KBC: ECB raises capital requirement

(CercleFinance.com) - KBC announced on Wednesday that the European Central Bank (ECB) has slightly increased the level of capital required from the Belgian banking group in response to unfavourable economic conditions.


The ECB, which is responsible for supervising banks in the eurozone, has raised its 'CET1' requirement from 10.62% to 10.92%, an increase entirely due to KBC's exposure to Eastern European countries, led by Bulgaria and the Czech Republic.

However, at the end of Q3 2023, the bank's fully loaded CET1 ratio stood at 14.6%, well above the new requirement set by the ECB.

CEO Johan Thijs reiterates his group's aim to become one of Europe's best-capitalised financial institutions.

He points out that KBC currently has a payout ratio policy (dividend plus AT1 coupon) of at least 50% of consolidated profit, with the declared aim of improving its capital distribution in the event of a CET1 above 15%.

Following these announcements, KBC shares were up 1% on Wednesday morning in Brussels, making them one of the strongest performers on the BEL 20 index.


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