Investor Presentaiton
KBC
Glossary
72
of 74
B3/B4
CBI
Combined ratio (non-life
insurance)
Common equity ratio
Cost/income ratio (group)
Cost/income ratio adjusted
for specific items
Credit cost ratio (CCR)
EBA
ESMA
ESFR
FICOD
Impaired loans cover ratio
Impaired loans ratio
Leverage ratio
Liquidity coverage ratio (LCR)
Management overlay
MREL
Net interest margin (NIM) of
the group
Net stable funding ratio (NSFR)
PD
Return on allocated capital
(ROAC) for a particular
business unit
Return on equity
Basel III/Basel IV
Central Bank of Ireland
[technical insurance charges, including the internal cost of settling claims / earned premiums] + [operating expenses / written premiums] (after reinsurance in each case)
[common equity tier-1 capital] / [total weighted risks]
[operating expenses of the group] / [total income of the group]
The numerator and denominator are adjusted for (exceptional) items which distort the P&L during a particular period in order to provide a better insight into the underlying business trends.
Adjustments include (i) MtM ALM derivatives (fully excluded), (ii) bank & 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 IFRIC21) and (iii) one-off items
[annualised net changes in individual and portfolio-based impairment for credit risks] / [average outstanding loan portfolio]. Note that, inter alia, government bonds are not included in this
formula. As the full collective Covid-19 expected credit losses (ECL) have been booked in 1H20, they were not annualised to calculate the ratio in 1H20
European Banking Authority
European Securities and Markets Authority
European Single Resolution Fund
Financial Conglomerates Directive
[total specific impairments on the impaired loan portfolio (stage 3)]/ [part of the loan portfolio that is impaired (PD 10-11-12)]
[part of the loan portfolio that is impaired (PD 10-11-12)] / [total outstanding loan portfolio]
[regulatory available tier-1 capital] / [total exposure measures]. The exposure measure is the total of non-risk-weighted on and off-balance sheet items, based on accounting data. The
risk reducing effect of collateral, guarantees or netting is not taken into account, except for repos and derivatives. This ratio supplements the risk-based requirements (CAD) with a simple,
non-risk-based backstop measure
[stock of high quality liquid assets] / [total net cash outflow over the next 30 calendar days]
Our Expected Credit Loss (ECL) models were 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
Minimum requirement for own funds and eligible liabilities
[banking group net interest income excluding dealing room] / [banking group average interest-bearing assets excluding dealing room]
[available amount of stable funding] / [required amount of stable funding]
Probability of default
[result after tax, including minority interests, of a business unit, adjusted for income on allocated capital instead of real capital] / [average capital allocated to the business unit]. The
capital allocated to a business unit is based on risk-weighted assets for banking and risk-weighted asset equivalents for insurance
[result after tax, attributable to equity holders of the parent] / [average parent shareholders' equity, excluding the revaluation reserve for fair value through Other Comprehensive Income
(OCI) assets]
Total loss-absorbing capacity
TLAC
Highlights
Profit & Loss
Capital & Liquidity
Looking forward
BU & FY22 view
Company profile
KBC Strategy
Sustainability
Asset quality
MREL & FundingView entire presentation