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Investor Presentaiton

KBC Above resolution requirements of 2022 in terms of MREL MREL targets • • The resolution plan for KBC is based on a Single Point of Entry (SPE) approach at KBC Group level, with bail-in as the preferred resolution tool In December 2022, the SRB communicated updated draft MREL targets (under BRRD2) for 01-01-2024, expressed as a percentage of Risk Weighted Assets (RWA) and Leverage Ratio Exposure Amount (LRE) The new binding MREL targets (incl. CBR on top of the MREL target in % of RWA) are: • 27.87% of RWA as from 01-01-2024 (including CBR2 of 4.95% as from 4Q2023), with an intermediate target as from 01-01-2022, reaching 26.21% at YE2022 (including CBR³ of 4.58%) 7.38% of LRE as from 01-01-2024, with an intermediate target of 7.34% of LRE as from 01-01-2022 MREL actuals in bn EUR in % of RWA 30.3 27.5% in % of LRE 8.7% HoldCo senior 11.5 10.5% 3.3% T2 1.8 1.6% 0.5% 0.4% AT1 1.5 1.4% CET1 15.5 14.1% 4.5% FY22 FY22 FY22 1. The official MREL decision is expected during 2Q23 2. Combined Buffer Requirement as of 01-01-2024= Conservation Buffer (2.5%) + O-SII buffer (1.5%) + Countercyclical Buffer (0.75%) + Systemic Risk Buffer (0,20%) 3. Combined Buffer Requirement at YE 2022 = Conservation Buffer (2.5%) + O-SII buffer (1.5%) + Countercyclical Buffer (0.39%) + Systemic Risk Buffer (0,20%) Highlights 69 of 74 • The MREL ratio in % of RWA increased from 27.2% in 3Q22 to 27.5% in 4Q22. This is driven mainly by the issuance of a new Holdco senior instrument and an increase of the CET1 capital The MREL ratio in % of LRE increased from 8.6% in 3Q22 to 8.7% in 4Q22, driven by the issuance of a new HoldCo senior instrument, an increase of the CET1 capital and a decrease of the leverage ratio exposure Profit & Loss Capital & Liquidity Looking forward BU & FY22 view Company profile KBC Strategy Sustainability Asset quality MREL & Funding
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