Core Viewpoint - KBC Group's minimum capital requirements have been adjusted by the European Central Bank (ECB), resulting in a slight decrease in the fully loaded CET1 requirement for 2025 from 10.88% to 10.85% [1] Group 1: Capital Requirements - 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%, and an O-SII capital buffer of 1.50% [1] - The overall CET1 requirement also factors in future changes to countercyclical capital buffers (1.15%) and a sectorial systemic risk buffer (0.10%) [1] Group 2: Pillar 2 Guidance - The Pillar 2 Guidance (P2G) has been reduced to 1.00% from 1.25% as a percentage of Risk-Weighted Assets (RWA) [2] - KBC Group's unfloored fully loaded Basel 4 CET1 ratio at the end of Q2 2025 is projected to be 14.6%, significantly exceeding the new CET1 requirement [2] Group 3: P2R Adjustments - The P2R for CET1 has been impacted by the ECB's decision to increase it to 1.95% from 1.75% [3] - The removal of the P2R add-on related to old non-performing loans (NPLs) has allowed KBC to deduct the remaining shortfall from CET1 as of Q2 2025 [3]

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]

Group 1 - Some analysts are avoiding large-cap names in the European bank sector [1] - Analysts are focusing on KBC Group and Erste Group as alternative investment opportunities [1]

Core Insights - KBC Group has agreed to acquire 100% of Business Lease Czech Republic and Business Lease Slovakia for €72 million ($83.5 million) to enhance its leasing operations in Central Europe [1] - Business Lease operates in the operational leasing and fleet management market, primarily serving SMEs and large corporations, with a fleet of over 30,000 vehicles and 244 employees [2] - The acquisition is expected to strengthen KBC Group's position in the Czech Republic and Slovakia, creating a combined fleet of around 15,000 operating leasing vehicles in the Czech Republic and 10,000 in Slovakia, making KBC a top player in both markets [3] Company Strategy - KBC Group's CEO emphasized that this acquisition is a significant step in the strategy to bolster its market position in the Czech Republic and Slovakia [3] - The integration of Business Lease with ČSOB Leasing is anticipated to yield increased operational efficiencies [3] Market Context - The CEO of Autobinck Group noted that the sale to KBC is a strategic move amid rapid market consolidation, allowing Business Lease to partner with larger players for future growth [4] - The acquisition is expected to be completed by the first quarter of 2026, pending regulatory approval from antitrust authorities [4]

Core Insights - KBC Group has signed a binding agreement to acquire 100% of Business Lease s.r.o. in the Czech Republic and Business Lease Slovakia s.r.o. for a total consideration of 72 million euros, with the deal expected to close in Q1 2026, pending antitrust approval [1][2][3] Company Overview - Business Lease Group, part of AutoBinck Group NV, is a leading provider of operational leasing and fleet management, managing over 30,000 vehicles and employing 244 staff, with its headquarters in Prague [4] - ČSOB Leasing is a leading asset finance institution in the Czech Republic with approximately 16% market share, serving 25,000 clients, and offers a broad range of leasing services [5] - ČSOB Leasing Slovakia is the leading company in the Slovak leasing market, focusing on car financing for both retail and business clients, providing various financing solutions [7] Strategic Implications - The acquisition will enhance KBC Group's leasing activities in Central Europe, positioning it as a top 5 player in the Czech operational leasing market with around 15,000 vehicles and a top 3 player in Slovakia with around 10,000 vehicles [2][3] - The integration of Business Lease with ČSOB Leasing is expected to create operational efficiencies, improve customer experience, and unlock significant synergy benefits, including cross-selling opportunities [3] - This acquisition is part of KBC Group's broader strategy to strengthen its market position in both countries and pursue growth opportunities across all segments [3]

Market Overview - International equities showed mixed results in Q3 2025, with the MSCI EAFE Index rising 4.8%, driven by Asian markets and Canada, while Europe Ex U.K. underperformed [3] - The MSCI Emerging Markets Index advanced 10.6%, supported by a 20.7% rally in China, which constitutes 30% of that benchmark [3] - European markets experienced a slowdown in momentum due to inflation remaining above the European Central Bank's target, with a September reading of 2.2% [4] Economic Conditions - Japan's GDP grew modestly in Q2, aided by tourism, while manufacturing activity remained restrained [5] - The People's Bank of China cut key lending rates in July to address weaknesses in the real estate sector and sluggish consumer demand, with Q2 GDP growth at 5.2% year over year [5] Investment Strategy - The MSCI EAFE Value Index outperformed the MSCI EAFE Growth Index by over 500 basis points in Q3, with value stocks leading growth by more than 1,300 basis points year to date [6] - The ClearBridge International Growth Strategy maintained pace with its core MSCI EAFE benchmark, with sector positioning in IT and financials creating headwinds [12] Company Performance - London Stock Exchange faced a decline due to AI concerns impacting its desktop and data business, while Adyen's revenue missed expectations [13] - Banco Santander was acquired for its streamlined operations and cost-cutting measures, expected to improve profitability [14] - HSBC is well-positioned for growth in Asian wealth management, benefiting from inflows of mainland Chinese money [15] - KBC Group's strong capital position allows for capital distributions or acquisitions, with growing assets under management [16] Sector Contributions - Health care sector saw solid contributions, particularly from European biotechs Argenx and UCB, driven by strong sales and positive clinical trial results [20] - The strategy expanded into the Chinese biotechnology sector with the purchase of WuXi AppTec, known for efficient drug development [21] Portfolio Adjustments - The strategy added 10 positions while exiting 13, with significant purchases in financials and health care, including Prysmian, which is poised for growth in the power cables industry [22] - Softbank trades at a discount to its NAV, holding stakes in key technology companies [23] - Celestica is positioned for growth in AI infrastructure, with expected annual revenue growth of over 20% [24] Outlook - The regions of investment are making progress on growth and equity-friendly policies, with forecasts for double-digit EPS growth in the pan-European Stoxx 600 [27] - Emerging markets are outperforming developed markets, with a focus on China’s growth potential in AI and biotechnology [28][32]

Regulated information, Leuven, 1 October 2025 (17.40 hrs CEST) Announcement of the total number of voting rights as at 30 September 2025 In application of Article 15 of the Act of 2 May 2007 on the disclosure of major shareholdings in issuers whose shares are admitted to trading on a regulated market, KBC Ancora publishes on its website and via a press release on a monthly basis the total capital, the movements in the total number of voting shares and the total number of voting rights, in so far as these pa ...

Regulated information, Leuven, 30 September 2025 (17.40 hrs CEST) Convocation of the Ordinary General Meeting of Shareholders and publication of the Annual Report KBC Ancora invites its shareholders at the Ordinary General Meeting of Shareholders which will be held on Friday 31 October 2025. All relevant information, including the convocation with the agenda and the Annual Report 2024/2025, is available via the website: www.kbcancora.be, under the heading ‘Governance/General Meeting of Shareholders’. ---- ...

Group 1 - The individual began investing in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - Recently, the investment strategy has evolved to combine long stock positions with covered calls and cash secured puts, reflecting a more sophisticated approach to investing [1] - The investment philosophy is fundamentally long-term, with a primary focus on REITs and financials, while occasionally exploring ETFs and other stocks based on macro trade ideas [1]

Core Insights - Fnality has raised $136 million in a Series C funding round to expand its DLT-based payment systems beyond the UK Sterling network launched in 2023 [1][2] - The funding round was led by major financial institutions including WisdomTree, Bank of America, and Citi, indicating strong institutional confidence in blockchain-based payment systems [6][7] Company Overview - Fnality aims to create a regulated settlement network that connects traditional financial infrastructure with the emerging world of tokenised assets, offering 24/7 real-time settlement and liquidity optimisation [3][10] - The company launched its first payment system, the Sterling Fnality Payment System (£FnPS), in December 2023, recognized as the world's first regulated DLT-based wholesale payment system [4] Funding and Expansion Plans - The Series C funds will be used to expand Fnality's model to other major currencies and enhance interoperability between stablecoins, tokenised deposits, and institutional tokenised assets [5] - The goal is to establish an institutional-grade settlement layer across capital markets, addressing the need for regulated infrastructure anchored in central bank money [10] Industry Impact - Industry leaders view Fnality as a critical foundation for the tokenised markets, with its systems modernising market structures for faster and more efficient operations [6][8] - The support from a diverse group of institutional investors highlights the growing confidence in blockchain-based wholesale payment systems and their potential to transform financial market infrastructure [7][8] Future Outlook - Fnality's success hinges on balancing innovation with compliance, as each payment system must be supervised by its respective central bank, adding credibility and requiring regulatory collaboration [12] - As financial markets trend towards tokenisation, the demand for settlement layers that combine central bank trust with blockchain speed is expected to increase, positioning Fnality as a foundational element in the future of global finance [13]