KBC Group: KBC’s capital remains well above the new minimum capital requirements

Core Points - The European Central Bank (ECB) has informed KBC Group of its new minimum capital requirements, lowering the fully loaded overall CET1 requirement from 10.88% to 10.85% for 3Q25 [1] - The new CET1 requirement includes a Pillar 1 Requirement of 4.50%, a Pillar 2 Requirement (P2R) of 1.10%, a capital conservation buffer of 2.50%, an O-SII capital buffer of 1.50%, and additional buffers for countercyclical capital (1.15%) and sectorial systemic risk (0.10%) [1] - The Pillar 2 Guidance (P2G) has been reduced from 1.25% to 1.00% as a percentage of Risk-Weighted Assets (RWA) [2] - KBC Group's unfloored fully loaded Basel 4 CET1 ratio was reported at 14.6% at the end of Q2 2025, significantly above the new CET1 requirement [2] - The P2R for CET1 has been increased to 1.95% from 1.75%, while the P2R add-on related to old non-performing loans (NPLs) has been removed [3]