EBA欧洲银行-BE_213800X3Q9LSAKRUWY91_TR_2017_16页_1mb

2017 EU-wide Transparency Exercise Summary - KBC Group NV

Core Capital and Capital Ratios

Own Funds (Transitional Period)

• Own Funds: Increased from 17,887 mln EUR (31/12/2016) to 18,216 mln EUR (30/06/2017).
• CET1 Capital: Increased from 14,033 mln EUR (31/12/2016) to 14,418 mln EUR (30/06/2017). The CET1 capital includes:
  • Capital instruments eligible as CET1: Decreased slightly from 6,817 mln EUR to 6,814 mln EUR.
  • Retained earnings: Increased from 8,627 mln EUR to 9,233 mln EUR.
  • Accumulated other comprehensive income: Improved from -790 mln EUR to -668 mln EUR.
  • Adjustments to CET1 due to prudential filters: Decreased from 1,197 mln EUR to 1,066 mln EUR.
  • Deductions related to assets with 1.25% risk weight: No changes, remained at 0 mln EUR.
  • Transitional adjustments: Decreased from 147 mln EUR to 88 mln EUR.

Tier 1 and Tier 2 Capital

• Tier 1 Capital: Increased from 15,473 mln EUR to 15,837 mln EUR.
• Tier 2 Capital: Slightly decreased from 2,414 mln EUR to 2,379 mln EUR.

Capital Ratios (Transitional Period)

• Common Equity Tier 1 (CET1) Ratio: Decreased from 16.15% to 15.82%.
• Tier 1 Ratio: Decreased from 17.81% to 17.38%.
• Total Capital Ratio: Decreased from 20.59% to 19.99%.

Fully Loaded CET1 Capital and Ratio

• Fully Loaded CET1 Capital: Decreased from 13,886 mln EUR (31/12/2016) to 14,331 mln EUR (30/06/2017).
• Fully Loaded CET1 Ratio: Decreased from 15.98% to 15.73%.

Leverage Ratio

• Leverage Ratio (Transitional Definition): Decreased from 6.1% to 5.8%.
• Leverage Ratio (Fully Phased-in Definition): Slightly decreased from 6.1% to 5.7%.

Risk Exposure Amounts

Total Risk Exposure Amount

• Increased from 86,881 mln EUR (31/12/2016) to 91,116 mln EUR (30/06/2017).

Breakdown of Risk Exposure Amounts

• Credit Risk: Increased from 71,825 mln EUR to 75,076 mln EUR.
• Securitisation and Re-securitisations (Banking Book): Decreased from 497 mln EUR to 440 mln EUR.
• Contributions to the Default Fund of a CCP: Decreased from 257 mln EUR to 234 mln EUR.
• Other Credit Risk: Increased from 71,070 mln EUR to 74,401 mln EUR.
• Market Risk:
  • Position, Foreign Exchange and Commodities Risk: Increased from 2,411 mln EUR to 3,356 mln EUR.
  • VaR (Average of Previous 60 Days): Increased from 57 mln EUR to 78 mln EUR.
  • Stressed VaR: Increased from 21 mln EUR to 22 mln EUR.
  • Incremental Default and Migration Risk Capital Charge: Increased from 74 mln EUR to 88 mln EUR.
  • All Price Risks Capital Charge for CTP: Increased from 1,954 mln EUR to 2,776 mln EUR.

Profit and Loss (P&L) Summary

Operating Income

• Total Operating Income (Net): Decreased from 6,260 mln EUR to 3,385 mln EUR.
• Interest Income: Decreased from 6,155 mln EUR to 2,856 mln EUR.
• Interest Expenses: Decreased from 2,512 mln EUR to 1,090 mln EUR.
• Net Fee and Commission Income: Decreased from 1,751 mln EUR to 1,016 mln EUR.
• Gains or Losses on Financial Assets: Varying results, including losses of -256 mln EUR in the trading book.
• Exchange Differences: Increased significantly from -93 mln EUR to 738 mln EUR.

Expenses

• Administrative Expenses: Decreased from 3,263 mln EUR to 1,781 mln EUR.
• Depreciation: Decreased from 241 mln EUR to 126 mln EUR.
• Provisions: Varying, with some reversals and increases in specific areas like pending legal issues and tax litigation.

Profit or Loss

• Profit or Loss Before Tax from Continuing Operations: Decreased from 2,912 mln EUR to 1,654 mln EUR.
• Profit or Loss After Tax from Continuing Operations: Decreased from 2,384 mln EUR to 1,365 mln EUR.
• Profit or Loss for the Year: Decreased from 2,384 mln EUR to 1,365 mln EUR.

Credit Risk - Standardised Approach

Consolidated Data

• Standardised Total Risk Exposure Amount: Decreased from 25,884 mln EUR to 24,413 mln EUR.
• Risk Exposure Amount (As of 31/12/2016): 4,179 mln EUR.
• Risk Exposure Amount (As of 30/06/2017): 5,930 mln EUR.
• Value Adjustments and Provisions (As of 31/12/2016): 210 mln EUR.
• Value Adjustments and Provisions (As of 30/06/2017): 568 mln EUR.

Country-Specific Data

• Belgium:
  • Standardised Total: Decreased from 25,884 mln EUR to 24,413 mln EUR.
  • Value Adjustments and Provisions: Decreased from 210 mln EUR to 568 mln EUR.
• Czech Republic:
  • Standardised Total: Decreased from 127 mln EUR to 138 mln EUR.
  • Value Adjustments and Provisions: Increased from 14 mln EUR to 18 mln EUR.
• France:
  • Standardised Total: Increased from 1 mln EUR to 0 mln EUR.
  • Value Adjustments and Provisions: Increased from 0 mln EUR to 0 mln EUR.

Notes

• The fully loaded CET1 capital ratio is calculated using the formula $= \frac{D.1}{B - B.1}$, which may underestimate KBC's real figures due to the exclusion of sovereign carve-outs in transitional provisions.
• The total risk exposure amount includes adjustments for DTA's that rely on future profitability and arise from temporary differences.
• Original exposure is reported before applying credit conversion factors or credit risk mitigation techniques.