Financial guidance at KBC Group level
The table provides an overview of KBC Group’s financial guidance.
|CAGR total income||± 4,5% (GAGR 2021-2024)||
|CAGR exploitation costs excl. banking tax||± 1,5% (GAGR 2021-2024)||
|Combined ratio||≤ 92%||
|Dividend payout ratio (incl. coupon paid on AT1)||≥ 50%||-|
|Credit cost ratio||25-30 basis points||through the cycle|
|Regulatory requirements or own target||By|
|Common equity tier-1 ratio*||Temporary regulatory minimum 8.31% and Overall capital requirement 10.81% (2022)
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.
|MREL ratio||≥ 25.98% RWA (’22)
≥ 7.34% LRE (’22)
* 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 (when the annual results are announced), at its discretion, to distribute to shareholders any capital in excess of a 15.0% fully loaded common equity ratio.
Financial guidance versus achievements