EBA欧洲银行-EBA_ST_BE_213800X3Q9LSAKRUWY91_34页_5mb

2018 EU-wide Stress Test Summary for KBC Group NV

Core Information

• Bank Name: KBC Group NV
• LEI Code: 213800X3Q9LSAKRUWY91
• Country Code: BE (Belgium)

Financial Performance

Credit Risk IRB Summary

Overall

• IRB Total (mln EUR): 199,986 (Restated 31/12/2017)
• Non-performing exposure (mln EUR): 178,410 (Baseline) / 9,152 (Adverse)
• Coverage Ratio - Non performing exposures (%): 47.3% (Baseline) / 42.9% (Adverse)

Segments

Corporates

• Total Exposure (mln EUR): 59,670 (A-IRB) / 35,819 (F-IRB)
• Non-performing exposure (mln EUR): 58,994 (A-IRB) / 33,566 (F-IRB)
• Stock of provisions (mln EUR): 2,199 (A-IRB) / 1,479 (F-IRB)
• Of which: from non-performing exposures (mln EUR): 2,041 (A-IRB) / 975 (F-IRB)
• Coverage Ratio (%): 54.1% (A-IRB) / 51.4% (F-IRB)

Retail

• Total Exposure (mln EUR): 79,578 (A-IRB) / 51,854 (F-IRB)
• Non-performing exposure (mln EUR): 79,566 (A-IRB) / 51,842 (F-IRB)
• Stock of provisions (mln EUR): 4,600 (A-IRB) / 2,071 (F-IRB)
• Of which: from non-performing exposures (mln EUR): 4,600 (A-IRB) / 1,331 (F-IRB)
• Coverage Ratio (%): 47.3% (A-IRB) / 42.9% (F-IRB)

Retail - Secured on real estate property

• Total Exposure (mln EUR): 68,189 (A-IRB) / 44,115 (F-IRB)
• Non-performing exposure (mln EUR): 68,189 (A-IRB) / 44,115 (F-IRB)
• Stock of provisions (mln EUR): 2,365 (A-IRB) / 1,479 (F-IRB)
• Of which: from non-performing exposures (mln EUR): 1,947 (A-IRB) / 1,331 (F-IRB)
• Coverage Ratio (%): 40.1% (A-IRB) / 58.6% (F-IRB)

Retail - Secured on real estate property - Of Which: SME

• Total Exposure (mln EUR): 10,122 (A-IRB) / 9,993 (F-IRB)
• Non-performing exposure (mln EUR): 10,122 (A-IRB) / 9,993 (F-IRB)
• Stock of provisions (mln EUR): 416 (A-IRB) / 376 (F-IRB)
• Of which: from non-performing exposures (mln EUR): 236 (A-IRB) / 245 (F-IRB)
• Coverage Ratio (%): 42.0% (A-IRB) / 69.8% (F-IRB)

Retail - Secured on real estate property - Of Which: non-SME

• Total Exposure (mln EUR): 58,066 (A-IRB) / 34,122 (F-IRB)
• Non-performing exposure (mln EUR): 58,066 (A-IRB) / 34,122 (F-IRB)
• Stock of provisions (mln EUR): 1,914 (A-IRB) / 1,479 (F-IRB)
• Of which: from non-performing exposures (mln EUR): 1,914 (A-IRB) / 1,331 (F-IRB)
• Coverage Ratio (%): 40.1% (A-IRB) / 58.6% (F-IRB)

Retail - Other Retail

• Total Exposure (mln EUR): 10,556 (A-IRB) / 6,906 (F-IRB)
• Non-performing exposure (mln EUR): 10,544 (A-IRB) / 6,894 (F-IRB)
• Stock of provisions (mln EUR): 2,049 (A-IRB) / 1,331 (F-IRB)
• Of which: from non-performing exposures (mln EUR): 1,989 (A-IRB) / 1,331 (F-IRB)
• Coverage Ratio (%): 69.8% (A-IRB) / 58.6% (F-IRB)

Key Observations

• Profitability: KBC Group NV experienced a decline in profit for the year under the adverse scenario, with a loss of -374 mln EUR by 31/12/2020.
• Capital Adequacy: The Common Equity Tier 1 ratio decreased from 16.46% (31/12/2017) to 13.60% (31/12/2020) under the adverse scenario, indicating a potential capital stress.
• Leverage Ratio: The leverage ratio also declined under the adverse scenario, from 6.08% (31/12/2017) to 5.75% (31/12/2020), suggesting increased leverage pressure.
• Credit Risk Exposure: The IRB total exposure was high, with significant non-performing exposures. The coverage ratio for non-performing exposures dropped from 47.3% (Baseline) to 42.9% (Adverse), indicating a potential risk of insufficient capital coverage for bad loans.
• Sector-Specific Risk: Retail and corporate sectors showed the most significant exposure to non-performing loans, with retail having the highest coverage ratio in the adverse scenario.

Additional Notes

• Mandatory Conversion Instruments: No instruments with mandatory conversion into ordinary shares were included in the CET1 computation for the 2018–2020 period.
• Eligible Instruments: Additional Tier 1 and Tier 2 instruments eligible for regulatory capital under CRR provisions amounted to 1,400 mln EUR, with no trigger events above CET1 in the adverse scenario.
• Methodology: All figures are computed based on the Methodological note, paragraphs 49 and 112.