
| Fee and commission expense | $-36$ | $-28$ | $-19$ | $-16$ | $-13$ |
| Banking Services | 463 | 448 | 234 | 229 | 219 |
| Fee and commission income | 638 | 610 | 324 | 315 | 291 |
| Fee and commission expense | $-175$ | $-162$ | $-90$ | $-85$ | $-72$ |
| Distribution | $-145$ | $-138$ | $-72$ | $-72$ | $-68$ |
| Fee and commission income | 43 | 42 | 19 | 24 | 19 |
| Fee and commission expense | $-188$ | $-181$ | $-91$ | $-97$ | $-86$ |
The building blocks of the 2020 net fee and commission income figures were restated, resulting in a shift of about of 20 million euros for full year 2020 or about 5 million euros per quarter from Banking Services to Asset Management Services, related to fee and commission income from CSOB CZ Pension company.
| (in millions of EUR) | 1H 2021 | 1H 2020 | 2Q 2021 | 1Q 2021 | 2Q 2020 |
|---|---|---|---|---|---|
| Total | 91 | 102 | 38 | 53 | 53 |
| of which gains or losses on | |||||
| Sale of financial assets measured at amortised cost | $\sim$ | 10 | $\sim$ | ||
| Repurchase of financial liabilities measured at amortised cost | 0 | - 1 | $\Omega$ | ||
| of which other, including: | 92 | 93 | 41 | 51 | 51 |
| Income from operational leasing activities | 46 | 41 | 26 | 20 | 20 |
| Income from VAB Group | 28 | 25 | 13 | 15 | 13 |
| (in millions of EUR) | Life | Non-life | Non- technical account |
Total |
|---|---|---|---|---|
| 1H 2021 | ||||
| Earned premiums, insurance (before reinsurance) | 564 | 925 | 1 4 9 0 | |
| of which change in provision unearned premiums | $-1$ | $-211$ | - 212 | |
| Technical charges, insurance (before reinsurance) | - 542 | $-465$ | $-1007$ | |
| Claims paid | $-565$ | $-400$ | - 966 | |
| Changes in technical provisions | 1 | $-59$ | $-58$ | |
| Other technical result | 23 | - 6 | 17 | |
| Net fee and commission income | $\mathbf{0}$ | $-179$ | - 180 | |
| Ceded reinsurance result | - 1 | $-12$ | $-12$ | |
| General administrative expenses | 82 ÷ |
$-125$ | - 1 | $-208$ |
| Internal claims settlement expenses | - 4 | $-30$ | $-34$ | |
| Indirect acquisition costs | 15 ä, |
$-34$ | $-48$ | |
| Administrative expenses | 63 $\blacksquare$ |
- 62 | $-125$ | |
| Investment management fees | $\mathbf{0}$ | $\mathbf 0$ | - 1 | $-1$ |
| Technical result | $-60$ | 145 | - 1 | 83 |
| Investment Income (*) | 198 | 50 | 39 | 286 |
| Technical-financial result | 138 | 194 | 38 | 370 |
| Share in results of associated companies and joint ventures |
$\mathbf{0}$ | $\bf{0}$ | ||
| RESULT BEFORE TAX | 138 | 194 | 38 | 370 |
| Income tax expense | $-69$ | |||
| RESULT AFTER TAX | 300 | |||
| attributable to minority interest | $\mathbf{0}$ | |||
| attributable to equity holders | 300 | |||
| of the parent | ||||
| 1H 2020 | ||||
| Earned premiums, insurance (before reinsurance) | 574 | 888 | 1461 | |
| of which change in provision uneamed premiums | - 1 | $-188$ | - 189 | |
| Technical charges, insurance (before reinsurance) | $-568$ | $-440$ | - 1 008 | |
| Claims paid | $-570$ | $-416$ | - 986 | |
| Changes in technical provisions | 16 | 7 | 24 | |
| Other technical result | 14 | $-31$ | $-45$ | |
| Net fee and commission income | - 1 | $-171$ | $-172$ | |
| Ceded reinsurance result | - 1 | $-20$ | $-21$ | |
| General administrative expenses | 81 u. |
$-127$ | $-209$ | |
| Internal claims settlement expenses | - 4 | $-31$ | $-35$ | |
| Indirect acquisition costs | - 17 | $-37$ | $-54$ | |
| Administrative expenses | $-61$ | - 59 | $-119$ | |
| Investment management fees | 0 | 0 | - 1 | - 1 |
| Technical result | $-77$ | 130 | - 1 | 52 |
| Investment Income (*) | 142 | 25 | 22 | 190 |
| Technical-financial result | 65 | 155 | 21 | 241 |
| Share in results of associated companies and joint ventures |
$\mathbf 0$ | $\bf{0}$ | ||
| RESULT BEFORE TAX | 65 | 155 | 21 | 241 |
| Income tax expense | $\bar{\phantom{a}}$ | $\equiv$ | ÷, | $-65$ |
| RESULT AFTER TAX | 176 | |||
| attributable to minority interest | $\mathbf 0$ | |||
| attributable to equity holders of the parent |
176 |
(*)1H 2021 consists of (in millions of EUR): Net interest income (200), Net Dividend income (17), Net result from financial instruments at fair value through profit and loss (68) and Net result from financial instruments at fair value through OCI (1).
(*) 1H 2020 consists of (in millions of EUR): Net interest income (218), Net Dividend income (17), Net result from financial instruments at fair value through profit and loss (-47), Net other income (7) and Impairment (-6).
The non-technical account includes also results of non-insurance companies such as VAB group and ADD.
Note: Figures for premiums exclude the investment contracts without DPF (Discretionary Participation Features), which roughly coincide with the unit-linked products. Figures are before elimination of transactions between the bank and insurance entities of the group (more information in the 2020 annual accounts).
In 1H 2020 the technical result non-life was negatively impacted by storms in Belgium, Czech Republic and Hungary in 1Q 2020 for an amount of -51 million euros (before reinsurance), versus storm effect in 1H 2021 of -24 million euros (before reinsurance), for a large part driven by a tornado in the Czech Republic in June.
Starting mid of July 2021, Belgium (and in particularly the eastern part) was severely hit by several floods. This will have a negative impact on the results of KBC in 3Q 2021 (see Post-balance sheet events - note 6.8).
The operating expenses for 2Q 2021 include 30 million euros related to bank (and insurance) levies (424 million euros in 1Q 2021; 27 million euros in 2Q 2020). Application of IFRIC 21 (Levies) has as a consequence that certain levies are taken upfront in expense of the first quarter of the year.
In 2Q 2021 an exceptional Covid bonus for all staff members was decided for in total 18 million euros (5.1 million euros in Business Unit Belgium, 3.8 million euros in Business Unit Czech Republic, 2.5 million euros in Hungary, 2.4 million euros in Slovakia, 1.9 million euros in Bulgaria, 0.4 million euros in Ireland and 1.5 million euros in Group Centre).
| (in millions of EUR) | 1H 2021 | 1H 2020 | 2Q 2021 | 1Q 2021 | 2Q 2020 |
|---|---|---|---|---|---|
| Total | 200 | $-997$ | 123 | 77 | $-857$ |
| Impairment on financial assets at AC and at FVOCI | 206 | $-966$ | 130 | 76 | $-845$ |
| Of which impairment on financial assets at AC | 205 | $-962$ | 130 | 75 | $-842$ |
| By product | |||||
| Loans and advances | 185 | $-948$ | 115 | 70 | $-837$ |
| Debt securities | $\overline{2}$ | 0 | $\mathbf{0}$ | ||
| Off-balance-sheet commitments and financial guarantees | 18 | $-14$ | 14 | $\overline{4}$ | $-5$ |
| By type | |||||
| Stage 1 (12-month ECL) | 44 | $-60$ | 16 | 28 | $-52$ |
| Stage 2 (lifetime ECL) | 166 | $-663$ | 153 | 13 | $-618$ |
| Stage 3 (non-performing; lifetime ECL) | $\Omega$ | $-236$ | $-32$ | 32 | $-171$ |
| Purchased or originated credit impaired assets | $-5$ | $-3$ | $-7$ | $\overline{2}$ | $-2$ |
| Of which impairment on financial assets at FVOCI | $-4$ | $\mathbf{0}$ | 1 | $-3$ | |
| Debt securities | $-4$ | 0 | $-3$ | ||
| Stage 1 (12-month ECL) | $\sim$ | $\overline{2}$ | $-1$ | ||
| Stage 2 (lifetime ECL) | $\overline{2}$ ٠ |
$-3$ | ÷ | -1 ÷ |
$-2$ |
| Stage 3 (non-performing; lifetime ECL) | $\bf{0}$ | $\mathbf 0$ | $\bf{0}$ | $\mathbf 0$ | $\mathbf 0$ |
| Impairment on goodwill | $\overline{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf 0$ |
| Impairment on other | 5 ÷ |
$-32$ | $-6$ | $-12$ | |
| Intangible fixed assets (other than goodwill) | $\Omega$ | $-2$ | $\mathbf{0}$ | $\Omega$ | $-2$ |
| Property, plant and equipment (including investment property) | ۰ | -1 ÷. |
$-4$ | 3 | $\Omega$ |
| Associated companies and joint ventures | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | 0 | |
| Other | - 4 | $-29$ | $-2$ | $-2$ | - 9 |
The impairments on financial assets at AC in 1H 2021 include +155 million euros collective Covid-19 ECL impact (of which +26m in 1Q21 and +129 million euros in 2Q 2021) and -789 million euros in 1H 2020 (of which -43 million euros in 1Q 2020 and -746 million euros in 2Q 2020). For more information, see note 1.4 of this report.
The impairments on financial assets at AC in 1H 2021 also include 51 million euros net releases related to a number of corporate files mainly in Belgium and Czech Republic. In 1H 2020 this also includes 177 million euros additional impairments attributable mainly to loan loss impairments in Belgium due to a number of corporate files.
The impairment on other (Other) included -2 million euros in 1H 2021 related to modification losses in Hungary and -27 million euros in 1H 2020 (respectively -18 and -9 million euros in 1Q and 2Q 2020) related to modification losses in Belgium, Czech Republic and Hungary. For more information, see note 1.4.
| MFVPL | ||||||||
|---|---|---|---|---|---|---|---|---|
| excl. HFT |
Hedging | |||||||
| and | deriva- | |||||||
| (in millions of EUR) | AC. | FVOCI overlay | Overlay | HFT | FVO | tives | Total | |
| FINANCIAL ASSETS, 30-06-2021 | ||||||||
| Loans and advances to credit institutions and investment firms (excl. reverse repos) |
5 3 0 8 | $\mathbf{0}$ | $\overline{2}$ | $\mathbf{0}$ | $\mathbf{1}$ | $\overline{0}$ | $\mathbf{0}$ | 5311 |
| of which repayable on demand and term loans at not more than three months | 2407 | |||||||
| Loans and advances to customers (excl. reverse repos) | 163832 | $\mathbf{0}$ | 512 | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\overline{0}$ | 164 344 |
| Trade receivables | 1894 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | 1894 |
| Consumer credit | 5 8 0 4 | $\mathbf 0$ | 367 | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $\overline{0}$ | 6 1 7 1 |
| Mortgage loans | 74 629 | $\mathbf{0}$ | 145 | $\mathbf{0}$ | $\mathbf{0}$ | $\overline{0}$ | $\mathbf{0}$ | 74774 |
| Term loans | 70 328 | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\overline{0}$ | $\mathbf{0}$ | 70 328 |
| Finance lease | 5774 | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | 5774 |
| Current account advances | 4 8 5 1 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | 4851 |
| Other | 553 | $\overline{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $\bf{0}$ | 553 |
| Reverse repos | 29 4 04 | $\overline{0}$ | $\mathbf 0$ | $\mathbf{0}$ | 1 3 7 4 | $\mathbf 0$ | $\mathbf{0}$ | 30778 |
| with credit institutions and investment firms | 28 5 13 | $\overline{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | 1 3 7 4 | $\overline{0}$ | $\mathbf{0}$ | 29886 |
| with customers | 892 | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\overline{0}$ | $\mathbf{0}$ | 892 |
| Equity instruments | $\mathbf{0}$ | 303 | 9 | 1 3 9 7 | 492 | $\overline{0}$ | $\mathbf{0}$ | 2 2 0 2 |
| Investment contracts (insurance) | $\mathbf{0}$ | $\mathbf{0}$ | 14 2 29 | $\mathbf{0}$ | $\mathbf{0}$ | $\overline{0}$ | $\mathbf{0}$ | 14 2 2 9 |
| Debt securities issued by | 49 0 31 | 16 542 | 55 | $\mathbf 0$ | 3 2 6 8 | $\mathbf 0$ | $\mathbf{0}$ | 68896 |
| Public bodies | 43 215 | 11 4 9 9 | $\mathbf{0}$ | $\mathbf 0$ | 3 1 4 9 | $\mathbf{0}$ | $\mathbf{0}$ | 57863 |
| Credit institutions and investment firms | 3668 | 2 1 2 7 | $\mathbf 0$ | $\mathbf{0}$ | 39 | $\mathbf 0$ | $\mathbf{0}$ | 5834 |
| Corporates | 2 1 4 8 | 2916 | 55 | $\mathbf{0}$ | 80 | $\mathbf{0}$ | $\mathbf{0}$ | 5 200 |
| Derivatives | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | 4 5 9 4 | $\overline{0}$ | 152 | 4746 |
| Other | 815 | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | 815 |
| Total | 248 390 | 16846 | 14 807 | 1 3 9 7 | 9728 | $\mathbf{0}$ | 152 | 291 320 |
| FINANCIAL ASSETS, 31-12-2020 | ||||||||
| Loans and advances to credit institutions and investment firms (excl. reverse repos) |
6 3 4 3 | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | 6343 |
| of which repayable on demand and term loans at not more than three months | 1393 | |||||||
| Loans and advances to customers (excl. reverse repos) | 159 234 | $\mathbf 0$ | 387 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\bf{0}$ | 159 621 |
| Trade receivables | 1686 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf{0}$ | $\bf{0}$ | $\mathbf 0$ | 1686 |
| Consumer credit | 5476 | $\mathbf{0}$ | 273 | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf 0$ | 5749 |
| Mortgage loans | 71841 | $\mathbf{0}$ | 109 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | 71950 |
| Term loans | 69 477 | $\mathbf 0$ | 5 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | 0 | 69 482 |
| Finance lease | 5747 | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | 0 | 5747 |
| Current account advances | 4 2 8 5 | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\overline{0}$ | 0 | 4 2 8 5 |
| Other | 722 | $\bf{0}$ | $\bf{0}$ | $\mathbf 0$ | $\bf{0}$ | 0 | $\bf{0}$ | 722 |
| Reverse repos | 27 6 28 | $\mathbf{0}$ | $\bf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | 0 | $\mathbf 0$ | 27 628 |
| with credit institutions and investment firms | 27 444 | $\mathbf 0$ | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | 27 4 4 4 |
| with customers | 184 | $\mathbf 0$ | 0 | $\mathbf 0$ | $\bf{0}$ | 0 | $\mathbf 0$ | 184 |
| Equity instruments | $\mathbf 0$ | 294 | $\overline{7}$ | 1 2 7 6 | 489 | 0 | $\mathbf 0$ | 2067 |
| Investment contracts (insurance) | $\mathbf 0$ | $\bf{0}$ | 13830 | $\mathbf 0$ | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | 13830 |
| Debt securities issued by | 48 965 | 18 157 | 53 | $\bf{0}$ | 2542 | $\bf{0}$ | $\bf{0}$ | 69717 |
| Public bodies | 42 432 | 12 301 | 0 | $\bf{0}$ | 2479 | 0 | 0 | 57 212 |
| Credit institutions and investment firms | 3 9 0 2 | 2 5 6 9 | $\bf{0}$ | $\mathbf 0$ | 19 | $\bf{0}$ | 0 | 6490 |
| Corporates | 2631 | 3 2 8 6 | 53 | $\mathbf 0$ | 45 | 0 | $\bf{0}$ | 6014 |
| Derivatives | 0 | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | 5659 | $\mathbf 0$ | 160 | 5818 |
| Other | 1 3 5 8 | $\bf{0}$ | 0 | $\mathbf 0$ | $\overline{4}$ | 0 | 0 | 1 3 6 1 |
| Total | 243 527 | 18 451 | 14 277 | 1 2 7 6 | 8695 | $\mathbf{0}$ | 160 | 286 386 |
| Hedging | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | AC | HFT | FVO | derivatives | Total |
| FINANCIAL LIABILITIES, 30-06-2021 | |||||
| Deposits from credit institutions and investment firms (excl. | 40 835 | $\mathbf{0}$ | $\overline{0}$ | $\mathbf{0}$ | 40835 |
| repos) | |||||
| of which repayable on demand | 6 2 1 1 | ||||
| Deposits from customers and debt securities (excl. repos) | 241883 | 51 | 1 3 7 0 | 0 | 243 304 |
| Demand deposits | 110 365 | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf 0$ | 110 365 |
| Time deposits | 9 3 5 1 | 12 | 107 | 0 | 9469 |
| Savings accounts | 78 0 19 | $\mathbf 0$ | 0 | $\mathbf 0$ | 78019 |
| Special deposits | 3 0 8 9 | 0 | $\mathbf 0$ | $\mathbf{0}$ | 3089 |
| Other deposits | 478 | 0 | 0 | 0 | 478 |
| Certificates of deposit | 23 0 74 | $\mathbf{0}$ | 4 | $\mathbf{0}$ | 23 079 |
| Savings certificates | 343 | $\bf{0}$ | $\overline{0}$ | $\mathbf 0$ | 343 |
| Non-convertible bonds | 14 967 | 39 | 1 1 2 8 | $\mathbf 0$ | 16 135 |
| Non-convertible subordinated liabilities | 2 1 9 6 | $\mathbf{0}$ | 130 | $\mathbf{0}$ | 2 3 2 7 |
| Repos | 16 330 | 266 | $\mathbf 0$ | $\mathbf{0}$ | 16596 |
| with credit institutions and investment firms | 14 174 | 254 | $\bf{0}$ | $\mathbf{0}$ | 14 4 28 |
| with customers | 2 1 5 6 | 12 | $\overline{0}$ | $\mathbf{0}$ | 2 169 |
| Liabilities under investment contracts | 0 | $\mathbf{0}$ | 13 1 28 | $\mathbf{0}$ | 13 128 |
| Derivatives | $\overline{0}$ | 4 1 2 5 | $\mathbf 0$ | 1 0 6 1 | 5 186 |
| Short positions | $\overline{0}$ | 1741 | $\mathbf 0$ | $\mathbf{0}$ | 1741 |
| In equity instruments | $\mathbf 0$ | 17 | $\mathbf 0$ | 0 | 17 |
| In debt securities | $\overline{0}$ | 1724 | $\mathbf 0$ | $\overline{0}$ | 1 724 |
| Other | 2 4 7 6 | $\mathbf 0$ | $\overline{0}$ | $\mathbf{0}$ | 2476 |
| Total | 301 525 | 6 183 | 14 4 98 | 1 0 6 1 | 323 266 |
| FINANCIAL LIABILITIES, 31-12-2020 Deposits from credit institutions and investment firms (excl. |
$\mathbf{0}$ | ||||
| repos) | 34 605 | $\mathbf 0$ | $\mathbf 0$ | 34 605 | |
| of which repayable on demand | 4604 | ||||
| Deposits from customers and debt securities (excl. repos) | 213 801 | 101 | 1528 | $\mathbf 0$ | 215 430 |
| Demand deposits | 100 986 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | 100 986 |
| Time deposits | 11768 | 16 | 117 | $\mathbf 0$ | 11902 |
| Savings accounts | 74 862 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | 74862 |
| Special deposits | 2 5 4 3 | 0 | 0 | $\mathbf 0$ | 2543 |
| 260 | 0 | 0 | $\mathbf 0$ | 260 | |
| Other deposits Certificates of deposit |
5412 | $\mathbf 0$ | 5 | $\mathbf{0}$ | 5417 |
| 454 | $\mathbf{0}$ | $\overline{0}$ | $\Omega$ | 454 | |
| Savings certificates Non-convertible bonds |
|||||
| 15 3 19 | 85 | 1 2 6 4 | 0 | 16 668 | |
| Non-convertible subordinated liabilities | 2 1 9 6 | 0 | 142 | 0 | 2 3 3 8 |
| Repos | 3570 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | 3570 |
| with credit institutions and investment firms | 3 2 8 8 | 0 | 0 | 0 | 3 2 8 8 |
| with customers | 282 | 0 | 0 | 0 | 282 |
| Liabilities under investment contracts | 0 | 0 | 12724 | 0 | 12724 |
| Derivatives | $\mathbf 0$ | 5 3 6 2 | 0 | 1 3 1 9 | 6681 |
| Short positions | 0 | 1694 | 0 | 0 | 1694 |
| In equity instruments | 0 | 12 | 0 | 0 | 12 |
| In debt securities | 0 | 1682 | 0 | 0 | 1682 |
| Other | 2 0 7 7 | $\bf{0}$ | $\mathbf{0}$ | 0 | 2077 |
| Total | 254 053 | 7 1 5 7 | 14 2 5 2 | 1 3 1 9 | 276 781 |
Deposits from credit institutions and investment firms: includes funding from the ECB's TLTRO programme (in 1H 2021 an additional amount of 2.5 billion euros was drawn, bringing the total TLTRO III funding at 24.5 billion euros). KBC applies the effective interest rate principle to these deposits, changing it when we would no longer meet the terms (similar to a floating rate instrument) in accordance with IFRS 9 (Section B.5.4.5). KBC's management is confident that KBC will meet the related conditions (amongst others the level of lending to non-financial corporates and households) and therefore interest was recognised accordingly.
| 30-06-2021 | 31-12-2020 | |||||
|---|---|---|---|---|---|---|
| (in millions of EUR) | Carrying value before impairment |
Impairment | Carrying value after impairment |
Carrying value before impairment |
Impairment | Carrying value after impairment |
| FINANCIAL ASSETS AT AMORTISED COST | ||||||
| Loans and advances (*) | 201 937 | $-3392$ | 198 545 | 196 900 | $-3695$ | 193 205 |
| Stage 1 (12-month ECL) | 177 135 | $-131$ | 177 004 | 172 059 | $-168$ | 171891 |
| Stage 2 (lifetime ECL) | 19 336 | $-834$ | 18 502 | 19 4 23 | $-992$ | 18 4 31 |
| Stage 3 (lifetime ECL) | 4 7 7 5 | $-2300$ | 2475 | 5 2 7 8 | $-2517$ | 2 7 6 1 |
| Purchased or originated credit impaired assets (POCI) |
691 | $-127$ | 564 | 139 | $-18$ | 121 |
| Debt Securities | 49 0 38 | $-8$ | 49 0 31 | 48 974 | $-9$ | 48 965 |
| Stage 1 (12-month ECL) | 49 0 34 | $-5$ | 49 0 29 | 48 935 | $-6$ | 48929 |
| Stage 2 (lifetime ECL) | 0 | $\mathbf{0}$ | O | 36 | $-1$ | 35 |
| Stage 3 (lifetime ECL) | 4 | $-2$ | 3 | $-2$ | ||
| Purchased or originated credit impaired assets (POCI) |
$\mathbf{0}$ | $\mathbf{0}$ | 0 | $\mathbf{0}$ | $\mathbf{0}$ | $\Omega$ |
| FINANCIAL ASSETS AT FAIR VALUE THROUGH OCI | ||||||
| Debt Securities | 16 551 | $-9$ | 16542 | 18 16 6 | $-9$ | 18 157 |
| Stage 1 (12-month ECL) | 16 459 | $-4$ | 16 4 5 5 | 18 0 28 | $-6$ | 18022 |
| Stage 2 (lifetime ECL) | 92 | $-5$ | 87 | 138 | $-3$ | 135 |
| Stage 3 (lifetime ECL) | $\mathbf{0}$ | $\Omega$ | $\Omega$ | 0 | $\Omega$ | |
| Purchased or originated credit impaired assets (POCI) | $\mathbf{0}$ | $\mathbf{0}$ | $\Omega$ | $\mathbf{0}$ | $\Omega$ |
The table does not include the stage transfers embedded underlying in the management overlay of the forecasted collective Covid-19 ECL, as these are determined based on a collective statistical approach and hence cannot be individually linked to specific credits. Taking into account the impact of the management overlay on staging would result in a carrying value before impairment of loans and advances of approximately respectively 169.6, 25.7 and 5.9 billion euros in stage 1,2 and 3 (or a net staging of 4% of the total portfolio from stage 1 to stage 2 and of 1% from stage 1 & 2 to stage 3). For more information see note 1.4 in this report.
The increase of the Purchased or originated credit impaired assets within the loans and advances category is to a large extent attributable to a reclassification from Stage 3 related to an improved POCI identification in light of the new regulatory reporting requirements.
For more details on how KBC defines and determines (i) fair value and the fair value hierarchy and (ii) level 3 valuations reference is made to notes 4.4 up to and including 4.7 of the annual accounts 2020.
| (in millions of EUR) | 30-06-2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Fair value hierarchy | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
| FINANCIAL ASSETS AT FAIR VALUE | |||||||||
| Mandatorily measured at fair value through profit or loss (other than held for trading) |
15 2 8 3 | 317 | 604 | 16 204 | 14722 | 344 | 487 | 15 5 5 3 | |
| Held for trading | 3 3 5 6 | 5459 | 913 | 9728 | 2647 | 5081 | 967 | 8695 | |
| Fair value option | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\Omega$ | 0 | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | |
| At fair value through OCI | 13 3 44 | 2944 | 558 | 16846 | 14 5 13 | 3 3 6 4 | 575 | 18451 | |
| Hedging derivatives | $\Omega$ | 152 | $\mathbf{0}$ | 152 | $\Omega$ | 160 | $\Omega$ | 160 | |
| Total | 31983 | 8872 | 2075 | 42 930 | 31881 | 8948 | 2 0 3 0 | 42859 | |
| FINANCIAL LIABILITIES AT FAIR VALUE | |||||||||
| Held for trading | 1702 | 2914 | 1567 | 6 183 | 1697 | 4 2 7 0 | 1 1 9 1 | 7 157 | |
| Designated at fair value | 13 1 28 | 133 | 1 2 3 7 | 14 4 98 | 12724 | 377 | 1 1 5 1 | 14 25 2 | |
| Hedging derivatives | $\mathbf{0}$ | 1 0 6 1 | $\Omega$ | 1 0 6 1 | $\mathbf{0}$ | 1319 | $\Omega$ | 1 3 1 9 | |
| Total | 14830 | 4 107 | 2805 | 21 7 4 2 | 14 4 20 | 5966 | 2 3 4 2 | 22728 |
During 1H 2021, KBC transferred about 58 million euros' worth of financial assets and liabilities out of level 1 and into level 2. It also reclassified approximately 215 million euros' worth of financial assets and liabilities from level 2 to level 1. Most of these reclassifications were carried out due to a change in the liquidity of government and corporate bonds.
In the first six months of 2021 significant movements in financial assets and liabilities classified in level 3 of the fair value hierarchy included the following:
| Quantities | 30-06-2021 | 31-12-2020 |
|---|---|---|
| Ordinary shares | 416 694 558 | 416 694 558 |
| of which ordinary shares that entitle the holder to a dividend payment | 416 694 558 | 416 694 558 |
| of which treasury shares | 302 | 20 795 |
| Additional information | ||
| Par value per share (in EUR) | 3.51 | 3.51 |
| Number of shares issued but not fully paid up | $\Omega$ |
The ordinary shares of KBC Group NV have no nominal value and are quoted on NYSE Euronext (Brussels). The treasury shares almost fully relate to positions in shares of KBC Group to hedge outstanding equity derivatives.
On 11 February 2021, KBC Group and the Netherlands-based NN Group reached agreement for KBC's Bulgarian subsidiary, DZI, to acquire NN's Bulgarian pension and life insurance businesses for 77.7 million euros. The deal covered all the shares of NN Pension Insurance Company EAD (Bulgaria) and all the assets and liabilities of NN Insurance Co. Ltd. – Sofia Branch (Bulgaria). In the meantime, the deal received regulatory approval and is finalised as communicated the 30st of July 2021 (see post-balance sheet events, note 6.8). The impact of the deal on KBC's solid capital position will be immaterial.
On 16 April 2021, KBC Bank Ireland has entered into a Memorandum of Understanding (MoU) with Bank of Ireland, expressing the parties' intention to explore a route that could potentially lead to a transaction whereby Bank of Ireland commits to acquire substantially all of KBC Bank Ireland's performing loan assets and liabilities. The transaction remains subject to customary due diligence, further negotiation and agreement of final terms and binding documentation, as well as obtaining all appropriate internal and external regulatory approvals.
KBC Bank Ireland's remaining non-performing mortgage loan portfolio, which is not part of the MoU, is currently being analysed whereby KBC Group is reviewing its options to divest this NPL portfolio. Execution of these two transactions would ultimately result in KBC Group's withdrawal from the Irish market.
During the ongoing discussions, KBC Bank Ireland remains committed to offering its retail banking and insurance services of the highest level through its digital channels and hubs, for its existing and new customers.
On 29 May 2020, KBC Insurance and Nova Ljubljanska banka ('NLB') closed the transaction announced on 27 December 2019 to sell, in a joint process, their respective stakes in the Slovenian 50/50 life insurance joint venture NLB Vita. The transaction had a negligible impact on KBC Group's P&L and capital ratio.
On 26 November 2020, we completed the acquisition of 99.44% of OTP Banka Slovensko for EUR 64 million, without any contingent consideration:
| (in millions of EUR) | 1H 2021 | 2Q 2021 |
|---|---|---|
| Net interest income | 14 | |
| Dividend income | ||
| Net result from financial instruments at fair value through profit or loss | ||
| Net realised result from debt instruments at fair value through OCI | ||
| Net fee and commission income | ||
| Net other income | 0 | |
| TOTAL INCOME | 18 | 9 |
| Operating expenses | 16 | - 8 |
| Staff expenses | 10 | |
| General administrative expenses | - 6 | |
| Depreciation and amortisation of fixed assets | ||
| Impairment | 0 | |
| on financial assets at AC and at FVOCI | ||
| on goodwill | ||
| other | ||
| Share in results of associated companies and joint ventures | 0 | 0 |
| RESULT BEFORE TAX | ||
| Income tax expense | $-2$ | |
| RESULT AFTER TAX | $\sim$ $-$ | |
| attributable to equity holders of the parent | н. | $\overline{\mathbf{2}}$ |
The table below sets out the income statement of 1H 2021 of OTP Banka Slovensko as included in the consolidated income statement of KBC:
Significant non-adjusting events between the balance sheet date (30 June 2021) and the publication of this report (5 August 2021):
The deal, which received regulatory approval, has a total consideration of 77.7 million euros and will only have an immaterial impact on KBC's solid capital position. Upon closure, KBC Insurance's Solvency II ratio – which stood at an excellent 221% at the end of 2Q 2021 - will be reduced by approximately 6 percentage points, but remain well above regulatory requirements, while KBC Group's CET1 ratio will be maintained at an outstanding level (17.5% in 2Q 2021, Basel III, fully loaded – Danish compromise).
The acquisition is fully in line with the strategy of KBC Group and allows UBB and DZI to further increase their crossselling potential through their already well-established bank-insurance presence in the Bulgarian market, to serve more customers, and to benefit from economies of scale and increased visibility.
Additional Information 2Q and 1H 2021
The main source of credit risk is the loan portfolio of the bank. It includes all the loans and guarantees that KBC has granted to individuals, companies, governments and banks. Debt securities in the investment portfolio are included if they are issued by companies or banks. Government bonds are not included. The loan portfolio as defined in this section differs from 'Loans and advances to customers' in Note 4.1 of the 'Consolidated financial statements' section of the annual accounts 2020. For more information, please refer to 'Details of ratios and terms on KBC Group level'.
A snapshot of the banking portfolio is shown in the table below. Further on in this chapter, extensive information is provided on the credit portfolio of each business unit.
| Credit risk: loan portfolio overview | 30-06-2021 | 31-12-2020 |
|---|---|---|
| Total loan portfolio (in billions of EUR) 1 | ||
| Amount outstanding and undrawn | 229 | 225 |
| Amount outstanding | 182 | 181 |
| Loan portfolio breakdown by business unit (as a % of the outstanding portfolio) | ||
| Belgium | 63.8% | 64.0% |
| Czech Republic | 18.2% | 17.6% |
| International Markets | 16.8% | 16.6% |
| Group Centre | 1.2% | 1.8% |
| Loan portfolio breakdown by counterparty sector (as a % of the outstanding portfolio) | ||
| Private individuals Finance and insurance Governments Corporates Services Distribution Real estate Building & construction Agriculture, farming, fishing Automotive Food producers Electricity Metals Chemicals Machinery & heavy equipment Hotels, bars & restaurants Shipping Oil, gas & other fuels |
44.3% 6.1% 3.0% 46.7% 10.7% 7.1% 6.1% 4.0% 2.8% 2.4% 1.8% 1.5% 1.4% 1.4% 0.9% 0.8% 0.7% 0.6% |
43.0% 8.0% 2.9% 46.1% 10.8% 6.9% 6.3% 3.9% 2.7% 2.5% 1.8% 1.6% 1.4% 1.4% 0.9% 0.7% 0.6% 0.5% |
| Traders Electrotechnics Textile & apparel Other 2 |
0.5% 0.5% 0.5% 3.0% |
0.5% 0.5% 0.4% 2.9% |
| Loan portfolio breakdown by region (as a % of the outstanding portfolio) | ||
| Home countries Belgium Czech Republic Ireland Slovakia Hungary Bulgaria |
88.6% 54.2% 17.2% 5.8% 5.7% 3.5% 2.2% |
86.7% 53.2% 16.6% 5.8% 5.7% 3.3% 2.1% |
| Rest of Western Europe | 6.9% | 8.9% |
| Rest of Central and Eastern Europe | 0.2% | 0.2% |
| North America | 1.4% | 1.4% |
| Asia | 1.5% | 1.2% |
| Other | 1.4% | 1.6% |
| Loan portfolio breakdown by counterparty (as % of the outstanding portfolio) | ||
| Retail of which: mortgages of which: consumer finance |
44.3% 41.0% 3.3% |
42.9% 39.7% 3.2% |
| SME | 21.9% | 21.6% |
| Corporate | 33.9% | 35.4% |
| 30-06-2021 | 31-12-2020 | |
|---|---|---|
| Loan portfolio breakdown by IFRS 9 ECL stage (as % of the outstanding portfolio) | ||
| Stage 1 (credit risk has not increased significantly since initial recognition) | 85.1% | 85.2% |
| of which: PD 1 - 4 | 62.6% | 62.5% |
| of which: PD 5 - 9 including unrated | 22.5% | 22.7% |
| Stage 2 (credit risk has increased significantly since initial recognition – not credit impaired) incl. POCI 3 | 11.6% | 11.5% |
| of which: PD 1 - 4 | 3.7% | 3.6% |
| of which: PD 5 - 9 including unrated | 8.0% | 7.9% |
| Stage 3 (credit risk has increased significantly since initial recognition – credit impaired) incl. POCI 3 | 3.2% | 3.3% |
| of which: PD 10 impaired loans | 1.6% | 1.5% |
| of which: more than 90 days past due (PD 11+12) | 1.7% | 1.8% |
| Impaired loan portfolio (in millions of EUR) | ||
| Impaired loans (PD10 + 11 + 12) | 5 896 | 5 902 |
| of which: more than 90 days past due | 3 029 | 3 220 |
| Impaired loans ratio (%) | ||
| Belgium | 2.5% | 2.3% |
| Czech Republic | 2.1% | 2.3% |
| International Markets | 6.3% | 6.9% |
| Group Centre | 19.5% | 13.9% |
| Total | 3.2% | 3.3% |
| of which: more than 90 days past due | 1.7% | 1.8% |
| Loan loss impairment (in millions of EUR) | ||
| Loan loss Impairment for Stage 1 portfolio | 150 | 191 |
| Loan loss Impairment for Stage 2 portfolio | 843 | 998 |
| Loan loss Impairment for Stage 3 portfolio | 2 518 | 2 638 |
| of which: more than 90 days past due | 1 941 | 2 044 |
| Cover ratio of impaired loans (%) | ||
| Loan loss impairments for stage 3 portfolio / impaired loans | 42.7% | 44.7% |
| of which: more than 90 days past due | 64.1% | 63.5% |
| Cover ratio of impaired loans, mortgage loans excluded (%) | ||
| Loan loss impairments for stage 3 portfolio / impaired loans, mortgage loans excluded | 48.8% | 52.3% |
| of which: more than 90 days past due | 74.1% | 74.8% |
| Credit cost ratio (%) | ||
| Belgium | -0.20% | 0.57% |
| Czech Republic | -0.41% | 0.67% |
| International Markets | -0.18% | 0.78% |
| Slovakia | -0.06% | 0.50% |
| Hungary | -0.72% | 1.05% |
| Bulgaria | -0.10% | 0.73% |
| Ireland | 0.00% | 0.88% |
| Group Centre | 0.41% | -0.23% |
| Total | -0.22% | 0.60% |
1 Outstanding portfolio includes all on-balance sheet commitments and off-balance sheet guarantees but excludes off-balance sheet undrawn commitments; the amounts are measured in Gross Carrying Amounts;
2 Other includes corporate sectors not exceeding 0.5% concentration and unidentified sectors
3 Purchased or originated credit impaired assets
Impaired loans are loans for which full (re)payment of the contractual cash flows is deemed unlikely. This coincides with KBC's Probability-of-Default-classes 10, 11 and 12 (see annual accounts FY 2020 - section on credit risk for more information on PD classification). These impaired loans are equal to 'non-performing loans' under the definition used by EBA.
| Loan portfolio Business Unit Belgium | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 30-06-2021, in millions of EUR | Belgium 1 | Foreign branches | Total Business Unit Belgium | ||||||
| Total portfolio outstanding | 109 523 | 6 907 | 116 430 | ||||||
| Counterparty break down | % outst. | % outst. | % outst. | ||||||
| retail | 40 819 | 37,3% | 0 | 0,0% | 40 819 | 35,1% | |||
| o/w mortgages | 39 174 | 35,8% | 0 | 0,0% | 39 174 | 33,6% | |||
| o/w consumer finance | 1 645 | 1,5% | 0 | 0,0% | 1 645 | 1,4% | |||
| SME | 32 656 | 29,8% | 0 | 0,0% | 32 656 | 28,0% | |||
| corporate | 36 049 | 32,9% | 6 907 | 100,0% | 42 956 | 36,9% | |||
| Mortgage loans | % outst. | ind. LTV | % outst. | ind. LTV | % outst. | ||||
| total | 39 174 | 35,8% | 57% | 0 | 0,0% | - | 39 174 | 33,6% | |
| o/w FX mortgages | 0 | 0,0% | - | 0 | 0,0% | - | 0 | 0,0% | |
| o/w ind. LTV > 100% | 416 | 0,4% | - | 0 | 0,0% | - | 416 | 0,4% | |
| Probability of default (PD) | % outst. | % outst. | % outst. | ||||||
| low risk (PD 1-4; 0.00%-0.80%) | 85 100 | 77,7% | 3 705 | 53,6% | 88 805 | 76,3% | |||
| medium risk (PD 5-7; 0.80%-6.40%) | 18 496 | 16,9% | 2 656 | 38,5% | 21 152 | 18,2% | |||
| high risk (PD 8-9; 6.40%-100.00%) | 3 135 | 2,9% | 272 | 3,9% | 3 407 | 2,9% | |||
| impaired loans (PD 10 - 12) | 2 642 | 2,4% | 216 | 3,1% | 2 858 | 2,5% | |||
| unrated | 150 | 0,1% | 58 | 0,8% | 208 | 0,2% | |||
| Overall risk indicators | stage 3 imp. | % cover | stage 3 imp. | % cover | stage 3 imp. | % cover | |||
| outstanding impaired loans | 2 642 | 1 019 | 38,6% | 216 | 107 | 49,5% | 2 858 | 1 126 | 39,4% |
| o/w PD 10 impaired loans | 1 549 | 286 | 18,5% | 133 | 31 | 23,2% | 1 681 | 317 | 18,9% |
| o/w more than 90 days past due (PD 11+12) | 1 094 | 733 | 67,0% | 83 | 76 | 91,6% | 1 176 | 809 | 68,8% |
| all impairments (stage 1+2+3) | 1 510 | 142 | 1 653 | ||||||
| o/w stage 1+2 impairments (incl. POCI) | 491 | 36 | 527 | ||||||
| o/w stage 3 impairments (incl. POCI) | 1 019 | 107 | 1 126 | ||||||
| 2020 Credit cost ratio (CCR) | 0,55% | 0,83% | 0,57% | ||||||
| 2021 Credit cost ratio (CCR) - YTD | -0,21% | -0,13% | -0,20% |
, part 1 Belgium = KBC Bank (all retail and corporate credit lending activities except for the foreign branches, part of non-legacy portfolio assigned to BU Belgium), CBC, KBC Lease Belgium, KBC Immolease and KBC Commercial Finance
| Total portfolio outstanding | 33 255 | ||
|---|---|---|---|
| Counterparty break down | % outst. | ||
| retail | 19 821 | 59,6% | |
| o/w mortgages | 17 600 | 52,9% | |
| o/w consumer finance | 2 221 | 6,7% | |
| SME | 4 904 | 14,7% | |
| corporate | 8 530 | 25,6% | |
| Mortgage loans | % outst. | ind. LTV | |
| total | 17 600 | 52,9% | 60% |
| o/w FX mortgages | 0 | 0,0% | - |
| o/w ind. LTV > 100% | 64 | 0,2% | - |
| Probability of default (PD) | % outst. | ||
| low risk (PD 1-4; 0.00%-0.80%) | 19 392 | 58,3% | |
| medium risk (PD 5-7; 0.80%-6.40%) | 11 978 | 36,0% | |
| high risk (PD 8-9; 6.40%-100.00%) | 1 187 | 3,6% | |
| impaired loans (PD 10 - 12) | 688 | 2,1% | |
| unrated | 10 | 0,0% | |
| Overall risk indicators 1 | stage 3 imp. | % cover | |
| outstanding impaired loans | 688 | 335 | 48,6% |
| o/w PD 10 impaired loans | 386 | 121 | 31,2% |
| o/w more than 90 days past due (PD 11+12) | 302 | 214 | 70,9% |
| all impairments (stage 1+2+3) | 559 | ||
| o/w stage 1+2 impairments (incl. POCI) | 224 | ||
| o/w stage 3 impairments (incl. POCI) | 335 | ||
| 2020 Credit cost ratio (CCR) | 0,67% | ||
| 2021 Credit cost ratio (CCR) - YTD | -0,41% |
1 CCR at country level in local currency
| Loan portfolio Business Unit International Markets 30-06-2021, in millions of EUR |
Ireland | Slovakia | Hungary | Bulgaria | Total Int Markets | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total portfolio outstanding | 10 484 | 9 925 | 6 215 | 4 045 | 30 669 | ||||||||||
| Counterparty break down | % outst. | % outst. | % outst. | % outst. | % outst. | ||||||||||
| retail | 10 406 | 99,3% | 5 609 | 56,5% | 2 526 | 40,6% | 1 595 | 39,4% | 20 136 | 65,7% | |||||
| o/w mortgages | 10 330 | 98,5% | 4 982 | 50,2% | 1 829 | 29,4% | 841 | 20,8% | 17 982 | 58,6% | |||||
| o/w consumer finance | 76 | 0,7% | 628 | 6,3% | 697 | 11,2% | 754 | 18,7% | 2 155 | 7,0% | |||||
| SME | 57 | 0,5% | 1 113 | 11,2% | 150 | 2,4% | 1 006 | 24,9% | 2 326 | 7,6% | |||||
| corporate | 22 | 0,2% | 3 203 | 32,3% | 3 539 | 56,9% | 1 444 | 35,7% | 8 207 | 26,8% | |||||
| Mortgage loans | % outst. | ind. LTV | % outst. | ind. LTV | % outst. | ind. LTV | % outst. | ind. LTV | % outst. | ||||||
| total | 10 330 | 98,5% | 65% | 4 982 | 50,2% | 66% | 1 829 | 29,4% | 52% | 841 | 20,8% | 61% | 17 982 | 58,6% | |
| o/w FX mortgages | 0 | 0,0% | - | 0 | 0,0% | - | 3 | 0,0% | 71% | 71 | 1,8% | 62% | 74 | 0,2% | |
| o/w ind. LTV > 100% | 574 | 5,5% | - | 42 | 0,4% | - | 69 | 1,1% | - | 23 | 0,6% | - | 707 | 2,3% | |
| Probability of default (PD) | % outst. | % outst. | % outst. | % outst. | % outst. | ||||||||||
| low risk (PD 1-4; 0.00%-0.80%) | 1 030 | 9,8% | 5 815 | 58,6% | 3 143 | 50,6% | 1 162 | 28,7% | 11 150 | 36,4% | |||||
| medium risk (PD 5-7; 0.80%-6.40%) | 7 326 | 69,9% | 2 224 | 22,4% | 2 776 | 44,7% | 2 398 | 59,3% | 14 723 | 48,0% | |||||
| high risk (PD 8-9; 6.40%-100.00%) | 784 | 7,5% | 552 | 5,6% | 194 | 3,1% | 213 | 5,3% | 1 743 | 5,7% | |||||
| impaired loans (PD 10 - 12) | 1 344 | 12,8% | 215 | 2,2% | 101 | 1,6% | 272 | 6,7% | 1 931 | 6,3% | |||||
| unrated | 0 | 0,0% | 1 120 | 11,3% | 1 | 0,0% | 0 | 0,0% | 1 122 | 3,7% | |||||
| Overall risk indicators 1 | stage 3 imp. | % cover | stage 3 imp. | % cover | stage 3 imp. | % cover | stage 3 imp. | % cover | stage 3 imp. | % cover | |||||
| outstanding impaired loans | 1 344 | 380 | 28,3% | 215 | 150 | 69,7% | 101 | 52 | 51,4% | 272 | 108 | 39,8% | 1 931 | 690 | 35,7% |
| o/w PD 10 impaired loans | 610 | 74 | 12,1% | 55 | 23 | 42,1% | 38 | 13 | 32,7% | 70 | 9 | 13,5% | 773 | 119 | 15,4% |
| o/w more than 90 days past due (PD 11+12) | 734 | 306 | 41,7% | 160 | 127 | 79,1% | 62 | 39 | 62,9% | 202 | 99 | 48,9% | 1 158 | 571 | 49,3% |
| all impairments (stage 1+2+3) | 437 | 245 | 115 | 134 | 930 | ||||||||||
| o/w stage 1+2 impairments (incl. POCI) | 56 | 95 | 63 | 26 | 241 | ||||||||||
| o/w stage 3 impairments (incl. POCI) | 380 | 150 | 52 | 108 | 690 | ||||||||||
| 2020 Credit cost ratio (CCR) | 0,88% | 0,50% | 1,05% | 0,73% | 0,78% | ||||||||||
| 2021 Credit cost ratio (CCR) - YTD | 0,00% | -0,06% | -0,72% | -0,10% | -0,18% |
1 CCR at country level in local currency
| Total portfolio outstanding | 2 143 | ||
|---|---|---|---|
| Counterparty break down | % outst. | ||
| retail | 0 | 0,0% | |
| o/w mortgages | 0 | 0,0% | |
| o/w consumer finance | 0 | 0,0% | |
| SME | 0 | 0,0% | |
| corporate | 2 143 | 100,0% | |
| Mortgage loans | % outst. | ind. LTV | |
| total | 0 | 0,0% | - |
| o/w FX mortgages | 0 | 0,0% | - |
| o/w ind. LTV > 100% | 0 | 0,0% | - |
| Probability of default (PD) | % outst. | ||
| low risk (PD 1-4; 0.00%-0.80%) | 1 591 | 74,2% | |
| medium risk (PD 5-7; 0.80%-6.40%) | 134 | 6,2% | |
| high risk (PD 8-9; 6.40%-100.00%) | 0 | 0,0% | |
| impaired loans (PD 10 - 12) | 419 | 19,5% | |
| unrated | 0 | 0,0% | |
| Overall risk indicators | stage 3 imp. | % cover | |
| outstanding impaired loans | 419 | 368 | 87,8% |
| o/w PD 10 impaired loans | 27 | 20 | 75,2% |
| o/w more than 90 days past due (PD 11+12) | 392 | 348 | 88,7% |
| all impairments (stage 1+2+3) | 370 | ||
| o/w stage 1+2 impairments (incl. POCI) | 2 | ||
| o/w stage 3 impairments (incl. POCI) | 368 | ||
| 2020 Credit cost ratio (CCR) | -0,23% | ||
| 2021 Credit cost ratio (CCR) - YTD | 0,41% |
1 Total Group Centre = part of non-legacy portfolio assigned to BU Group and activities in wind-down (e.g. ex-Antwerp Diamond Bank)
KBC reports its solvency at group, banking and insurance level, calculating it on the basis of IFRS figures and the relevant guidelines issued by the competent regulator.
We report the solvency of the group, the bank and the insurance company based on IFRS data and according to the rules imposed by the regulator. For the KBC group, this implies that we calculate our solvency ratios based on CRR/CRD. This regulation entered gradually into force as of 1 January 2014. The general rule under CRR/CRD for insurance participations is that an insurance participation is deducted from common equity at group level, unless the competent authority grants permission to apply a risk weighting instead (Danish compromise). As of the fourth quarter of 2020, the revised CRR/CRD requires the use of the equity method, unless the competent authority allows institutions to apply a different method. KBC Group has received ECB approval to continue to use the historical carrying value for risk weighting (370%) , after having deconsolidated KBC Insurance from the group figures.
In addition to the solvency ratios under CRR /CRD, KBC is considered a financial conglomerate since it covers both significant banking and insurance activities. Therefore KBC also has to disclose its solvency position as calculated in accordance with the Financial Conglomerate Directive (FICOD; 2002/87/EC. This implies that available capital is calculated on the basis of the consolidated position of the group and the eligible items recognised as such under the prevailing sectorial rules, which are CRR/CRD for the banking business and Solvency II for the insurance business. The capital requirement for the insurance business based on Solvency II is multiplied by 12.5 to obtain a risk weighted asset equivalent.
The Internal Rating Based (IRB) approach is since its implementation in 2008 the primary approach to calculate KBC's risk weighted assets. This is, based on a full application of all the CRR/CDR rules, used for approximately 92% of the weighted credit risks, of which approx. 88% according to Advanced and approx. 4% according to Foundation approach. The remaining weighted credit risks (ca. 8%) are calculated according to the Standardised approach.
The overall capital requirement (CET1) that KBC is to uphold is set at 10.50% (fully loaded, Danish Compromise which includes the CRR/CRD minimum requirement (4.5%), the Pillar 2 Requirement (1.75%) and the buffers set by national competent authorities (2.50% Capital Conservation Buffer, 1.50% Systemic Buffer and 0.25% Countercyclical Buffer). Furthermore ECB has set a Pillar 2 Guidance of 1.00%.
ECB temporarily allows banks to operate below the P2G and Capital Conservation Buffer (CCB) and hence to use these buffers to withstand potential stress. This temporarily brings the regulatory minimum to 8.00% (being 10.50% – 2.5%). ECB does not have any discretion to waive the application of automatic restrictions to distributions (MDA) as they are set out in the CRR/CRD package. Therefore, the CCB remains included in the threshold for MDA.
Distributions (being dividend payments, payments related to additional tier 1 instruments or variable remuneration) are limited in case the combined buffer requirements described above are breached. This limitation is also referred to as "Maximum Distributable Amount" or "MDA" thresholds.
The table below provides an overview of the buffers KBC Group has compared to these thresholds, both on an actuals basis (i.e. versus the regulatory targets that apply at the reporting date) and a fully loaded basis (i.e. versus the regulatory targets that will apply going forward).
| Buffer vs. Overall Capital Requirement (in millions of EUR) |
30-06-2021 | 31-12-2020 | ||
|---|---|---|---|---|
| (consolidated, under CRR, Danish compromise method) |
Fully loaded | Actuals | Fully loaded | Actuals |
| CET1 Pillar 1 minimum | 4.50% | 4.50% | 4.50% | 4.50% |
| Pillar 2 requirement | 1.75% | 1.75% | 1.75% | 1.75% |
| Capital conservation buffer | 2.50% | 2.50% | 2.50% | 2.50% |
| Buffer for systemically important institutions (O-SII) | 1.50% | 1.50% | 1.50% | 1.50% |
| Entity-specific countercyclical buffer | 0.25% | 0.17% | 0.20% | 0.17% |
| Overall Capital Requirement (OCR) (1) | 10.50% | 10.42% | 10.45% | 10.42% |
| CET1 used to satisfy shortfall in AT1 bucket | 0.06% | 0.06% | 0.03% | 0.03% |
| CET1 used to satisfy shortfall in T2 bucket $(2)$ | 0.82% | 0.15% | $-0.13%$ | 0.12% |
| CET1 requirement (MDA) | 11.38% | 10.62% | 10.35% | 10.57% |
| CET1 capital | 18 241 | 18728 | 17948 | 18 441 |
| CET1 buffer $(=$ buffer to MDA) | 6 3 7 9 | 7682 | 7 3 8 2 | 7681 |
(1) A negative figure in AT1 or T2 bucket relates to a surplus above the pillar 1 bucket for these instruments, which is available to partly satisfy the pillar 2 requirement. (2) The fully loaded T2 capital excludes the T2 instruments grandfathered under CRR2; these T2 instruments are included in the actual (transitional) T2 capital for the period of grandfathering, in line with CRR2 and the COREP 3.0 reporting framework (introduced as from 2Q 2021 reporting).
Following table groups the solvency on the level of KBC Group according to different methodologies and calculation methods, including the deduction method.
| Overview of KBC Group's capital ratios (in millions of EUR) |
numerator | denominator (total (common weighted risk |
||
|---|---|---|---|---|
| 30-06-2021 | equity) | volume) | ratio $(\%)$ | |
| Common Equity ratio | ||||
| Danish Compromise | Fully loaded | 18 241 | 104 241 | 17.50% |
| Deduction Method | Fully loaded | 17 604 | 99 688 | 17.66% |
| Financial Conglomerates Directive | Fully loaded | 19874 | 119 606 | 16.62% |
| Danish Compromise | Transitional | 18728 | 103 972 | 18.01% |
| Deduction Method | Transitional | 18 0 9 2 | 99 4 20 | 18.20% |
| Financial Conglomerates Directive | Transitional | 20 361 | 119 337 | 17.06% |
KBC's fully loaded CET1 ratio of 17.50% at the end of June 2021 represents a solid capital buffer:
| 30-06-2021 | 30-06-2021 | 31-12-2020 | 31-12-2020 | |
|---|---|---|---|---|
| In millions of EUR | Fully loaded | Transitional | Fully loaded | Transitional |
| Total regulatory capital (after profit appropriation) | 20 972 | 22 153 | 21 6 27 | 21856 |
| Tier-1 capital | 19741 | 20 228 | 19 4 48 | 19941 |
| Common equity | 18 241 | 18728 | 17948 | 18441 |
| Parent shareholders' equity (after deconsolidating KBC Insurance) | 18 959 | 18 959 | 18 6 88 | 18688 |
| Intangible fixed assets, incl deferred tax impact (-) | $-587$ | $-587$ | $-568$ | $-568$ |
| Goodwill on consolidation, incl deferred tax impact (-) | $-752$ | $-752$ | $-734$ | - 734 |
| Minority interests | $\overline{0}$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ |
| Hedging reserve (cash flow hedges) (-) | 1 1 3 2 | 1 1 3 2 | 1 2 9 4 | 1 2 9 4 |
| Valuation diff. in financial liabilities at fair value - own credit risk (-) | $-11$ | 11 ÷. |
$-13$ | $-13$ |
| Value adjustment due to the requirements for prudent valuation (-) | $-23$ | 23 ÷, |
$-25$ | $-25$ |
| Dividend payout (-) | $\overline{0}$ | $\mathbf{0}$ | $-183$ | $-183$ |
| Coupon of AT1 instruments (-) | $-12$ | 12 $\blacksquare$ |
$-12$ | $-12$ |
| Deduction re. financing provided to shareholders (-) | 57 | 57 | $-57$ | $-57$ |
| Deduction re. Irrevocable payment commitments (-) | $-72$ | 72 | $-58$ | $-58$ |
| Deduction re NPL backstops (-) | $-12$ | 12 | $-11$ | $-11$ |
| IRB provision shortfall (-) | $\overline{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf 0$ |
| Deferred tax assets on losses carried forward (-) | $-326$ | - 326 | $-373$ | 373 |
| Transitional adjustments to CET1 | 0 | 488 | 0 | 493 |
| Limit on deferred tax assets from timing differences relying on future | $\overline{0}$ | $\overline{0}$ | $\mathbf 0$ | $\mathbf 0$ |
| profitability and significant participations in financial sector entities (-) | ||||
| Additional going concern capital | 1 500 | 1 500 | 1 500 | 1500 |
| CRR compliant AT1 instruments | 1500 | 1 500 | 1 500 | 1500 |
| Minority interests to be included in additional going concern capital | 0 | 0 | $\mathbf 0$ | $\mathbf{0}$ |
| Tier 2 capital | 1 2 3 2 | 1925 | 2 1 7 8 | 1914 |
| IRB provision excess (+) | 485 | 485 | 427 | 427 |
| Transitional adjustments to T2 | $\mathbf{0}$ | $-301$ | $\mathbf 0$ | 264 |
| Subordinated liabilities | 746 | 1 7 4 0 | 1 7 5 1 | 1751 |
| Subordinated loans non-consolidated financial sector entities (-) | 0 | $\overline{0}$ | 0 | $\mathbf 0$ |
| Minority interests to be included in tier 2 capital | $\overline{0}$ | $\overline{0}$ | $\mathbf 0$ | $\mathbf 0$ |
| Total weighted risk volume | 104 241 | 103 972 | 102 111 | 101843 |
| Banking | 94 942 | 94 673 | 92 903 | 92 635 |
| Insurance | 9 1 3 3 | 9 1 3 3 | 9 1 3 3 | 9 1 3 3 |
| Holding activities | 164 | 164 | 66 | 66 |
| Elimination of intercompany transactions | $\overline{2}$ | $\overline{2}$ | 9 | 9 |
| Solvency ratios | ||||
| Common equity ratio | 17.50% | 18.01% | 17.58% | 18.11% |
| Tier-1 ratio | 18.94% | 19.46% | 19.05% | 19.58% |
| Total capital ratio | 20.12% | 21.31% | 21.18% | 21.46% |
Note: for the composition of the banking RWA, see section 'Solvency banking and insurance activities separately' further in this memo.
(1) No IFRS interim profit recognition at the end of June 2021 given more stringent ECB approach.
| Leverage ratio KBC Group (Basel III) In millions of EUR |
30-06-2021 | 30-06-2021 | 31-12-2020 | 31-12-2020 |
|---|---|---|---|---|
| Fully loaded | Transitional | Fully loaded | Transitional | |
| Tier-1 capital | 19741 | 20 228 | 19448 | 19941 |
| Total exposures | 360 502 | 361 117 | 303 069 | 303 696 |
| Total Assets | 368 596 | 368 596 | 320 743 | 320 743 |
| Deconsolidation KBC Insurance | $-33517$ | $-33517$ | $-32972$ | $-32972$ |
| Transitional adjustment | $\Omega$ | 615 | $\Omega$ | |
| Adjustment for derivatives | 245 | 245 | $-4158$ | $-4158$ |
| Adjustment for regulatory corrections in determining Basel III Tier-1 capital | $-1756$ | $-1756$ | $-1825$ | $-1825$ |
| Adjustment for securities financing transaction exposures | 2 5 5 2 | 2 5 5 2 | 830 | 830 |
| Off-balance sheet exposures | 24 3 8 2 | 24 3 8 2 | 20 451 | 20451 |
| Leverage ratio | 5.48% | 5.60% | 6.42% | 6.57% |
At the end of June 2021, the leverage ratio decreased mainly due to an increase of short-term money market & repo opportunities (as of 1Q 2021) and regulatory & methodology changes implemented as of 2Q 2021. Excluding these changes, the leverage ratio would have been 5.6% in 1H 2021.
As is the case for the KBC group, the solvency of KBC Bank is calculated based on CRR/CRD. The solvency of KBC Insurance is calculated on the basis of Solvency II rules as they became effective on 1 January 2016.
The tables below show the tier-1 and CAD ratios calculated under Basel III (CRR/CRD) for KBC Bank, as well as the solvency ratio of KBC Insurance under Solvency II.
| Regulatory capital requirements KBC Bank (consolidated) | 30-06-2021 | 30-06-2021 | 31-12-2020 | 31-12-2020 |
|---|---|---|---|---|
| (in millions of EUR) | Fully loaded | Transitional | Fully loaded | Transitional |
| Total regulatory capital, after profit appropriation | 17911 | 18 237 | 17 792 | 18021 |
| Tier-1 capital | 15 802 | 16 290 | 15 5 8 5 | 16078 |
| Common equity | 14 302 | 14 790 | 14 085 | 14 5 78 |
| Parent shareholders' equity | 14 943 | 14 943 | 14 5 67 | 14 5 67 |
| Solvency adjustments | $-641$ | $-153$ | $-481$ | 12 |
| Additional going concern capital | 1 500 | 1 500 | 1 500 | 1 500 |
| Tier-2 capital | 2 1 0 9 | 1947 | 2 2 0 6 | 1942 |
| Total weighted risk volume | 94 942 | 94 673 | 92 903 | 92 635 |
| Credit risk | 80 4 89 | 80 221 | 78 785 | 78518 |
| Market risk | 3 0 5 1 | 3 0 5 1 | 2 7 1 6 | 2 7 1 6 |
| Operation risk | 11 401 | 11 401 | 11 401 | 11401 |
| Common equity ratio | 15.1% | 15.6% | 15.2% | 15.7% |
(1) No IFRS interim profit recognition at the end of June 2021 given more stringent ECB approach.
| Solvency II, KBC Insurance consolidated | 30-06-2021 | 31-12-2020 |
|---|---|---|
| (in millions of EUR) | ||
| Own Funds | 4 3 3 7 | 3868 |
| Tier 1 | 3837 | 3 3 6 8 |
| IFRS Parent shareholders equity | 4 0 6 3 | 3815 |
| Dividend payout | $-269$ | $\Omega$ |
| Deduction intangible assets and goodwill (after tax) | $-139$ | - 136 |
| Valuation differences (after tax) | 152 | $-383$ |
| Volatility adjustment | 79 | 89 |
| Other | $-49$ | $-16$ |
| Tier 2 | 500 | 500 |
| Subordinated liabilities | 500 | 500 |
| Solvency Capital Requirement (SCR) | 1960 | 1744 |
| Market risk | 1562 | 1 3 5 5 |
| Non-life | 593 | 583 |
| Life | 758 | 735 |
| Health | 270 | 305 |
| Counterparty | 148 | 101 |
| Diversification | $-1070$ | $-1027$ |
| Other | $-300$ | $-308$ |
| Solvency II ratio | 221% | 222% |
Besides the ECB and NBB, which supervise KBC on a going concern basis, KBC is also subject to requirements set by the Single Resolution Board (SRB). The SRB is developing resolution plans for the major banks in the euro area. The resolution plan for KBC is based on a Single Point of Entry (SPE) approach at the level of KBC Group with 'bail-in' as the primary resolution tool. MREL measures the amount of own funds and eligible liabilities that can be credibly and feasibly bailed-in.
The Eligible instruments to satisfy the MREL target are defined in the BRRD2. The SRB communicated to KBC the final MREL targets expressed as a percentage of Risk Weighted Assets (RWA) and Leverage Ratio Exposure Amount (LRE), which will replace the current MREL target of 9.67% of TLOF (which needed to be achieved by 31-12-2021). The new binding MREL targets are:
At the end of June 2021, the MREL ratio stands at 28.0% as a % of RWA (versus 27.9% as at 31-12-2020) and at 8.1% as % of LRE (versus 9.3% as at 31-12-2020). The MREL ratio as % of LRE decreased in 1H 2021 due fully to the increase of short-term money market & repo opportunities (as of 1Q 2021) and regulatory & methodology changes implemented as of 2Q 2021.
Besides a total MREL amount, BRRD2 also requires KBC to maintain a certain part of MREL in subordinated format (i.e. instruments subordinated to liabilities, excluded from bail-in). KBC Group has on its balance sheet a limited amount of liabilities, excluded from bail-in, which rank pari passu to MREL eligible liabilities. These excluded liabilities are related to critical shared services (e.g. IT). This jeopardizes the eligibility of the HoldCo senior debt to be acknowledged by the SRB as subordinated. This is based on the new definition of BRRD2 Article 2(1)(71b), which allows no exemption from the subordination requirement for MREL; for comparison exemption from the subordination requirement is allowed in CRR Article 72b(4) for TLAC (allowance of up to 5% excluded liabilities based on the total amount of MREL).
To ensure that KBC's HoldCo senior debt is eligible for the subordinated MREL target (i.e., to make sure that no excluded liabilities ranking pari passu or junior with HoldCo senior debt are present in KBC Group NV), the KBC Group ExCo decided on to make KBC Group NV a Clean HoldCo for the purpose of resolution. After implementation of the Clean HoldCo, KBC's entire MREL stack will be considered as subordinated.
The new binding subordinated MREL targets are:
At the end of June 2021, the subordinated MREL ratio stands at 21.3% as a % of RWA (versus 21.5% as at 31-12-2020) and at 6.1% as % of LRE (versus 7.2% as at 31-12-2020).
(1) No IFRS interim profit recognition at the end of June 2021 given more stringent ECB approach.
(2) Combined Buffer Requirement = Conservation Buffer (2.5%) + O-SII Buffer (1.5%) + Countercyclical Buffer (0.25%), comes on top of the MREL target as a percentage of RWA.
Details on our segments or business units are available in the company presentation.
Note: The ECB approved to apply the IFRS9 transitional arrangements from 2Q 2020, as such the difference between fully loaded and the transitional measures are assigned to Group Centre. In other words, the RWA, allocated capital and the ROAC of the different countries remain based on fully loaded.
| Business unit Belgium | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 | ||||
| Breakdown P&L | |||||
| Net interest income | 637 | 626 | 631 | 673 | 635 |
| Non-life insurance (before reinsurance) | 143 | 140 | 127 | 157 | 167 |
| Earned premiums | 293 | 289 | 290 | 287 | 280 |
| Technical charges | 150 | $-149$ | $-164$ | 130 | 113 ä, |
| Life insurance (before reinsurance) | 13 | - 12 | $-10$ | - 16 | $-16$ |
| Earned premiums | 194 | 223 | 298 | 191 | 208 |
| Technical charges | 207 | 235 ÷. |
$-308$ | 206 ä, |
224 ÷. |
| Ceded reinsurance result | 3 | $\overline{1}$ ÷ |
10 | $-3$ | - 10 |
| Dividend income | 15 | 6 | 10 | 10 | 16 |
| Net result from financial instruments at fair value through profit or loss | 38 | 120 | 33 | 67 | 149 |
| Net realised result from debt instruments at fair value through OCI | 1 | 1 | $-2$ | 1 | -1 |
| Net fee and commission income | 322 | 327 | 287 | 271 | 271 |
| Net other income | 33 | 41 | 41 | 36 | 45 |
| TOTAL INCOME | 1 1 7 3 | 1 2 4 8 | 1 1 2 7 | 1 1 9 7 | 1 2 5 6 |
| Operating expenses | 538 ÷ |
- 821 | $-530$ | $-520$ | 521 $\mathbb{L}^{\mathbb{N}}$ |
| Impairment | 56 | 65 | $-67$ | $-43$ | 469 |
| on financial assets at AC and at FVOCI | 56 | 62 | $-39$ | $-41$ | 458 ÷. |
| other | 0 | 3 | $-27$ | $\overline{2}$ ÷. |
$-11$ |
| Share in results of associated companies and joint ventures | 1 | $\overline{1}$ ٠ |
- 1 | $-2$ | $-3$ |
| RESULT BEFORE TAX | 693 | 490 | 529 | 633 | 264 |
| Income tax expense | 165 | 110 | 132 | 147 ä, |
$-59$ |
| RESULT AFTER TAX | 528 | 380 | 396 | 486 | 204 |
| attributable to minority interests | $\bf{0}$ | 0 | 0 | 0 | $\mathbf 0$ |
| attributable to equity holders of the parent | 528 | 380 | 396 | 486 | 204 |
| Banking | 403 | 282 | 285 | 352 | 68 |
| Insurance | 125 | 98 | 111 | 134 | 136 |
| Breakdown Loans and deposits | |||||
| Total customer loans excluding reverse repos (end of period) | 105 594 | 103 960 | 103 092 | 103 844 | 103 689 |
| of which Mortgage Ioans (end of period) | 40 069 | 39 452 | 38831 | 37717 | 36863 |
| Customer deposits and debt certificates excl. repos (end of period) | 159 581 | 150 296 | 135 442 | 137 271 | 136 928 |
| Technical provisions plus unit-linked, life insurance | |||||
| Interest Guaranteed (end of period) | 12984 | 13 0 18 | 13 0 32 | 12 944 | 13 005 |
| Unit-Linked (end of period) | 13217 | 13 0 14 | 12819 | 12 576 | 12 5 9 9 |
| Performance Indicators | |||||
| Risk-weighted assets, banking (end of period, Basel III fully loaded) | 54419 | 53 759 | 52 671 | 53 363 | 52938 |
| Required capital, insurance (end of period) | 1651 | 1546 | 1491 | 1 3 9 3 | 1 3 5 8 |
| Allocated capital (end of period) | 7 3 3 8 | 7 1 64 | 6995 | 6970 | 6943 |
| Return on allocated capital (ROAC) | 29% | 21% | 23% | 28% | 12% |
| Cost/income ratio, group | 46% | 66% | 47% | 43% | 41% |
| Combined ratio, non-life insurance | 83% | 80% | 87% | 81% | 74% |
| Net interest margin, banking | 1.63% | 1.63% | 1.59% | 1.63% | 1.63% |
| Business unit Czech Republic | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 | ||||
| Breakdown P&L | |||||
| Net interest income | 220 | 215 | 206 | 220 | 235 |
| Non-life insurance (before reinsurance) | 30 | 43 | 36 | 36 | 38 |
| Earned premiums | 82 | 78 | 77 | 78 | 72 |
| Technical charges | 52 | $-35$ | -41 ÷, |
$-42$ | 35 |
| Life insurance (before reinsurance) | 14 | 15 | 10 | 12 | 12 |
| Earned premiums | 51 | 43 | 59 | 50 | 44 |
| Technical charges | 37 | $-27$ | - 49 ÷ |
38 $\sim$ |
32 |
| Ceded reinsurance result | 8 | $\overline{3}$ | 0 | - 1 | 0 |
| Dividend income | 0 | 0 | 0 | $\mathbf 0$ | |
| Net result from financial instruments at fair value through profit or loss | 7 | 29 | 26 | 16 | 90 |
| Net realised result from debt instruments at fair value through OCI | $\overline{2}$ | 0 | $\mathbf 0$ | 0 | 1 |
| Net fee and commission income | 54 | 50 | 46 | 52 | 51 |
| Net other income | 6 | 7 | $-3$ | 3 | 3 |
| TOTAL INCOME | 339 | 356 | 322 | 337 | 431 |
| Operating expenses | 191 | 225 $\blacksquare$ |
$-187$ | 179 ä, |
164 ÷. |
| Impairment | 50 | 12 | $-24$ | $-18$ | 175 |
| on financial assets at AC and at FVOCI | 53 | 13 | $-17$ | $-15$ | 170 $\blacksquare$ |
| other | 3 | $\overline{1}$ Ξ |
$-7$ | $\mathbf{3}$ ÷. |
$-5$ |
| Share in results of associated companies and joint ventures | $\mathbf{0}$ | $\overline{1}$ ۰ |
$\overline{1}$ $\blacksquare$ |
0 | 0 |
| RESULT BEFORE TAX | 198 | 143 | 111 | 139 | 91 |
| Income tax expense | 30 | $-20$ | $-17$ ÷, |
$-23$ | 14 |
| RESULT AFTER TAX | 168 | 123 | 94 | 116 | 77 |
| attributable to minority interests | $\bf{0}$ | 0 | $\mathbf 0$ | 0 | $\mathbf 0$ |
| attributable to equity holders of the parent | 168 | 123 | 94 | 116 | 77 |
| Banking | 152 | 105 | 81 | 104 | 61 |
| Insurance | 16 | 18 | 12 | 12 | 16 |
| Breakdown Loans and deposits | |||||
| Total customer loans excluding reverse repos (end of period) | 30 551 | 29 273 | 29 0 99 | 28 106 | 28 597 |
| of which Mortgage Ioans (end of period) | 17 190 | 16 4 49 | 16 190 | 15 3 84 | 15418 |
| Customer deposits and debt certificates excl. repos (end of period) | 44 650 | 43 0 79 | 41 610 | 39 162 | 39 704 |
| Technical provisions plus unit-linked, life insurance | |||||
| Interest Guaranteed (end of period) | 676 | 663 | 655 | 622 | 613 |
| Unit-Linked (end of period) | 594 | 576 | 614 | 615 | 659 |
| Performance Indicators | |||||
| Risk-weighted assets, banking (end of period, Basel III fully loaded) | 15 5 94 | 15 109 | 15 3 38 | 14 971 | 15 3 38 |
| Required capital, insurance (end of period) | 149 | 149 | 137 | 131 | 128 |
| Allocated capital (end of period) | 1778 | 1728 | 1739 | 1696 | 1746 |
| Return on allocated capital (ROAC) | 38% | 28% | 22% | 27% | 18% |
| Cost/income ratio, group | 56% | 63% | 58% | 53% | 39% |
| Combined ratio, non-life insurance | 87% | 83% | 87% | 90% | 81% |
| Net interest margin, banking | 1.97% | 1.99% | 1.95% | 2.05% | 2.32% |
| Business unit International Markets | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 | ||||
| Breakdown P&L | |||||
| Net interest income | 239 | 231 | 229 | 227 | 219 |
| Non-life insurance (before reinsurance) | 40 | 46 | 31 | 34 | 46 |
| Earned premiums | 83 | 82 | 80 | 81 | 78 |
| Technical charges | 43 | 37 | 49 ä, |
-47 ÷. |
33 |
| Life insurance (before reinsurance) | 9 | 9 | 5 | 4 | 10 |
| Earned premiums | 27 | 27 | 26 | 25 | 24 |
| Technical charges | 18 | 18 $\sim$ $^{-1}$ |
22 $\blacksquare$ |
$-21$ | 15 |
| Ceded reinsurance result | $\overline{2}$ | $\overline{7}$ | $\overline{2}$ | - 1 | $-3$ |
| Dividend income | $\bf{0}$ | $\mathbf 0$ | 0 | 0 | $\mathbf{0}$ |
| Net result from financial instruments at fair value through profit or loss | 13 | 11 | 16 | 18 | 14 |
| Net realised result from debt instruments at fair value through OCI | $\bf{0}$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf{0}$ | 1 |
| Net fee and commission income | 74 | 66 | 69 | 68 | 67 |
| Net other income | 1 | 4 | 1 | $-4$ | 5 |
| TOTAL INCOME | 374 | 361 | 353 | 347 | 359 |
| Operating expenses | 231 | 254 ÷. |
$-231$ | 200 ä, |
$-196$ |
| Impairment | 23 | 0 | $-15$ | 1 | 213 |
| on financial assets at AC and at FVOCI | 26 | 0 | $\overline{1}$ $\blacksquare$ |
6 | 217 ÷, |
| other | 3 | $\blacktriangleleft$ ÷, |
- 13 $\blacksquare$ |
5 Ξ |
4 |
| Share in results of associated companies and joint ventures | $\mathbf 0$ | 0 | 0 | 0 | $\bf{0}$ |
| RESULT BEFORE TAX | 166 | 106 | 107 | 148 | 50 |
| Income tax expense | 26 | 18 | 20 $\blacksquare$ |
$-24$ | 5 |
| RESULT AFTER TAX | 140 | 88 | 86 | 123 | $-45$ |
| attributable to minority interests | $\mathbf 0$ | 0 | $\mathbf 0$ | 0 | $\mathbf 0$ |
| attributable to equity holders of the parent | 140 | 88 | 86 | 123 | - 45 |
| Banking | 127 | 72 | 79 | 112 | $-66$ |
| Insurance | 13 | 17 | 7 | 11 | 21 |
| Breakdown Loans and deposits | |||||
| Total customer loans excluding reverse repos (end of period) | 28 199 | 27 7 26 | 27 430 | 25824 | 25 277 |
| of which Mortgage loans (end of period) | 17515 | 17 180 | 16929 | 15952 | 15 6 50 |
| Customer deposits and debt certificates excl. repos (end of period) | 27950 | 27 438 | 28 0 75 | 24 789 | 24 27 2 |
| Technical provisions plus unit-linked, life insurance | |||||
| Interest Guaranteed (end of period) | 251 | 250 | 249 | 250 | 254 |
| Unit-Linked (end of period) | 418 | 399 | 398 | 390 | 397 |
| Performance Indicators | |||||
| Risk-weighted assets, banking (end of period, Basel III fully loaded) | 23 190 | 23 0 20 | 23 2 24 | 20791 | 20736 |
| Required capital, insurance (end of period) | 141 | 135 | 135 | 130 | 127 |
| Allocated capital (end of period) | 2 5 6 5 | 2541 | 2561 | 2 3 0 2 | 2 3 1 5 |
| Retum on allocated capital (ROAC) | 22% | 14% | 15% | 21% | $-8%$ |
| Cost/income ratio, group | 62% | 70% | 66% | 58% | 55% |
| Combined ratio, non-life insurance | 83% | 78% | 90% | 89% | 75% |
| Net interest margin, banking | 2.58% | 2.56% | 2.59% | 2.61% | 2.58% |
| Slovakia | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 | ||||
| Breakdown P&L | |||||
| Net interest income | 57 | 57 | 51 | 52 | 49 |
| Non-life insurance (before reinsurance) | 8 | 11 | 4 | 7 | 8 |
| Earned premiums | 15 | 14 | 14 | 13 | 13 |
| Technical charges | 7 | 3 | 10 ÷ |
6 | $\overline{4}$ |
| Life insurance (before reinsurance) | 3 | 3 | 3 | 3 | 3 |
| Earned premiums | 8 | 8 | 8 | 9 | 8 |
| Technical charges | 4 | 5 | 5 ÷. |
5 | - 5 |
| Ceded reinsurance result | 1 | $\overline{4}$ | 4 | $\mathbf{1}$ | $\overline{1}$ |
| Dividend income | 0 | 0 | 0 | $\mathbf 0$ | $\bf{0}$ |
| Net result from financial instruments at fair value through profit or loss | 3 | 0 | 3 | 6 | 7 |
| Net realised result from debt instruments at fair value through OCI | $\mathbf{0}$ | 0 | 0 | $\mathbf{0}$ | 1 |
| Net fee and commission income | 19 | 16 | 14 | 15 | 14 |
| Net other income | $\overline{0}$ | 2 | 2 | 1 | 2 |
| TOTAL INCOME | 91 | 86 | 82 | 84 | 84 |
| Operating expenses | 66 | $-62$ | $-48$ | 46 $\sim$ $^{-1}$ |
$-51$ |
| Impairment | 6 | 3 | $\overline{2}$ $\mathbf{L}$ |
5 | -41 |
| on financial assets at AC and at FVOCI | 6 | 3 ä, |
1 | 5 | -41 |
| other | 0 | 0 | $\overline{2}$ ÷. |
0 | $\bf{0}$ |
| Share in results of associated companies and joint ventures | $\mathbf{0}$ | 0 | 0 | 0 | $\bf{0}$ |
| RESULT BEFORE TAX | 30 | 20 | 32 | 43 | $-8$ |
| Income tax expense | 8 | - 5 | $-6$ | 10 $\omega_{\rm{eff}}$ |
2 |
| RESULT AFTER TAX | 22 | 15 | 25 | 33 | $-6$ |
| attributable to minority interests | $\bf{0}$ | 0 | 0 | $\mathbf 0$ | $\mathbf 0$ |
| attributable to equity holders of the parent | 22 | 15 | 25 | 33 | - 6 |
| Banking | 20 | 12 | 23 | 30 | $-9$ |
| Insurance | $\overline{2}$ | 3 | 3 | 3 | 3 |
| Breakdown Loans and deposits | |||||
| Total customer loans excluding reverse repos (end of period) | 9 100 | 9090 | 9016 | 7857 | 7683 |
| of which Mortgage Ioans (end of period) | 4 9 0 4 | 4814 | 4707 | 3992 | 3846 |
| Customer deposits and debt certificates excl. repos (end of period) | 7 9 0 8 | 8 1 7 8 | 8601 | 7 100 | 6531 |
| Technical provisions plus unit-linked, life insurance | |||||
| Interest Guaranteed (end of period) | 114 | 115 | 114 | 114 | 114 |
| Unit-Linked (end of period) | 72 | 73 | 83 | 87 | 92 |
| Performance Indicators | |||||
| Risk-weighted assets, banking (end of period, Basel III fully loaded) | 5683 | 5809 | 5919 | 5 0 1 1 | 5 1 0 4 |
| Required capital, insurance (end of period) | 29 | 29 | 29 | 28 | 27 |
| Allocated capital (end of period) | 623 | 636 | 648 | 552 | 565 |
| Retum on allocated capital (ROAC) | 14% | 10% | 18% | 24% | $-5%$ |
| Cost/income ratio, group | 73% | 72% | 59% | 54% | 61% |
| Combined ratio, non-life insurance | 85% | 85% | 80% | 87% | 79% |
| Hungary | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 | ||||
| Breakdown P&L | |||||
| Net interest income | 74 | 70 | 68 | 68 | 64 |
| Non-life insurance (before reinsurance) | 14 | 16 | 12 | 12 | 17 |
| Earned premiums | 35 | 37 | 34 | 35 | 35 |
| Technical charges | 21 | 22 A. |
$-23$ | - 24 | 17 |
| Life insurance (before reinsurance) | $\overline{2}$ | 2 | $-2$ | $-2$ | $\overline{2}$ |
| Earned premiums | 10 | 9 | 9 | 9 | 8 |
| Technical charges | 8 | -7 ÷, |
11 ÷, |
- 11 | $-6$ |
| Ceded reinsurance result | 1 | $\overline{1}$ | 0 | $\overline{1}$ | $\overline{1}$ |
| Dividend income | $\bf{0}$ | 0 | 0 | $\mathbf{0}$ | $\mathbf{0}$ |
| Net result from financial instruments at fair value through profit or loss | 11 | 12 | 14 | 12 | 10 |
| Net realised result from debt instruments at fair value through OCI | $\mathbf 0$ | $\mathbf 0$ | 0 | $\mathbf 0$ | $\mathbf{0}$ |
| Net fee and commission income | 49 | 43 | 49 | 46 | 46 |
| Net other income | 1 | 1 | 1 | 0 | 0 |
| TOTAL INCOME | 150 | 143 | 142 | 136 | 140 |
| Operating expenses | 81 | $-94$ | $-79$ | $-74$ | $-69$ |
| Impairment | 16 | 3 | $-17$ | $\overline{2}$ ÷. |
50 |
| on financial assets at AC and at FVOCI | 19 | 3 | $-8$ | 3 | 55 |
| other | 3 | 0 | - 9 | 5 | 6 |
| Share in results of associated companies and joint ventures | $\mathbf{0}$ | 0 | 0 | 0 | $\bf{0}$ |
| RESULT BEFORE TAX | 86 | 52 | 46 | 59 | 21 |
| Income tax expense | 11 | - 9 | $-8$ | $-9$ | $-5$ |
| RESULT AFTER TAX | 75 | 43 | 38 | 51 | 16 |
| attributable to minority interests | $\bf{0}$ | 0 | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ |
| attributable to equity holders of the parent | 75 | 43 | 38 | 51 | 16 |
| Banking | 70 | 36 | 35 | 46 | 7 |
| Insurance | 5 | 8 | 4 | 4 | 9 |
| Breakdown Loans and deposits | |||||
| Total customer loans excluding reverse repos (end of period) | 5 3 0 4 | 5 0 4 7 | 4 940 | 4 7 7 5 | 4617 |
| of which Mortgage Ioans (end of period) | 1795 | 1657 | 1600 | 1541 | 1512 |
| Customer deposits and debt certificates excl. repos (end of period) | 9 1 3 9 | 8766 | 8982 | 7983 | 8011 |
| Technical provisions plus unit-linked, life insurance | |||||
| Interest Guaranteed (end of period) | 48 | 46 | 46 | 46 | 49 |
| Unit-Linked (end of period) | 270 | 258 | 255 | 251 | 258 |
| Performance Indicators | |||||
| Risk-weighted assets, banking (end of period, Basel III fully loaded) | 7468 | 7 1 6 5 | 6961 | 6895 | 6865 |
| Required capital, insurance (end of period) | 49 | 48 | 47 | 45 | 47 |
| Allocated capital (end of period) | 830 | 797 | 775 | 766 | 772 |
| Retum on allocated capital (ROAC) | 37% | 22% | 21% | 27% | 8% |
| Cost/income ratio, group | 54% | 66% | 56% | 55% | 50% |
| Combined ratio, non-life insurance | 87% | 78% | 93% | 92% | 76% |
| Bulgaria | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 | ||||
| Breakdown P&L | |||||
| Net interest income | 35 | 35 | 36 | 36 | 36 |
| Non-life insurance (before reinsurance) | 19 | 19 | 15 | 15 | 20 |
| Earned premiums | 33 | 31 | 32 | 32 | 31 |
| Technical charges | 14 | 12 | 17 | $-17$ | 11 |
| Life insurance (before reinsurance) | 4 | 4 | 3 | 3 | 5 |
| Earned premiums | 9 | 10 | 9 | 7 | 9 |
| Technical charges | 5 | 6 | -6 $\sim$ |
$\overline{4}$ | $\overline{4}$ |
| Ceded reinsurance result | 1 | $\overline{2}$ | $\overline{2}$ ٠ |
0 | -1 |
| Dividend income | 0 | 0 | 0 | 0 | $\mathbf 0$ |
| Net result from financial instruments at fair value through profit or loss | 0 | 0 | 0 | 0 | 0 |
| Net realised result from debt instruments at fair value through OCI | $\mathbf{0}$ | 0 | 0 | 0 | 0 |
| Net fee and commission income | 8 | 7 | 8 | 8 | 6 |
| Net other income | $\mathbf 0$ | 2 | 1 | 1 | 1 |
| TOTAL INCOME | 65 | 65 | 61 | 63 | 67 |
| Operating expenses | 32 ÷, |
$-40$ | 33 $\blacksquare$ |
$-31$ | $-27$ |
| Impairment | 0 | 0 | $\overline{2}$ ÷. |
- 25 | |
| on financial assets at AC and at FVOCI | 1 | 1 | 2 | - 23 | |
| other | 0 | 0 | 1 | 0 | - 1 |
| Share in results of associated companies and joint ventures | $\mathbf{0}$ | 0 | 0 | 0 | $\bf{0}$ |
| RESULT BEFORE TAX | 33 | 25 | 28 | 30 | 16 |
| Income tax expense | 3 | $\overline{\mathbf{3}}$ ÷, |
$\mathbf{3}$ $\equiv$ |
$-3$ | $-2$ |
| RESULT AFTER TAX | 30 | 22 | 25 | 27 | 14 |
| attributable to minority interests | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ |
| attributable to equity holders of the parent | 30 | 22 | 25 | 27 | 14 |
| Banking | 23 | 15 | 23 | 22 | $\overline{4}$ |
| Insurance | 7 | 7 | 2 | 5 | 9 |
| Breakdown Loans and deposits | |||||
| Total customer loans excluding reverse repos (end of period) | 3671 | 3547 | 3508 | 3413 | 3 3 0 7 |
| of which Mortgage loans (end of period) | 819 | 790 | 778 | 752 | 723 |
| Customer deposits and debt certificates excl. repos (end of period) | 5919 | 5 5 6 0 | 5453 | 4 8 0 2 | 4 6 3 4 |
| Technical provisions plus unit-linked, life insurance | |||||
| Interest Guaranteed (end of period) | 90 | 89 | 88 | 90 | 91 |
| Unit-Linked (end of period) | 77 | 68 | 60 | 52 | 47 |
| Performance Indicators | |||||
| Risk-weighted assets, banking (end of period, Basel III fully loaded) | 3 3 3 6 | 3 2 3 3 | 3 2 5 4 | 3 1 3 3 | 3073 |
| Required capital, insurance (end of period) | 63 | 58 | 58 | 57 | 53 |
| Allocated capital (end of period) | 412 | 396 | 398 | 384 | 377 |
| Return on allocated capital (ROAC) | 30% | 22% | 25% | 27% | 13% |
| Cost/income ratio, group | 50% | 62% | 54% | 49% | 41% |
| Combined ratio, non-life insurance | 77% | 76% | 89% | 85% | 70% |
| Ireland | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 | ||||
| Breakdown P&L | |||||
| Net interest income | 72 | 69 | 74 | 72 | 69 |
| Non-life insurance (before reinsurance) | $\mathbf{0}$ | $\mathbf{0}$ | 0 | $\mathbf 0$ | $\mathbf{0}$ |
| Earned premiums | 0 | 0 | 0 | 0 | $\mathbf 0$ |
| Technical charges | $\overline{0}$ | $\mathbf{0}$ | 0 | $\bf{0}$ | $\mathbf 0$ |
| Life insurance (before reinsurance) | $\overline{0}$ | $\mathbf{0}$ | 0 | $\mathbf{0}$ | $\mathbf 0$ |
| Earned premiums | $\mathbf{0}$ | 0 | 0 | 0 | $\mathbf 0$ |
| Technical charges | 0 | 0 | 0 | $\mathbf 0$ | $\mathbf 0$ |
| Ceded reinsurance result | $\mathbf 0$ | $\mathbf 0$ | 0 | $\mathbf{0}$ | $\mathbf 0$ |
| Dividend income | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\bf{0}$ |
| Net result from financial instruments at fair value through profit or loss | $\overline{2}$ | 1 | $\overline{2}$ | $\mathbf{1}$ | $\mathbf{3}$ |
| Net realised result from debt instruments at fair value through OCI | $\overline{0}$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $\bf{0}$ |
| Net fee and commission income | $\overline{2}$ | $\mathbf 1$ | $\overline{1}$ L, |
$\mathbf 1$ ä, |
$\bf{0}$ |
| Net other income | 1 | $\mathbf 0$ | $-3$ | $-6$ | $\mathbf 0$ |
| TOTAL INCOME | 69 | 67 | 68 | 64 | 65 |
| Operating expenses | 52 | 58 | 71 $\sim$ |
49 | 48 |
| Impairment | $\bf{0}$ | $\mathbf{0}$ | 4 | 0 | 97 |
| on financial assets at AC and at FVOCI | 0 | $\mathbf{0}$ | 5 | $\bf{0}$ | 97 |
| other | $\mathbf{0}$ | $\mathbf{0}$ | 1 | $\bf{0}$ | $\mathbf{0}$ |
| Share in results of associated companies and joint ventures | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ |
| RESULT BEFORE TAX | 17 | 9 | 1 | 15 | 80 L. |
| Income tax expense | $\overline{4}$ | 1 $\overline{\phantom{a}}$ |
$\overline{4}$ | $\overline{2}$ | 10 |
| RESULT AFTER TAX | 13 | 8 | 3 $\mathbf{u}$ |
13 | 70 |
| attributable to minority interests | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf 0$ |
| attributable to equity holders of the parent | 13 | 8 | -3 $\sim$ |
13 | - 70 |
| Banking | 14 | 9 | $\overline{2}$ ω. |
14 | 68 u, |
| Insurance | $\blacksquare$ 1 $\overline{\phantom{0}}$ |
$\overline{1}$ $\blacksquare$ |
$-1$ | $-1$ | $-1$ |
| Breakdown Loans and deposits | |||||
| Total customer loans excluding reverse repos (end of period) | 10 1 24 | 10 042 | 9966 | 9779 | 9670 |
| of which Mortgage loans (end of period) | 9996 | 9919 | 9844 | 9666 | 9569 |
| Customer deposits and debt certificates excl. repos (end of period) | 4983 | 4935 | 5 0 4 0 | 4 9 0 4 | 5 0 9 5 |
| Performance Indicators | |||||
| Risk-weighted assets, banking (end of period, Basel III fully loaded) | 6704 | 6813 | 7 0 8 9 | 5750 | 5692 |
| Allocated capital (end of period) | 701 | 712 | 741 | 601 | 600 |
| Return on allocated capital (ROAC) | 7% | 4% | $-2%$ | 8% | $-44%$ |
| Cost/income ratio, group | 75% | 86% | 104% | 77% | 73% |
| Group Centre - Breakdown net result | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 | ||||
| Operational costs of the Group activities | ÷ | $-16$ | $-42$ | $-20$ | $-18$ |
| Capital and treasury management | - 6 | $-4$ | $-4$ | $-6$ | |
| Holding of participations | $\sim$ | 2 | $-1$ | ||
| Results companies in rundown | - 5 | $-4$ | $-1$ | ||
| Other | $-20$ | $-15$ | 9 | - 8 | $\Omega$ |
| Total net result for the Group centre | 42 ۰ |
35 $\sim$ 10 $\pm$ |
$-38$ | $-28$ | $-26$ |
| Business unit Group Centre | |||||
|---|---|---|---|---|---|
| (in millions of EUR) | 2Q 2021 | $1Q$ 2021 | 4Q 2020 3Q 2020 | 2Q 2020 | |
| Breakdown P&L | |||||
| Net interest income | $\overline{2}$ ÷. |
$\overline{4}$ L. |
$\overline{2}$ | 2 | - 6 |
| Non-life insurance (before reinsurance) | $\overline{0}$ | 9 | $\overline{2}$ ä, |
$\overline{7}$ | 5 |
| Earned premiums | 4 | 3 | 3 | 3 | 4 |
| Technical charges | 4 | 6 | $\overline{4}$ | 4 | 1 |
| Life insurance (before reinsurance) | $\overline{0}$ | $\mathbf 0$ | 0 | 0 | $\mathbf 0$ |
| Earned premiums | $\overline{0}$ | $\mathbf{0}$ | 0 | 0 | $\overline{0}$ |
| Technical charges | $\overline{0}$ | $\mathbf 0$ | $\mathbf{0}$ | 0 | $\Omega$ |
| Ceded reinsurance result | $\overline{2}$ | 3 | $\overline{2}$ | 4 | 1 |
| Dividend income | $\overline{a}$ | 1 | 1 | 1 | 1 |
| Net result from financial instruments at fair value through profit or loss | 29 | 32 | 4 | 16 | 1 |
| Net realised result from debt instruments at fair value through OCI | $\mathbf 0$ | 0 | 0 | 0 | $\mathbf 0$ |
| Net fee and commission income | $\overline{1}$ | 3 | $\mathbf{0}$ | 1 | $\overline{1}$ |
| Net other income | $\overline{2}$ | 1 | $\overline{2}$ $\blacksquare$ |
1 | $\mathbf 0$ |
| TOTAL INCOME | 33 | 31 ÷. |
$\mathbf 0$ | $\overline{9}$ ω. |
$-2$ |
| Operating expenses | 12 | 21 $\equiv$ |
39 | 27 | 24 |
| Impairment | $6\phantom{1}6$ | 1 | 17 | $\overline{2}$ ÷. |
$\mathbf 0$ |
| on financial assets at AC and at FVOCI | $6\phantom{1}6$ | 1 | 1 | $-2$ | $\mathbf{0}$ |
| other | $\overline{0}$ | $\overline{0}$ | - 18 $\blacksquare$ |
0 | $\overline{0}$ |
| Share in results of associated companies and joint ventures | $\mathbf{0}$ | 0 | 0 | 0 | $\bf{0}$ |
| RESULT BEFORE TAX | 52 L |
51 $\overline{\phantom{a}}$ |
57 $\blacksquare$ |
38 $\sim$ |
$-26$ |
| Income tax expense | 10 | 17 | 18 | 10 | $\bf{0}$ |
| RESULT AFTER TAX | 42 L. |
35 $\omega_{\rm c}$ |
38 | 28 ÷. |
26 |
| attributable to minority interests | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\overline{0}$ | $\mathbf 0$ |
| attributable to equity holders of the parent | 42 | 35 $\sim$ |
$-38$ | 28 $\mathbf{r}$ |
$-26$ |
| Banking | 43 ÷, |
48 ÷. |
$-9$ | 22 ÷. |
21 |
| Holding | $\overline{2}$ | $\overline{2}$ $\mathbf{r}$ |
$-31$ | - 6 $\equiv$ |
- 5 |
| Insurance | $\mathbf{1}$ | 15 | $\overline{2}$ | 0 | $\mathbf 0$ |
| Breakdown Loans and deposits | |||||
| Total customer loans excluding reverse repos (end of period) | $\bf{0}$ | $\bf{0}$ | 1 | $\bf{0}$ | $\bf{0}$ |
| of which Mortgage Ioans (end of period) | 0 | 0 | 0 | 0 | 0 |
| Customer deposits and debt certificates excl. repos (end of period) | 11 1 23 | 11 0 25 | 10 303 | 10 450 | 9908 |
| Performance Indicators | |||||
| Risk-weighted assets, banking (end of period, Basel III fully loaded) | 1 9 0 4 | 1 7 7 3 | 1744 | 1912 | 2 2 0 9 |
| Risk-weighted assets, insurance (end of period, Basel III fully loaded) | 9 1 3 3 | 9 1 3 3 | 9 1 3 3 | 9 1 3 3 | 9 1 3 3 |
| Required capital, insurance (end of period) | 18 | - 8 | $-18$ | $-18$ | $-15$ |
| Allocated capital (end of period) | 217 | 178 | 164 | 182 | 218 |
Gives an idea of the amount of profit over a certain period that is attributable to one share (and, where applicable, including dilutive instruments).
| Calculation (in millions of EUR) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Result after tax. attributable to equity holders of the parent (A) |
'Consolidated income statement' | 1 3 5 0 | 1440 | 205 |
| Coupon on the additional tier-1 instruments included in equity (B) |
'Consolidated statement of changes in equity' | $-25$ | $-50$ | $-25$ |
| Average number of ordinary shares less treasury shares (in millions) in the period $(C)$ or |
Note 5.10 | 417 | 416 | 416 |
| Average number of ordinary shares plus dilutive options less treasury shares in the period (D) |
417 | 416 | 416 | |
| Basic = $(A-B) / (C)$ (in EUR) | 3.18 | 3.34 | 0.43 | |
| Diluted = $(A-B)/ (D)$ (in EUR) | 3.18 | 3.34 | 0.43 |
Gives an insight into the technical profitability (i.e. after eliminating investment returns, among other items) of the non-life insurance business, more particularly the extent to which insurance premiums adequately cover claim payments and expenses. The combined ratio takes ceded reinsurance into account.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Technical insurance charges, including the internal cost of settling claims (A) |
Note 3.7.1 | 478 | 945 | 467 |
| Earned insurance premiums (B) | Note 3.7.1 | 895 | 1742 | 862 |
| $+$ | ||||
| Operating expenses (C) | Note 3.7.1 | 283 | 536 | 274 |
| Written insurance premiums (D) | Note 3.7.1 | 1 0 0 7 | 1769 | 962 |
| $= (A/B)+(C/D)$ | 81.6% | 84.5% | 82.6% |
A risk-weighted measure of the group's solvency based on common equity tier-1 capital (the ratios given here are based on the Danish compromise). Changes to the capital rules are gradually being implemented to allow banks to build up the necessary capital buffers. The capital position of a bank, when account is taken of the transition period, is referred to as the 'transitional' view. The capital position based on full application of all the rules – as would be the case after this transition period – is referred to as 'fully loaded'.
A detailed calculation can be found under 'Solvency KBC Group' section.
Gives an impression of the relative cost efficiency (costs relative to income) of the banking, insurance and holding activities.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Cost/income ratio | ||||
| Operating expenses of the group activities (A) | 'Consolidated income statement': component of 'Operating expenses' |
2 2 9 3 | 4 1 5 6 | 2 2 4 2 |
| Total income of the group activities (B) | 'Consolidated income statement': component of 'Total income' |
3 7 8 6 | 7 195 | 3.522 |
| $= (A) / (B)$ | 60.6% | 57.8% | 63.7% |
Where relevant, we also estimate exceptional and/or non-operating items when calculating the cost/income ratio. This calculation aims to give a better idea of the relative cost efficiency of the pure business activities. The adjustments include: MTM ALM derivatives (fully excluded), bank and insurance taxes (including contributions to European Single Resolution Fund) are included pro rata and hence spread over all quarters of the year instead of being recognised for the most part upfront (as required by IFRIC 21) and one-off items. The Cost/Income ratio adjusted for specific items is 54% in 1H 2021 (versus 57% in FY 2020 and 58% in 1H 2020).
Indicates the proportion of impaired loans (see 'Impaired loans ratio' for definition) that are covered by impairment charges. The numerator and denominator in the formula relate to all impaired loans, but may be limited to impaired loans that are more than 90 days past due (the figures for that particular calculation are given in the 'Credit risk' section.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Specific impairment on loans (A) | 'Credit risk: loan portfolio overview' table in the 'Credit risk' section |
2 5 1 8 | 2638 | 2696 |
| Outstanding impaired loans (B) | 'Credit risk: Ioan portfolio overview' table in the 'Credit risk' section |
5896 | 5902 | 6024 |
| $= (A) / (B)$ | 42.7% | 44.7% | 44.8% |
Gives an idea of loan impairment charges recognised in the income statement for a specific period, relative to the total loan portfolio (see 'Loan portfolio' for definition). In the longer term, this ratio can provide an indication of the credit quality of the portfolio.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Net changes in impairment for credit risks (A) |
'Consolidated income statement': component of 'Impairment' |
$-204$ | 1068 | 961 |
| Average outstanding loan portfolio (B) | 'Credit risk: loan portfolio overview' table in the 'Credit risk' section |
181694 | 177 542 | 177 398 |
| $= (A)$ (annualised) / (B) | $-0.22%$ | 0.60% | 0.64% |
The credit cost ratio of FY 2020 and 1H 2020 includes a total collective Covid-19 expected credit loss (ECL) of 783 million euros in FY 2020 or 789 million euros in 1H 2020 . Without the collective Covid-19 ECL impact, the credit cost ratio amounts to 0.16% in FY 2020 or 0.20% in 1H 2020.
In the first half of 2021, the credit cost ratio excluding the decrease of the collective Covid-19 ECL of 155 million euros, amounts to -0.06%.
Indicates the proportion of impaired loans in the loan portfolio (see 'Loan portfolio' for definition) and, therefore, gives an idea of the creditworthiness of the portfolio. Impaired loans are loans where it is unlikely that the full contractual principal and interest will be repaid/paid. These loans have a KBC default status of PD 10, PD 11 or PD 12. Where appropriate, the numerator in the formula may be limited to impaired loans that are more than 90 days past due (PD 11 + PD 12). Relevant figures for that calculation are given in the 'Credit Risk' section.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Amount outstanding of impaired loans (A) | 'Credit risk: loan portfolio overview' table in the 'Credit risk' section |
5896 | 5902 | 6024 |
| Total outstanding loan portfolio (B) | 'Credit risk: Ioan portfolio overview in the 'Credit' risk' section |
182497 | 180 891 | 179 366 |
| $= (A) / (B)$ | 3.2% | 3.3% | 3.4% |
Gives an idea of the group's solvency, based on a simple non-risk-weighted ratio. A detailed calculation can be found under 'Solvency KBC Group' section.
Gives an idea of the bank's liquidity position in the short term, more specifically the extent to which the group is able to overcome liquidity difficulties over a one-month period. It is the average of 12 end-of-month LCR figures.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Stock of high-quality liquid assets (A) | Based on the European Commission's Delegated Act on LCR and the European Banking Authority's guidelines for LCR disclosure |
94 30 8 | 81 833 | 74 512 |
| Total net cash outflows over the next 30 calendar days (B) |
56 808 | 55 7 14 | 54 705 | |
| $= (A) / (B)$ | 166% | 147% | 136% |
Gives an idea of the magnitude of (what are mainly traditional) lending activities.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Loans and advances to customers (A) $\ddot{}$ |
Note 4.1, component of 'Loans and advances to customers' |
164 344 | 159 621 | 157 563 |
| Reverse repos (not with Central Banks) (B) | Note 4.1, component of 'Reverse repos with credit institutions and investment firms' |
751 | 3 2 9 5 | 3 4 3 9 |
| $\ddot{}$ | ||||
| Debt instruments issued by corporates and by credit institutions and investment firms (banking) (C) |
Note 4.1, component of 'Debt instruments issued by corporates and by credit institutions and investment firms' |
5 1 5 0 | 6056 | 6 2 3 5 |
| $\ddot{}$ | ||||
| Other exposures to credit institutions (D) | 4 1 8 7 | 4 0 0 9 | 4808 | |
| $\ddot{}$ | ||||
| Financial guarantees granted to clients and other commitments (E) |
Note 6.1, component of 'Financial guarantees given' |
8 4 8 1 | 7919 | 8 1 7 0 |
| $\ddot{}$ | ||||
| Impairment on loans (F) | Note 4.2, component of 'Impairment' |
3 3 9 8 | 3703 | 3680 |
| $+$ | ||||
| Insurance entities (G) | Note 4.1, component of 'Loans and advances to customers' |
$-2106$ | $-2198$ | $-2290$ |
| $\ddot{}$ | ||||
| Non-loan-related receivables (H) | $-413$ | $-592$ | $-939$ | |
| $+$ | ||||
| Other (I) | Component of Note 4.1 | $-1296$ | $-923$ | $-1299$ |
| Gross Carrying amount = $(A)+(B)+(C)+(D)+(E)+(F)+(G)+(H)+(I)$ | 182 497 | 180 891 | 179 366 |
Gives an idea of the net interest income of the banking activities (one of the most important sources of revenue for the group) relative to the average total interest-bearing assets of the banking activities.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Net interest income of the banking activities (A) | 'Consolidated income statement': component of 'Net interest income' |
1883 | 3 7 8 8 | 1917 |
| Average interest-bearing assets of the banking activities (B) | 'Consolidated balance sheet': component of 'Total assets' |
209 785 | 203616 | 201 557 |
| $=$ (A) (annualised x360/number of calendar days) / (B) | 1.79% | 1.84% | .89% |
The net interest margin takes into account the banking group net interest income, excluding dealing room and the net positive impact of ALM FX swaps & repos.
Gives an idea of the bank's structural liquidity position in the long term, more specifically the extent to which the group is able to overcome liquidity difficulties over a one-year period.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Available amount of stable funding (A) | As of 2020: Regulation (EU) 2019/876 dd. 20-05- 2019 |
222 014 | 209 932 | 203 437 |
| Required amount of stable funding (B) | 146 226 | 143 901 | 143 056 | |
| $= (A) / (B)$ | 151.8% | 145 9% | 142.2% |
Gives the carrying value of a KBC share, i.e. the value in euros represented by each share in the parent shareholders' equity of KBC.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Parent shareholders' equity (A) | 'Consolidated balance sheet' | 21 600 | 20 030 | 18 570 |
| Number of ordinary shares less treasury shares | Note 5.10 | 417 | 417 | 416 |
| (at period-end) (B) | ||||
| $= (A) / (B)$ (in EUR) | 51.84 | 48.07 | 44.60 |
The parent shareholder's equity of 1H 2020 has been retrospectively restated. For more information, see Statement of compliance (note 1.1) in of the annual report of 2020.
Gives an idea of the relative profitability of a business unit, more specifically the ratio of the net result to the capital allocated to the business unit.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| BELGIUM BUSINESS UNIT | ||||
| Result after tax (including minority interests) of the business unit (A) |
Note 2.2: Results by segment | 908 | 1 0 0 1 | 119 |
| The average amount of capital allocated to the business unit is based on the risk-weighted assets for the banking activities |
7 1 6 6 | 6894 | 6836 | |
| (under Basel III) and risk-weighted asset equivalents for the insurance activities (under Solvency II) (B) |
||||
| $=$ (A) annualised / (B) | 25.3% | 14.5% | 3.5% | |
| CZECH REPUBLIC BUSINESS UNIT | ||||
| Result after tax (including minority interests) of the business unit $(A)$ |
Note 2.2: Results by segment | 291 | 375 | 165 |
| The average amount of capital allocated to the business unit is based on the risk-weighted assets for the banking activities (under Basel III) and risk-weighted asset equivalents for the insurance activities (under Solvency II) (B) |
1748 | 1717 | 1717 | |
| $=$ (A) annualised / (B) | 33.2% | 21.7% | 19.2% | |
| INTERNATIONAL MARKETS BUSINESS UNIT | ||||
| Result after tax (including minority interests) of the business unit $(A)$ |
Note 2.2: Results by segment | 228 | 199 | $-11$ |
| 2 3 2 4 | ||||
| The average amount of capital allocated to the business unit is based on the risk-weighted assets for the banking activities (under Basel III) and risk-weighted asset equivalents for the insurance activities (under Solvency II) (B) |
2 5 5 6 | 2 3 6 7 | ||
| $= (A)$ annualised / (B) | 17.9% | 8.4% | $-0.9%$ |
Gives an idea of the relative profitability of the group, more specifically the ratio of the net result to equity.
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Result after tax, attributable to equity holders of the parent (A) |
'Consolidated income statement' | 1 350 | 1440 | 205 |
| Coupon on the additional tier-1 instruments included in equity (B) |
'Consolidated statement of changes in equity' | $-25$ | $-50$ | $-25$ |
| Average parent shareholders' equity, excluding the revaluation reserve for FVOCI instruments and for FVPL equity instruments – overlay approach (C) |
'Consolidated statement of changes in equity' | 19421 | 17 954 | 17 312 |
| $= (A-B)$ (annualised) / (C) | 13.6% | 7.7% | 2.1% |
The return on equity amounts to 15% in 1H 2021 when including evenly spreading of the bank taxes throughout the year.
The parent shareholder's equity of 1H 2020 has been retrospectively restated. For more information, see Statement of compliance (note 1.1) in of the annual report of 2020.
Total sales of life insurance compromise life insurance premiums and unit-linked life insurance premiums (as required under IFRS, we use margin deposit accounting for most of these unit-linked contracts, which means they are not recognised under 'Earned insurance premiums').
| Calculation (in millions of EUR or %) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Life Insurance - earned premiums (before reinsurance) (A) | 'Consolidated income statement' | 564 | 1 2 2 3 | 574 |
| $+$ | ||||
| Life insurance: difference between written and earned premiums (before reinsurance) (B) |
2 | |||
| $\pm$ | ||||
| Investment contracts without discretionary participation feature (large part of unit-linked) – margin deposit accounting (C) |
400 | 764 | 413 | |
| Total sales Life $(A)$ + $(B)$ + $(C)$ | 965 | 1989 | 988 |
Measures the solvency of the insurance business, as calculated under Solvency II.
A detailed calculation can be found under 'Solvency banking and insurance activities separately' section.
Total assets under management (AuM) comprise third-party assets and KBC group assets managed by the group's various asset management companies (KBC Asset Management, ČSOB Asset Management, etc.), as well as assets under advisory management at KBC Bank. The assets, therefore, consist mainly of KBC investment funds and unit-linked insurance products, assets under discretionary and advisory management mandates of (mainly retail, private banking and institutional) clients, and certain group assets. The size and development of total AuM are major factors behind net fee and commission income (generating entry and management fees) and hence account for a large part of any change in this income line. In that respect, the AuM of a fund that is not sold directly to clients but is instead invested in by another fund or via a discretionary/advisory management portfolio, are also included in the total AuM figure, in view of the related work and any fee income linked to them.
| Calculation (in billions of EUR or quantity) | Reference | 1H 2021 | 2020 | 1H 2020 |
|---|---|---|---|---|
| Belgium Business Unit (A) | Company presentation on www.kbc.com | 208 | 194 | 185 |
| Czech Republic Business Unit (B) | ||||
| International Markets Business Unit (C) | 6 | 5. | ||
| $A)+(B)+(C)$ | 228 | 212 | 202 |
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