Kbc Group N.v. · EURONEXT:KBC
Kbc — Debt Investor Presentation (November 2018)
76 slides from Kbc's debt investor presentation, November 2018
Slide 1: KBC Group / Bank Debt presentation November 2018
KBC Group / Bank Debt presentation November 2018 More infomation: www.kbc.com KBC Group - Investor Relations Office – Email: investor.relations@kbc.com 1
Slide 2: Important information for investors
Important information for investors This presentation is provided for information purposes only. It does not constitute an offer to sell or the solicitation to buy any security issued by the KBC Group. KBC believes that this presentation is reliable, although some information is condensed and th
Slide 3: KBC Passport
KBC Passport Well-defined core markets: access to ‘new growth’ in Europe Market share (end ’17) BE CZ SK HU BG IRL 20% 20% Loans and deposits 11% 11% 10% 8%* 3.5m clients 3.7m clients 627 branches 265 branches 33% 99bn EUR loans 23bn EUR loans 22% 13% 13% Investment funds 7% 132bn EUR dep. 32bn EUR
Slide 4: KBC Passport: legal structure and issuer of debt instruments
KBC Passport Group’s legal structure and issuer of debt instruments KBC Group NV AT 1 Tier 2 MREL Senior 100% 100% 48% 52% KBC Bank KBC Asset Management KBC Insurance Covered bond No public issuance No public issuance KBC IFIMA* Retail and Wholesale EMTN * All debt obligations of KBC I
Slide 5: Contents
Contents SHAREHOLDER STRUCTURE AT END 9M18 1 Other core Strategy and business profile MRBB 7.4% Cera 11.5% 2 Financial performance 2.7% 3 Balance sheet KBC Ancora 18.6% 4 Solvency and liquidity 59.8% Free float 5 MREL strategy Roughly 40% of KBC shares are owned by a syndicate of core shareholders
Slide 6: KBC Group in a nutshell (1)
KBC Group in a nutshell (1) We want to be among Europe’s best performing financial institutions! By achieving this, KBC wants to become the reference in bank-insurance in its core markets • We are a leading European financial group with a focus on providing bank-insurance products and services to
Slide 7: KBC Group in a nutshell (2)
KBC Group in a nutshell (2) High profitability CET1 generation C/I ratio Combined ratio Net result ROE before any deployment 296 bps 277 bps 279 bps EUR 55% 88% 2575m EUR 17% 57% 88% 1948m 17% 2015 2016 2017 FY17 9M18 Solid capital position… … and robust liquidity positions Fully loaded Basel
Slide 8: KBC Group in a nutshell (3)
KBC Group in a nutshell (3) We aim to be one of the better capitalised financial institutions in Europe • Every year, we assess the CET1 ratios of a peer Flexible buffer for M&A 2.0% group of European banks active in the retail, SME and corporate client segments. We position ourselves on the fully
Slide 9: More of the same, but differently
More of the same, but differently Wants to be among the best performing financial institutions in Europe KBC wants to be among Europe’s best performing financial institutions. This will be achieved by: • Strengthening our bank-insurance business model for retail, SME and mid-cap clients in our cor
Slide 10: Our bank-insurance model
Our bank-insurance model In different countries and different stages of implementation Level 4: Integrated distribution and operation Acting as a single operational company: bank and insurance operations working under unified governance and achieving commercial and non- Belgium commercial synergies
Slide 11: Sustainability
Sustainablity The core of our sustainability strategy Strict policies for our day-to-day activities Four focus domains that are close to our core activities Focus on sustainable investments Limiting our Increasing our Financial Stimulating Reducing our own environmental adverse impact positive impac
Slide 12: Our non-financial environmental targets
Sustainablity Our non-financial environmental targets Indicator Goal 2017 2016 Share of renewables in total energy Minimum 50% by 2030 41.2% 42.1% credit portfolio Financing of coal-related activities Immediate stop of coal-related activities and Progress in line with target Progress in line with gr
Slide 13: First green bond issuance
Sustainability First green bond issuance KBC GREEN PORTFOLIO APPROACH KBC will ensure the Certification Inclusion of existing and availability of sufficient On 23 May 2018, the Climate new Green Green Assets to match Bonds Standard Board Assets Green funding approved the certification of the propo
Slide 14: Enhanced channels for empowered clients
More of the same… but differently… Enhanced channels for empowered clients Creating superior client satisfaction via a seamless, multi-channel client-centric distribution approach Investing €1.5bn cash-flow (2017-20): • Further optimise our integrated distribution model according to a real-time omni
Slide 15: Group financial guidance
KBC the reference… Group financial guidance (Investor visit 2017) Guidance CAGR total income (‘16-’20)* ≥ 2.25% by 2020 C/I ratio banking excluding bank tax ≤ 47% by 2020 C/I ratio banking including bank tax ≤ 54% by 2020 Combined ratio ≤ 94% by 2020 Dividend payout ratio ≥ 50% as of now * Excluding
Slide 16: Group non-financial guidance
KBC the reference… Group non-financial guidance (Investor visit 2017) Non-financial guidance: Non-financial guidance: CAGR Bank-Insurance clients CAGR Bank-Insurance stable clients (1 bank product + 1 insurance product) (3 bk + 3 ins products in Belgium; 2 bk + 2 ins products in CEE) BU BE > 2% by 2
Slide 17: Contents
Contents BREAKDOWN OF ALLOCATED CAPITAL BY BUSINESS UNIT AS AT 1 Strategy and business profile 30 SEPTEMBER 2018 2 Financial performance Czech Republic 16% 3 Balance sheet Belgium 61% 4 Solvency and liquidity 21% International Markets 5 MREL strategy 2% Group Centre 6 Looking forward Appendices 17
Slide 18: 3Q 2018 key takeaways
KBC Group 3Q 2018 key takeaways 3Q18 financial performance Commercial bank-insurance franchises in core markets performed well 9M18 Customer loans and customer deposits ROE 17%* increased in most of our core countries Cost-income ratio 57% (excl. specfic items) Good net interest income and
Slide 19: Main exceptional items
Main exceptional items 3Q18 2Q18 3Q17 Opex – Expenses for early retirement -4m EUR BE BU Opex - Facility expenses +1m EUR Technical charges non-life: release of provisions +26m EUR Technical charges life: release of provisions +23m EUR Total Exceptional Items BE BU -4m EUR +1m EUR +49m EUR Opex – Re
Slide 20: Net result at KBC Group
Net result at KBC Group CONTRIBUTION OF BANKING ACTIVITIES TO KBC GROUP NET RESULT* 750 603 575 574 526 461 NET RESULT AT KBC GROUP* 330 855 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 691 692 701 630 556 CONTRIBUTION OF INSURANCE ACTIVITIES 399 TO KBC GROUP NET RESULT* 137 155 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Slide 21: Good net interest income and net interest margin
Good net interest income and net interest margin NII (pro forma for 2017*) Amounts in m EUR 1,081 1,094 1,114 1,137 1,125 1,117 1,136 2 17 Net interest income (1,136m EUR) 143 3 28 142 21 144 22 135 47 128 27 124 19 128 • Up by 2% both q-o-q and y-o-y. Note that NII banking 3 2 3 0 1 increased by
Slide 22: Lower net fee and commission income
Lower net fee and commission income F&C (pro forma for 2017*) Amounts in m EUR Net fee and commission income (424m EUR) 463 454 456 450 • Down by 3% q-o-q and by 2% y-o-y 433 438 424 • Q-o-q decrease was the result chiefly of: 208 213 213 229 215 223 219 o lower securities-related fees (holiday se
Slide 23: Insurance premium income up y-o-y and excellent combined ratio
Insurance premium income up y-o-y and excellent combined ratio PREMIUM INCOME (GROSS EARNED PREMIUMS) Insurance premium income (gross earned 794 premiums) at 696m EUR 672 636 660 714 707 696 • Non-life premium income (403m) increased by 7% 410 y-o-y 336 315 293 312 267 282 • Life premium income (2
Slide 24: Non-life sales up y-o-y, life sales down y-o-y
Non-life sales up y-o-y, life sales down y-o-y NON-LIFE SALES (GROSS WRITTEN PREMIUM) Sales of non-life insurance products 468 492 • Up by 8% y-o-y thanks to a good commercial performance in all major product lines in our core 382 378 358 349 342 markets and tariff increases 1Q17 2Q17 3Q17 4Q17 1Q
Slide 25: Higher FV gains and other net income
Higher FV gains and other net income FV GAINS (pro forma for 2017*) The higher q-o-q figures for net gains from 180 financial instruments at fair value were 130 attributable mainly to: 118 • a positive change in ALM derivatives 86 94 96 79 110 94 54 • a positive change in market, credit and fundin
Slide 26: Operating expenses up, partly due to one-offs
Operating expenses up, partly due to one-offs Cost/income ratio (banking) adjusted for specific OPERATING EXPENSES Bank taxes of 421m EUR YTD. items* at 58% in 3Q18 and 57% YTD On a pro rata basis, bank taxes 1,229 1,291 represented 10.9% of 9M18 • Operating expenses excluding bank tax went up by
Slide 27: Net impairment releases, excellent credit cost ratio and improved impaired loans ratio
Net impairment releases, excellent credit cost ratio and improved impaired loans ratio ASSET IMPAIRMENT 31 2 Very low asset impairments 10 8 29 • This was attributable mainly to: 21 20 7 1 5 6 6 o net loan loss impairment releases in Ireland of 15m EUR -8 -21 -76 -27 -63 -2 (compared with 39m in 2
Slide 28: Overview of contribution of business units to 9M18 result
Overview of contribution of business units to 9M18 result Amounts in m EUR NET PROFIT – KBC GROUP 9M18 ROAC: 24% 2,639 2,575 2,427 462 863 1,948 685 1,762 473 2,113 1,776 1,742 1,289 2014 2015 2016 2017 9M18 4Q 9M NET PROFIT – BELGIUM NET PROFIT – CZECH REPUBLIC NET PROFIT – INTERNATIONAL MARKETS 9M
Slide 29: Contents
Contents 1 Strategy and business profile 2 Financial performance 3 Balance sheet 4 Solvency and liquidity 5 MREL strategy 6 Looking forward Appendices 29
Slide 30: Loans and deposits continue to grow in most core countries
Balance sheet: Loans and deposits continue to grow in most core countries 12% 11% BE 8% 6% 2% 2% Y-O-Y ORGANIC* VOLUME GROWTH Loans** Retail Deposits*** Loans** Retail Deposits*** mortgages mortgages CR 8% 8% 5% 4% 4% 3% 3% 3% 0% Loans** Retail Deposits*** Loans** Retail Deposits*** 4% mortgages mor
Slide 31: Balance sheet: KBC Group consolidated at September 2018
Balance sheet KBC Group consolidated at 30 September 2018 Total assets Total liabilities and equity (EUR 305bn) (EUR 305bn) Credit quality 146 160 Capital adequacy & liquidity position 19 61 34 14 19 5 13 6 78 54 Loan book (loans and advances to customers) Deposits from customers Investment portfoli
Slide 32: Sectorial breakdown of outstanding loan portfolio
Sectorial breakdown of outstanding loan portfolio (167bn EUR*) of KBC Bank Consolidated Services 11% Distribution Oil, gas & other fuels Electricity 7% Hotels, bars & restaurants Shipping 0.8% 1.6% Private Persons 0.7% Food producers 40% 1.0% 1.6% Machinery & heavy equipment 1.1% 15% Rest Chemicals
Slide 33: Investment portfolio (as per 30/09/2018)
Investment portfolio (as per 30/09/2018) INVESTMENT PORTFOLIO (Total EUR 61bn) SOVEREIGN BOND PORTFOLIO Equities Other (Carrying value1 EUR 47.2bn) Non-Financial bonds 4% 2% (Notional value EUR 44.6bn) 4% Covered bonds Netherlands * Ireland 7% Austria * Portugal * Germany ** Asset Backed securties 1
Slide 34: Impaired loans ratios, of which over 90 days past due
Impaired loans ratios*, of which over 90 days past due KBC GROUP BELGIUM BU 6.9% 3.0% 3.0% 6.8% 6.6% 2.8% 2.8% 6.0% 5.9% 2.6% 5.5% 5.5%** 2.4% 2.4% 3.6% 3.9% 3.7% 3.4% 3.5% 3.2% 1.5% 1.5% 1.5% 3.2% 1.4% 1.3% 1.2% 1.3% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Impaired loa
Slide 35: Cover ratios
Cover ratios KBC GROUP BELGIUM BU 68.1% 67.7% 66.8% 67.5% 67.6% 69.7% 68.6% 67.6% 63.7% 64.2% 64.5% 64.1% 66.4% 63.4% 46.6% 47.3% 47.5% 47.8% 48.0% 47.2% 47.9% 48.4% 44.0% 46.4% 44.4% 44.2% 45.9% 44.4% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Impaired loans cover ratio *
Slide 36: Loan loss experience at KBC
Loan loss experience at KBC 9M18 FY17 FY16 FY15 FY14 AVERAGE CREDIT COST CREDIT COST CREDIT COST CREDIT COST CREDIT COST ‘99 –’17 RATIO RATIO RATIO RATIO RATIO Belgium 0.06% 0.09% 0.12% 0.19% 0.23% n/a Czech 0.04% 0.02% 0.11% 0.18% 0.18% n/a Republic International -0.56% -0.74% -0.16% 0.32% 1.06% n/
Slide 37: Contents
Contents 1 Strategy and business profile 2 Financial performance 3 Balance sheet 4 Solvency and liquidity 5 MREL strategy 6 Looking forward Appendices 37
Slide 38: Strong capital position
Strong capital position Fully loaded Basel 3 CET1 ratio at KBC Group (Danish Compromise) The common equity ratio* increased from 15.8% at the end of 1H18 to 16.0% at the end 15.7% 15.7% 15.9% 16.3% 15.9% 15.8% 16.0% of 9M18 based on the Danish Compromise. 14.0% ‘Own Capital Target’ This clearly ex
Slide 39: Fully loaded Basel 3 leverage ratio and Solvency II ratio
Fully loaded Basel 3 leverage ratio and Solvency II ratio Fully loaded Basel 3 leverage ratio at KBC Group Fully loaded Basel 3 leverage ratio at KBC Bank 6.1% 6.0% 6.1% 5.7% 5.7% 5.8% 5.7% 5.0% 5.1% 5.2% 4.8% 4.7% 4.7% 4.7% 1Q17 1H17 9M17 FY17 1Q18 1H18 9M18 1Q17 1H17 9M17 FY17 1Q18 1H18 9M18 Solve
Slide 40: Strong and growing customer funding base
Strong and growing customer funding base KBC Bank continues to have a strong retail/mid-cap deposit base in its core markets – resulting in a stable funding mix with a significant portion of the funding attracted from core customer segments & markets Customer funding further increased in 9M18 (v
Slide 41: Liquidity ratios remain very solid
Liquidity ratios remain very solid Short term unsecured funding KBC Bank vs liquid assets as of end endJune 2018 (*) 2018* of September (bn EUR) 486% 65,39 57,79 58,83 56,23 56,85 387% KBC maintains a solid liquidity position, given that: • Available liquid assets remained very high at more than 3
Slide 42: Upcoming mid-term funding maturities
Upcoming mid-term funding maturities Breakdown Funding Maturity Buckets CoCo has been called (on 25 January 2018) (Including % of KBC Group’s balance sheet) 6000 1.8% KBC Bank placed covered bonds of 750m EUR with 8-year 1.7% 5000 maturity and 250m EUR with 20-year maturity in March 2018 Million
Slide 43: Latest credit ratings
Latest credit ratings Moody’s S&P Fitch Senior Unsecured Baa1 A- A Tier II - BBB A- Group Additional Tier I - BB+ BB+ Short-term P-2 A-2 F1 Outlook Positive Stable Stable Covered Bonds AAA - AAA Senior Unsecured A1 A+ A+ - BBB - Bank Tier II Short-term P-1 A-1 F1 Outlook Positive Stable Stable - Ins
Slide 44: Credit spreads trends
Credit spreads trends Credit spreads trends 140 210 120 100 160 80 110 60 40 60 20 10 0 -20 -40 0.5Y Senior Debt Opco 5Y Covered Bond Interpolated 5Y Senior Debt Holdco Interpolated 7NC2 Subordinated Tier 2 1 1 7NC2 Subordinated Tier 2 spread is depicted based on the right hand axis. 44
Slide 45: Summary covered bond programme (1/2)
Summary covered bond programme (1/2) (details, see Annex 3) KBC IS A FREQUENT ISSUER WITH AN OUTSTANDING AMOUNT OF 7.56 BN EUR • KBC’s 10bn EUR covered bond programme is rated Aaa/AAA (Moody’s/Fitch) • CRD and UCITS compliant / 10% risk-weighted • All issues performed well in the secondary market
Slide 46: Summary covered bond programme (2/2)
Summary covered bond programme (2/2) (details, see Annex 3) COVER POOL: BELGIAN RESIDENTIAL MORTGAGE LOANS KBC HAS A DISCIPLINED ORIGINATION POLICY • Exclusively, this is selected as main asset category • 2009 to 2017 residential mortgage loan losses below 4 bp • Value (including collections) at
Slide 47: Contents
Contents 1 Strategy and business profile 2 Financial performance 3 Balance sheet 4 Solvency and liquidity 5 MREL strategy 6 Looking forward Appendices 47
Slide 48: KBC well on track to comply with resolution requirements
KBC well on track to comply with resolution requirements The resolution plan for KBC is based on a Single Point of Entry (SPE) approach at KBC Group level Bail-in is identified as the preferred resolution tool SRB’s current approach to MREL is defined in the ‘2017 MREL Policy’ published on 20
Slide 49: Available MREL as a % of RWA (fully loaded)
Available MREL as a % of RWA (fully loaded) 26.0% 26.3% 26.2% 26.3% 26.4% 26.4% 2.3% 24.8% 1.4% 1.3% 3.4% 2.5% 1.3% 3.8% 25.1% 25.1% 22.8% 23.7% 24.0% 23.5% 22.3% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 OpCo MREL HoldCo MREL 49
Slide 50: KBC has strong buffers cushioning Sr. debt at all levels
KBC has strong buffers cushioning Sr. debt at all levels (30 September 2018) Senior issued by KBC Bank, To large extent customer- which will be limited going forward (for funding related, protected as much as possible KBC Group reasons) Senior 4 020 Tier 2 KBC Bank 2 182 KBC Insurance Senior Other l
Slide 51: Contents
Contents 1 Strategy and business profile 2 Financial performance 3 Balance sheet 4 Solvency and liquidity 5 MREL strategy 6 Looking forward Appendices 51
Slide 52: Looking forward
Looking forward European economic conditions remain attractive, although we believe that the growth peak is behind us. Persistently decreasing unemployment rates, with even growing labour shortages in some European economies, combined with gradually rising wage inflation will Economic continue to
Slide 53: Appendices
Appendices 1 Overview of outstanding benchmarks 2 KBC Bank CDS levels 3 Summary of KBC’s covered bond programme 4 Details on credit exposure of Ireland 5 Solvency: details on capital 6 Belgium: digital sales 53
Slide 54: Annex 1 - Outstanding benchmarks
Annex 1 - Outstanding benchmarks Overview till end of September 2018 Tranche Report Issuer Curr Amount issued Coupon Settlement Date Maturity Date ISIN YEAR UNSECURED KBC Group EUR 750 000 000 1,000 26/04/2016 26/04/2021 BE6286238561 2021 KBC Group EUR 1 250 000 000 0,750 1/03/2017 01/03/2022 BE0002
Slide 55: Annex 1 - Main characteristics of subordinated debt issues
Annex 1 - Outstanding benchmarks Main characteristics of subordinated debt issues SUBORDINATED BOND ISSUES KBC KBC Groep NV KBC Groep NV KBC Groep NV KBC Groep NV KBC Groep NV KBC Bank NV AT1 AT1 Tier II Tier II Tier II Amount issued GBP 525 000 000 EUR 1 400 000 000 EUR 1 000 000 000 EUR 750 000 00
Slide 56: Annex 2 - KBC Bank CDS levels (in bp)
Annex 2 - KBC Bank CDS levels (in bp) 56
Slide 57: Annex - KBC's covered bond programme: Belgian legal framework
Annex 3 – KBC’s covered bond programme Belgian legal framework Direct covered bond issuance from a bank’s balance sheet Dual recourse, including recourse to a special estate with cover assets included in a register The special estate is not affected by a bank’s insolvency National Bank of Re
Slide 58: Annex 3 - Strong legal protection mechanisms
Annex 3 – KBC’s covered bond programme Strong legal protection mechanisms 1 The value of one asset category must be at least 85% of the nominal amount of covered bonds Collateral type • KBC Bank selects residential mortgage loans and commits that their value (including collections) will be at leas
Slide 59: Annex 3 - KBC Bank NV residential mortgage covered bond programme
Annex 3 – KBC’s covered bond programme KBC Bank NV Residential mortgage covered bond programme Issuer: • KBC Bank NV • min 105% of covered bond outstanding is covered by residential mortgage loans and Main asset category: collections thereon Programme size: • Up to 10bn EUR (only) Interest rate: • F
Slide 60: Annex 3 - Benchmark issuance KBC covered bonds
Annex 3 – KBC’s covered bond programme Benchmark issuance KBC covered bonds Since establishment of the covered bond programme KBC has issued eight benchmark issuances: SPREAD EVOLUTION KBC COVERED BONDS (SPREAD IN BP VERSUS 6 MONTH MID SWAP) Source Bloomberg Mid ASW levels 60
Slide 61: Annex 3 - Key cover pool characteristics (1/3)
Annex 3 – KBC’s covered bond programme Key cover pool characteristics (1/3) Investor reports, final terms and prospectus are available on www.kbc.com/covered_bonds Portfolio data as of : 30 September 2018 Total Outstanding Principal Balance 10 266 025 846 Total value of the assets for the over-colla
Slide 62: Annex 3 - Key cover pool characteristics (2/3)
Annex 3 – KBC’s covered bond programme Key cover pool characteristics (2/3) REPAYMENT TYPE (LINEAR VS. ANNUITY) GEOGRAPHICAL ALLOCATION Brussels Hoofdstedelijk gewest 5% Waals Brabant Linear 1% 3% Oost- Vlaanderen Vlaams 18% Brabant 18% West- Vlaanderen 14% Annuity Luxemburg Antwerpen 97% 0% 29% Lim
Slide 63: Annex 3 - Key cover pool characteristics (3/3)
Annex 3 – KBC’s covered bond programme Key cover pool characteristics (3/3) FINAL MATURITY DATE SEASONING 40,00 60,00 35,00 Weighted Average 50,00 Weighted Average 30,00 Seasoning: Remaining Maturity: 55.7 months 40,00 25,00 176 months 20,00 30,00 15,00 20,00 10,00 10,00 5,00 0,00 0,00 0 - 12 13 - 2
Slide 64: Annex 3: Belgian real estate market
Annex 3: Belgian real estate market Roughly stabilization in prices since 2011, with again an acceleration from 2016 onwards House prices Belgium (*) (*) Corrected for price changes resulting from changes Debt position Belgian households in the quality and location of the real estate sold (outstandi
Slide 65: Annex 3 - Interest rates still historically low
Annex 3 - Interest rates still historically low 10-year government bond yields Interest rate spreads Euro Area 5,5 (in %) 800 (10-year rate versus Germany, in basis points) Belgium Belgium France 700 4,5 Germany Netherlands Italy 600 Spain 3,5 Ireland 500 2,5 400 300 1,5 200 0,5 Spread Belgium-Germa
Slide 66: Annex 4 - Details on credit exposure of Ireland
Annex 4 - Details on credit exposure of Ireland Impaired loans ratio further improved OUT- IMPAIRED IMPAIRED IMPAIRED Recent indicators suggest positive momentum in the Irish STANDING LOANS LOANS PROVISIONS PD LOANS LOAN PORTFOLIO 10-12 € economy remains strong. We now expect GDP growth will be €
Slide 67: Annex 4 - Portfolio analysis Ireland
Annex 4 - Details on credit exposure of Ireland Portfolio analysis 3Q18 Retail Portfolio Impairment 3Q18 Corporate Portfolio PD Legacy New Retail Cover % Impairment Provisions PD Exposure Cover % PD 1-8 4,219 2,839 15 0.2% Provisions Of whi ch non Forborne 4,203 2,839 PD 1-8 260 4 1.5% Perf. Perform
Slide 68: Annex 5 - Solvency details
Annex 5 - Solvency details Fully loaded B3 CET1 based on the Danish Compromise (DC) from 2Q18 to 3Q18 DELTA AT NUMERATOR LEVEL (BN EUR) -0.3 14.7 0.6 0.1 15.0 Fully loaded B3 common equity ratio increased to 16.0% at end 3Q18 based on the B3 CET1 at end 2Q18 (DC) 3Q18 net result (excl. KBC Jandivi
Slide 69: Annex 5 - Overview of B3 CET1 ratios at KBC Group
Annex 5 - Solvency details Overview of B3 CET1 ratios at KBC Group Method Numerator Denominator B3 CET1 ratio FICOD*, fully loaded 16,205 106,996 15.1% DC**, fully loaded 15,018 93,980 16.0% DM***, fully loaded 14,054 88,609 15.9% * FICOD: Financial Conglomerate Directive ** DC: Danish Compromise **
Slide 70: Annex - Implementation of the BRRD in Belgium
Annex 5 - Solvency details Implementation of the BRRD in Belgium 1. The BRRD has been transposed to a large extent by the Act of 25 April 2014 on the legal Hierarchy of Claims in Belgium status and supervision of credit institutions ("The Banking Act") which applies since May-2015, with the exceptio
Slide 71: What are the risks for HoldCo senior investors?
Annex 5 - Solvency details What are the risks for HoldCo senior investors? Public Issuance size of loss Senior Unsecured In all scenarios surpassing the Point of Non Tier 2 Viability, the investors are protected by the BRRD capital No Creditor Worse Off principle (“NCWO”), AT1 instruments which stip
Slide 72: Annex 6 - Digital sales BU Belgium
Annex 6 – Digital sales BU Belgium Digital sales are increasing # of files # of files 35 000 3 000 30 000 2 500 25 000 2 000 20 000 1 500 15 000 1 000 10 000 5 000 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2017 2018 Consumer loans Travel insurance # of files # of files 12 000 60 00
Slide 73: Annex 6 - Omnichannel is embraced by our customers
Annex 6 – Digital sales BU Belgium Omnichannel is embraced by our customers Digital signing after contact with the branches Digital sales @ KBC Live increases, or KBC Live strong performance in non-life 90% KBC Live cumulative sales 2017-2018 45 000 80% 40 000 70% 35 000 30 000 60% 25 000 20 000 50%
Slide 74: Glossary (1/2)
Glossary (1/2) AQR Asset Quality Review B3 Basel III CBI Central Bank of Ireland [technical insurance charges, including the internal cost of settling claims / earned premiums] + [operating expenses / written premiums] (after reinsurance Combined ratio (non-life insurance) in each case) Common equit
Slide 75: Glossary (2/2)
Glossary (2/2) MARS Mortgage Arrears Resolution Strategy MREL Minimum requirement for own funds and eligible liabilities PD Probability of default Return on allocated capital (ROAC) for a [result after tax, including minority interests, of a business unit, adjusted for income on allocated capital in
Slide 76: Contacts / Questions
Contacts / Questions Company website: www.kbc.com 76
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