Financial guidance at KBC Group level
The table provides an overview of KBC Group’s financial guidance.
|CAGR total income||± 2% (GAGR 2020-2023)||
|CAGR exploitation costs excl. banking tax||± 1% (GAGR 2020-2023)||
|Combined ratio||≤ 92%||
|Dividend payout ratio (incl. coupon paid on AT1)||≥ 50%||-|
|Regulatory requirements or own target||By|
|Common equity tier-1 ratio*||Own target 14,5% + 1% management buffer||-|
|MREL ratio||≥ 9,67%||2021|
* 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
We aim to be amongst the better capitalised financial institutions in Europe. Therefore, we are aiming for a (pre-Basel IV) fully loaded CET1 ratio of 14.5% (= reference capital position). A management buffer of 1% will be held on top of the reference capital position. When this buffer is used, the Board of Directors will decide at its discretion upon the replenishment of the buffer on an annual basis
On top of the payout ratio of at least 50% of consolidated profit, all capital which exceeds the reference capital position plus the 1% management buffer, will be considered for distribution to the shareholders. Each year, the Board of Directors will take this decision at its discretion when announcing the full year results.
Financial guidance versus achievements