Financial guidance at KBC Group level
The table provides an overview of KBC Group’s financial guidance.
| Financial guidance | by | recent value (FY2023) |
|
|---|---|---|---|
| CAGR net interest income | ≥ 1.8% (GAGR 2023-2026) | 2026 |
+6% in 2023 |
| CAGR insurance revenus before reinsurance | ≥ 6% (GAGR 2023-2026) | 2026 |
+11% in 2023 |
| CAGR operating expenses incl. paid insurance commissions (excl. bank and insurance tax) | < 1.7% (GAGR 2023-2026) | 2026 | +7% in 2023 |
| Cost/income ratio excl. bank and insurance tax | < 42% | 2026 | 43% |
| Combined ratio | < 91% | - |
87% |
| Dividend payout ratio (incl. coupon paid on AT1) | ≥ 50% | - | 51% |
| Credit cost ratio | Well below the ‘through-the-cycle’ credit cost of 25-30 basis points | through the cycle | 0 basis points |
| Regulatory requirements or own target | by | recent value (FY2023) |
|
|---|---|---|---|
| Common equity tier-1 ratio* | Overall capital requirement: 10.92% Each year, the Board of Directors decides on the distribution to shareholders of capital in excess of a 15.0% fully loaded common equity ratio. |
- | 15.2% |
| MREL ratio (minimum requirement for own funds and eligible liabilities) | ≥ 28.30% of risk weighted assets (RWA) (’24) ≥ 7.38% of leverage ratio exposure (LRE) (’24) |
2024 | 30.7% (RWA) 10.4% (LRE) |
| NSFR (net stable funding ratio) | ≥ 100% | - | 136% |
| LCR (liquidity coverage ratio) | ≥ 100% | - | 159% |
* Fully loaded, Danish compromise
The dividend policy entails:
- A payout ratio (i.e. dividend + AT1 coupon) of at least 50% of the consolidated profit of the accounting year
- An interim dividend of 1 euro per share (payable in November of the accounting year) as an advance of the total dividend for the accounting year
In addition, from 2022 onwards, in addition to the distribution ratio of 50% of consolidated earnings, the Board of Directors will make a decision each year, at its discretion, to distribute to shareholders any capital in excess of a 15.0% fully loaded common equity ratio.
Financial guidance versus achievements