KBC will pay back to the Flemish Regional Government the full outstanding tranche of 2 billion euros of state aid, and will pay a penalty of 50%, before the end of this year.  In so doing, the group will meet all the remaining financial obligations imposed on it during and after the recent financial crisis and can now close that chapter completely.

This repayment is made possible thanks to KBC's robust capital position, and was approved by both the National Bank of Belgium (NBB) and the European Central Bank (ECB). Following the repayment, KBC will still have a solid buffer of 3,4% (pro forma phased-in, based on the consolidated figures at 30 September 2015) above the minimum threshold of 10.25% set by the regulators.

At the end of November, the ECB informed KBC of its new minimum capital requirements, i.e. a common equity tier-1 ratio (CET1) of at least 9.75%, phased in under the Danish compromise. At the end of October, the NBB announced its new capital buffers for Belgian systemic banks, which for KBC means an additional capital buffer of 0.5% CET1 (phased in under the Danish compromise) for 2016. This figure will go up on a straight-line basis over a three-year period, reaching 1.5% in 2018.

KBC far exceeds the new requirements of the ECB (9.75%) and NBB (0.5% in 2016), totalling 10.25% for 2016. Read the full story KBC repays all outstanding debt to government 5 years ahead of schedule