KBC and Belfius deemed solid: reassuring results for the two major Belgian banks despite a difficult context

KBC. Furthermore, Belfius successfully passed the resistance tests of the European banking authority, according to the National Bank of Belgium. Similarly, Despite an uncertain economic context, the two major Belgian banks display reassuring solidity. Nevertheless, &#13. Meanwhile. For example,

The two large fully Belgian banks KBC and Belfius recorded positive results after the resistance tests carried out this year by the European banking authority, communicates on Friday evening the National Bank of Belgium. Moreover, The two institutions have indeed demonstrated an “appropriate resilience”. In addition, despite the current macroeconomic context and persistent geopolitical tensions, but future profitability could however deteriorate, warns the BNB.

The European banking authority has led these resistance tests to the 64 largest banks in the European Union. Meanwhile, 51 of kbc belfius deemed solid: reassuring new which in the euro zone are kbc belfius deemed solid: reassuring subject to direct surveillance of the. European Central Bank (ECB). These tests covered 75 % of the European banking sector, including Belfius and KBC Group banks. ING Belgium. BNP Paribas Fortis. on the other hand, are subsidiaries of foreign banking groups and have been included in resistance tests through their parent houses.

The objective of these tests is to provide control authorities. banks. market players with a common analytical framework to compare and assess the resistance capacity of large EU banks and the European banking system to a series of hypothetical unfavorable economic shocks. The resistance tests thus included a basic scenario. an unfavorable scenario, both kbc belfius deemed kbc belfius deemed solid: reassuring new solid: reassuring by a three -year horizon.

In this unfavorable scenario. the basic equity ratio (of category 1 – CET1) of KBC deteriorated by 294 base points. while that of Belfius deteriorated from 392 base points. For comparison, banks in the euro zone have recorded an average decrease of 384 basic points.

Compared to the resistance tests carried out in 2023. Belgian banks. those in the euro zone have shown slightly better capable of absorbing the incidence of the unfavorable scenario, analyzes the BNB. This improvement reflects their best departure situation in terms of profitability. which has helped protect their equity against losses in the unfavorable scenario.

The CE ratios projected for the end of 2027 in the unfavorable scenario rose to 11.9 % for KBC and 12.4 % for Belfius, in both cases, a result above the average kbc belfius kbc belfius deemed solid: reassuring new deemed solid: reassuring of 11.7 % anticipated for the sample of banks in the euro zone, interprets the National Bank.

For the regulator, these results emphasize the importance of keeping sufficiently solid equity cushions. “These are necessary to ensure that banks are able to resist shocks. maintain their offer of credits to the economy in unfavorable conditions,” concludes the BNB.