KBC Groep : KBC Group: KBC Group 2012 reference figures according to the new business unit breakdown

 KBC Groep : KBC Group: KBC Group 2012 reference figures according to the new
                           business unit breakdown

KBC Press release - Outside trading hours

Brussels, 25 April 2013

On 16 May 2013, KBC Group will issue its first quarterly results based on  its 
new business unit structure, which had  been announced at an earlier date.  In 
order to  prepare  investors  and  analysts  for  the  change,  the  group  is 
pro-actively providing the market with the 2012 reference figures.

New business unit structure since 1 January 2013

A new management structure was introduced at the start of 2013, reflecting the
group's updated strategy. More information on  this is available in the  press 
release ('KBC 2013 and  beyond') and presentation of  8 October 2012, and  the 
2012 annual report, available on www.kbc.com.

Based on this new management structure, the group also reworked its  financial 
segment reporting presentation.

Up until the end of 2012, the segments consisted of the Belgium Business  Unit 
(retail bancassurance),  the Central  & Eastern  Europe Business  Unit  (Czech 
Republic, Hungary,  Slovakia, Bulgaria),  the Merchant  Banking Business  Unit 
(corporate banking and market activities in Belgium and abroad, plus KBC  Bank 
Ireland) and the Group Centre (results  of the holding company, certain  items 
that were not allocated to the business units, and the results of companies to
be divested).

In the new reporting presentation, the segments^1 are essentially:

  *the Belgium Business Unit (all activities in Belgium)

  *the Czech Republic Business Unit (all activities in the Czech Republic)

  *the International Markets Business  Unit (activities in Ireland,  Hungary, 
    Slovakia, Bulgaria)

  *the Group Centre (results of the  holding company, certain items that  are 
    not allocated to the business units, results of companies to be  divested, 
    and the legacy and own credit risk impact (see below)). 

A more detailed definition is provided in annex.

The main differences between the former and new business units are:

  *The former Belgium Business Unit has been extended to include the Belgian
    merchant banking activities (corporate banking and market activities),
    including KBC Bank's foreign branches (previously part of the Merchant
    Banking Business Unit). 

  *The former Central & Eastern Europe Business Unit has been split up into a
    separate Czech Republic Business Unit, reflecting the importance of that
    country within the group's operations, while the operations in the other
    core countries - Hungary, Slovakia and Bulgaria - have been grouped under
    the International Markets Business Unit. 

  *KBC Bank Ireland, which belonged to the former Merchant Banking Business
    Unit, has now been incorporated into the International Markets Business

1 The management structure of the group also includes an International Product
Factories Business Unit. The results of  the activities of this business  unit 
are included in the  results of the other  business units based on  geography. 
Consequently, this business unit is not presented separately when the  results 
are reported by segment.

Introduction of the 'result excluding the impact of legacy CDO and  divestment 
activities and own credit risk' ('result excluding legacy and OCR')

In the previous  reporting framework,  the IFRS  profit and  loss account  was 
supplemented by a  so-called 'underlying' profit  and loss account  (excluding 
non-operational and exceptional items). This is not the case anymore. However,
in addition to the figures according  to IFRS, KBC will still provide  figures 
aimed at giving more insight into the ongoing business performance.

This means that, over and above the  IFRS profit and loss account, a  reworked 
profit and  loss  account will  be  provided, in  which  a limited  number  of 
non-operational items is excluded from the P/L and summarised into three lines
at the bottom of the reporting  presentation^2. Segment reporting is based  on 
this reworked presentation.

The items in question are:

  *legacy CDO activities (mainly valuation changes  of CDOs and fees for  the 
    CDO guarantee agreement);

  *legacy divestment activities (impairment  and gains/losses in relation  to 

  *the impact of changes  in fair value  of own debt  instruments due to  own 
    credit risk. 

In the segment  reporting presentation, these  items are all  assigned to  the 
Group Centre.

New reference quarterly figures for 2012
Attached and on www.kbc.com (home page), the 2012 quarterly reference  figures 
are available in an Excel file. Separate sheets are provided for the:

  *Total for KBC Group

  *Belgium Business Unit

  *Czech Republic Business Unit

  *International Markets Business  Unit (with separate  sheets for  Slovakia, 
    Hungary, Bulgaria and Ireland)

  *Group Centre

Annex: definition of segments
The Belgium  Business Unit  includes the  activities of  KBC Bank  NV and  KBC 
Insurance NV, as  well as their  Belgian subsidiaries (CBC  Banque, KBC  Asset 
Management, KBC  Lease Group,  KBC Securities,  KBC Group  Re, etc.).  Results 
related to the  legacy businesses and  the valuation of  own credit risk  have 
been moved to the Group Centre.

The Czech Republic Business Unit includes all of KBC's activities in the Czech
Republic. This encompasses the CSOB  group (operating mainly under the  brands 
CSOB, Era,  Postal Savings  Bank,  Hypotecni banka  and CMSS),  the  insurance 
company CSOB Pojišt'ovna, CSOB Asset Management and Patria Finance.

The International Markets Business Unit mainly includes the activities in  the 
other (i.e. non-Czech) Central  and Eastern European  core markets (CSOB  Bank 
and CSOB Poist'ovna in Slovakia, K&H Bank and K&H Insurance in Hungary, CIBank
and DZI Insurance in Bulgaria) and KBC Bank Ireland.

The Group Centre incorporates the results of the holding company KBC Group NV,
KBC Global  Services, some  results that  are not  attributable to  the  other 
business units, the elimination of  intersegment transactions and the  results 
of the remaining companies  that have still to  be divested and activities  in 
run-off. It  also includes  results related  to the  legacy businesses  (CDOs, 
divestment results) and the valuation of own credit risk.

2 The former 'underlying' figures also  excluded changes in the fair value  of 
certain ALM hedging instruments; these are now included in the business units'
results. Moreover, trading results, which  are included in various line  items 
in the IFRS presentation, are still being moved to 'Net results from financial
instruments at fair value'. Whereas this was performed for every business unit
in the former reporting  presentation, it is now  limited to KBC Bank  Belgium 
(Belgium Business Unit), due to materiality. 

KBC Group NV - Havenlaan 2 - 1080 Brussels

KBC press releases are available at www.kbc.com or can be obtained by  sending 
an e-mail to pressofficekbc@kbc.be



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Source: KBC Groep via Thomson Reuters ONE
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