KBC Group Outperforms New ECB Capital Requirements Effectively

Author: Evelyn Baker Updated: 10-30-2025 01:19 PM

KBC Group's Capital Position Surpasses ECB's New Standards

KBC Group has received updates from the European Central Bank (ECB) regarding its capital requirements that are set to be adjusted. Based on the latest Supervisory Review and Evaluation Process (SREP) that took place, the overall fully loaded Common Equity Tier 1 (CET1) requirement for KBC Group has been finely tuned. Specifically, it has been lowered from 10.88% as of the end of the fourth quarter of a recent year to a more manageable 10.85% by the conclusion of the third quarter of the next year.

Understanding the Changed Requirements

This revised capital requirement encompasses several components. The requirements now include a Pillar 1 Requirement of 4.50%, along with a Pillar 2 Requirement (P2R) totaling 1.10%. In addition, a capital conservation buffer of 2.50% is included, alongside a capital buffer for other systemically important institutions (O-SII) that stands at 1.50%. Furthermore, the framework integrates the announced decisions from local competent authorities that speak to the future adjustments of countercyclical capital buffers (1.15%) as well as a sectorial systemic risk buffer of 0.10%.

Adjustment in Pillar 2 Guidance

Moreover, a critical adjustment has taken place in the Pillar 2 Guidance (P2G), which has seen a decline to 1.00%, decreased from its previous 1.25%. This percentage applies to the risk-weighted assets (RWA) of the institution.

Capital Strength of KBC Group

As of the mid-year mark, KBC Group reported an unfloored fully loaded Basel 4 CET1 ratio that reached 14.6%. Impressively, this ratio is significantly above the new requirements set forth by the ECB, demonstrating the bank's robust capital reserve and stability.

Inquiries and Further Information

For individuals seeking additional insight into KBC Group's operations or financial health, they are encouraged to reach out to the following contacts:

Kurt De Baenst, General Manager, Investor Relations, KBC Group

Telephone: +32 2 429 35 73 - IR4U@kbc.be

Katleen Dewaele, General Manager, Corporate Communications, KBC Group

Telephone: +32 475 78 08 66 – pressofficekbc@kbc.be

Frequently Asked Questions

What is KBC Group's CET1 ratio according to the latest update?

KBC Group's CET1 ratio is reported at 14.6%, exceeding the new capital requirements.

What changes has the ECB made to KBC's capital requirements?

The ECB lowered KBC's CET1 requirement from 10.88% to 10.85% for the upcoming period.

What does P2G stand for, and what is its new value?

Pillar 2 Guidance (P2G) is now set at 1.00%, down from 1.25%.

When will the new capital requirements take effect?

The new requirements will be effective from the third quarter of the next year.

Who should I contact for more information regarding KBC Group?

Contact Kurt De Baenst or Katleen Dewaele for further inquiries about KBC Group.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

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