KBC Group: KBC remains adequately capitalised under 2016 EU-wide EBA stress test.

ID: 1449929
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(Thomson Reuters ONE) -

Press Release

Outside trading hours - Regulated information*

Brussels, 29 July 2016 (10.00 p.m. CEST)

KBC remains adequately capitalised under 2016 EU-wide EBA stress test.

KBC notes the announcements made today by the European Banking Authority (EBA)
regarding the results of the 2016 EU-wide stress test. A brief slide set on the
KBC data is available at www.kbc.com.

The impact of the stress test on KBC''s fully loaded Common Equity Tier-1 ratio
(CET1 ratio: 14.9% at year-end 2015) increased this ratio by 1.3 percentage
points to 16.2% under the baseline scenario (+1.0 percentage points on a
transitional basis). Under the adverse scenario, KBC''s fully loaded CET1 ratio
would fall by 3.6 percentage points to 11.3% (-3.9 percentage points on a
transitional basis, likewise falling to 11.3%). KBC''s leverage ratio, which
stood at 6.32% at the end of 2015, would increase to 7.4% under the baseline
scenario and only decrease to 5.7% under the adverse scenario.

Johan Thijs, KBC Group CEO had this to say on today''s announcements: ''KBC
acknowledges the outcome of the EBA''s theoretical exercise, which provides us
with additional insights into KBC''s capital requirements under different
economic hypotheses. The outcome of the exercise also provides a reassuring
signal to all stakeholders placing their trust in us that our institution is
well capitalised. KBC will continue to ensure that appropriate levels of capital
are maintained. The result is also illustrative of KBC''s strong fundamentals in
the form of a healthy client-driven bank-insurance business model, a robust
liquidity position supported by a very solid and loyal client deposit base in
our core markets of Belgium, the Czech Republic, Slovakia, Hungary and Bulgaria,

as well as in Ireland, and a comfortable level of solvency that enables us to
continue increasing our lending to clients and to actively support the
communities and economies we are active in.''

KBC was subject to the 2016 EU-wide stress test conducted by the European
Banking Authority (EBA) in cooperation with the National Bank of Belgium (NBB),
the European Central Bank (ECB), the European Commission (EC) and the European
Systemic Risk Board (ESRB).

KBC notes the announcements made today by the EBA on the EU-wide stress test and
fully acknowledges the outcomes of this exercise. The 2016 EU-wide stress test
does not contain a pass-fail threshold, but is designed instead to be used as a
crucial piece of information for the supervisory review process in 2016. The
results will thus allow competent authorities to assess KBC''s ability to meet
applicable minimum and additional own funds requirements under stressed
scenarios based on a common methodology and assumptions.

The adverse stress test scenario was set by the ECB/ESRB and covers a three-year
time horizon (2016-2018). The stress test was carried out applying a static
balance sheet assumption as at December 2015, and therefore does not take into
account future business strategies and management actions. It is not a forecast
of KBC''s profits.


The 2016 EU-wide stress test is a constrained bottom-up exercise that provides
banks with a common methodology and templates to project in a consistent way the
impact of common scenarios, allowing stakeholders to homogeneously compare and
assess the resilience of EU banks and the EU banking system to shocks. The
exercise is conducted under a static balance sheet assumption. No hurdle rates
or capital thresholds are defined for the purpose of the 2016 exercise.
The exercise entails analysing how a bank''s capital position develops assuming a
static balance sheet over a period of three years until 2018, under both a
baseline and an adverse scenario. The adverse scenario reflects the four
systemic risks that were considered by the ESRB to constitute the most material
threats to the stability of the EU banking sector: (i) an abrupt rise in
currently low global bond yields, amplified by low secondary market liquidity;
(ii) weak profitability prospects for banks in a low nominal growth environment
amid incomplete balance sheet adjustments; (iii) rising debt sustainability
concerns in the public and non-financial private sectors amid low nominal
growth; (iv) prospective stress in a rapidly growing shadow banking sector,
amplified by spillover and liquidity risk.
An extensive Q&A, plus details of the methodology and the baseline and adverse
scenarios, are available on the ECB''s and EBA''s websites.

This information is provided for comparison purposes only and should not in any
way be directly compared to KBC''s other published information.

For more information, please contact:

Wim Allegaert, General Manager, Investor Relations, KBC Group
Tel.: +32 2 429 50 51 - E-mail: wim.allegaert(at)kbc.be

Viviane Huybrecht, General Manager, Corporate Communication/Spokesperson, KBC
Tel.: +32 2 429 85 45 - E-mail: pressofficekbc(at)kbc.be

* This news item contains information that is subject to the transparency
regulations for listed companies.

KBC Group NV, Havenlaan 2 - 1080 Brussels

KBC press releases are available at www.kbc.com or can be obtained by sending an
e-mail to pressofficekbc(at)kbc.be

Press release KBC Group dd 29-07-2016:

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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: KBC Groep via GlobeNewswire

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Date: 07/29/2016 - 16:10
Language: English
News-ID 1449929
Character count: 1910
Firma: KBC Groep
Ansprechpartner: Feedback to businesspress24.com about Pressrelease-id:
Stadt: Brussels


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