(CercleFinance.com) – KBC announced on Wednesday that the European Central Bank (ECB) had slightly increased the level of capital required from the Belgian banking group in order to cope with unfavorable economic conditions.
The ECB, responsible for supervising banks in the euro zone, increased its ‘CET1’ requirement from 10.62% to 10.92%, an increase entirely due to KBC’s exposure to Eurozone countries. East, Bulgaria and Czech Republic in the lead.
At the end of the third quarter of 2023, however, the establishment’s fully loaded CET1 ratio stood at 14.6%, a level well above the new requirement established by the ECB.
In a press release, Johan Thijs, the general director, recalls that his group aims to position itself among the best capitalized financial institutions in Europe.
He recalls that KBC currently has a distribution ratio policy (dividend plus AT1 coupon) of at least 50% of consolidated profit, with the stated desire to improve its capital distribution in the event of a CET1 greater than 15%.
Following these announcements, KBC shares rose 1% on Wednesday morning on the Brussels Stock Exchange, marking one of the strongest gains in the BEL 20 index.
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