EBA欧洲银行-EBA_TR_BE_213800X3Q9LSAKRUWY91_29页_5mb

2016 EU-wide Stress Test Summary

KBC Group NV Overview

Core Data

• LEI Code: 213800X3Q9LSAKRUWY91
• Country Code: BE

Financial Performance (mln EUR, %)

• Cumulative 3y: Net interest income
  • Baseline Scenario: 10,296.74
  • Adverse Scenario: 8,943.96
• Cumulative 3y: Gains or (-) losses on financial assets and liabilities held for trading or designated at fair value through profit and loss, net
  • Baseline Scenario: 541.69
  • Adverse Scenario: -68.34
• Cumulative 3y: Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss
  • Baseline Scenario: -1,022.83
  • Adverse Scenario: -2,490.01
• Cumulative 3y: Profit or (-) loss for the year
  • Baseline Scenario: 4,075.28
  • Adverse Scenario: 372.09

Capital Ratios

• Coverage ratio - Default stock
  • Baseline Scenario: 36.56%
  • Adverse Scenario: 37.73%
• Common Equity Tier 1 capital
  • Baseline Scenario: 15,683.67
  • Adverse Scenario: 11,765.47
• Common Equity Tier 1 ratio, %
  • Baseline Scenario: 16.2%
  • Adverse Scenario: 11.3%
• Fully loaded Common Equity Tier 1 ratio, %
  • Baseline Scenario: 16.2%
  • Adverse Scenario: 11.3%
• Tier 1 capital
  • Baseline Scenario: 17,119.46
  • Adverse Scenario: 13,201.26
• Leverage ratio, %
  • Baseline Scenario: 7.4%
  • Adverse Scenario: 5.7%
• Fully loaded leverage ratio, %
  • Baseline Scenario: 7.3%
  • Adverse Scenario: 5.7%
• Total leverage ratio exposures: 232,497.26

Additional Information

• Total amount of instruments with mandatory conversion into ordinary shares: 0 (in adverse scenario)
• Total Additional Tier 1 and Tier 2 instruments eligible as regulatory capital: 2,319
• Eligible instruments whose trigger is above CET1 capital ratio in adverse scenario: 0

Exposure and Risk Breakdown for KBC Group NV (31/12/2015)

Summary of Key Findings

1. Financial Performance

• The bank's net interest income decreased from the baseline to the adverse scenario, indicating a potential decline in profitability under stress conditions.
• Gains on financial assets declined significantly in the adverse scenario, while impairment charges increased, suggesting higher credit risk exposure.
• Profit for the year dropped from 4,075.28 mln EUR to 372.09 mln EUR under the adverse scenario, reflecting the impact of the stress test assumptions.

2. Capital Adequacy

• The Common Equity Tier 1 ratio decreased from 16.2% to 11.3%, showing a weakening of capital position under stress.
• The leverage ratio also decreased from 7.4% to 5.7%, highlighting a reduced capital buffer.
• The coverage ratio - default stock remained relatively stable, slightly increasing from 36.56% to 37.73%, indicating some resilience in the face of default risk.

3. Exposure Breakdown

• Non-defaulted exposure was the largest portion, with a value of 209,726 mln EUR.
• Defaulted exposure totaled 10,284 mln EUR, with a significant stock of provisions of 1,545 mln EUR, showing the bank's provisions for defaulted assets.
• The coverage ratio for default stock was 56.0%, indicating that the bank's capital is sufficient to cover default risk under the stress scenario.

4. Risk Segmentation

• Corporates and Retail were the main segments contributing to the risk exposure, with Retail showing a higher default risk.
• Secured on real estate property and Other Retail had notable default rates, with the latter having the highest coverage ratio at 59.1%.
• Equity and Securitisation showed minimal risk exposure and provisions, suggesting low risk in these areas.

Additional Country Insights

Belgium

• Total exposure: 4,027 mln EUR
• Defaulted exposure: 81 mln EUR
• Stock of provisions: 229 mln EUR
• Coverage ratio - default stock: 56.0%

Czech Republic

• Total exposure: 35,388 mln EUR
• Defaulted exposure: 2,503 mln EUR
• Stock of provisions: 55 mln EUR
• Coverage ratio - default stock: 46.7%

Ireland

• Total exposure: 8,321 mln EUR
• Defaulted exposure: 5,205 mln EUR
• Stock of provisions: 289 mln EUR
• Coverage ratio - default stock: 50.5%

Slovakia

• Total exposure: 4,027 mln EUR
• Defaulted exposure: 572 mln EUR
• Stock of provisions: 289 mln EUR
• Coverage ratio - default stock: 50.5%

Hungary

• Total exposure: 8,409 mln EUR
• Defaulted exposure: 572 mln EUR
• Stock of provisions: 289 mln EUR
• Coverage ratio - default stock: 50.5%

France

• Total exposure: 6,941 mln EUR
• Defaulted exposure: 116 mln EUR
• Stock of provisions: 2 mln EUR
• Coverage ratio - default stock: 28.1%

Spain

• Total exposure: 2,506 mln EUR
• Defaulted exposure: 0 mln EUR
• Stock of provisions: 0 mln EUR
• Coverage ratio - default stock: 80.1%

Conclusion

The 2016 EU-wide Stress Test provides a comprehensive overview of KBC Group NV and other EU countries' banking sectors under adverse economic conditions. The results indicate that KBC Group NV experienced a decline in net interest income, profits, and capital ratios, but showed a relatively stable coverage ratio for default stock. Other countries, such as Spain, demonstrated very low default exposure and provisions, while others like Ireland and Slovakia showed moderate risk levels. Overall, the test highlights the importance of maintaining adequate capital buffers and risk management practices to withstand economic downturns.