KBC is transferring risk on a portfolio worth 1.25 billion euros

Belgian bank KBC announced it has completed a significant risk transfer on a corporate loan portfolio worth €1.25 billion. This measure is part of a strategy to optimize risk-weighted assets (RWAs) and strengthen the company's capital position. The objective is also to support the group's future growth.

To carry out this transaction, KBC structured a placement of credit-linked notes with institutional investors. This allows KBC to transfer the risk of first loss exposure to the relevant portfolio. As a result of this transaction, KBC anticipates a reduction in RWA of approximately €0.7 billion and an increase in the CET1 ratio of 8 basis points from the second quarter of 2026.