The ratings reflect KBC’s solid franchise as a leading bancassurer in its home market of Belgium and in the Czech Republic. 

The group’s market shares in these regions are significant: around 20% in loans and deposits, around 30% in investment funds in Belgium and 23% in Czech Republic as of Q1 2017. Since the financial crisis, KBC has re-focused to concentrate on these two countries as well as on Slovakia, Hungary, Bulgaria and, recently, Ireland.

The group’s overall risk profile has declined materially with the disposal of legacy activities. Further, asset quality continues to recover steadily, supported by improving macro conditions in Ireland.

Solvency has strengthened to solid levels, and the liquidity position remains sound.

Download the updated issuer rating report