KBC repays second instalment of 500 million euros in Flemish state aid again ahead of schedule, fully respecting the capital requirements set by the regulator

KBC will today repay a second instalment (0.5 billion euros, comprising 0.33 billion euros in principal plus a penalty of 50%) to the Flemish Regional Government. This repayment is again ahead of the schedule agreed with the European Commission and has been made possible on account of KBC's robust capital position. The National Bank of Belgium has not opposed this repayment.
 

Moreover, the supervisory authorities, with the National Bank of Belgium as the consolidating supervisor, have taken their Joint Home-Host Capital Decision for KBC Group. KBC Group has been informed of the request for a permanent minimum Basel III (fully loaded) common equity ratio (excluding latent gains[1]) of 9.25%.

The pro-forma ratio at 30 September 2013 (excluding latent gains) stood at 11,4%. Even after the repayment to the Flemish Regional Government and taking into account the impact of impairment charges for Ireland and shareholder loans which, as already announced, will be recognised in the fourth quarter,  KBC is expected to have a solid buffer above this 9.25% requirement.

[1] Latent gains: this concerns the revaluation reserve of available-for-sales assets . As per 30 September 2013, this amounts to 1.0 billion euros for KBC Group.

(*) This press release contains information provided in compliance with European transparency legislation for listed companies.