RAPPORT ANNUEL 2011 - KBL European Private Bankers

Transcription

RAPPORT ANNUEL 2011 - KBL European Private Bankers
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RAPPORT ANNUEL 2011
“Le Chemin est le but.”
- Confucius
BR
KBL ESPAÑA EUROPEAN PRIVATE BANKERS
BROWN, SHIPLEY & CO LTD
THEODOOR GILISSEN
BANKIERS N.V.
PUILAETCO DEWAAY PRIVATE BANKERS S.A.
KBL EUROPEAN PRIVATE BANKERS LUXEMBOURG
PUILAETCO LUXEMBOURG
VITISLIFE
KBL RICHELIEU BANQUE PRIVEE S.A.
MERCK FINCK & CO,
PRIVATBANKIERS
KBL SWISS PRIVATE BANKING LTD
KBL MONACO PRIVATE BANKERS S.A.
Sommaire
Rapports de gestion
du Conseil d’Administration
Conseil d’Administration
10
Rapport de gestion consolidé
18
Comité de Direction et Direction
11
Rapport de gestion non consolidé
26
Faits marquants de l’exercice 2011
12
Annexes
30
Chiffres clés consolidés
14
Affectation du résultat
52
Composition du Conseil d’Administration
53
“Qu’importe que nous empruntions des itinéraires
différents, pourvu que nous arrivions au même but.”
- Mahatma Gandhi
Conseil d’Administration
et Comité de Direction
Situation au 31 décembre 2011
Conseil d’Administration
Jan HUYGHEBAERT
Président du Conseil d’Administration
Philippe VLERICK
Diego du MONCEAU de BERGENDAL
Vice-Président du Conseil d’Administration
Administrateur
Franky DEPICKERE
Edmond MULLER
Administrateur
Administrateur
Frank ERTEL
Philippe PAQUAY
Administrateur
Administrateur-Directeur
Représentant du personnel
Jacques PETERS
Marc GLESENER
CEO
Administrateur
Représentant du personnel
Luc PHILIPS
Administrateur
Francis GODFROID
Administrateur
Yves PITSAER
Représentant du personnel
Administrateur-Directeur
Christian HOELTGEN
Mathias RAUEN
Administrateur
Administrateur
Représentant du personnel
Représentant du personnel
Olivier de JAMBLINNE de MEUX
Philippe RYELANDT
Administrateur-Directeur
Administrateur
Représentant du personnel
Jan Maarten de JONG
Administrateur
Marie-Christine VANTHOURNOUT-SANTENS
Administrateur
Laurent MERTZ
Administrateur
Marc WITTEMANS
Représentant du personnel
Administrateur
Réviseurs d’entreprises agréés chargés du contrôle externe : Ernst & Young S.A.
10
KBL epb RAPPORT ANNUEL 2011
Situation au 31 décembre 2011
Comité de Direction
Jacques PETERS
DIRECTION
Président
Philippe AUQUIER
John PERKS
Olivier de JAMBLINNE de MEUX
Finance
ITS & PPD
Philippe PAQUAY
Luc CAYTAN
Vincent SALZINGER
Financial Markets
Group Compliance
Rafik FISCHER
Bernard SIMONET
Global Investor Services
Human Resources
Marie-Paule GILLEN-SNYERS
Bernard SOETENS
General Secretary
Corporate / Loans
Michel GODFRAIND
Thierry THOUVENOT
Risk Control
Group Internal Audit
Guillaume de GROOT HERZOG
Philippe VAN DOOREN
Buildings & Logistics
Operations Management
Yves PITSAER
Olivier HUBERT
Tax
Bernard JACQUEMIN
KBL Wealth Management
Siegfried MARISSENS
Corporate Centre
KBL epb RAPPORT ANNUEL 2011
11
Faits marquants
1. NOUVEAU PARTENAIRE FINANCIER
POUR KBL EPB
3. RECENTRAGE DES ACTIVITES ET
ADAPTATION DES RESSOURCES
Fin 2009, KBC Groupe, actionnaire historique de KBL
Dans le contexte global des suites de la crise financière, nos
European Private Bankers (« KBL epb ») avait annoncé son
efforts se sont concentrés sur la préservation des avoirs de
intention de céder ses participations et de rechercher un nou-
nos clients.
vel actionnaire pour soutenir le développement de KBL epb.
Ce processus de recherche s’est conclu par la signature le 10
La nature des activités et des transactions que nous ef-
octobre 2011 d’un accord entre Precision Capital S.A. et KBC
fectuons aujourd’hui pour notre clientèle a fortement
Groupe S.A. pour le rachat de KBL epb. Le montant annoncé
évolué. Certaines ont disparu, d’autres ont profondément
de la transaction est d’EUR 1,05 milliard.
changé, comme certaines activités de la Salle des Marchés
Precision Capital S.A. est une entité luxembourgeoise qui
ou du Private Banking qui s’est recentré sur la gestion dis-
représente les intérêts d’un investisseur de l’Etat du Qatar.
crétionnaire. Des activités qui n’entraient pas dans notre
cœur de métier ont été fortement réduites et un processus
d’automatisation poussé en cours depuis plusieurs années a
2. LE CLOSING ATTENDU EN 2012
induit un redimensionnement structurel de l’entreprise en
vue d’assurer sa stabilité.
L’accord du 10 octobre 2011 conclu entre KBC Groupe, actionnaire de référence de KBL epb, et Precision Capital S.A.,
Dans ce contexte, nous avons pris la décision de fermer
doit recevoir l’aval des autorités de contrôle du Luxembourg,
notre succursale en Pologne, KBL Polska, en décembre 2011.
mais aussi des régulateurs des différents pays où KBL epb
est active. La complexité du Groupe KBL epb et les délais légaux dont dispose chaque régulateur ont eu pour effet de prolonger le processus d’autorisation. Le closing de l’opération
est attendu dans le premier semestre 2012.
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KBL epb RAPPORT ANNUEL 2011
Faits marquants
4. RESULTATS : VERS UNE RELANCE DE
L’ ACTIVITE AVEC LE FUTUR ACTIONNAIRE
6. UNE STRATEGIE AMBITIEUSE
KBL epb entend rester un pôle d’excellence dans son cœur
Dans un environnement économique instable, mais aus-
de métier, le Private Banking. Cette activité sera appelée à
si dans le contexte spécifique de la vente de KBL epb, le
se développer en Europe et, profitant des opportunités qui
bénéfice net consolidé de KBL epb a atteint EUR 20,1 mil-
nous seront offertes par l’élargissement géographique de no-
lions au 31 décembre 2011, contre EUR 67,7 millions l’année
tre marché, nous allons entrer dans d’autres régions à fort
précédente. Les circonstances du marché nous ont amenés à
potentiel de développement où notre offre unique de services
réaliser des corrections de valeur significatives sur notre fili-
sera apte à rencontrer les attentes de nouveaux clients po-
ale française et sur la dette grecque souveraine détenue par
tentiels à hauts revenus.
certaines entités du Groupe. Ces éléments négatifs ont seulement pu être compensés en partie par le bénéfice réalisé sur
Outre le Private Banking, KBL epb continuera à développer
le remboursement anticipé de notre hybride Tier 1.
des activités dans le domaine des services aux investisseurs
institutionnels et des marchés financiers dans lesquels son
La diminution des actifs sous gestion de EUR 48,7 milliards à
expertise représente une plus-value.
44,3 milliards peut être attribuée à une combinaison des effets de prix et volumes qui reflète le marché mondial difficile.
L’acquisition annoncée de la Banque par un investisseur qatari à la fin de 2011, devrait ramener la stabilité et la sérénité
au développement de nos deux métiers, le Private Banking et
l’industrie des fonds.
5. EFFECTIF
Au 31 décembre 2011, l’effectif global du réseau KBL epb
s’établit à 2.339 collaborateurs, contre 2.522 à fin 2010,
soit -7 %. Cette variation résulte d’une diminution d’effectif
au sein de la maison-mère ainsi qu’auprès de certaines filiales. Sur les 2.339 collaborateurs du réseau KBL epb, 57 %
d’entre eux travaillent au sein des filiales hors Luxembourg.
KBL epb RAPPORT ANNUEL 2011
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Chiffres clés consolidés
CHIFFRES CLES CONSOLIDES
(données consolidées au 31 décembre)
2008
2008
2009
2010
2011
“Résultat sousjacent’’
RÉSULTATS (en millions EUR)
Produit bancaire net
396,0
653,5
664,9
602,6
549,3
Charges d’exploitation
-475,6
-475,6
-504,4
-503,2
-438,8
Dépréciation des actifs (impairments)
-210,2
-44,3
-24,7
-44,6
-99,4
Quote-part dans le résultat des entreprises associées
2,1
2,1
2,7
1,6
0,6
Badwill
-
-
-
29,0
-
Résultat avant impôt
-287,7
135,8
138,5
85,4
11,8
Impôt sur le Résultat
141,8
18,2
-19,4
-17,7
8,3
Résultat Net, part du Groupe
-145,9
153,9
119,2
67,7
20,1
Core Tier One Ratio – Bâle II
5,8 %
-
9,1 %
11,3 %
16,3 %
Tier One Ratio – Bâle II
6,9 %
-
10,7 %
13,4 %
16,3 %
12,2 %
-
18,4 %
21,6 %
22,3 %
Total Fonds propres éligibles/Total bilan
5,6 %
-
7,9 %
8,8 %
7,0 %
Ratio de Liquidité (Loan-to-Deposit Ratio)
14,0 %
-
14,1 %
17,2 %
19,0 %
ROAE
-13,6 %
14,3 %
12,9 %
6,6 %
2,0 %
ROAA
-0,8 %
0,8 %
0,8 %
0,5 %
0,1 %
120,1 %
72,8 %
75,9 %
83,5 %
79,9 %
RATIOS FINANCIERS (EN %)
Ratio de solvabilité – Bâle II
Cost/Income Ratio
(*) Les données 2008 « Résultat Underlying » tiennent compte de la neutralisation des impacts négatifs directement liés à la crise financière tels que l’évaluation négative
de certains instruments financiers évalués à la juste valeur et de charges d’impairment constatées sur le portefeuille « Disponibles à la vente » (Available for Sale ou
AFS) et sur le portefeuille « Prêts et Créances » (Loans and Receivables).
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KBL epb RAPPORT ANNUEL 2011
Chiffres clés consolidés
2008
2009
2010
2011
16,2
13,9
14,7
14,8
Prêts et créances sur les établissements de crédit et les sociétés d’investissement
5,4
4,8
4,3
5,1
Prêts et créances sur la clientèle
1,5
1,3
1,4
1,5
Valeurs mobilières
6,5
6,2
5,0
4,1
3,8
3,4
2,7
2,8
10,4
8,4
7,8
7,9
dont Dettes subordonnées
0,8
0,8
0,8
0,4
Total des capitaux propres
0,8
1,0
1,1
1,0
Avoirs en gestion
44,0
46,1
48,7
44,3
dont Private banking customers
34,6
36,4
39,0
35,1
+6,2 %
-5,7 %
+1,0 %
-3,9 %
-22,0 %
+11,0 %
+6,2 %
-6,0 %
(données consolidées au 31 décembre)
TOTAL BILAN (en milliards EUR)
ACTIF
PASSIF
Dettes envers les établissements de crédit et les sociétés d’investissement
Dettes envers la clientèle et dettes représentées par un titre
AUM (en milliards EUR)
Impact volume
Impact prix
KBL epb RAPPORT ANNUEL 2011
15
“Ce qui importe, ce n’est pas d’arriver,
mais d’aller vers.”
- Antoine de Saint-Exupéry
Rapport de Gestion consolidé
Rapport de Gestion consolidé
1. COMMENTAIRE GENERAL SUR LES RESULTATS CONSOLIDES
Le résultat net consolidé, part du Groupe, au 31 décembre
Un produit d’impôts d’EUR 8,3 millions est enregistré en
2011 s’élève à EUR 20,1 millions par rapport à EUR 67,7 mil-
2011, dont EUR 6,8 millions d’impôts différés principalement
lions au 31 décembre 2010.
liés à des pertes fiscales reportables.
Au 31 décembre 2011, le produit net bancaire recule de
Le total bilantaire est de EUR 14.752 millions, similaire à
9 % par rapport à fin 2010 et s’établit à EUR 549,3 millions,
2010. La diminution de 26 % de la valeur des actifs disponi-
principalement en raison de la contraction de 8 % des com-
bles à la vente, principalement due à des désinvestissements
missions nettes et de la diminution de 28 % des gains nets
et des positions échues émis par KBC Groupe (qui anticipe la
potentiels et réalisés sur les instruments financiers.
séparation avec KBC Groupe), est compensée par une augmentation des dépôts cash auprès des banques centrales
Le montant des avoirs en gestion est de EUR 44,3 milliards
et des opérations reverse repos avec des établissements
fin 2011 contre EUR 48,7 milliards fin 2010.
financiers.
Les charges d’exploitation ont été significativement réduites
Au terme de l’exercice sous revue, les fonds propres con-
à EUR 438,8 millions du fait des programmes de restructura-
solidés de base (Tier One) après déductions, calculés con-
tion mis en place dans le Groupe.
formément à la circulaire CSSF 06/273 telle que modifiée
portant sur la définition des ratios de fonds propres sous
Au 31 décembre 2011, le montant des charges d’impairment
Bâle II, s’élèvent à EUR 653 millions. Le ratio de solvabilité
s’élève à EUR -99,4 millions contre EUR -44,6 millions au
consolidé des fonds propres de base (Ratio Tier One) est de
31 décembre 2010. Un impairment d’EUR 63,3 millions a
16,3 % par rapport à 13,4 % fin 2010. Le ratio « Core Tier
été comptabilisé sur le goodwill et les fonds de commerce
One » s’établit à 16,3 % par rapport à 11,3 % fin 2010. En
de KBL Richelieu Banque Privée S.A.. La dégradation de la
2011 l’instrument de « Tier One hybrid » a été remboursé de
valorisation des obligations grecques a eu un impact négatif
façon anticipée avec une décote.
d’EUR 29,1 millions sur le résultat du Groupe. Au 31 décembre 2011, la valeur nette comptable de l’exposition aux obligations de l’Etat Grec est d’EUR 9,3 millions.
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KBL epb RAPPORT ANNUEL 2011
Rapport de Gestion consolidé
2. MISSION DE KBL EPB
Jusqu’à ce jour, KBL epb s’est concentrée sur le développe-
A taille humaine, toutes nos enseignes agissent sous leur
ment du Private Banking pure play dans des pays ciblés en
nom propre et avec leur particularité culturelle. Ainsi, partout
Europe. Cette mission s’ouvre maintenant plus largement
où nous sommes implantés, notre pérennité et notre succès
sur le Moyen-Orient et l’Asie et sur une activité de services
reposent sur la signature, l’histoire, la réputation de chacun
aux investisseurs professionnels à travers nos départements
des membres de KBL European Private Bankers S.A..
d’Asset Management, de Global Investor Services et de
Global Financial Markets.
2.2. LA CULTURE DE L’EXCELLENCE DANS NOS
METIERS
2.1. OBJECTIFS STRATEGIQUES : ENTREPRENDRE
SUR DES BASES SOLIDES ET STABLES
En cette période de trouble des marchés financiers, nos banquiers privés se positionnent en trusted advisors, plus que
Fort de notre expertise européenne en Private Banking et
jamais proches de leurs clients. Ils ont pour mission de con-
avec l’appui de nos futurs actionnaires 1, nous nous voulons
seiller chaque client en tenant compte à la fois de son profil
ouverts à l’expansion géographique et opportuniste dans le
d’investissement et de ses attentes. C’est pourquoi nos ban-
marché.
quiers privés ont une approche personnalisée, centrée sur le
dialogue avec le client et vue dans une relation à long terme.
En effet, KBL epb est véritablement le seul réseau européen
Cette approche est fondée sur une relation personnelle et du-
de banques privées locales pure-play. Le Private Banking est
rable qui nous engage dans un processus de révision continuel
notre cœur de métier et nous mettons le client au centre de
de portefeuille en comparaison avec les objectifs individuels
nos préoccupations en privilégiant la proximité et le respect
du client pour leur apporter le meilleur de notre savoir-faire.
des cultures et des identités.
Nous sommes aussi reconnus comme des trusted investors.
Nous considérons que l’esprit entrepreneurial des ban-
Notre indépendance dans le choix de nos investissements est
quiers privés qui nous rejoignent et l’autonomie de chacun
garantie par notre stratégie, bien maîtrisée et construite sur
des membres de notre réseau sont les facteurs clés de notre
une longue expérience d’architecture ouverte. De plus, nous
réussite. Parce que nous souhaitons être Belge en Belgique,
avons lancé fin 2011 notre EPB Flagship Fund, un fonds dont
Néerlandais aux Pays-Bas ou encore Espagnol en Espagne,
la gestion bénéficie de toute l’expérience de nos banquiers
chaque membre du réseau KBL epb bénéficie d’une large
privés et qui vise à offrir à nos clients un retour sur investisse-
autonomie dans la définition de sa stratégie commerciale.
ment indépendant de tout benchmark, tout en maintenant une
1
Comme il est mentionné sous la rubrique « Faits marquants » point 2, il est à noter que la transaction de la vente de KBL epb à Capital Precision S.A. n’est pas encore
achevée. Le closing aura lieu dès que toutes les conditions suspensives prévues pour la vente seront complètes (c’est-à-dire l’approbation de tous les organismes de
réglementation). Toutes les déclarations faites ci-après concernant la coopération avec le futur actionnaire, seront soumises à la finalisation de la vente.
KBL epb RAPPORT ANNUEL 2011
19
Rapport de Gestion consolidé
faible volatilité et en préservant le capital sur le moyen/ long
Avec le soutien de notre futur actionnaire, nous allons cibler
terme.
dans un proche avenir de nouveaux marchés et de nouvelles
catégories de prospects.
Toutes les stratégies d’investissement proposées à nos clients par nos banquiers privés font l’objet d’une analyse appro-
Dans cette dynamique, certains métiers vont pouvoir se ren-
fondie, qui tient compte de la performance attendue en regard
forcer mutuellement. Ainsi les activités d’Asset Management,
du niveau de risque accepté par l’investisseur.
que nous exerçons depuis longtemps en lien avec le Private
Banking, trouvent maintenant un espace d’expansion beau-
Nous tenons enfin à nous affirmer comme un trusted employer.
coup plus vaste. Le même commentaire vaut pour les ac-
Nous offrons à cette fin une carrière attrayante aux banquiers
tivités de Correspondant Banking et autres services finan-
privés qui sont les meilleurs dans leur métier. Ambitieux, nous
ciers (Global Financial Markets) pour lesquels notre Salle des
souhaitons d’ailleurs continuer de façon active à attirer les meil-
Marchés a une expertise reconnue.
leurs à nous. Mais nous nous entourons aussi de professionnels compétents dans tous les métiers de la Banque Privée, ce
le travail et les performances de nos banquiers privés.
2.4. UNE GESTION D’ENTREPRISE ADAPTEE AUX
CIRCONSTANCES
Nous sommes convaincus que notre approche centrée sur le
Après les turbulences dues à la crise financière de ces der-
Private Banking et notre adossement à un nouveau partenaire
nières années, un plan volontariste de réduction des coûts a
financier sont nos moteurs de croissance dans les prochaines
été appliqué dans tout le réseau KBL epb. Nous sommes res-
années.
tés prudents dans la gestion des risques et nous avons visé
qui nous permet d’assurer le meilleur support afin d’optimiser
à garantir notre stabilité. Notre risque crédit est totalement
sous contrôle et nous disposons d’une confortable position
2.3. UNE EXPANSION SOUTENUE PAR NOTRE
FUTUR ACTIONNAIRE
de liquidité. Grâce à cette politique de prudence, nous pouvons nous prévaloir d’un excellent ratio de solvabilité.
La collaboration étroite avec notre futur actionnaire, qui
s’insérera dans le développement de KBL epb dès 2012,
2.5. IMPLICATION DES RESSOURCES HUMAINES
nous ouvre des opportunités intéressantes qu’il nous appartient d’explorer rapidement.
Nos collaborateurs constituent la ressource principale de
notre réseau. La construction d’une relation de qualité avec
Dans cette perspective, nous nous préparons activement
leurs clients est leur premier objectif. Nous visons à valoriser
à développer notre politique d’expansion commerciale par
davantage les efforts des collaborateurs en favorisant l’esprit
l’approche de nouvelles catégories de clients potentiels dans
d’initiative et à renforcer l’esprit d’appartenance au Groupe
les pays où nous sommes déjà présents ou par l’entrée dans
KBL epb.
des nouveaux marchés géographiques et par le développement d’un nouveau type de services dont ces catégories de
De plus, à travers ses programmes de mécénat culturel et de
clients ont besoin. Afin de nous donner les moyens de cette
sponsoring sociétal, KBL epb encourage ses collaborateurs à
politique, nous avons prévu de renforcer de façon significa-
participer à des projets culturels, sociaux ou caritatifs.
tive notre équipe de marketing à l’international.
Nous allons également renforcer nos activités dans le domaine
de la constitution et la gestion de fonds d’investissement et
autres produits financiers, dont nous sommes déjà un des
leaders à Luxembourg.
20
KBL epb RAPPORT ANNUEL 2011
Rapport de Gestion consolidé
3. LE HUB SERVICE CENTER
Afin de se donner les moyens d’assurer le développement
Puilaetco Dewaay Private Bankers S.A., dont l’expérience
de son réseau de Banques privées européennes, KBL epb a
pourra profiter également aux autres filiales du Groupe.
conçu, pour ses membres, une série de prestations informatiques et opérationnelles regroupées à Luxembourg au sein
Sur le plan opérationnel, tous les membres de KBL epb
d’un concept baptisé Hub Service Center.
utilisent la plateforme commune (certains intégralement,
d’autres partiellement en raison des contraintes locales).
KBL epb souhaite offrir à ses membres des installations sans
Différentes initiatives visant à améliorer l’efficience et la qua-
égales en termes de qualité, souplesse, gestion des coûts,
lité du service ont été lancées en 2011 et se poursuivent en
outils TIC spécialisés, services de back-office, exécution sur
2012.
le marché et soutien opérationnel par le biais d’une centralisation de ces activités sur une plateforme commune.
Avec le Hub, KBL epb a mis l’accent sur un nouveau rôle,
celui de prestataire de services proactifs de qualité optimale
Le Hub de Luxembourg s’appuie sur l’éventail d’outils et de
destinés aux banques privées européennes recherchant
compétences développés au sein de KBL epb à Luxembourg
l’excellence pour leur clientèle. La mise en commun des ca-
et de l’ensemble du réseau KBL epb depuis plusieurs années.
pacités et des compétences de traitement, ajoutée à la sou-
Il facilite l’optimisation de la qualité de service dont bénéfi-
plesse de l’architecture mise en œuvre, fait du Hub un outil
cient les clients dans tous les sites européens où KBL epb
essentiel pour soutenir la croissance et optimiser la qualité
est présent tout en renforçant la productivité au travers d’un
du service, la gestion des risques et les coûts de base de
usage systématique du principe de traitement STP (Straight
KBL epb.
Through Processing).
La plateforme ITS a été lancée avec succès en France
(KBL Richelieu Banque Privée S.A.), au Royaume-Uni
(Brown, Shipley & Co LTD), en Belgique (Puilaetco Dewaay
Private Bankers S.A.), en Espagne (KBL Espana European
Private Bankers) et en Suisse (KBL Swiss Private Banking
LTD).
Fort d’une stratégie ITS basée sur l’efficacité et la valeur
ajoutée, des solutions innovantes sont déployées au sein de
la plateforme Hub ITS afin d’améliorer les services fournis
aux activités des banquiers privés. C’est particulièrement
le cas avec la nouvelle installation 2012 en Belgique chez
KBL epb RAPPORT ANNUEL 2011
21
Rapport de Gestion consolidé
4. UNE ACTIVITE COMPLEMENTAIRE DE NICHES
4.1. GLOBAL INVESTOR SERVICES
La
confiance
des
investisseurs
dans
les
produits
d’investissement collectif s’est améliorée un peu en 2011 et
Au Luxembourg, à côté du métier de banquier privé, nous
les fortes corrections à la baisse que nous avons connues
exerçons un second métier lié aux particularités de la place
en août et en septembre laissent entrevoir un avenir en de-
financière. Notre fonction Global Investor Services (GIS) cen-
mi-teinte. Malgré la baisse des actifs nets due à l’évolution
tralise depuis 2007 tous les services et les compétences
négative des marchés financiers et le nombre accru de liq-
reconnues de la Banque et les met à la disposition d’une cli-
uidations de produits non-performants, la division OPC &
entèle non-privée. Les domaines d’activité du GIS sont es-
Global Custody Services, experte dans le domaine des serv-
sentiellement liés à l’industrie des Organismes de Placement
ices administratifs et bancaires indispensables à la bonne
Collectif et aux activités de marché pour une clientèle profes-
marche des OPC de nos clients professionnels et institu-
sionnelle et institutionnelle.
tionnels, a non seulement fidélisé ses clients avec qui elle a
lancé de nouveaux produits, mais a encore pu étendre ses
Les professionnels du GIS, une cinquantaine d’experts, four-
relations d’affaire à de nouveaux entrants dans l’industrie de
nissent des services sur mesure au client institutionnel et lui
l’investissement collectif. (Pour plus de détails voir sous 4.2.
proposent les produits développés dans la Banque et plus
OPC.) Il faut souligner par ailleurs l’excellente évolution des
particulièrement dans sa salle des marchés, l’une des der-
fonds non-domiciliés en dépôt auprès de KBL epb, dont les
nières salles encore en fonctionnement sur la place financière
avoirs ont plus que doublé en un an.
luxembourgeoise. Ils sont assistés dans leur tâche par de
réelles compétences techniques, comme la plateforme opéra-
Les activités liées à nos compétences et activités de marché
tionnelle intégrée du Hub ou encore les systèmes de commu-
ont, quant à elles, bénéficié de la grande volatilité des
nication et d’information financière de haut niveau que sont
marchés qui ont offert un bon volume transactionnel, que ce
Bloomberg et Reuters.
soit au niveau des actions, des opérations de change ou de
l’intermédiation de fonds de tiers. Le cross-selling avec les
clients en dépôt (fonds et autres) a progressé de 150 %, principalement en ce qui concerne les obligations gouvernementales à court terme qui ont été envisagées comme alternatives aux dépôts cash bancaires, surtout au cours des 6
premiers mois de l’exercice passé.
22
KBL epb RAPPORT ANNUEL 2011
Rapport de Gestion consolidé
Les équipes du GIS, en collaboration avec celles de l’Informa-
Par diverses initiatives (« Association of the Luxembourg
tique, ont travaillé au développement du volet transactionnel
Fund Industry » - ALFI, « Luxembourg for Finance » - LFF, …)
de notre application internet, eKBL. Sa mise en production a
la place poursuit sa promotion en Asie, au Moyen-Orient et
eu lieu au quatrième trimestre 2011 et le nombre de clients
en Amérique Latine, territoires qui deviennent non seule-
qui souhaitent passer des ordres espèces et titres via eKBL
ment des marchés de distribution de première importance
n’a cessé de croître depuis. Des développements supplémen-
pour le secteur mais dont sont issus un nombre croissant
taires ont été apportés à l’application, notamment en amé-
de promoteurs de fonds d’investissement. Rappelons en-
liorant les outils de reporting, et, depuis fin 2011, nous pou-
core qu’aujourd’hui le TOP 3 des pays (part de marché en
vons offrir à nos clients une solution complète en matière de
% des actifs nets totaux) dont sont issus les promoteurs :
passage d’ordres espèces et titres. Nos équipes poursuivent
représentés par les Etats-Unis (23 %), l’Allemagne (17 %) et
les développements et travaillent sur des liens entre eKBL et
la Suisse (16 %).
le projet de gestion automatisée des événements sur titres
CAMA et l’Asset Management Portal, outil qui permet de
Comme c’était déjà le cas ces dernières années, 2011 fut
suivre l’évolution de portefeuilles en temps réel grâce à des
marquée par un succès constant des fonds alternatifs sous
informations détaillées sur les marchés financiers.
forme de Sociétés d’Investissement en Capital à Risque ou
SICAR (273 sociétés à fin novembre 2011 contre 244 unités
un an auparavant) ou sous forme de Fonds d’Investissement
4.2. OPC
Spécialisés ou FIS.
Ce sont les FIS, véhicules réglementés et flexibles intro-
4.2.1. Malgré la crise, le Luxembourg reste toujours
numéro 1 européen en matière d’OPC
duits il y a moins de 5 ans, qui ont à nouveau le mieux
progressé : en net 174 structures ont vu le jour jusqu’à
fin novembre 2011, soit une augmentation de 15 %. Il
Après deux années de reprise suite à la crise de 2008, qui
s’agit essentiellement de fonds poursuivant des stratégies
s’était même soldé fin 2010 par un volume record des actifs
d’investissement dites alternatives au sens large : sociétés
nets, le secteur des fonds d’investissement luxembourgeois
non cotées, immobilier, hedge funds, microfinance, nouvelles
a subi à nouveau en 2011 de plein fouet les turbulences des
énergies, investissements socialement responsables, etc.…
marchés financiers. Fin novembre 2011, les actifs nets de la
place reculaient de 6 % pour atteindre quelques EUR 2.059
En matière réglementaire l’industrie des fonds à Luxembourg
milliards contre EUR 2.199 à fin 2010.
a enregistré :
- La Directive AIFM (« Alternative Investment Fund Managers
Malgré l’environnement morose et l’effet marché négatif im-
Directive ») réglementant les gestionnaires de véhicules al-
portant, à savoir une perte d’EUR 148 milliards d’actifs nets,
ternatifs et par ricochet aussi les fonds alternatifs. La
il est intéressant de noter que jusque fin novembre 2011 les
Directive a été adoptée en novembre 2010, est entrée en
souscriptions restaient plus importantes que les rachats. Des
vigueur le 21 juillet 2011 et doit être transcrite dans la légis-
promoteurs, issus d’un nombre toujours croissant de pays,
lation luxembourgeoise pour le 21 juillet 2013 au plus tard.
ont lancé en net 166 structures OPC ou 391 compartiments.
- La mise en pratique des nouvelles exigences de la Directive
Le Luxembourg défend ainsi sa position de numéro 1 en
Européenne OPCVM communément appelée « UCITS
Europe et représente avec ses 3.833 structures et 13.328
IV ». Pour rappel, de par sa loi du 17 décembre 2010, le
compartiments, après les Etats-Unis, toujours le deuxième
Luxembourg a été à nouveau le premier pays de l’UE à trans-
marché mondial des fonds d’investissement (chiffres tou-
crire dans sa législation nationale ladite Directive qui traite
jours à fin novembre 2011).
de sujets tels que les fusions transfrontalières de fonds, de
structure « master-feeder », d’une simplification de la procédure de notification, du passeport pour les sociétés de gestion ainsi que d’une nouvelle mouture du prospectus simplifié, appelé le KIID (Key Investor Information Document).
KBL epb RAPPORT ANNUEL 2011
23
Rapport de Gestion consolidé
4.2.2. Evolution des avoirs administrés par KTL
4.2.3. European Fund Administration
KTL est une filiale qui appartient à 100 % à KBL epb qui est
Depuis 1998, KTL sous-traite en tant qu’administration cen-
spécialisée en gestion d’actifs et en services administratifs
trale d’OPC, la gestion comptable et la tenue des registres
pour les OPC.
des investisseurs auprès d’une société spécialisée dénom-
Dans un environnement financier global toujours instable au-
mée European Fund Administration (EFA), dont KBL epb
quel s’ajoute le changement d’actionnaire en cours de KBL
est l’actionnaire principal. Fin 2011, EFA administrait pour
epb, les actifs nets ont pu se maintenir à un niveau très sa-
le compte de 226 clients, plus de 2.727 compartiments pour
tisfaisant d’EUR 32,2 milliards pour 88 structures d’OPC to-
des actifs nets totaux d’EUR 85 milliards.
talisant 704 compartiments administrés. Un nombre consi-
EFA Private Equity, la business line assurant des services sur
dérable de nouvelles entrées en relation avec des promoteurs
mesure à des fonds immobiliers et du type Venture Capital /
venant d’horizons très différents a également pu se concréti-
Private Equity, a pu asseoir sa position de leader sur le mar-
ser en 2011.
ché. Fin 2011, EFA Private Equity rendait ses services à 90
compartiments pour l’équivalent d’EUR 7,1 milliards.
Depuis 2011, les activités de « hedge funds » et de « funds of
hedge funds » ont été regroupées sous une nouvelle business
line intitulée « EFA Hedge Fund Services ».
Enfin, de nombreux développements sont actuellement
en cours chez EFA afin de pouvoir proposer des solutions
idéales dans le contexte des nouveautés et opportunités introduites par UCITS IV et AIFMD (KIID, risk management,
services d’éligibilité…).
24
KBL epb RAPPORT ANNUEL 2011
Rapport de gestion non consolidé
Rapport de gestion non consolidé
1. EVOLUTION GÉNÉRALE DU BILAN
2. EVOLUTION DES COMMISSIONS NETTES
ET DE LA MARGE NETTE D’INTÉRÊT
(Pour les chiffres détaillés, veuillez vous référer aux Comptes
Annuels).
Les revenus nets de commission chutent de plus de 7 % dans
ce contexte économique instable et illustrent la frilosité des
Au terme de l’exercice 2011, le total bilan s’inscrit à EUR
investisseurs. La marge nette d’intérêt diminue similairement
11,4 milliards, soit une légère augmentation d’EUR 0,3 mil-
(8 %) sous l’effet conjugué de maturités plus courtes et de
liard, par rapport à fin 2010.
l’augmentation du volume des transactions interbancaires
collatéralisées.
Suite à la prochaine sortie du groupe KBC pour un investisseur qatari représenté par une entité luxembourgeoise, la
3. BAISSE DES DIVIDENDES
plupart des expositions intra-groupe envers la maison mère
ont été remboursées ou non reconduites. Ceci se traduit par
une diminution des actifs financiers disponibles à la vente
pour EUR -1,4 milliard et des prêts et avances interbancaires
non garanties pour EUR -1,2 milliard. D’un autre côté, la
Banque a augmenté son activité collatéralisée sur les reverse
repos interbancaires (EUR 1,9 milliard), les dépôts auprès de
la Banque Centrale (EUR 0,5 milliard) et les prêts à la clientèle
non bancaire (EUR 0,3 milliard).
Le ratio des actifs liquides sur les dettes exigibles à court
terme reste élevé (64 % versus 30 % minimum) et le ratio
de solvabilité non consolidé reste bien au-dessus des minima requis avec un confortable 39,1 % (Core Tier One ratio à
32,4 %).
26
KBL epb RAPPORT ANNUEL 2011
Les dividendes diminuent de 7 %.
Rapport de gestion non consolidé
4. AUTRES PRODUITS NETS BANCAIRES
6. DÉPRÉCIATION D’ACTIFS
Les autres revenus opérationnels affichent une diminution du
Les tests de dépréciation annuels ont conduit à diminuer
résultat de change et du résultat réalisé sur portefeuille de
la valeur de trois participations consolidées KBL Richelieu
négociation. Ceci est partiellement compensé par le produit
Banque Privée S.A., KBL Beteiligungs et Theodoor Gilissen
réalisé sur des portefeuilles d’investissement (actifs finan-
Bankiers N.V. pour EUR 160,6 millions.
ciers disponibles à la vente) et sur le remboursement anticipé
de l’instrument Hybride de capital (Hybrid Tier One).
7. IMPÔTS DIFFÉRÉS
5. DIMINUTION DES FRAIS DE PERSONNEL
La Banque a reconnu EUR 6,5 millions d’impôts différés actifs pour pertes fiscales reportables.
Les charges de personnel ont été réduites de 24 % suite au
plan de restructuration entamé fin 2010.
8. EVOLUTION DU RÉSULTAT
Suite à l’ensemble de ces éléments décrits ci-dessus, la
Banque a enregistré une perte nette d’EUR 29,3 millions.
KBL epb RAPPORT ANNUEL 2011
27
“Le voyage est un retour vers l’essentiel!”
- tibétain
Annexes
Annexes
Annexe 1
Annexe 2
ACTIONNAIRES MINORITAIRES ET
DÉTENTION D’ACTIONS PROPRES
RISQUE DE COMPLIANCE
Au 31 décembre 2011, le nombre d’actions est le suivant :
La fonction Compliance est chargée de mettre en œuvre
toutes les mesures visant à éviter que la Banque et le Groupe
- détenu par des actionnaires minoritaires, au nombre de
ne subissent un préjudice, financier ou autre, qui pourrait être
17.562 (10.474 actions ordinaires et 7.088 actions privi-
causé par un éventuel non respect de la réglementation en
légiées), représentant un total de 0,09 % du capital de la
vigueur.
Banque.
- détenu dans le portefeuille de la Banque, au nombre de 844
La Compliance KBL & Group couvre un ensemble de tâches
(844 actions ordinaires et 0 action privilégiée), représen-
parmi lesquelles l’identification des risques de Compliance, le
tant un total de 0,004 % du capital de la Banque.
contrôle de ceux-ci, la mise en place d’une politique de sensibilisation, de mesures correctrices, de reporting interne, ainsi
que la relation avec le Parquet et la CSSF dans le domaine du
blanchiment d’argent. Elle assiste activement la direction dans
la gestion et le contrôle de ces risques.
Ses principaux domaines d’intervention sont les suivants :
- la lutte contre le blanchiment d’argent et contre le financement du terrorisme ;
- la protection des investisseurs (MiFID, abus de marché, réclamations clients, …) ;
- la déontologie (codes de conduite, manuels de Compliance,
règles de comportement intègre, …) et la lutte contre la fraude ;
- la protection des données (y compris le secret bancaire).
Le triple rôle de prévention, de conseil et de contrôle des activités par rapport à ces différents domaines d’intervention est
évidemment au centre de la mission de la Compliance. Cette
dernière effectue, en outre, le suivi des risques de Compliance
et de la gestion de ceux-ci dans l’ensemble du réseau KBL epb.
Dans ce cadre, une Charte de Gouvernance des fonctions de
contrôle dans le Groupe a été adoptée en 2011, renforçant encore le lien fonctionnel entre les fonctions de contrôle locales
et celles à Luxembourg.
30
KBL epb RAPPORT ANNUEL 2011
Annexes
Par ailleurs, la Compliance est rattachée directement au
Dans le cadre de la circulaire CSSF 11/519, KBL epb a
Président de la Banque, soulignant encore si besoin était, son
procédé à une analyse approfondie de ses risques de blanchi-
poids et son accès aux instances dirigeantes du Groupe.
ment d’argent et de financement du terrorisme.
Enfin, son effectif a été de nouveau renforcé en 2011.
2.2. CONTRÔLE
2.1. CONSEIL ET PREVENTION
En matière de contrôles, la Compliance a continué à affirmer
La Compliance a continué à assumer en 2011 son rôle de
son rôle. Son dispositif de contrôle vient compléter le dispo-
conseil et de support aux différentes lignes de métier, notam-
sitif général de contrôle interne de la Banque. Ainsi, outre
ment dans le cadre des activités courantes de la Banque. Elle
l’affinement et le renforcement de certains contrôles, l’entité
s’inscrit comme un interlocuteur régulier pour épauler les ac-
Compliance Monitoring a continué à veiller à la bonne exécu-
tions commerciales et le questionnement qui peut en découler.
tion de son Compliance Monitoring Programme (CMP) qui est
Elle intervient dans tous les processus d’acceptation et de révi-
un outil cartographiant les risques de Compliance et visant à
sion des clientèles de la Banque.
vérifier de façon régulière que ces risques restent à suffisance
sous contrôle. Le cas échéant, des propositions d’amélioration
A signaler que le Comité d’Autorisation et de Supervision
du dispositif sont proposées.
des Produits Financiers (CAS), dont la Compliance est mem-
Le suivi de la correcte exécution de ces mêmes tâches de
bre permanent, s’est réuni sur base mensuelle pour approu-
contrôles dans nos filiales a également été organisé à partir de
ver la commercialisation des produits proposés à la clientèle.
Luxembourg. Un support a aussi été proposé dans certaines
L’information aux clients, afin qu’ils puissent bien comprendre
circonstances à certaines entités du Groupe.
les produits et investissent en parfaite connaissance de cause,
est le point essentiel de ce processus via la revue des bro-
Après plusieurs années d’effort, pays par pays, un logiciel pro-
chures ou term-sheets explicitant les caractéristiques et ris-
fessionnel spécialisé en matière de lutte contre le blanchiment
ques liés des produits.
(SIRON) est maintenant en place dans la plupart des entités du
Groupe KBL epb. Cette solution vise à améliorer les processus
Outre son appui pour toute question d’interprétation et son
d’examen de la clientèle du Groupe, à l’entrée en relation mais
suivi permanent des filiales, l’entité Compliance Advisory et le
aussi au cours de la relation que ce soit par analyse du compor-
Money Laundering Reporting Officer (MLRO) ont accordé en
tement des clients (a priori et a posteriori) ou par comparaison
2011 une attention particulière aux domaines suivants :
avec des listes internationales de personnes visées par des actions en justice ou des mesures restrictives.
- la réalisation dans le réseau KBL epb du programme de sensibilisation (Compliance Awareness). Ce programme est no-
Enfin, le contexte de crise financière a eu pour effet secondaire
tamment basé sur une approche pluriannuelle systématique
le développement de tentatives de fraudes externes par falsifi-
et structurée des formations à dispenser débouchant sur des
cation d’instructions de paiement. La Banque veille en perma-
sessions de formation plus ou moins fréquentes et plus ou
nence à adapter ses procédures de contrôle et à sensibiliser
moins approfondies en fonction de l’exposition aux risques
son personnel afin de protéger sa clientèle.
de Compliance des personnels visés. Le programme s’accom-
De façon générale, l’année 2011 a aussi été mise à profit
pagne également d’informations régulières des employés et
pour poursuivre le renforcement des pratiques en matière
cadres sur les risques de Compliance en fonction de l’actua-
de Compliance au sein du Groupe avec des forums et des
lité du moment (interne ou externe).
échanges réguliers avec les Compliance Officers de notre ré-
- par ailleurs, les principes en matière de protection des inves-
seau européen. Cela a notamment permis de partager les nou-
tisseurs ont été rappelés aux employés les plus concernés par
veaux standards Groupe en matière d’AML, de conduite d’af-
le biais de formations (face-to-face et par e-learning) centrées
faires et de lutte contre la corruption.
sur les thématiques clés de cette réglementation.
Des contrôles réguliers ont également été effectués par la
- un rappel des règles en matière d’abus de marché a été donné
Compliance Group dans les différentes entités du Groupe.
aux employés les plus concernés, par e-learning.
KBL epb RAPPORT ANNUEL 2011
31
Annexes
Annexe 3
RISK MANAGEMENT
3.1. MISSION ET REALISATIONS EN 2011
gestion des risques, l’audit externe étant le quatrième niveau
et les autorités de contrôle et de réglementation le cinquième
En 2011 et pour refléter plus correctement son interven-
et dernier niveau.
tion, l’entité de « Risk Management » de la maison mère a
été rebaptisée « Risk Control ». Le terme « Risk manage-
Le Risk Control a également contribué en 2011 à la prépa-
ment » vise en effet un processus transversal de gestion des
ration de la politique de rémunération en réponse aux exi-
risques qui implique toutes les entités de la Banque (et du
gences de la CRD III et des circulaires CSSF N° 10/496 et
Groupe), à différents niveaux d’intervention et pas seulement
11/505.
l’intervention des « équipes d’experts » en matière de risques
qui sont regroupés dans les entités souvent libellées « Risk
Au terme du processus de vente en cours, KBL epb se trouve-
management ».
ra à nouveau en situation d’exercer la fonction d’entité faîtière
Le premier niveau de la gestion des risques est effectué
d’un Groupe bancaire multinational. Le Risk Control a dès lors
par toutes les entités génératrices des risques. Ces entités,
lancé un projet visant à mettre en place une gouvernance des
qu’elles soient de front-office, de back–office ou de support,
risques complètement autonome et adaptée aux métiers spé-
sont les premiers et principaux responsables de la gestion au
cifiques du Groupe. Il impliquera la mise à jour et l’adaptation
jour le jour des risques générés par leurs activités, tout com-
de la charte du Risk Control pour les entités Groupe et entités
me de leurs clients, de leurs revenus, de leurs frais ou encore
locales, formalisant les principes, responsabilités, règles et
de leurs ressources humaines et matérielles. Elles effectuent
lignes de conduite en matière de risk management. L’objectif
des contrôles de premier niveau dont les résultats et/ou ex-
est également de produire une « risk map » (une taxonomie
ceptions sont transmis au management de ces entités et aux
des risques principaux présents dans nos métiers de base) et
entités de deuxième niveau et constituent ainsi la première
un « risk framework » par grand « silo » de risques. Ces docu-
ligne de défense de la Banque.
ments « fondateurs » pourront être adaptés le cas échéant en
Ces dernières regroupent 4 types d’entités en fonction
fonction des inflexions que le nouvel actionnaire souhaiterait
de leur spécialisation : les entités de « Risk Control/Risk
donner à la stratégie, après le closing de la vente.
Management » interviennent au deuxième niveau de la gestion des risques financiers (risques crédits, ALM, liquidité,
Parallèlement KBL epb a poursuivi la préparation de la
trading…) et des risques non financiers (Risque client, risque
« séparation » avec KBC Groupe, tout en gérant la situation
opérationnel, risque business…) de la Banque, qui fait l’objet
des risques en bon père de famille. L’Asset and Liabilities
du présent chapitre. La fonction « Compliance » décrite au
Committee (ALCO), mis en place à Luxembourg fin 2010,
chapitre précédent est en charge de la gestion au deuxième
s’est réuni mensuellement pour reprendre en main la gestion
niveau des risques de Compliance. Les autres entités de con-
bilantaire, en concertation avec le vendeur (KBC Groupe) et
trôle de deuxième niveau comprennent la fonction Finance et
l’acheteur. Des mesures ont été prises pour qu’à la date du
la fonction Ressources Humaines.
closing de la vente à Precision Capital S.A., le Groupe res-
L’audit interne intervient ensuite comme troisième niveau de
pecte la limite des grands risques sur notre ex-actionnaire.
32
KBL epb RAPPORT ANNUEL 2011
Annexes
L’ ensemble des encours souverains sur les pays « PIIGS » a
proportionnées à la taille et la complexité des activités et
été analysé et suivi de près. Il s’est fortement réduit sur la
qu’un des objectifs principaux est qu’elles doivent être faci-
période suite à des remboursements importants et quelques
lement assimilables par le management et les organes de la
ventes. Au 31/12/2011, l’encours nominal global ne s’établit
Banque, le choix a été fait de simplifier les méthodologies
plus qu’à EUR 283 millions dont 39 millions sur la Grèce (en-
par rapport à celles en vigueur au sein de KBC Groupe, en
cours net de 9 millions), 21 millions sur le Portugal, 2 mil-
particulier au niveau du risque crédit et du risque « trading ».
lions sur l’Irlande, 83 millions sur l’Italie et 138 millions sur
Dès fin 2009 quand KBC Groupe a annoncé son intention de
l’Espagne. Des portefeuilles d’investissement, dont un porte-
vendre KBL epb, le projet d’implémentation de la méthode
feuille de private equity et la totalité des CDO ont été égale-
« IRB Foundation » pour le calcul réglementaire du risque cré-
ment cédés au début 2011. Certains portefeuilles ALM por-
dit a été suspendu car sa poursuite impliquait des investisse-
tant un risque souverain sont venus à échéance et une part
ments très importants tant en ressources humaines spéciali-
grandissante de la liquidité excédentaire et structurelle a été
sées et en développements informatiques qu’en extension du
placée en prêts interbancaires à court terme collatéralisés ou
« scope » des entités concernées. Au vu du recentrage actuel
auprès de la Banque Centrale du Luxembourg.
sur les métiers de base, de la réduction des activités « annexes » et du « deleveraging » du bilan, la Banque ne compte
Comme annoncé dans le rapport annuel de 2010, la Banque
pas relancer ce projet. Pour le pilier 2 en risque crédit, la
a mis en place au 01/01/2011 un programme d’assurance
Banque abandonnera également la méthodologie de KBC
groupe autonome. Les montants de couverture souscrits
Groupe après la vente pour se focaliser sur une approche
sont légèrement inférieurs aux montants dont nous béné-
« pilier 1 adaptée ». Au niveau des outils d’appréhension du
ficiions en tant que membre du Groupe KBC Groupe et les
risque trading, notre intention telle qu’annoncée aux régula-
franchises ont été relevées pour couvrir plus efficacement à
teurs et comme déjà annoncé dans le rapport annuel 2010
coût sensiblement identique les risques catastrophiques (les
est de revenir à des méthodes qui prévalaient avant que KBC
« tail risks »).
Groupe ne nous impose une HVaR.
Par ailleurs, tout en continuant les rapports réguliers à des-
Outre les limitations méthodologiques de cette mesure, les
tination de KBC Groupe, des développements propres nous
développements et la maintenance de ces systèmes d’infor-
permettant d’être totalement autonome dans d’autres do-
mation sont hors de proportion avec l’activité de trading né-
maines après la vente ont été poursuivis. Une méthodologie
cessaire pour soutenir nos métiers de base. Dans le pilier 2,
propre sur la définition de l’appétit pour le risque a été validée
la HVaR sera également remplacée par la mesure du risque
par le Comité de Direction. Elle sera déclinée en limites par
marché du pilier 1.
activité et par filiale après le closing de la vente avec le nouvel actionnaire. Il en est de même pour les travaux visant à
Au cours de 2011, nous avons poursuivi l’affinement des con-
répliquer avec nos spécificités les calculs de VaR en ALM du
trôles sur la Banque privée (Private Banking) à l’échelle du
banking book et les calculs des nouveaux ratios de liquidité
Groupe et le Global Investor Services (GIS) à Luxembourg.
(« LCR » et « NSFR »).
Un calcul EROC a été mis en place. En risque opérationnel
Bien que peu reconnus et peu pratiqués par les Banques re-
et suite à notre non intégration dans le nouveau « risk fra-
tails et commerciales, les contrôles liés aux actifs déposés
mework » de KBC Groupe, nous avons poursuivi les travaux
par les clients, qui sont développés au chapitre « Client Risk
de mise en place d’une base de données des principes opéra-
Management » ci-après, sont des activités essentielles pour
tionnels qui devrait remplacer et compléter à court terme les
les entités de Risk Control d’une Banque privée. Comme l’a
« standards Groupe ».
démontré la crise actuelle, ces contrôles sont d’autant plus
importants que la notion de ce qui est « sans risque » ou
Reconnaissant qu’après la vente, notre Groupe sera « stand
« risqué » peut évoluer rapidement. Globalement nos clients
alone » et concentré sur un nombre limité d’activités de
privés sont cependant très peu exposés directement aux
base (Private Banking et Global Custody principalement),
risques souverains des pays « périphériques ». Si l’accent
que les méthodes de risk management se doivent d’être
a été mis jusqu’à présent sur la détection de concentration
KBL epb RAPPORT ANNUEL 2011
33
Annexes
particulière ou de titres/débiteurs à risque dans les porte-
Londres a considérablement renforcé ses dispositifs et son
feuilles, nous renforcerons en 2012 le système d’alerte sur
équipe de Risk Control. Les membres du Comité de Direction,
les signatures dont le risque crédit se dégrade.
de la Direction et du Conseil d’Administration de BSCo ont été
soumis à des interviews approfondis (« arrow visits ») du ré-
Au niveau de l’activité en produits structurés qui sont vendus
gulateur qui ont débouché sur une série de recommandations
à la clientèle privée, les standards appliqués par le Groupe
implémentées en un temps record. Outre un dossier ICAAP
sont très stricts et en phase avec le renforcement des exi-
2010 particulièrement fourni, BSCo a aussi produit pour
gences légales qui émergent dans la plupart des pays et au
la première fois un rapport « Internal Liquidity Adequacy
niveau européen. Toutes les décisions d’acceptation de nou-
Assessment » (« ILAA »), l’équivalent du rapport ICAAP pour
veaux émetteurs sont concentrées au sein d’un Comité spé-
le risque de liquidité.
cialisé à Luxembourg. Nous avons restreint les émetteurs
principalement à certaines Banques systémiques et modulé
Ils ont également développé un premier « reverse stress
les volumes d’émission en fonction des émetteurs. Une atten-
test », soit un scénario destiné à conscientiser le manage-
tion toute particulière est portée aux fiches d’information des
ment aux risques fatals pour l’institution. Aux Pays-Bas,
investisseurs potentiels. Le Risk Control a également partici-
l’équipe du Risk Control de TGB a été mise très largement
pé au montage du programme d’émission de la Banque pour
à contribution en 2011 dans une douzaine de projets d’opti-
elle-même. D’autre part, en application de la circulaire CSSF
misation du risk management, qui ont été menés à bien. En
11/512, un rapport complet du risk management process
Suisse et à la demande de la nouvelle direction, il a été fait
pour les activités de gestion d’OPC à Luxembourg a été re-
appel à un consultant pour redéfinir l’ensemble des contrôles
mis par la Direction de KTL à la CSSF. Le responsable du Risk
de premier et deuxième niveau. Les conclusions sont atten-
Control de KBL epb est aussi désormais membre du Comité
dues en 2012. Enfin à Luxembourg, les équipes Risk Control
des risques de cette activité chez KTL. Par ailleurs, pour les
de KBL epb ont été impliquées dans la mise à niveau du dis-
filiales où l’activité de gestion de fonds d’investissement est
positif chez Vitis Life, la société d’assurance du Groupe, prin-
importante, un rapport des principaux indicateurs de risques
cipalement dans les domaines de l’ALM, du risque crédit, du
est désormais effectué aux Comités d’Audit, Compliance et
risque opérationnel et du dossier « solvency 2 ».
Risques locaux.
Au niveau des équipes et suite à la mise en place de nouEn ce qui concerne l’activité Global Custody, la Banque a
velles règles de gouvernance en matière de démission/re-
une gestion active de son exposition au risque sur ses sous-
crutement/mobilité du personnel des responsables locaux du
dépositaires qui l’a amenée à quitter certains d’entre eux,
Risk Control de nos filiales, le responsable du Risk Control de
notamment dans le contexte de la crise des dettes souve-
Luxembourg est intervenu directement dans des situations
raines. Le rapport annuel de suivi des Banques dépositaires
de gestion du personnel dans les filiales et en particulier chez
et contreparties externes a été mis à jour par la Fonction
TGB, Puilaetco Dewaay Private Bankers et KBL Richelieu
Opérationnels et discuté avec les responsables des métiers
Banque Privée S.A..
concernés Compliance et du Risk Control. Il sera transmis à
la CSSF courant 2012. Ce rapport témoigne de l’importance
que nous portons au suivi permanent de notre réseau de
dépositaires.
En 2011, le périmètre de gestion des risques est resté
identique à l’exception de la fermeture de la succursale en
Pologne, dont le suivi ne consommait que très peu de ressources. Certaines filiales ont cependant enregistré des
développements majeurs et nécessité un suivi intensif des
équipes du Risk Control à Luxembourg. Pour répondre aux
demandes croissantes de la réglementation locale, BSCo à
34
KBL epb RAPPORT ANNUEL 2011
Annexes
3.2. STRUCTURE ET ORGANISATION
Groupe KBL epb. Il est constitué par l’ancien département
« Analyses Financières » rattaché jusqu’en fin 2008 au
Depuis février 2009, la structure du Risk Control de KBL
Corporate Banking. Le risque crédit provient essentielle-
epb s’articule autour de 4 départements qui comptent un
ment des crédits Lombard octroyés à des clients privés, des
total de 32 ETP :
lignes de crédit octroyées à des fonds d’investissement,
des portefeuilles d’investissement obligataire (FRN et SAS)
- le département « Risque Opérationnel » (Operational Risk
et des lignes bancaires non confirmées couvrant le risque
Control, avec 8,3 ETP), en charge du suivi des probléma-
de contrepartie. Il couvre le suivi des risques pays et ris-
tiques de risque opérationnel (3,6 ETP) et de « Process
ques souverains du Groupe.
Management » (4,7 ETP). Les principaux outils de monitoring du risque opérationnel sont les analyses d’incidents
- le département Middle Office and Collateral Management
enregistrées pour tout le Groupe dans un outil commun
(avec 11,7 ETP) en charge des contrôles récurrents de
(Loss Event Reporter), les standards Groupe de risque opé-
deuxième niveau sur les activités de la fonction Marchés,
rationnel, les Risk Self Assessments et les Case Studies.
soit principalement :
Il assure aussi la gestion du nouveau programme d’assurances pour tout le Groupe KBL epb. Le « process management » vise à mettre en place un ensemble cohérent
- le contrôle de l’intégrité, de la fiabilité ainsi que le reporting des positions et des résultats de trading ;
et exhaustif de procédures transversales, principalement
pour la maison mère, mais aussi pour certaines succur-
- le contrôle des utilisations/dépassements des limites et
sales/filiales qui ont recours à ses services. L’intégration de
le suivi et la consolidation du risque résiduel de trading
cette entité dans le Département « risque opérationnels »
des filiales ;
en janvier 2011 vise à développer des synergies entre
ces deux activités. Les outils utilisés par l’entité Group
Process Management seront notamment employés pour
- le suivi du risque de contreparties/pays (lignes non
confirmées) ;
de nouveaux développements dans le domaine du risque
opérationnel. Afin de favoriser les synergies logistiques,
- la gestion du collatéral de la Banque relatif aux activités
le développement et la maintenance du programme BCP
Repos, Prêts de Titres et Produits Dérivés, ainsi que le
pour KBL epb ont été transférés à l’entité « Immeubles et
suivi de la qualité des gages reçus des contreparties sur
Logistiques » au début 2011.
base des contrats-cadre.
- le département « Risque Marché » (Market Risk Control
Le nombre total de « risk managers » au sein des socié-
avec 6 ETP), en charge du suivi méthodologique des pro-
tés affiliées s’élève à environ 27 ETP. Merck Finck & Co
blématiques de risque marché dans le Groupe KBL epb.
Privatbankiers, Theodoor Gilissen Private Bankiers N.V. et
Ce département procède au suivi des problématiques ALM
plus récemment Brown, Shipley & Co Ltd comptent jusqu’à 5
et du risque de liquidité, et dirige le processus ICAAP de la
ETP. Les autres équipes sont beaucoup plus petites (3 ETP en
Banque (pilier 2 de Bâle II). Il agit également en tant que
moyenne). Compte tenu de la plus grande uniformité des ac-
support aux filiales afin de répondre aux exigences régle-
tivités au sein des filiales et de la non-matérialité de certains
mentaires locales.
risques (absence d’activité de trading, risque ALM et risque
liquidité très limités et fortement encadrés, risque crédit li-
- Enfin, c’est dans cette entité que sont développés les nou-
mité), l’essentiel des ressources est consacré à la maîtrise
veaux contrôles en matière de détection des risques po-
et aux contrôles des risques clients et risques opérationnels.
tentiels dans les portefeuilles clients et que sont réalisées
certaines analyses diverses.
- le département « Risque Crédit » (Credit Risk Control avec
3,8 ETP) en charge du suivi du risque de crédit pour le
KBL epb RAPPORT ANNUEL 2011
35
Annexes
3.3. RISK APPETITE
secured en reverse repo ou le placement auprès de la
Banque Centrale de Luxembourg. Quand les risques
Le Groupe KBL epb se définit comme un Groupe spécialisé
de contreparties redeviennent acceptables, la Banque
de Banques privées pure play ne générant que peu de risques
peut replacer en « unsecured » auprès de banques de
pour compte propre.
bonne qualité. Un suivi strict des limites est assuré.
Cette aversion au risque se base sur les 4 principes suivants :
La Banque conserve par ailleurs une grande marge
de manœuvre pour se procurer de la liquidité supplé-
1.
La stratégie globale vise à réduire la volatilité des
mentaire en mobilisant d’importants portefeuilles éli-
résultats nets et à assurer leur progression régulière.
gibles auprès de la BCL ou sur le marché du Repo.
Elle assure aussi une grande liquidité.
Outre le replacement de la liquidité excédentaire
sous forme de placement interbancaire, la Banque
- En une dizaine d’années, la Banque a construit un ré-
à Luxembourg a aussi constitué un portefeuille
seau de Banques dans 9 pays européens, lui permet-
d’obligations « investment grade », très diversifiées, li-
tant de bénéficier d’une diversification géographique
bellées essentiellement en EUR et qui sont swappées en
et de s’implanter sur des marchés présentant des sta-
taux flottant et financées par la trésorerie à court terme.
des différents de développement. La croissance est as-
La plupart des positions, dont les émetteurs sont des
surée au niveau local par des rachats de petites ensei-
souverains, des institutions bancaires et financières et
gnes ou le recrutement de private bankers séduits par
des corporates, est éligible à la BCL.
notre modèle de développement d’un Private Banking
pure play.
2. Au niveau des filiales, la stratégie globale prône
l’élimination des activités non core et la réduction du
- Cette expansion s’est réalisée en « onshore », sur des
business risk.
marchés en progression régulière, tandis que « l’offshore », qui constitue la base historique de KBL epb, est
- Toutes les activités de trading en obligations ou en ac-
en consolidation depuis de nombreuses années. Les en-
tions ont été stoppées dans les filiales. Les positions
tités onshore servent de « filet de sécurité » aux clients
de trading actuelles ne sont que la résultante naturelle
souhaitant quitter l’offshore. En quelques années, les
de l’activité clientèle, principalement en Forex et en
proportions entre onshore et offshore ont basculé au bé-
Trésorerie.
néfice de l’onshore.
- Les positions ALM tactiques ont été figées ou vendues
- Au fil des ans, le Groupe a favorisé le développement
des services générateurs de revenus/commissions ré-
et les seules positions restantes sont limitées et viendront à échéance dans les toutes prochaines années.
currents (asset based fees) par rapport aux commissions
ponctuelles de transaction (transaction based fees). Les
- L’activité de crédit Corporate pure a été stoppée et ré-
formules de gestion discrétionnaire, de conseil payant,
orientée sur les crédits à la clientèle privée en tant que
les placements en OPC et les assurances type « Branche
service d’accompagnement. La plupart des exposi-
23 » répondent à ce souci de stabilisation des revenus
tions sont garanties soit par des portefeuilles (crédits
globaux.
Lombard), soit par des actifs immobiliers (prêts hypothécaires) dont les clients sont propriétaires.
- Sur le plan de la liquidité, les core business du Private
36
Banking et du GIS sont des pourvoyeurs naturels. Le
- Les filiales sont donc focalisées sur un seul métier et en
Groupe est structurellement prêteur net sur les marchés
particulier sur leurs activités clients (B to C) grâce aux
financiers. En l’absence de contraintes réglementaires,
services de support en Global Custody, en Marchés et
les filiales remontent leur liquidité à KBL epb, qui les
en ICT offerts par les équipes du Hub, opéré centrale-
replace sur le marché. KBL epb privilégie les opérations
ment à Luxembourg. La plateforme Groupe, « Globus »,
KBL epb RAPPORT ANNUEL 2011
Annexes
tout en étant adaptée aux spécificités locales, permet de
une fréquence soutenue, la mise en place d’un cadre
standardiser les principaux processus de support et de
compliance complet, soutenu par des contrôles par
contrôle de l’activité.
échantillon ou exhaustifs et la mise en place de standards de risque opérationnel et l’exécution de contrôles
3.
La stratégie globale vise à limiter les risques des acti-
de Risk Management sont quelques uns des consti-
vités non core chez KBL epb à Luxembourg :
tuants de l’ADN de KBL epb en matière de contrôles.
En 2011, KBL epb a élaboré un « framework » pour
- Les activités de crédit, qui s’inscrivent parmi les activi-
l’expression et la quantification de son appétit pour le
tés historiques de KBL epb, ont été restructurées en
risque. Il a été discuté avec certaines filiales qui l’ont
2009 pour se focaliser sur une offre en tant que pro-
adopté notamment en liaison avec l’exercice local de
duits d’accompagnement des clients privés et, dans une
l’ICAAP. Au niveau du Groupe, ce concept, qui doit être
moindre mesure, des clients du GIS. L’activité de porte-
discuté en étroite interaction avec la stratégie et avalisé
feuille crédit pure a été recadrée en abandonnant plu-
par le Conseil d’Administration, sera décliné en limites
sieurs niches d’activités, comme les produits de crédits
par activité après le closing de la vente et la constitution
structurés et le private equity.
du nouveau Conseil d’Administration.
- Les prises de positions en ALM à Luxembourg sont
3.4. GESTION DES RISQUES
limitées et consistent pour l’essentiel en des positions
structurelles de replacement du free capital et des
dépôts stables à taux fixes.
- Comme évoqué au premier chapitre de cette section,
alors que les entités du Front Office, du Back Office ou
des entités de soutien conservent la première et prin-
- Les prises de positions en trading de la Salle des Marchés
cipale responsabilité de la gestion de leurs risques, le
de Luxembourg sont strictement encadrées et résultent
Risk Control contribue au deuxième niveau, à la maîtrise
pour l’essentiel de l’activité clientèle. Les instruments
globale des risques détaillés ci-après. Selon les entités,
utilisés sont « classiques » et l’activité en dérivés est limi-
les risques sont suivis généralement de façon mensuelle
tée. Le dénouement de l’essentiel des opérations en obli-
par des comités de risques dédiés ou par les EXCO lo-
gations et actions pour la clientèle est assuré en « livrai-
caux. Un suivi trimestriel exhaustif auprès de KBL epb
son contre paiement ». Le risque de crédit des activités
ainsi que de chaque filiale est effectué par les Comités
Forex et Trésorerie est généralement couvert par des
de Direction locaux et par les Comités d’Audit, de
contrats de compensation (ISDA et CSA). Les opérations
Compliance et Risques (« ACRC ») respectifs, qui sont les
d’emprunts de titres à la clientèle du GIS et leurs contre-
émanations des Conseils d’Administration. Ces risques
parties éventuelles dans le marché sont également cou-
font en outre l’objet d’une évaluation globale à travers
vertes par des contrats MSLA /GMSLA.
le processus ICAAP pour la plupart des entités, qui est
abordé en fin de ce rapport.
4.
Enfin la stratégie vise aussi à minimiser les risques inhérents non financiers.
3.4.1. CLIENT RISK MANAGEMENT
- Au fil des années, la Banque a développé une solide
culture en matière de contrôles internes. La sépa-
Le risque Client fait référence à l’insatisfaction du client
ration des tâches et la structuration des organisa-
lorsque la Banque manque à ses obligations professionnelles
tions, la mise en place de procédures et de processus
au sens large, sans qu’il y ait nécessairement erreur opéra-
de travail, le contrôle généralisé des « quatre yeux »,
tionnelle ou non respect de clauses contractuelles. Il se ma-
la double saisie des opérations à risques, la saisie des
térialise par une réclamation voire une rupture de la relation
opérations au plus près des instructions, l’exécution
avec la Banque (retrait des avoirs), avec la perte de revenus
de missions d’audit couvrant toutes les activités avec
qui en résulte.
KBL epb RAPPORT ANNUEL 2011
37
Annexes
Dans notre métier principal (le Private Banking), le Client Risk
évaluer son impact potentiel final sur la performance/la va-
Management consiste dès lors à identifier les portefeuilles
lorisation de ce portefeuille. Les situations présentant un
des clients qui pourraient être exposés à un risque non sou-
risque matériel sont remontées aux entités commerciales
haité par lui, à s’assurer que le client en soit conscient et que
qui prennent alors ou non l’initiative de contacter le client
des solutions lui aient été dûment proposées. Ce risque peut
pour éventuellement régulariser la situation.
provenir d’une évolution non anticipée des marchés, comme
une corrélation accrue entre les différentes classes d’actifs
- Dans le domaine des produits structurés, le « Comité
lors de la crise financière ou la dégradation des risques liés
d’Autorisation et de Supervision des nouveaux produits »
à certains types de titres. Il peut également résulter d’une
(« CAS ») de Luxembourg (mis en place fin 2008) exerce
prise de risque progressive par le client qui ne lui assure plus
une surveillance et un contrôle permanents. Ces produits,
une diversification suffisante de son portefeuille par rapport
qui sont proposés de façon très personnalisée à la clien-
à son profil de risque.
tèle du Groupe, doivent désormais obtenir l’approbation
formelle et préalable de ce Comité avant d’être commer-
Dans notre Groupe, le Client Risk Management a toujours
cialisés. Le rôle principal de ce Comité est de renforcer le
existé, mais il était principalement axé sur les portefeuilles
contrôle et la communication sur l’ensemble des risques
en gestion discrétionnaire et adapté à la situation locale.
(marché, crédit, opérationnel, juridique, etc.) qui sous-
Selon la filiale, les limites d’investissement (par type d’ins-
tendent ces structures et leur commercialisation. Les
truments, région, …) sont plus ou moins explicites dans les
membres permanents du Comité appartiennent aux fonc-
contrats signés avec les clients, ce qui peut accroître la res-
tions Risk Management, Financial Markets, Compliance,
ponsabilité de la Banque en cas de non-respect des alloca-
Legal, Wealth Management et KTL Asset Management,
tions. Par conséquent, le Risk Management assure donc
ainsi que le Marketing.
lui-même un contrôle de deuxième niveau ou de troisième niveau (si c’est une autre entité qui assure ce contrôle) et avec
L’un des objectifs principaux est notamment de veiller à ce
une fréquence régulière (souvent mensuelle) afin de veiller à
que tous les documents d’information remis à la clientèle lui
ce que les grilles d’allocation soient bien respectées et que les
permettent de prendre parfaitement la mesure de la méca-
dépassements soient justifiés ou corrigés. Un autre type de
nique de ces produits et de s’assurer qu’ils sont en adéqua-
contrôle vise à s’assurer que les titres individuels placés dans
tion avec leur profil de risques.
les portefeuilles gérés appartiennent bien aux listes de titres
Les émetteurs de produits structurés vendus à nos clients
recommandés et que les éventuelles exceptions soient bien
sont individuellement validés par le CAS, après une ana-
justifiées et connues des clients concernés.
lyse détaillée menée par le Risk Management, qui est également chargé d’effectuer une surveillance spécifique afin de
Par ailleurs, dans la situation de crise enregistrée fin 2008
s’assurer que le risque de crédit lié aux émetteurs demeure
et en 2009, de nombreux clients ont subi des pertes inat-
acceptable.
tendues liées à des conditions extrêmes de marché, voire à
En accord avec la Salle des Marchés et le Marketing, le Risk
des fraudes. Certaines institutions financières ont été lour-
Management attribue un score de risque à chaque produit
dement pénalisées en devant assumer à leurs frais des ris-
lancé.
ques initialement pris par leurs clients. Tirant rapidement les
Ce Comité se réunit mensuellement ou ponctuellement à la
leçons de la crise, la Banque a répondu par deux initiatives :
demande expresse d’un de ses membres et est présidé par le
membre du Comité de Direction ayant le Wealth Management
- En 2011, le Risk Management a été chargé de mieux
dans ses attributions. Le compte-rendu est distribué à tous
structurer les contrôles dédiés au risque client. A ce titre,
les membres des entités commerciales, ainsi qu’au service
chaque exposition concernée par un critère de risque (li-
d’Audit Interne du Groupe.
quidité des actifs, qualité de l’émetteur/de la contrepartie, contrôles par type de produit, etc.) est analysée en
termes de poids dans le portefeuille du client, de manière à
38
KBL epb RAPPORT ANNUEL 2011
Annexes
3.4.2. OPERATIONAL RISK CONTROL
été menés à travers le Groupe KBL epb, principalement au
sein de l’activité Private Banking, suite à un incident ayant
Est entendu par risque opérationnel sous Bâle II, le risque
touché KBL epb ou une de ses filiales.
de pertes directes ou indirectes résultant de procédures internes inadéquates ou défaillantes, des personnes et sys-
Le principe clé de l’approche de risque opérationnel est
tèmes ou d’événements externes. Dans toutes les entités du
que ce risque demeure de la responsabilité principale des
Groupe KBL epb, la méthodologie « Risque Opérationnel »
Business Lines qui constituent la première ligne de défense.
adoptée est la méthode standardisée sous Bâle II/CRD.
Pour aider le Management des différents business à gérer ces
Pour 2011, la charge en capital s’élevait à EUR 69 millions
risques et assurer une bonne interaction avec les équipes de
(moyenne sur 2008 à 2010).
Risk Control (les CORM), un réseau de correspondants risque
opérationnel locaux (les LORM) a été mis en place au sein
La méthodologie est basée principalement sur les piliers sui-
des entités opérationnelles. Ces LORM veillent au respect
vants :
des procédures, à la réalisation des Risk Self Assessments
et également aux évaluations de conformité par rapport aux
- Collecte et analyse des incidents opérationnels dans une
standards Groupe. Chez KBL epb et dans certaines entités,
base de données disponible à travers le Groupe, le Loss
les LORM sont les responsables d’entités/de départements,
Event Reporter. « Challenging » au niveau local des entités
ce qui assure une meilleure prise en compte et gestion des
responsables de ces incidents (et au niveau consolidé pour
risques opérationnels.
les incidents dépassant EUR 25.000) et mise en place de
plans d’actions dégagés de ces analyses et suivi des réali-
Dans chaque entité matérielle, un Operational Risk Committee
sations. Elaboration de statistiques d’incidents par entité/
(ORC) supervise le processus de gestion du risque opération-
activité/type d’incident et comparaison avec les revenus
nel et prend les décisions requises. Il donne ses instructions
bruts.
à l’entité locale d’Operational Risk Management (CORM).
Chaque membre du réseau KBL epb a mis en place cette
- Analyse et implémentation de standards Groupe de ris-
structure à trois niveaux localement (ORC – CORM – LORM).
que opérationnel, couvrant une large part des activités du
Le département « Operational Risk Control » de KBL epb
Groupe. Suite à la vente par KBC Groupe, le projet CORRS
joue un rôle clé dans le lancement et la consolidation des ini-
(Common Operational Risk Rules System) a été lancé afin
tiatives au niveau des filiales.
de centraliser l’ensemble des règles relatives aux risques
Le risque opérationnel résiduel est couvert par des polices
opérationnels pour le Groupe KBL epb au sein d’un outil
d’assurance. Depuis le 1er janvier 2011, en raison de la vente
commun permettant aux utilisateurs d’accéder au travers
par le Groupe KBC, un nouveau programme d’assurance pour
de différentes vues à ces règles. En 2011, nous nous som-
le Groupe KBL epb est en vigueur. Ce nouveau programme
mes concentrés sur le développement des règles relatives
couvre les diverses entités du Groupe KBL epb pour les
au core business « Private banking ».
mêmes types de risques que ceux qui étaient couverts dans
le cadre du précédent programme d’assurance du Groupe
- Identification, mesure des risques et évaluation des con-
KBC. Le département Operational Risk Management de KBL
trôles en place au travers de matrices de risques élaborées
epb joue le rôle de centralisateur des demandes de déclara-
pour chaque activité dans le cadre de séances de Risk Self
tion de sinistres pour l’entièreté du Groupe.
Assessments. Basé sur les « matrices de risque » établies
par l’Audit, cet exercice a été mené à bien pour KBL
Un Business Continuity Plan (BCP), conçu par le BCP
epb, mais est encore en cours de développement, avec
Manager, est en place depuis de nombreuses années. Dans
l’assistance de KBL epb, dans la plupart des filiales.
le but de favoriser les synergies avec l’entité « Logistique »
en charge du premier niveau d’intervention en cas de sinistre
- Etude ponctuelle d’événements/incidents extérieurs au
travers de case study. En 2011, plusieurs case study ont
majeur, le Business Continuity Manager a été transféré en
février 2011 vers cette entité.
KBL epb RAPPORT ANNUEL 2011
39
Annexes
Depuis janvier 2011, l’entité « Process Management » a été
La sphère de contrôle du Credit Risk Control a été étendue
intégrée dans le département « Operational Risk Control ».
depuis 2009 à l’ensemble des risques de crédit pour compte
L’entité « Process Management » est principalement en
de la clientèle privée et institutionnelle. Depuis 2010, le CRC
charge de la création et la mise à jour des procédures trans-
intervient directement dans le monitoring du risque crédit,
versales via leur modélisation dans l’outil MEGA. Fin 2011,
dans l’activité de Banque dépositaire, ainsi que dans l’actua-
toutes les procédures transversales des process critiques de
lisation des critères d’acceptation des titres pris en collatéral
la Banque ont été modélisées dans l’outil MEGA et publiés sur
dans les opérations de prêt de titres et de repo. Comme les
le site Intranet de la Banque.
autres départements du Risk Control de Luxembourg, le CRC
a aussi renforcé considérablement son rôle de contrôle de
Des synergies sont en cours de développement afin
3e niveau et de conseiller vis-à-vis des entités locales de nos
d’optimiser la gestion des risques opérationnels depuis la
filiales. Le rapport consolidé crédit (le « consolidated credit
conception et la modélisation des process.
portfolio report ») couvre l’ensemble des filiales et donne une
L’outil MEGA sera également utilisé comme plateforme pour
vue détaillée de l’activité et des risques crédit de chacune
l’outil CORRS développé afin de centraliser les règles/princi-
d’entre elles.
pes opérationnels qui seront d’application dans le Groupe KBL
epb afin de minimiser le risque de survenance d’incidents
Au niveau réglementaire, toutes les entités du Groupe KBL
opérationnels.
epb utilisent la méthode standardisée sous Bâle II pour le
calcul du risque de crédit. Le projet lancé en 2005 visant à
adopter la méthode IRB Foundation à l’horizon 2009/2010,
3.4.3. CREDIT RISK CONTROL
qui était piloté par KBC Groupe, a été suspendu suite à
l’annonce de la cession de KBL epb par le Groupe KBC.
Les risques crédit pour compte propre couverts par le Credit
Il ne devrait pas être relancé au vu du recentrage de la
Risk Control (CRC) émanent principalement :
Banque sur ses métiers de base.
- de l’activité de Private Banking sous la forme de crédits
Dans le contexte du processus de désinvestissement de
Lombard (Luxembourg et filiales) et, dans une moin-
KBC, le Credit Risk Control a élaboré ses propres instruments
dre mesure, de crédits hypothécaires (Theodoor Gilissen
d’analyse bancaire, et a mis en œuvre ses propres systèmes
Private Bankiers N.V. surtout) ;
de fixation de limites bancaires et de limites pays qui ont été
approuvés par le Comité de Direction. Ces systèmes permet-
- de l’octroi de lignes inofficielles aux clients du GIS à
Luxembourg (OPC essentiellement) pour assurer la couverture de dépassements passagers ;
- de l’activité Bond portfolio/international credit, sous forme
de FRN et de SAS, qui est en run-off graduel dans certaines niches depuis la fin 2008 ;
- des positions des quelques portefeuilles ALM (gouvernementaux essentiellement) ;
- de l’octroi de lignes inofficielles couvrant l’activité de trading et des expositions contreparties avec des banques
(FOREX, marchés monétaires, swaps, Reverse REPO, prêts
de titres, dérivés, etc...).
40
KBL epb RAPPORT ANNUEL 2011
tent de définir des limites adaptées à la taille de la Banque et
de son appétit pour le risque.
Annexes
3.4.3.1. Processus décisionnel d’octroi de crédit
La répartition par pays d’origine du débiteur/garant fait apAu Luxembourg, comme dans les filiales, toute décision
paraître que les emprunteurs des pays d’Europe, qui consti-
d’octroi d’un crédit est du ressort du Comité de Direction ou
tuent le champ d’action naturel du Groupe KBL epb, re-
d’un des autres organes compétents désignés dans le cadre
présentent 85 % du portefeuille consolidé. Les émetteurs
d’une délégation de pouvoir en fonction de critères définis.
supranationaux représentent 9 %. Les débiteurs américains
Cette délégation requiert toujours l’intervention de deux per-
comptant pour 4 % (contre 3 % en 2010), seuls 2 % sont issus
sonnes minimum émanant d’entités différentes, de manière à
des autres zones géographiques (contre 3 % en 2010).
éliminer le risque de conflit d’intérêt. Toute décision prise sur
base d’une délégation de pouvoir fait aussi l’objet d’une com-
Le graphique ci-après présente l’évolution trimestrielle des
munication et ratification par l’organe supérieur.
encours par type depuis la fin de 2010. La décroissance des
encours totaux est régulière étant donné les échéances des
Pour KBL epb, en matière de Bond portfolio/international
portefeuilles ALM sécurisés, des portefeuilles en run off, de
credits, chaque nouvelle proposition de crédit est accompa-
la réduction des encours sur le Groupe KBC en-deçà de la
gnée d’un avis du Credit Risk Control, basé sur une analyse
limite Grands Risques et la politique prudente en matière
financière et qualitative du débiteur. Pour tout nouvel inves-
de nouveaux encours du portefeuille obligataire/crédits
tissement dans un corporate, un rating interne est encore
internationaux.
octroyé, rating servant de référence dans le cadre de la délé-
par les ratings externes publiés par les agences.
5.498
6.989
a encore servi de référence. Il est progressivement remplacé
6.364
PORTEFEUILLE DE CRÉDIT - REPARTITION PAR PRODUIT
Crédits et portefeuilles obligataires d’investissement - (en millions EUR)
6.813
ting interne établi par les équipes d’analystes de KBC Groupe
6.758
gation de pouvoir. Pour les banques et les souverains, le ra-
8.000
7.000
3.4.3.2. Composition du portefeuille de crédits
6.000
414 1.943
1.215
1.935
1.227
1.241
feuilles ALM. Les crédits aux clients privés (Lombard essen-
1.125
1.193
en obligations et de crédits internationaux et par les porte-
1.086
dérance s’explique par l’activité historique d’investissements
1.282
1.487
étant inclus depuis le second trimestre 2010). Cette prépon-
5.000
1.257
concentré à Luxembourg (KBL epb et Vitis Life, ce dernier
2.254
2.191
2.118
Au 31 décembre 2011, 71 % du portefeuille global est
tiellement) et les crédits aux fonds d’investissement, en ac-
portefeuille est renouvelé sur des institutions internatio-
Crédit
2.000
1.925
1.960
0
Trim.4.2011
2.216
Trim.3.2011
2.162
Trim.2.2011
Trim.1.2011
2.191
Trim.4.2010
maintenus comme pilier de l’activité. L’activité d’investissede volume de nouvelles affaires et de qualité optimale : le
3.000
1.000
compagnement des activités principales de la Banque, sont
ments obligataires au sein de KBL epb est limitée en termes
4.000
Obligations d’entreprise et titrisations
Obligations bancaires
Obligations d’État
nales/gouvernements, des sociétés d’intérêt national et des
« Utilities », ainsi que sur des établissements bancaires et
des sociétés de qualité. Les activités de prise en portefeuille
de crédits liés à des produits structurés ont été arrêtées dès
2009 et le portefeuille de titrisations est en situation de RunOff depuis. En 2011, la Banque a toutefois décidé d’investir
dans la tranche la plus senior d’une titrisation de crédits hypothécaires belges envoyée par KBC Groupe.
KBL epb RAPPORT ANNUEL 2011
41
Annexes
l’immense majorité est dotée d’un rating externe, on obtient
82
81
179
133
350
74
300
81
PORTEFEUILLE DE CRÉDIT OBLIGATAIRE - REPARTITION DES
250
13
16
10
150
Crédits hypothécaires
19
50
0
BSCo
32
31
1
7
107
73
1
48
KBSG
KB Monaco
10
133
KBL Richelieu
PPB
MFCo
12
72
147
112
292
66
KBL
665
TGB
362 176 27
3.000
706
1.488
737
3
100
2.000
1.020
200
22
75
3.573
4.404
4.597
324 136 25
345 141 25
4.597
344 88 30
981
5.000
4.000
1.405
1.636
1.386
388 106 31 4.798
RATINGS
Portefeuilles obligataires d’investissement - (en millions EUR)
1.021
400
7
la répartition par rating ci-contre :
85
titrisations et les obligations émises par les banques, dont
6 6
plus importante. Si on y ajoute les encours sur corporate et
379
PAR ENTITÉ
Situation au 31 décembre 2011 - (en millions EUR)
197
PORTEFEUILLE DE CRÉDIT - REPARTITION DES PRODUITS
bénéficiant de ratings de qualité, reste la classe d’actifs la
340
Le portefeuille d’obligations d’Etat, essentiellement européen,
Crédits Lombards
Autres crédits privés
Corporate credits
Garanties
Les crédits des filiales totalisent environ EUR 1,1 milliard. A
1.000
AAA
AA
A
1.637
1.667
tefeuille de crédits hypothécaires conséquent (EUR 292
0
millions), les portefeuilles des autres entités sont essentiel-
Trim.4 .2011
1.688
BBB
Trim.3 .2011
Trim.2 .2011
1.767
Trim.1 .2011
Trim.4 .2010
1.616
l’exception de Theodoor Gilissen Bankiers N.V. qui a un por-
Non Investment Grade
lement composés de crédits Lombard garantis sur lesquels
l’expérience de défaut de paiement est très limitée.
Non cotés
Malgré la crise depuis fin 2008, la grande qualité du porte-
3.4.3.3. Suivi du risque de crédit
feuille est relativement stable, avec 97 % des encours bénéficiant d’un statut investment grade.
En ce qui concerne le suivi au jour le jour des opérations de
L’année 2011 a été marquée par de nombreuses dégrada-
crédit, KBL epb effectue un suivi automatique de l’échéancier
tions de ratings externes, en particulier sur les Souverains
des crédits et des sûretés permettant la détection de situ-
et les banques. Ces émetteurs ont fait l’objet d’un suivi rap-
ations de dépassement et la prise rapide des mesures ap-
proché par le Crédit Risk Control tout au long de l’année.
propriées de régularisation. Dans le Groupe, ces situations
sont rapportées aux Comités des Crédits ou aux Comités de
Au niveau des opérations de crédit (et non des obligations)
Direction des entités concernées. Ils sont ensuite rapportés
sur des contreparties hors KBC Groupe, le tableau ci-après
aux Comités ACRC à l’échelle locale.
reflète l’importance de l’activité Private Banking.
Le Credit Risk Control à Luxembourg effectue de son côté
une surveillance automatique de l’évolution des ratings des
débiteurs suivis par les agences de notation et avertit les entités concernées. Différents types de rapports réguliers ou
ponctuels de suivi sont également élaborés afin de suivre
toute dégradation éventuelle de la qualité des encours du portefeuille. Ainsi, sur l’activité d’investissement en portefeuille,
42
KBL epb RAPPORT ANNUEL 2011
Annexes
tout débiteur fait l’objet d’une révision au minimum annuelle
Nous reprenons ci-dessous l’état des provisions consolidées
sur base de ses états financiers, certains facteurs pouvant
spécifiques sur le portefeuille au 31 décembre 2011, ainsi
même engendrer des révisions ponctuelles plus rapprochées
que l’évolution de ces provisions au cours de l’exercice écoulé.
(et mise sur une watchlist spécifique). La watchlist a été
étendue en 2011 afin d’inclure les expositions sur les clients
privés, que ce soit à Luxembourg ou dans toutes les filiales.
La concentration sectorielle de nos risques ou encore la concentration par débiteur sont suivies sur une base annuelle au
moins et sur base consolidée.
Depuis 2010, la surveillance a été étendue au suivi systématique des spreads CDS.
Les résultats des stress-tests européens sur les banques ont
en outre été analysés en profondeur.
3.4.3.4. Provisions spécifiques sur créances
Au niveau de la maison mère au Luxembourg, l’exercice
d’évaluation des pertes probables et de l’adéquation des provisions spécifiques est réalisé trimestriellement par le Credit
Risk Control. Le Comité des Crédits décide des éventuels
ajustements pour les trois premiers trimestres de l’année,
cette responsabilité relevant du Comité de Direction pour le
quatrième trimestre. Les filiales remontent leurs propositions
de provisions dans le cadre des consolidations trimestrielles.
Au 31.12.2010
Créances performantes
Créances non performantes (>90 jours retard de paiement) non-dépréciées
Prêts douteux
Accordés
Encours
Provisions
Net encours
6.947,5
6.746,7
0,0
6.746,7
0,1
2,6
0,0
2,6
134,8
155,2
115,2
40,0
7.082,4
6.904,5
115,2
6.789,3
Au 31.12.2011
Créances performantes
Créances non performantes (>90 jours retard de paiement) non-dépréciées
Prêts douteux
Accordés
Encours
Provisions
Net encours
5.415,9
4.814,8
0,0
4.814,8
0,1
2,8
0,0
2,8
107,7
128,5
72,9
55,6
5.523,7
4.946,1
72,9
4.873,2
KBL epb RAPPORT ANNUEL 2011
43
Annexes
En 2011, la Banque a décidé d’amortir une grande partie de
3.4.3.5. Counterparty Risk Management
ses encours en produits structurés (investments in Capital
Notes) provisionnés à 100 %, compte tenu des chances in-
La mesure et le suivi du risque des contreparties des opéra-
fimes de récupération. Cette décision implique une baisse im-
tions interbancaires, dont l’essentiel est concentré dans la
portante du montant brut des crédits qui sont partiellement
Salle des Marchés du Luxembourg, constituent une activité
compensés par un impaired de la dette grecque.
importante du Credit Risk Control. En collaboration avec KBC
Groupe, il fixe les limites interbancaires pour ces opérations
Loan / Loss ratio (*)
2010
2011
Moyenne sur 5 ans
58 bps
71 bps
0 bps
44 bps
Exercice
en introduisant les demandes pour l’ensemble du réseau.
L’imputation des encours sur les lignes se fait sur base de la
méthodologie « Market-to-Market + add on ».
Dans le contexte du processus de désinvestissement de KBC
* Le Loan / Loss ratio est défini comme la variation nette des provisions
spécifiques et générales sur le portefeuille crédits moyen de l’exercice.
Groupe, un nouveau système de gestion des limites interbancaires a été validé, système qui sera opérationnel dès la date
de clôture de la vente. Ce nouveau système, qui permet de
Variation des provisions spécifiques
sur crédits
(en millions
dimensionner les limites interbancaires à la taille et à l’appétit
d’EUR)
du risque de la Banque, intègre pleinement la nouvelle réglementation concernant les « Grands Risques ». Le Credit Risk
Montant des provisions
à l’ouverture au 01.01.2011
115,2
Control a également élaboré ses propres outils d’analyse des
contreparties bancaires.
Transfert du compte de résultats
Augmentation des provisions
27,9
Diminution des provisions
-0,7
Utilisations
Ajustements pour variations de change
-69,4
-0,1
« secured », ainsi que la gestion des contrats, sont assurés
par l’entité Collateral Management qui fait partie du Risk
Control et qui est physiquement proche du CRC. Début 2010,
le Comité de Direction a actualisé les guidelines spécifiques
en matière de collatéral acceptable, dont le respect est suivi
Montant des provisions
à la clôture au 31.12.2011
La gestion et le contrôle du collatéral reçu sur les opérations
73,0
sur base régulière par le département Credit Risk Control.
Il appartient au Front-Office de la Banque d’assurer la gestion de l’encours sur ces lignes. Ainsi, avant de conclure une
Comme mentionné ci-avant, les provisions comptabilisées sur
transaction, l’opérateur doit s’assurer de l’existence de lignes
les produits structurés ont été partiellement utilisées dans le
pour la contrepartie, du produit (et du pays) concerné et de
courant de l’exercice.
l’encours disponible sur celles-ci, en montant et en durée.
Les encours étatiques grecs ont été largement provisionnés
Le suivi quotidien des dépassements est assuré par l’entité
(plus de 75 %). Les provisions sur les titres perpétuels ont fait
Middle Office, via l’outil GEM. Les rapports d’exceptions sont
l’objet d’adaptations.
communiqués sur base quotidienne à la Direction de la Salle
des Marchés pour justification et ratification, ainsi qu’au responsable de la fonction Risk Control. L’ensemble des dépassements est rapporté hebdomadairement aux membres du
Comité de Direction de KBL epb, ainsi qu’au Groupe KBC.
44
KBL epb RAPPORT ANNUEL 2011
Annexes
3.4.3.6. Country Risk Management
action est concentrée sur la salle de Luxembourg. Les positions de « Trading » des filiales se limitent donc à des sol-
En matière de risque pays, la Banque appréhende les risques
des résiduels en Forex (avec pour l’essentiel KBL epb com-
de transférabilité. En fonction des besoins, des lignes effec-
me contrepartie), résultant des opérations clientèle et à des
tives sont allouées à la Banque ainsi qu’à ses filiales, tant
soldes résiduels en taux d’intérêt, résultant du mismatch de
pour les activités de crédit que pour les activités de la Salle
trésorerie entre les dépôts de la clientèle et leur replacement
des Marchés. Jusqu’à la date de clôture de la vente, la déci-
bancaire (pour la plupart sur KBL epb).
sion d’octroi de lignes effectives pays est prise par le Groupe
Depuis 2006, la Banque applique les méthodologies et
KBC. A l’instar du risque de contrepartie, le Middle Office est
des instruments de mesure des risques de trading de KBC
en charge du suivi quotidien indépendant du respect des li-
Groupe qui s’articulent sur des limites primaires en termes
mites pays octroyées.
de Historical Value-at-Risk (HVaR) et en montant nominal, de
limites secondaires en termes de sensibilité (pour les activi-
Comme à l’égard des limites interbancaires, le Credit Risk
tés soumises au risque de taux) et de concentration (pour
Control développe un nouveau cadre de définition et de suivi
le Forex et les Equity), ainsi que de stop losses mensuels et
des limites pays, cadre qui sera opérationnel à compter de la
d’une hiérarchie de délégation de pouvoirs. L’évolution des
date de la cession de KBL epb par le Groupe KBC. La métho-
encours liés à chaque activité par rapport à leur limite res-
dologie a également été adaptée, de manière à appréhender
pective, ainsi que les résultats et les faits marquants, sont
l’ensemble des risques pays (notamment le risque de conta-
rapportés quotidiennement aux responsables de la Salle et
gion), et non plus se limiter au risque de transférabilité.
du Risk Management. Ils sont également reportés chaque semaine au Comité de Direction de KBL epb ainsi que trimestriellement au Comité ACRC de KBL epb.
3.4.4. MARKET RISK MANAGEMENT :
TRADING RISK
La limite globale du Groupe KBL epb s’élève à EUR 8 millions en termes de Historical Value-at-Risk (HVaR 99 % à 10
Le Groupe KBL epb étant un Groupe spécialisé de Banques
jours avec un historique de 500 données). Une limite d’EUR
Privées, ses prises de risque en matière de trading résultent
60 millions est également fixée en montant nominal pour
essentiellement du soutien apporté aux activités de « core
tous les produits non mesurables de par la méthode HVaR.
business ». Les prises de positions dites de « Trading » re-
Courant 2011, l’encours global en HVaR pour l’ensemble des
flètent la nécessaire intermédiation d’une Salle des Marchés
activités de Trading Forex, Treasury, Fixed Income et Equity
soutenant les flux de la clientèle en obligations, en actions, en
Trading s’est maintenu globalement sous les EUR 2,82 mil-
change et en dépôts. La plupart des instruments utilisés par
lions. Il s’élevait à seulement EUR 1,95 million au 31 décem-
la Salle des Marchés sont des instruments « plain vanilla ».
bre 2011. L’encours des produits structurés et de certaines
L’utilisation de produits dérivés pour compte propre est peu
obligations illiquides s’est quant à lui maintenu sous la barre
développée et la Salle des Marchés ne traite aucun dérivé de
des EUR 54,18 millions durant l’année 2011. Il s’élevait à
crédit.
EUR 29,37 millions au 31 décembre 2011.
Les risques encourus concernent donc essentiellement les
risques de taux d’intérêt à court terme (trésorerie principale-
Comme évoqué en début de chapitre, reconnaissant les li-
ment dans les devises de la clientèle), les risques de taux
mites méthodologiques de la HVaR, la complexité et le coût
d’intérêt à moyen/long terme (trading obligataire, surtout en
important pour reconstituer les bases de données, tandis que
EUR), les risques de marché (trading en actions cotées et pro-
l’activité trading n’a pas connu de grands développements
duits structurés vendus à la clientèle privée) et les risques de
elle-même, KBL epb a récupéré son autonomie en termes de
change (change au comptant et à terme dans les couples de
calculs et de suivis des risques de trading en implémentant
devises liquides traitées par la clientèle).
un système de mesures et limites s’inspirant globalement
du système qui était en place avant l’intégration au sein du
En pratique, la totalité du Trading obligataire et du Trading
Groupe KBC. Il s’agit de limites en montants nominaux pour
KBL epb RAPPORT ANNUEL 2011
45
Annexes
les activités soumises aux risques de change (Forex) et de
Par conséquent, en matière d’ALM, la Banque ne dispose
variation de prix (Equity, Structured Products, Special Bonds)
que de quelques positions « structurelles », ajoutées à un
ainsi que des limites en BPV globale à 10 points de base pour
nombre limité de portefeuilles « historiques » résiduels dont
les activités soumises au risque de taux d’intérêt (Treasury &
les obligations arrivent progressivement à échéance. Dans
Bond). Ces limites primaires sont complétées par une struc-
ce contexte, KBL epb ne dispose d’aucun portefeuille ALM
ture de limites secondaires permettant une analyse plus fine
« tactique » visant à spéculer sur l’évolution des taux d’intérêt.
des risques de Trading. Ces méthodes et limites remplaceront
les limites et systèmes actuels dès le closing de la vente.
Les principales positions structurelles détenues par KBL epb
(les filiales affichant des bilans très limités) comprennent :
3.4.5. MARKET RISK MANAGEMENT : ALM
- le replacement du capital excédentaire (« Free Capital ») à
Luxembourg et dans les filiales concernées : Merck Finck
En matière d’ALM, KBL epb était totalement intégrée au
& Co, Privatbankiers, Theodoor Gilissen Bankiers N.V.,
sein de la gouvernance du Groupe KBC jusqu’au mois d’août
Puilaetco Dewaay Private Bankers S.A. et KBL Richelieu
2010, date à laquelle le Group ALM Committee (GALCO),
Banque Privée S.A. ; ces positions sont constituées
qui était le centre décisionnel pour les questions relatives
d’obligations souveraines émises par des pays de l’UE de
à la gestion actif/passif (Assets and Liabilities Management
rating AA- minimum et, pour l’essentiel, d’échéance maxi-
ou ALM), a été dissous. Comme pour les autres risques, le
male de sept ans ;
Comité de Direction de KBL epb a repris la responsabilité directe d’ALM pour le Groupe KBL epb et, en décembre 2010,
- le replacement des dépôts à vue à taux fixes et comptes
un Comité ALM mensuel (ALCO) a été constitué sous la forme
d’épargne chez KBL epb appliquant la même politique de
d’un Comité de Direction étendu, dédié aux questions ALM.
replacement que le Free Capital ;
L’activité traditionnelle d’une banque privée ne comporte que
- les portefeuilles d’obligations/crédits, qui sont cependant
peu de risque ALM par rapport à une banque Retail : la ma-
peu exposés au risque de taux, de par leur sécurisation, la
jeure partie des actifs confiés par la clientèle figure hors bi-
plupart étant des FRN, des Synthetic Asset Swaps (SAS)
lan sous forme de dépôts-titres. L’ALM n’est pas considéré
ou des crédits à taux variables ;
comme un facteur essentiel pour améliorer le rendement global des portefeuilles. La plupart des dépôts à court terme de
- un portefeuille d’investissement en actions détenues sous
la clientèle offrent des taux variables fixés en fonction des
forme de lignes directes ou sous forme d’OPC, portefeuille
taux du marché. Il en est de même pour les crédits Lombard.
constitué depuis près de 10 ans et où sont également
Quand des crédits à taux fixe sont octroyés (comme pour
conservées certaines positions héritées du rachat de nos
Theodoor Gilissen Bankiers N.V. qui développe une activité
filiales.
en crédits hypothécaires en tant que produit d’appel de la
clientèle Private Banking), des swaps de couverture sont
contractés.
46
KBL epb RAPPORT ANNUEL 2011
Annexes
Par ailleurs, dans le cadre de la vente de la Banque par KBC
Groupe, toutes les positions résiduelles en obligations sou-
3.4.6. MARKET RISK MANAGEMENT : LIQUIDITY
RISK
veraines qui reflétaient une stratégie historique basée sur la
convergence des devises « non euro » vers l’euro (en termes
A l’instar de la Gestion Actif/Passif, la gestion du risque de
de taux de change/taux d’intérêt) ont été vendues en 2011
liquidité de KBL epb ne s’inscrit plus dans le cadre de la gou-
à KBC Groupe.
vernance de KBC Groupe suite à la dissolution du GALCO,
mais relève désormais de la responsabilité directe du Comité
KBL epb dispose des limites suivantes dans le cadre de la
ALCO de KBL epb. Au sein de KBL epb, le risque de liquidité
gestion ALM :
fait l’objet d’un suivi rapproché, bien que n’étant pas perçu
comme un risque majeur : le Groupe dispose d’une large base
- une limite en 10 BPV (Basis Point Value) d’EUR 8,2 millions
de funding stable du fait de la collecte naturelle des dépôts
pour l’ensemble des positions du banking book. Il était
en provenance de ses deux « core business », Private Banking
d’EUR 2,3 millions au 31 décembre 2011 ;
et GIS (Global Investor Services), qui consomment relativement peu de liquidités.
- une limite en VaR 99 % diversifiée à 1 an d’EUR 167 millions pour le portefeuille d’investissement en actions. Il
Les filiales contribuent de façon importante à la liquidité du
était d’EUR 101 millions au 31 décembre 2011 ; une limite
Groupe KBL epb, qui est centralisée à Luxembourg.
en VaR 99 % non diversifiée à 1 an d’EUR 67 millions pour
Ce funding global est essentiellement réinvesti selon une poli-
contrôler l’évolution du risque de change des positions
tique de liquidité conservatrice : dans des actifs liquides (obli-
ALM. Cette limite n’est plus pertinente suite à la cession
gations éligibles auprès de la Banque Centrale Européenne)
du portefeuille concerné. (Il était d’EUR 0,1 million au 31
et sur le marché interbancaire à court terme, en majorité
décembre 2011).
sous forme de Reverse Repo.
En 2011, la réduction de nos expositions sur KBC Groupe,
Le niveau des différents indicateurs est communiqué chaque
par échéance naturelle et/ou remboursement anticipé a par
mois au Comité ALCO de KBL epb et chaque trimestre au
ailleurs contribué à accroître encore la situation de liquidité
Comité d’Audit, Compliance et Risques.
confortable de KBL epb.
Après la clôture de la vente, une nouvelle série de limites
ALM sera proposée afin de refléter l’appétit au risque du nouveau Conseil d’Administration. Entretemps, des mesures ont
été prises pour que KBL epb retrouve la pleine autonomie de
ses instruments de mesure du risque ALM, fournis par KBC
Groupe jusqu’à présent.
KBL epb RAPPORT ANNUEL 2011
47
Annexes
Pour contrôler le risque de liquidité, la Banque dispose d’une
Des liquidity stress tests mensuels, sur base du modèle de
panoplie d’instruments de suivi :
KBC Groupe, permettent également de mesurer la liquidité
structurelle de KBL epb en période de « crise générale des
- un processus de suivi de la liquidité opérationnelle (évolution du gap de liquidité et des dépôts de la clientèle) ;
marchés », avec assèchement du marché interbancaire en
tant que source de financement. Diverses hypothèses comportementales de la clientèle sont posées en termes de re-
- un suivi de la liquidité structurelle (« stress tests », « Loan
nouvellement/retrait des dépôts.
to Deposit ratio », liquidity excess, coverage ratio) ;
Un liquidity buffer et une « période de survie » sont calculés
- un « Liquidity Contingency Plan ».
sur base des flux prévisionnels de cash entrant et sortant
et d’une série de mesures spécifiques permettant d’augmen-
La liquidité opérationnelle de KBL epb est suivie au jour le
ter la liquidité (utilisation du marché repo pour obtenir des
jour par le Risk Controlling qui rapporte aux responsables des
liquidités, réduction/cessation des prêts interbancaires, etc.).
Marchés Financiers (Salle des Marchés) et du Risk Control :
Une fois sortie de la gouvernance de KBC Groupe, des liquidity stress tests spécifiques seront élaborés pour prendre en
- un gap de liquidité contractuel jusqu’à 5 jours, selon une
hypothèse de continuité de l’activité (aucun stress test). Ce
compte les particularités de l’activité et du modèle d’affaires
de KBL epb, essentiellement tourné vers la Banque privée.
rapport est également envoyé à la BCL ;
Enfin, le « coverage ratio » a été développé en 2011 en tant
- un gap de liquidité par devise jusqu’à 3 mois, comparé à
des limites « opérationnelles » à 5 et 30 jours ;
qu’indicateur de liquidité structurelle. Il compare le niveau
des actifs liquides à celui des dépôts de la clientèle, et permet
d’évaluer dans quelle mesure la Banque peut faire face à un
- un stock d’actifs liquides disponibles ;
scénario extrême et simultané de retrait de l’ensemble des
dépôts (hypothèse conservatrice).
- l’évolution des dépôts par entité du Groupe.
KBL epb est par ailleurs un membre actif du Groupe
En ce qui concerne la mesure de la liquidité structurelle, le
de travail de l’Association des Banques et Banquiers du
« Loan-To-Deposit ratio (LTD) » de la Banque est établi sur
Luxembourg, dont l’objectif est d’analyser l’impact des pro-
base mensuelle. Compte tenu des faibles volumes de crédits
positions du Comité de Bâle en termes de gestion de la liquidi-
octroyés, le LTD ratio consolidé de KBL epb se situe à un
té (Bâle III) et de débattre des conclusions avec les autorités
niveau très bas, traduisant son excellente situation en termes
internationales. Une fois en vigueur, le « Liquidity Coverage
de liquidité. Au 31 décembre 2011, il s’établit à 19 %.
Ratio (LCR) » viendra compléter la liste des indicateurs de liquidité opérationnelle, tandis que « Net Stable Funding Ratio
Le « liquidity excess » mensuel constitue une deuxième
(NSFR) » remplacera l’analyse verticale de KBL epb.
mesure de la liquidité structurelle. Cet indicateur permet à la
Direction de s’assurer de la capacité des sources de finance-
Enfin, un « Liquidity Contingency Plan » a été rédigé compor-
ment « stables » à couvrir les actifs dits « illiquides » (comme
tant des actions adaptées au niveau de gravité de la crise de
les immobilisations, les portefeuilles non éligibles auprès de la
liquidité. Dans sa version actuelle, les crises mineures sont
Banque Centrale Européenne et les crédits). Au 31/12/2011,
traitées par le responsable de la fonction Financial Markets
le « liquidity excess » s’élève à EUR 3.482 millions.
(Salle des Marchés), tandis que les crises majeures sont
gérées par le Comité ALCO de KBL epb.
48
KBL epb RAPPORT ANNUEL 2011
Annexes
3.4.7. PILIER 2 : INTERNAL CAPITAL ADEQUACY
AND ASSESSMENT PROCESS (ICAAP)
L’élaboration de modèles propres vise notamment à :
- évaluer le capital affecté aux diverses composantes
L’évaluation ICAAP a été mise à jour durant le premier trimestre 2011. Ce processus repose sur une approche de type
d’ALM ;
- maintenir l’usage du concept de diversification des risques.
capital économique basée sur un modèle développé et géré
au niveau du Groupe KBC. Le modèle évalue tous les risques
La fonction Risk Control de KBL epb a également continué à
matériels auxquels la Banque est (ou pourrait être) exposée,
apporter son soutien aux différentes filiales tenues de remet-
afin d’estimer la perte maximale encourue par KBL epb sur
tre un rapport ICAAP.
un horizon d’un an et pour un intervalle de confiance donné
(99,9 %).
Les risques - considérés comme matériels - auxquels du capital est alloué sont au nombre de cinq :
- risque crédit ;
- risque business ;
- risque ALM : taux d’intérêt, actions, taux de change, immobilier ;
- risque opérationnel ;
- risque marché (trading).
Le rapport ICAAP 2010 a été produit sur la base du périmètre de consolidation de KBL epb au 31 décembre 2010.
Il comprend les dernières améliorations méthodologiques apportées par KBC Groupe et prend également en compte les
principales recommandations de la CSSF. Pour autant, dans
le contexte du processus de vente de KBL epb, cette dernière version doit être considérée comme une version de
transition en termes de méthodologie. Les développements
entamés en 2010 pour permettre à KBL epb d’accéder à son
autonomie d’un point de vue méthodologique se sont poursuivis en 2011.
KBL epb RAPPORT ANNUEL 2011
49
Affectation du résultat et
Composition du Conseil d’Administration
“La réalité de nos itinéraires est rarement rectiligne.”
- Patrice Lepage
n
Affectation du résultat
Lors du Conseil d’Administration du 22 février 2012, le Comité propose d’allouer le bénéfice à répartir au
report à nouveau.
Le 21 mars 2012, cette affectation sera soumise pour approbation à l’Assemblée Générale des Actionnaires.
EUR
Perte 2011
-29.333.033,20
Résultats reportés
67.622.004,02
Bénéfice distribuable
38.288.970,82
Report à nouveau
38.288.970,82
52
KBL epb RAPPORT ANNUEL 2011
Composition du Conseil d’Administration
Les mandats de Messieurs J. Huyghebaert, F. Depickere, D. du Monceau, E. Muller, Ph. Vlerick
et M. Wittemans viendront à échéance lors de la prochaine Assemblée Générale Ordinaire du
21 mars 2012.
Une recommandation est faite à l’Assemblée Générale Ordinaire de renouveler leurs mandats pour
un an.
Les mandats des administrateurs représentants du Personnel sont venus à échéance le
31 août 2011.
Conformément à la loi du 6 mai 1974 sur la représentation des salariés dans les sociétés anonymes,
la délégation du personnel, en se basant sur le résultat des dernières élections sociales de 2008,
a désigné les personnes suivantes comme administrateurs représentants du Personnel au sein du
Conseil d’Administration à partir du 1er septembre 2011.
Représentants Effectifs
Représentants Suppléants
HOELTGEN Christian
LARDO Daniel
GLESENER Marc
WALTZING Jean-Pierre
GODFROID Francis
ROUYER Eric
RAUEN Mathias
RENSON Patrick
MERTZ Laurent
THILL-WOLFF Sony
ERTEL Frank
RYELANDT Philippe
Les nouveaux mandats de ces personnes seront de 4 ans conformément à l’article 11 des statuts
coordonnés de KBL epb.
KBL epb RAPPORT ANNUEL 2011
53
Attestation sans réserve du réviseur d’entreprises agréé
Au Conseil d’Administration de KBL European Private Bankers
Société Anonyme, Luxembourg
RAPPORT SUR LES COMPTES CONSOLIDES
Conformément
au
mandat
donné
par
le
Responsabilité du réviseur d’entreprises agréé
Conseil
Notre responsabilité est d’exprimer une opinion sur ces
d’Administration, nous avons effectué l’audit des comptes
comptes consolidés sur la base de notre audit. Nous avons
consolidés ci-joints de KBL European Private Bankers S.A.,
effectué notre audit selon les Normes Internationales d’Audit
comprenant le bilan consolidé au 31 décembre 2011, ainsi
telles qu’adoptées pour le Luxembourg par la « Commission
que le compte de résultat consolidé, l’état du résultat glo-
de Surveillance du Secteur Financier ». Ces normes requiè-
bal consolidé, le tableau consolidé des variations des capi-
rent de notre part de nous conformer aux règles d’éthique
taux propres et le tableau consolidé des flux de trésorerie
ainsi que de planifier et de réaliser l’audit pour obtenir une
pour l’exercice clos à cette date, et l’annexe contenant un
assurance raisonnable que les comptes consolidés ne com-
résumé des principales méthodes comptables et d’autres
portent pas d’anomalies significatives.
notes explicatives.
Un audit implique la mise en oeuvre de procédures en vue
de recueillir des éléments probants concernant les montants
Responsabilité du Conseil d’Administration vis-à-vis des
et les informations fournis dans les comptes consolidés. Le
comptes consolidés
choix des procédures relève du jugement du réviseur d’entreprises agréé, de même que l’évaluation du risque que les
Le Conseil d’Administration est responsable de l’établissement
comptes consolidés contiennent des anomalies significatives,
et de la présentation sincère de ces comptes consolidés,
que celles-ci résultent de fraudes ou d’erreurs. En procédant
conformément aux Normes Internationales d’Information
à ces évaluations du risque, le réviseur d’entreprises agréé
Financière telles qu’adoptées par l’Union Européenne, ainsi
prend en compte le contrôle interne en vigueur dans l’en-
que de tout contrôle interne que le Conseil d’Administration
tité relatif à l’établissement et la présentation sincère des
estime nécessaire pour permettre l’établissement et la
comptes consolidés afin de définir des procédures d’audit ap-
présentation de comptes consolidés ne comportant pas
propriées en la circonstance, et non dans le but d’exprimer
d’anomalies significatives, que celles-ci résultent de fraudes
une opinion sur l’efficacité de celui-ci.
ou d’erreurs.
54
KBL epb RAPPORT ANNUEL 2011
Attestation sans réserve du réviseur d’entreprises agréé
Un audit comporte également l’appréciation du caractère approprié des méthodes comptables retenues et du caractère
RAPPORT SUR D’AUTRES OBLIGATIONS LEGALES
OU REGLEMENTAIRES
raisonnable des estimations comptables faites par le Conseil
d’Administration, de même que l’appréciation de la présenta-
Le rapport de gestion consolidé, qui relève de la responsabi-
tion d’ensemble des comptes consolidés.
lité du Conseil d’Administration, est en concordance avec les
Nous estimons que les éléments probants recueillis sont suf-
comptes consolidés.
fisants et appropriés pour fonder notre opinion.
Opinion
A notre avis, les comptes consolidés donnent une image fidèle
de la situation financière consolidée de KBL European Private
Bankers S.A. au 31 décembre 2011, ainsi que de la performance financière et des flux de trésorerie pour l’exercice
clos à cette date, conformément au référentiel des Normes
Internationales d’Information Financière telles qu’adoptées
par l’Union Européenne.
ERNST & YOUNG
Société Anonyme
Cabinet de révision agréé
Sylvie TESTA
Luxembourg, le 22 février 2012
KBL epb RAPPORT ANNUEL 2011
55
Filliales de KBL European Private Bankers
KBL EUROPEAN PRIVATE BANKERS S.A.
HEAD OFFICE
INVESTMENT FUNDS AND OTHER INSTITUTIONAL CLIENTS
43, boulevard Royal, L-2955 Luxembourg
Global Investor Services
T. (+352) 4797-1
T. (+352) 4797-2316
www.kbl.lu
info.gis@kbl-bank.com
PRIVATE CLIENTS
FINANCIAL INSTITUTIONS
T. (+352) 4797-2272
Global Financial Markets
F. (+352) 4797-73914
T. (+352) 4797-3869
info@kbl-bank.com
financial.institutions@kbl-bank.com
FILIALES DE KBL EUROPEAN PRIVATE BANKERS
Allemagne
France
MERCK FINCK & CO, PRIVATBANKIERS
KBL RICHELIEU BANQUE PRIVEE S.A.
Pacellistrasse 16
22, boulevard Malesherbes
D-80333 München
F-75008 Paris
T. (+49) 89 21 04 16 52
T. (+33) 1 42 89 00 00
www.merckfinck.de
www.kblrichelieu.com
Belgique
Luxembourg
PUILAETCO DEWAAY
BANQUE PUILAETCO DEWAAY
PRIVATE BANKERS S.A.
LUXEMBOURG S.A.
46, avenue Herrmann Debroux
2, boulevard E. Servais
B-1160 Bruxelles
L-2535 Luxembourg
T. (+32) 2 679 45 11
T. (+352) 47 30 251
www.puilaetcodewaay.be
VITIS LIFE S.A.
Espagne
2, boulevard E. Servais
KBL EUROPEAN PRIVATE BANKERS S.A.
L-2535 Luxembourg
KBL ESPAÑA
T. (+352) 26 20 46 300
57, Calle Serrano
www.vitislife.com
sexta planta
E-28006 Madrid
T. (+34) 91 423 22 00
www.kblbank.es
56
KBL epb RAPPORT ANNUEL 2011
Filiales de KBL European Private Bankers
Monaco
Royaume-Uni
KBL MONACO PRIVATE BANKERS S.A.
BROWN, SHIPLEY & CO LTD
8, avenue de Grande-Bretagne
Founders Court, Lothbury
MC-98005 Monaco
London EC2R 7HE
T. (+377) 92 16 55 55
T. (+44) 207 606 9833
www.brownshipley.com
Pays-Bas
THEODOOR GILISSEN BANKIERS N.V.
Suisse
Keizergracht 617
KBL SWISS PRIVATE BANKING LTD
NL-1017 DS Amsterdam
7, boulevard Georges-Favon
T. (+31) 20 527 60 00
CH-1211 Genève 11
www.gilissen.nl
T. (+41) 58 316 60 00
www.kblswissprivatebanking.com
KBL epb RAPPORT ANNUEL 2011
57
Adresses à Luxembourg
KBL EUROPEAN PRIVATE BANKERS S.A.
43, boulevard Royal
L-2955 Luxembourg
T. (+352) 4797-1
F. (+352) 4797-73900
www.kbl.lu
R.C. Luxembourg B 6395
BANQUE PRIVEE
PRIVATE BANKING
PRIVATE BANKING Bertrange
43, boulevard Royal
403, route d’Arlon
L-2955 Luxembourg
L-8011 Bertrange
T. (+352) 4797-2099/2100/3100
T. (+352) 4797-5262
PERSONAL BANKING
PRIVATE BANKING Ettelbruck
43, boulevard Royal
4, avenue J.-F. Kennedy
L-2955 Luxembourg
L-9053 Ettelbruck
T. (+352) 4797-2272
T. (+352) 4797-7724
SERVICES GENERAUX
Secrétariat Général de Direction
T. (+352) 4797-2529
Affaires Juridiques
T. (+352) 4797-3115
Affaires Fiscales
T. (+352) 4797-2987
Communication
T. (+352) 4797-3111
Ressources Humaines
T. (+352) 4797-2636
Finance
T. (+352) 4797-2933
Risk Management
T. (+352) 4797-2933
58
KBL epb RAPPORT ANNUEL 2011
Adresses à Luxembourg
CLIENTELE PROFESSIONNELLE
KREDIETRUST LUXEMBOURG S.A.
GLOBAL INVESTOR SERVICES
11, rue Aldringen
Investment Funds & Global Custody
T. (+352) 4797-3512
L-2960 Luxembourg
Institutional Asset Management Services
T. (+352) 4797-4561
T. (+352) 46 81 91
Global Market Sales
T. (+352) 2621-0211
F. (+352) 4797-73930
R.C. Luxembourg B 65 896
EXECUTION CLEARING & SETTLEMENT
Management
T. (+352) 4797-2773
Administration
Fund Processing
T. (+352) 2621-0222
T. (+352) 46819-2093
Equity & Bond Execution
T. (+352) 4797-2280
Equity & Bond Clearing & Settlement
T. (+352) 4797-2763
Corporate and Credits
T. (+352) 4797-3898
Corporate Banking & International Loans
T. (+352) 4797-2289
Fund Research & Multi Management
Fiscal Agencies
T. (+352) 4797-2748
T. (+352) 46819-4577
Custody Division
T. (+352) 4797-2750
Portfolio Management
T. (+352) 46819-4191
Institutional Asset Management Services
T. (+352) 4797-4561
GLOBAL FINANCIAL MARKETS
Management & Executive Assistant
T. (+352) 4797-2774
Correspondent Banking & Financial Institutions
T. (+352) 4797-3869
Fixed Income
T. (+352) 2621-0122
STRUCTURED PRODUCTS + EQUITIES
Structured Products + Derivatives
T. (+352) 2621-0233
Equity Care Orders
T. (+352) 2621-0366
MONEY MARKETS
Treasury
T. (+352) 2621-0311
Repos & Securities Lending + Fiduciary Deposits T. (+352) 2621-0322
Forex
T. (+352) 2621-0333
Bullion
T. (+352) 2621-0355
eKBL
T. (+352) 4797-2496
Transfers
T. (+352) 4797-2571
Corporate Actions
T. (+352) 4797-2769
Private Equity
T. (+352) 4797-2941
Third Party Fund Execution
T. (+352) 4797-2163
Ce rapport est disponible en anglais et en français.
Seule la version anglaise fait foi.
KBL epb RAPPORT ANNUEL 2011
59
Notes
60
KBL epb RAPPORT ANNUEL 2011
KBL epb RAPPORT ANNUEL 2011
61
“By prevailing over all obstacles and distractions,
“C’est un petit pas pour l’homme, mais un bond
de géant pour l’humanité.”or destination.”
- Neil Amstrong
RAPPORT ANNUEL 2011
2 0 12 | 2 0 13 | 2 0 14 | 2 0 15 | 2 0 16 | 2 0 16 |
Consolidated accounts,
Report of
the independent auditor
and Consolidated
management report
as at 31 December 2011
Les comptes consolidés et non consolidés ne sont disponibles que en version anglaise
Contents
Unqualified certification of the independent auditor...................................................................................................................................................... 57
Consolidated income statement ............................................................................................................................................................................................ 59
Consolidated statement of comprehensive income ......................................................................................................................................................... 60
Consolidated balance sheet .................................................................................................................................................................................................... 61
Consolidated statement of changes in equity................................................................................................................................................................... 63
Consolidated cash flow statement........................................................................................................................................................................................ 65
Notes to the consolidated accounts ..................................................................................................................................................................................... 67
Note 1 – General ..............................................................................................................................................67
Note 2a – Statement of compliance ........................................................................................................................68
Note 2b – Significant accounting policies .................................................................................................................71
Note 3a – Operating segments by business segment ..................................................................................................79
Note 3b – Operating segments by geographic sector ..................................................................................................82
Note 4 – Net interest income ..............................................................................................................................82
Note 5 – Gross earned premiums, insurance ...........................................................................................................83
Note 6 – Gross technical charges, insurance ...........................................................................................................83
Note 7 – Dividend income ..................................................................................................................................83
Note 8 – Net gains / losses on financial instruments at fair value designated at fair value through profit or loss .....................83
Note 9 – Net realised gains/losses on financial assets and liabilities not measured at fair value through profit or loss ..............84
Note 10 – Net fee and commission income ...............................................................................................................84
Note 11 – Other net income .................................................................................................................................84
Note 12 – Operating expenses ..............................................................................................................................85
Note 13 – Staff ..................................................................................................................................................85
Note 14 – Impairment .........................................................................................................................................86
Note 15 – Share of profit of associates ....................................................................................................................87
Note 16 – Income tax (expenses) / Income ...............................................................................................................87
Note 17 – Classification of financial instruments: breakdown by portfolio and by product ...................................................88
Level 3 items measured at fair value .........................................................................................................95
Transfers between the level 1 and level 2 categories ....................................................................................95
Note 18 – Available-for-sale financial assets and Loans and receivables: breakdown by portfolio and quality ...........................98
Note 19 – Financial assets and liabilities: breakdown by portfolio and residual maturity .....................................................99
Note 20 – Securities lending and securities given in guarantee ...................................................................................100
Note 21 – Securities received in guarantee.............................................................................................................101
Note 22 – Impairment of available-for-sale financial assets ........................................................................................101
Note 23 – Impairment of loans and receivables .......................................................................................................102
Note 24 – Derivatives .......................................................................................................................................103
Note 25 – Other assets ......................................................................................................................................105
Note 26 – Tax assets and liabilities ......................................................................................................................105
Note 27 – Investments in associates.....................................................................................................................106
Note 28 – Goodwill and other intangible assets .......................................................................................................107
Note 29 – Property and equipment and investment properties ...................................................................................108
Note 30 – Gross technical provisions, insurance ......................................................................................................109
Note 31 – Provisions ........................................................................................................................................110
Note 32 – Other liabilities ..................................................................................................................................110
Note 33 – Retirement benefit obligations ...............................................................................................................111
Note 34 – Equity attributable to the owners of the parent .........................................................................................113
Note 35 – Result allocation proposal.....................................................................................................................113
Note 36 – Loans commitments, financial guarantees and other commitments ................................................................114
Note 37 – Assets under management ...................................................................................................................114
Note 38 – Related party transactions ....................................................................................................................115
Note 39 – Solvency ..........................................................................................................................................116
Note 40 –
Note 41 –
Note 42 –
Note 43 –
Note 44 –
Note 45 –
Note 46 –
Maximum credit risk exposure...............................................................................................................117
Risk management ...............................................................................................................................118
Audit fees .........................................................................................................................................118
List of significant subsidiaries and associates ............................................................................................118
Main changes in the scope of consolidation ..............................................................................................119
Acquisitation of Vitis Life S.A. in 2010 ....................................................................................................120
Events after the balance sheet date ........................................................................................................120
Consolidated management report......................................................................................................................................................................................... 63
The quantitative tables in the following pages may sometimes show small differences due to the use of concealed decimals.
These differences, however, do not in any way affect the true and fair view of the consolidated accounts of the Group.
Similarly, the value zero “0” in the following tables indicates the presence of a number after the decimal, while “-” represents
the value nil.
Unqualified certification of the independent auditor
To the Board of Directors of KBL European Private Bankers S.A.
Société Anonyme, Luxembourg
Report on the consolidated accounts
Following our appointment by the Board of Directors, we have audited the accompanying consolidated accounts
of KBL European Private Bankers S.A., which comprise the consolidated balance sheet as at 31 December 2011,
the consolidated income statement, the consolidated statement of comprehensive income, the consolidated
statement of changes in equity, the consolidated cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Board of Directors’ responsibility for the consolidated accounts
The Board of Directors is responsible for the preparation and fair presentation of these consolidated accounts in
accordance with International Financial Reporting Standards as adopted by the European Union and for such
internal control as the Board of Directors determines is necessary to enable the preparation and presentation of
consolidated accounts that are free from material misstatement, whether due to fraud or error.
Responsibility of the “réviseur d’entreprises agréé”
Our responsibility is to express an opinion on these consolidated accounts based on our audit. We conducted our
audit in accordance with International Standards on Auditing as adopted for Luxembourg by the “Commission de
Surveillance du Secteur Financier”. Those standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the consolidated accounts are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated accounts. The procedures selected depend on the judgement of the “réviseur d’entreprises agréé”,
including the assessment of the risks of material misstatement of the consolidated accounts, whether due to
fraud or error. In making those risk assessments, the “réviseur d’entreprises agréé” considers internal control
relevant to the entity’s preparation and fair presentation of the consolidated accounts in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as
evaluating the overall presentation of the consolidated accounts.
- 57 -
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the consolidated accounts give a true and fair view of the financial position of KBL European
Private Bankers S.A. as of 31 December 2011, and of its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards as adopted by the European Union.
Report on other legal and regulatory requirements
The consolidated management report, which is the responsibility of the Board of Directors, is consistent with the
consolidated accounts.
ERNST & YOUNG
Société Anonyme
Cabinet de révision agréé
Sylvie TESTA
Luxembourg, 22 February 2012
- 58 -
Consolidated income statement
(in EUR thousand)
Notes
31/12/2010
31/12/2011
Net interest income
4, 38
150,274
145,253
Gross earned premiums, insurance
5
3,300
2,271
Gross technical charges, insurance
6
-11,725
-11,489
-65
-399
7
6,591
3,866
Net gains / losses on financial instruments designated at
8
fair value through profit or loss
46,905
-9,176
Net realised gains/losses on financial assets and liabilities
9
not measured at fair value through profit or loss
26,904
62,381
Ceded reinsurance result, insurance
Dividend income
Net fee and commission income
10, 38
378,663
348,878
Other net income
11, 38
1,776
7,697
602,624
549,283
GROSS INCOME
Operating expenses
12, 38
-503,194
-438,769
Staff expenses
13, 33
-352,332
-292,097
General administrative expenses
42
-116,039
-120,060
Other
28, 29, 31
-34,822
-26,612
Impairment
14, 22, 23, 28, 29,
38
-44,603
-99,354
Badwill
45
29,002
-
Share of profit of associates
15, 27
1,596
604
85,424
11,763
-17,698
8,345
67,726
20,109
-6
-9
67,733
20,118
PROFIT BEFORE TAX
Income tax (expenses) / income
16
PROFIT AFTER TAX
Attributable to:
Non-controlling interest
Owners of the parent
The notes refer to the ‘Notes to the consolidated accounts’.
- 59 -
Consolidated statement of comprehensive income
(in EUR thousand)
31/12/2010
31/12/2011
67,726
20,109
3,925
-87,946
-10,627
-8,978
Impairment
774
5,858
Income tax (expenses) / income
459
25,631
Financial assets available-for-sale
-5,469
-65,435
Exchange differences on translation of foreign operations
-8,260
-3,337
OTHER COMPREHENSIVE INCOME
-13,729
-68,772
TOTAL COMPREHENSIVE INCOME
53,998
-48,663
-5
-9
54,003
-48,654
PROFIT AFTER TAX
Revaluation at fair value
Net realised gains / losses on sales
Attributable to : Non-controlling interest
Owners of the parent
The notes refer to the ‘Notes to the consolidated accounts’.
- 60 -
Consolidated balance sheet
ASSETS
(in EUR million)
Notes
Cash and balances with central banks
40
Financial assets
17, 18, 19, 20, 21,
38, 40
Held-for-trading
24
At fair value through profit or loss
31/12/2010
31/12/2011
437
1,076
13,488
12,919
574
628
1,836
1,806
Available-for-sale financial assets
22
5,278
3,883
Loans and receivables
23
5,733
6,557
Hedging derivatives
24
67
45
0
0
86
99
Current tax assets
21
1
Deferred tax assets
64
97
Reinsurers’ share in technical provisions, insurance
Tax assets
26, 40
Investments in associates
27
14
13
Investment properties
29
37
36
Property and equipment
29
197
189
Goodwill and other intangible assets
28
356
306
Other assets
25, 40
108
115
14,722
14,752
TOTAL ASSETS
- 61 -
EQUITY AND LIABILITIES
(in EUR million)
Notes
31/12/2010
31/12/2011
Financial liabilities
17, 19, 38
12,788
12,965
360
359
1,822
1,790
10,518
10,722
24
89
94
Gross technical provisions, insurance
30
475
429
Tax liabilities
26
10
5
Current tax liabilities
5
1
Deferred tax liabilities
5
4
33
28
361
319
13,667
13,747
1,055
1,006
1,054
1,005
0
0
14,722
14,752
Held-for-trading
24
At fair value through profit or loss
At amortised cost
Hedging derivatives
Provisions
31
Other liabilities
32, 33, 38
TOTAL LIABILITIES
TOTAL EQUITY
Equity attributable to the owners of the parent
34
Non-controlling interest
TOTAL EQUITY AND LIABILITIES
The notes refer to the ‘Notes to the consolidated accounts’.
- 62 -
Total
equity
Non-controlling
interest
Equity
attributable to
owners of the
parent
Treasury
shares
Foreign currency
translation
reserve
Revaluation
reserve
(AFS investments)
187.2 321.3
Consolidated
reserves
Balance as at 01/01/2010
2010
Share
premium
(in EUR million)
Issued and paidup share capital
Consolidated statement of changes in equity
-0.1
464.2
6.5
18.2
997.3
0.4
997.7
Net movements on treasury shares
-
-
-
-
-
-
-
-
-
Dividends and profit-sharing
-
-
-
-
-
-
-
-
-
Total comprehensive income for the
year
-
-
-
67.7
-5.5
-8.3
54.0
-0.0
54.0
Changes in scope of consolidation
-
-
-
-
2.9
-
2.9
-
2.9
Effects of acquisitions/disposals on
non-controlling interest
-
-
-
-
-
-
-
-
-
Other
-
-
-
0.0
0.1
-
-
-
0.2
187.2 321.3
-0.1
532.0
4.0
9.9
1,054.3
0.3
1,054.7
Balance as at 31/12/2010
- 63 -
Equity attributable to
owners of the parent
Revaluation reserve
(AFS investments)
-0.1
532.0
4.0
9.9
1,054.3
0.3
1,054.7
Net movements on treasury shares
-
-
-
-
-
-
-
-
-
Dividends and profit-sharing
-
-
-
-
-
-
-
-
-
Total comprehensive income
for the year
-
-
-
20.1
-65.4
-3.3
-48.7
-0.0
-48.7
Changes in scope of consolidation
-
-
-
-
-
-
-
-
-
Effects of acquisitions/disposals on
non-controlling interest
-
-
-
-
-
-
-
-
-
Other
-
-
-
-0.3
-
-
-0.3
-
-0.3
187.2
321.3
-0.1
551.8
-61.4
6.6
1,005.4
0.3
1,005.7
Balance as at 31/12/2011
Total
equity
Treasury
shares
- 64 -
Non-controlling
interest
321.3
Foreign currency
translation reserve
187.2
Consolidated
reserves
Issued and paid-up
share capital
Balance as at 01/01/2011
Share
premium
(in EUR million)
2011
Consolidated cash flow statement
(in EUR million)
31/12/2010
31/12/2011
Profit before tax
85.4
11.8
Adjustments for:
45.9
121.3
Impairment on securities, amortisation and depreciation on property and
equipment, intangible assets and investment properties
74.3
121.3
Badwill
-29.0
-
Profit/loss on the disposal of investments
-0.0
-2.3
Change in impairment for losses on loans and advances
-1.7
2.2
-11.7
-11.5
Change in the reinsurers’ share in the technical provisions
-0.1
-0.4
Change in other provisions
10.7
2.5
Unrealised foreign currency gains and losses and valuation differences
5.1
10.2
Income from associates
-1.6
-0.6
131.3
133.1
Changes in operating assets (1)
1,495.7
1,840.6
Changes in operating liabilities (2)
-1,415.5
99.5
-7.2
17.4
204.3
2,090.4
-41.0
-2.4
Proceeds from sale of subsidiaries or business units, net of cash acquired/disposed of
0.4
0.0
Purchase of investment property
-0.5
-0.3
-
0.3
-28.9
-1.6
-
0.2
-13.3
-10.2
Proceeds from sale of property and equipment
0.8
3.0
NET CASH FROM / (USED IN) INVESTING ACTIVITIES
-82.5
-11.1
Change in gross technical provisions – insurance
Cash flows from operating activities, before tax and changes in operating assets and liabilities
Income taxes
NET CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES
Purchase of subsidiaries or business units, net of cash acquired/disposed of
Proceeds from sale of investment properties
Purchase of intangible assets
Proceeds from sale of intangible assets
Purchase of property and equipment
- 65 -
(in EUR million)
31/12/2010
31/12/2011
-
-
-9.9
116.4
-22.8
-571.0
-
-
NET CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
-32.6
-454.6
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (3)
89.1
1,624.7
2,815.4
2,904.6
89.1
1,624.7
-
-
2,904.6
4,529.3
Interest paid during the year
173.7
151.8
Interest received during the year
327.7
308.1
6.6
3.9
2,904.6
4,529.3
436.6
1,076.4
Loans and advances to banks repayable on demand
3,513.1
4,970.6
Deposits from banks repayable on demand
-1,045.1
-1,517.7
323.6
123.6
Purchase/sale of treasury shares
Issue/repayment of loans
Issue /repayment of subordinated debts
Dividends paid and profit-sharing
CASH AND CASH EQUIVALENTS AS AT 01/01
Net increase/decrease in cash and cash equivalents
Net foreign exchange difference
CASH AND CASH EQUIVALENTS AS AT 31/12
ADDITIONAL INFORMATION
Dividends received (including equity method)
COMPONENTS OF CASH AND CASH EQUIVALENTS
Cash and balances with central banks (including legal reserve with the central bank)
Of which: not available (4)
(1) Including loans and advances to banks and customers, securities, derivatives and other assets.
(2) Including deposits from banks and customers, bonds issued, derivatives and other liabilities.
(3) Cash includes cash and deposits payable on demand; cash equivalents are short-term investments that are very liquid,
easily convertible into a known cash amount and subject to a negligible risk of a change in value.
(4) Cash and cash equivalents not available for the Group mainly comprise of the legal reserve held with the Luxembourg
Central Bank and the ‘margin’ accounts held with clearing houses (futures markets, etc,).
- 66 -
Notes to the
consolidated accounts
NOTE 1 – GENERAL
KBL European Private Bankers Group (hereinafter
“KBL epb group” or the “Group”) is an international
network of banks and financial companies,
specialised in private banking. In support of, and
complementary to this activity, KBL epb group is
also developing several niche activities specific to
its various markets.
selectively developed a presence in certain other
countries and regions across the world.
But, on 18 November 2009, the KBC Group
communicated its strategic plan as requested by the
European Commission to repay the support received
from Belgian national and Flemish governments.
This plan has been formally approved by the
European Commission. KBC wants to refocus on its
basic business, namely bank-insurance on its
domestic markets. It has decided to sell certain
high-quality assets, of which KBL epb. The
Executive Committee of KBL epb has been
designated by KBC to pilot the process of searching
for a new shareholder.
The business purpose of KBL epb group is to carry
out all banking and credit activities. In addition, KBL
epb group is allowed to carry out all commercial,
industrial or other operations, including real estate
transactions, in order to achieve its main business
purpose, either directly or through shareholdings, or
in any other manner, these provisions to be
understood in the widest manner possible. KBL epb
group may carry out any activity which contributes
in any way whatsoever to the achievement of its
business purpose. The Group’s main activities are
described in “Note 3 a - Operating segments by
business segment”.
On 10 October 2011, an agreement was concluded
on the sale of KBL epb by KBC to a Qatari
investment group represented by a Luxembourg
entity, Precision Capital. The closing should take
place during the first months of the financial year
2012.
The Bank prepares consolidated accounts in
accordance with International Financial Reporting
Standards as adopted by the European Union, as
well as a consolidated management report, which
are available at its head office.
KBL epb group is headed by KBL European Private
Bankers S.A. (hereinafter “KBL epb” or “KBL” or the
“Bank”), a public limited liability company (société
anonyme) in Luxembourg and having its registered
office at:
The Bank’s consolidated accounts are consolidated
in the KBC Group consolidated accounts. KBC
Group’s consolidated accounts and management
report are available at its head office.
43, boulevard Royal,
L-2955 Luxembourg
KBL epb group is part of the KBC Group. Born on 2
March 2005 from the merger of KBC Bank and
Insurance Holding N.V. and its parent company
Almanij, the KBC Group is today one of the major
financial groups in Europe. As a multi-channel,
independent bank-insurance group, active in
Europe, the KBC Group provides individual clients,
as well as small and medium-sized companies, with
retail and private banking services. It is also active
in asset management, corporate banking and private
equity markets. The KBC Group is a major player on
the Belgian and Central and Eastern European
markets and has created a large network of private
bankers in Western Europe. The KBC Group has also
KBL epb’s non-consolidated accounts include those
of the Spanish branch opened on 7 April 2010 and
of the Polish branch opened on 1 April 2009 and
closed on 20 December 2011.
- 67 -
did not have any impact on the financial position
or performance of the Group.
NOTE 2A – STATEMENT OF COMPLIANCE
The consolidated accounts presented in this report
were approved by the Board of Directors of KBL
epb on 22 February 2012.
-
that alters the definition of a financial liability in
lAS 32 to enable entities to classify rights issues
and certain options or warrants as equity
instruments. The amendment is applicable if the
rights are given prorata to all of the existing
owners of the same class of an entity’s nonderivative equity instruments, to acquire a fixed
number of the entity’s own equity instruments
for a fixed amount in any currency. The
amendment has had no effect on the financial
position or performance of the Group because
the Group does not have this type of
instruments.
The Group consolidated accounts have been
prepared in accordance with International Financial
Reporting Standards as adopted by the European
Union (IFRS).
In preparing the consolidated accounts under IFRS,
the Board of Directors is required to make estimates
and assumptions that affect reported income,
expenses, assets, liabilities and disclosure of
contingent assets and liabilities. Use of available
information and application of judgement are
inherent in the formation of estimates. Actual
results in the future could differ from such
estimates and the differences may be material to
the consolidated accounts.
-
lAS 24 Related Party Disclosures (amendment)
effective 1 January 2011.
-
lAS 32 Financial Instruments: Presentation
(amendment) effective 1 February 2010.
-
IFRIC 14 Prepayments of a Minimum Funding
Requirement (amendment) effective 1 January
2011.
-
Improvements to IFRSs (May 2010).
IFRIC 14 Prepayments of a Minimum Funding
Requirement (Amendment). The amendment
removes an unintended consequence when an
entity is subject to minimum funding
requirements and makes an early payment of
contributions to cover such requirements. The
amendment permits a prepayment of future
service cost by the entity to be recognised as a
pension asset.
The accounting policies adopted are consistent with
those of the previous financial year, except for the
following new and amended IFRS and IFRIC
interpretations effective as of 1 January 2011:
-
lAS 32 Financial Instruments: Presentation
(Amendment). The IASB issued an amendment
-
Improvements to IFRSs. In May 2010, the IASB
issued its third omnibus of amendments to its
standards, primarily with a view to removing
inconsistencies and clarifying wording. There are
separate transitional provisions for each
standard.
The adoption of the following amendments resulted
in changes to accounting policies, but no impact on
the financial position or performance of the Group:
•
IFRS 3 Business Combinations: the
measurement options available for noncontrolling interest (NCI) were amended.
Only components of NCI that constitute a
present ownership interest that entitles
their holder to a proportionate share of the
entity’s net assets in the event of
liquidation should be measured at either
fair value or at the present ownership
instruments’ proportionate share of the
acquiree’s identifiable net assets. All other
components are to be measured at their
acquisition date fair value.
•
IFRS 7 Financial Instruments - DiscIosures:
the amendment was intended to simplify
the disclosures provided by reducing the
volume of disclosures around collateral
held and improving disclosures by
The adoption of the standards or interpretations is
described below:
-
IAS
24
Related
Party
Transactions
(Amendment). The IASB issued an amendment to
lAS 24 that clarifies the definitions of a related
party. The new definitions emphasise a
symmetrical view of related party relationships
and clarifies the circumstances in which persons
and key management personnel affect related
party relationships of an entity. In addition, the
amendment introduces an exemption from the
general related party disclosure requirements for
transactions with government and entities that
are controlled, jointly controlled or significantly
influenced by the same government as the
reporting entity. The adoption of the amendment
- 68 -
requiring qualitative information to put the
quantitative information in context.
•
categories,
business
model-oriented
classification rules and the prohibition to
recycle (into P&L) any gains and losses on
financial assets measured at fair value through
other comprehensive income.
The last two phases which concern impairment
and hedge accounting are still to be finalized.
The standard (including its first phase on a
stand-alone basis) is applicable for annual
periods beginning on or after 1 January 2015.
Earlier application is permitted.
Up to now, however, no portion of the
standard has been endorsed by the European
Union.
lAS 1 Presentation of Financial Statements:
the amendment clarifies that an entity may
present an analysis of each component of
other comprehensive income maybe either
in the statement of changes in equity or in
the notes to the financial statements.
Other amendments resulting from Improvements to
IFRSs to the following standards did not have any
impact on the accounting policies, financial position
or performance of the Group:
•
IFRS 3 Business Combinations (Contingent
consideration arising from business
combination prior to adoption of IFRS 3 (as
revised in 2008))
-
•
lAS 27 Consolidated and Separate Financial
Statements.
The following interpretation and amendment to
interpretations did not have any impact on the
accounting
policies,
financial
position
or
performance of the Group:
•
change the grouping of items presented in OCI.
Items that could be reclassified (or ‘recycled’)
to profit or loss at a future point in time (for
example, upon derecognition or settlement)
would be presented separately from items that
will never be reclassified. The amendment
affects presentation only and has there no
impact on the Group’s financial position or
performance. The amendment becomes
effective for annual periods beginning on or
after 1 July 2012.
IFRIC 19 Extinguishing Financial Liabilities
with Equity Instruments.
The Group has also decided not to early adopt the
standards, amendments to standards and
interpretations of the IFRIC which have been
published but are not applicable for the year ending
31 December 2011. The Group will adopt these
standards on the date of their effective application
and when they will be approved by the European
Union.
-
lAS 12 Income Taxes - Recovery of Underlying
Assets. The amendment clarified the
determination of deferred tax on investment
property measured at fair value. The
amendment
introduces
a
rebuttable
presumption that deferred tax on investment
property measured using the fair value model
in lAS 40 should be determined on the basis
that its carrying amount will be recovered
through sale. Furthermore, it introduces the
requirement that deferred tax on nondepreciable assets that are measured using the
revaluation model in lAS 16 always be
measured on a sale basis of the asset. The
amendment becomes effective for annual
periods beginning on or after 1 January 2012.
This basically concerns the following publications
(only the standards, amendments to standards and
IFRIC which may have an effect on the Group
financial position or performance are mentioned
below):
-
lAS 1 Financial Statements Presentation Presentation of Items of Other Comprehensive
Income (OCI). The amendments to lAS 1
IFRS 9 Financial Instruments (Amended)
This standard, which is being developed to
ultimately replace IAS 39 in its entirety, has
been divided into three main phases. The first
phase, which relates to the recognition and
measurement of financial assets and financial
liabilities, has already been completed. It
introduces significant changes in the
accounting requirements of financial assets,
such as: a reduction in the number of available
-
- 69 -
lAS 19 Employee Benefits (Amendment)The
IASB has issued numerous amendments to lAS
19. These range from fundamental changes
such as removing the corridor mechanism and
the concept of expected returns on plan assets
to simple clarifications and re-wording. The
amendment becomes effective for annual
periods beginning on or after 1 January 2013.
-
IFRS 10 establishes a single control model that
applies to all entities including special purpose
entities. The changes introduced by IFRS 10
will require the Board of Directors to exercise
significant judgement to determine which
entities are controlled, and therefore, are
required to be consolidated by a parent,
compared with the requirements that were in
lAS 27.
lAS 27 Separate Financial Statements (as
revised in 2011). As a consequence of the new
IFRS 10 and IFRS 12, what remains of lAS 27
is limited to accounting for subsidiaries, jointly
controlled entities, and associates in separate
financial statements. The amendment becomes
effective for annual periods beginning on or
after 1 January 2013.
-
-
Jointly-controlled Entities - Non monetary
Contributions by Ventures.
lAS 28 Investments in Associates and Joint
Ventures (as revised in 2011). As a
IFRS 11 removes the option to account for
jointly controlled entities (JCEs) using
proportionate consolidation. Instead, JCEs that
meet the definition of a joint venture must be
accounted for using the equity method. This
standard becomes effective for annual periods
beginning on or after 1 January 2013.
consequence of the new IFRS 11 and IFRS 12,
IAS 28 has been renamed lAS 28 Investments
in Associates and Joint Ventures, and describes
the application of the equity method to
investments in joint ventures in addition to
associates. The amendment becomes effective
for annual periods beginning on or after 1
January 2013.
-
-
IFRS 7 Financial Instruments: Disclosures Enhanced
Derecognition
Disclosure
Requirements. The amendment requires
IFRS 12 Disclosure of Involvement with Other
Entities. IFRS 12 includes all of the disclosures
that were previously in lAS 27 related to
consolidated financial statements, as well as
all of the disclosures that were previously
included in lAS 31 and lAS 28. These
disclosures relate to an entity’s interests in
subsidiaries, joint arrangements, associates
and structured entities. A number of new
disclosures are also required. This standard
becomes effective for annual periods
beginning on or after 1 January 2013.
additional disclosure about financial assets
that have been transferred but not
derecognised to enable the user of the Group’s
financial statements to understand the
relationship with those assets that have not
been derecognised and their associated
liabilities. In addition, the amendment requires
disclosures about continuing involvement in
derecognised assets to enable the user to
evaluate the nature of, and risks associated
with, the entity’s continuing involvement in
those derecognised assets.
-
IFRS 13 Fair Value Measurement. IFRS 13
establishes a single source of guidance under
IFRS for all fair value measurements. IFRS 13
does not change when an entity is required to
use fair value, but rather provides guidance on
how to measure fair value under IFRS when
fair value is required or permitted. This
standard becomes effective for annual periods
beginning on or after 1 January 2013.
The amendment becomes effective for annual
periods beginning on or after 1 July 2011. The
amendement affects disclosure only and has
no impact on the Group’s financial position or
performance.
-
IFRS 11 Joint Arrangements. IFRS 11 replaces
IAS 31 Interests in Joint Ventures and SIC-13
IFRS 10 Consolidated Financial Statements.
IFRS 10 replaces the portion of lAS 27
Consolidated
and
Separate
Financial
Statements that addresses the accounting for
consolidated financial statements. It also
includes the issues raised in SIC-12
Consolidation - Special Purpose Entities.
- 70 -
NOTE 2B – SIGNIFICANT ACCOUNTING
POLICIES
items in foreign currencies measured in terms of
historical cost are translated using the historical
exchange rate prevailing at the date of the
transaction. Non-monetary items in foreign
currencies measured at fair value are translated
using the spot exchange rate at the date when the
fair value is determined and translation differences
are reported together with changes in fair value.
A. CONSOLIDATION CRITERIA
All entities controlled by KBL epb or over which
KBL epb has a significant influence are included in
the scope of consolidation when the materiality
thresholds are exceeded. These limits are based on
the following criteria: share in the Group equity,
share in the Group profit and in the Group total
balance sheet increased by the off-balance sheet
rights and commitments which are used to calculate
the solvency ratio.
Income and expense items denominated in foreign
currencies are recognised in the income statement
in their respective currencies and periodically
translated at the average monthly exchange rate.
Foreign subsidiaries balance sheets denominated in
foreign currencies are translated into EUR using the
closing rate prevailing at the reporting date (with
the exception of the capital, reserves and goodwill,
which are translated using historical rates).
An entity is included in the scope of consolidation
from the date of acquisition, being the date on
which KBL epb obtains a significant influence or
control over this entity and continues to be included
until this influence or control ceases.
Foreign subsidiaries profit and loss accounts
denominated in foreign currencies are translated at
the average exchange rate for the financial year.
This principle is applicable to the KBL epb
subsidiaries in Switzerland and in the United
Kingdom.
All entities exclusively controlled by KBL epb,
directly or indirectly, are consolidated using the full
consolidation method.
Companies over which joint control is exercised,
directly or indirectly, are consolidated using the
proportionate consolidation method.
Annual average exchange rates in 2011
1 EUR = ... CUR
Variation versus
average 2010
CHF
1.233275
-10.61%
GBP
0.87231
+1.77%
Investments in associates, that is, where KBL epb
has a significant influence, are accounted for using
the equity method.
B. FOREIGN CURRENCY TRANSLATION
Exchange rate as at 31/12/2011
1 EUR = ... CUR
Variation versus
31/12/2010
CHF
1.2156
-2.78%
GBP
0.8353
-2.96%
KBL epb’s consolidated accounts are presented in
EUR, which is also the functional currency of the
Group.
KBL epb maintains a multi-currency accounting
system under which any transaction is registered in
its original foreign currency.
Exchange differences resulting from the procedures
applied to translate balance sheets and income
statements of foreign subsidiaries denominated in
foreign currencies into EUR are recognised as a
separate item in equity.
In preparing the annual accounts of KBL epb (and of
all the consolidated subsidiaries which also present
their accounts in EUR), assets and liabilities in
foreign currencies are translated into EUR.
Monetary items in foreign currencies are converted
at the closing rate prevailing at the reporting date;
differences arising from such conversion are
recorded in the income statement. Non-monetary
- 71 -
C.
Definition of IAS 39 categories of financial assets
and financial liabilities
FINANCIAL ASSETS AND LIABILITIES
General principles of recognition and derecognition
of financial instruments
All financial assets and liabilities – including
derivatives – must be measured on the balance
sheet according to their IAS 39 category. Each
category is subject to specific measurement rules.
A financial instrument is recognised in the balance
sheet when and only when the Group becomes a
party to the contractual provisions of the
instrument.
The IAS 39 categories are the following:
A financial asset is derecognised when and only
when the contractual rights to receive cash flows
from the asset have expired or the Group transfers
the financial asset.
ƒ
Held-to-maturity assets are all non-derivative
financial assets with fixed maturities and fixed
or determinable payments that KBL epb group
intends and is able to hold to maturity. The
Group’s management has decided not to class
financial instruments in this category.
A financial liability is derecognised when and only
when the contractual liability is settled, cancelled or
expires.
The purchases and sales of financial assets are
recognised on the payment date, which is the date
that the asset is delivered. Any variation in the fair
value of the asset to be received during the period
from the transaction date to the payment date is
recognised in the same way as for the asset
acquired. In other words, the change in value is not
recognised for assets recognised at cost or at
amortised cost; it is recognised in the income
statement for assets classified as financial assets at
fair value through profit or loss and in equity for
those classified as available-for-sale.
In the case of sales, the assets at fair value are
measured at their sale price during the period
between the transaction date and the payment date.
Pursuant to the provisions of IAS 39 on
derecognition, the Group keeps securities lent in its
securities portfolio but securities borrowed are not
recorded on the balance sheet.
Similarly, the securities transferred through
repurchase agreements are kept in the securities
portfolio but those under reverse repurchase
agreements are not recorded on the balance sheet.
- 72 -
ƒ
Loans and receivables are all non-derivative
financial assets with fixed or determinable
payments that are not quoted in an active
market.
ƒ
Financial assets at fair value through profit or
loss include held-for-trading assets and any
other financial assets initially designated at fair
value through profit or loss. Held-for-trading
assets are those acquired principally for the
purpose of selling them in the near term and
those which are part of a portfolio with
indications of recent short-term profit-taking.
All derivative assets are considered as being
held for trading unless designated as effective
hedging instruments. Other assets at fair value
through profit or loss are valued in the same
way as held-for-trading assets, even if there is
no intention of short-term profit taking.
The ‘fair value option’ may be used when a
contract contains one or more embedded
derivatives under certain conditions or when its
application
produces
more
pertinent
information:
- either because a group of financial
assets/liabilities is managed on a fair value
basis and its performance measured on a
fair value basis, following a documented
investment or risk management strategy;
- or because the application of this option
reduces a measurement or recognition
inconsistency that would otherwise arise
from measuring assets or liabilities or
recognising the gains and losses on them
on different bases.
The available-for-sale financial assets are measured
at fair value with changes in fair value recognised in
equity (‘Revaluation reserve (available-for-sale
financial instruments)’) until the sale or impairment
of these instruments. In the latter cases, the
cumulative result of the revaluation is transferred
from equity to the income statement of the period.
This option is mainly used by the Group for
contracts with one or more embedded
derivatives, as an alternative to hedge
accounting (aligning the valuation of the
hedged instrument with that of the hedging
instrument) and, for insurance subsidiaries, to
mirror the valuation of unit-linked financial
liabilities.
ƒ
The financial assets and liabilities at fair value
through profit or loss are measured at fair value
with changes in fair value recognised in the income
statement.
Available-for-sale financial assets are all nonderivative financial assets which do not fall into
one of the above categories.
ƒ
Financial liabilities at fair value through profit
or loss encompass held-for-trading liabilities
and financial liabilities initially designated at
fair value through profit or loss. Held-fortrading liabilities are liabilities held mainly with
Other financial liabilities are measured at amortised
cost. The difference between the amount made
available and the nominal amount is recognised in
the income statement (net interest income) prorata
temporis, on an actuarial basis using the EIR
method.
the intention of repurchasing them in the near
term. All derivative liabilities are considered as
being held for trading unless designated as
effective hedging instruments.
Impairment
Financial liabilities initially designated at fair
value through profit or loss are those liabilities
Available-for-sale financial assets and loans and
receivables are also subject to impairment tests and
accounted for under the ‘fair value option’. This
category is currently only used for unit-linked
financial liabilities for insurance subsidiaries.
impairment losses are recognised if evidence of
impairment exists on the balance sheet date.
ƒ
ƒ
For listed shares, an impairment is recognised if the
market value is less than 70% of the purchase value
or if the market price of the share is less than the
acquisition price over one year.
instruments not at fair value through profit or
loss.
ƒ
Available-for-sale financial assets
Other financial liabilities are all other financial
Hedging derivatives are derivatives used for
hedging purposes.
For debt and other equity instruments, the
impairment amount is measured from the
recoverable value.
Evaluation of financial instruments
Impairment losses are always recognised in the
income statement. Impairment reversals are
recognised in the income statement for debt
instruments and in other comprehensive income
(available-for-sale revaluation reserve) for listed
shares and other equity instruments.
Financial assets and liabilities are initially
recognised at fair value and are then measured in
accordance with the principles governing the IAS 39
category in which they are placed.
General principles
ƒ
Loans and receivables
Loans and receivables with a fixed maturity are
The amount of the impairment loss is the excess of
the carrying amount over the recoverable amount of
the asset. The Group firstly evaluates if there is an
impairment loss for each individually significant
loan or receivable or for each group of loans or
receivables not individually significant. If the Group
considers that there is no evidence of an
measured at amortised cost using the effective
interest rate (hereinafter “EIR”) method, that is the
rate that precisely discounts the future cash inflows
or outflows to obtain the carrying amount.
Instruments without a fixed maturity are measured
at cost.
- 73 -
instruments (mainly interest rate swaps and crosscurrency interest rate swaps) are measured at fair
value with changes in fair value recognised in the
income statement. Furthermore, the gain or loss on
the hedged item attributable to the hedged risk
adjusts the carrying amount of the hedged element
and is also recognised in the income statement. If
the hedged item is an available-for-sale asset
already measured at fair value under other IFRS
requirements, applying hedge accounting leads to
splitting the change in the instrument fair value
between the portion addressed by the hedging
relationship, recognised in the income statement,
and the portion that relates to unhedged risks,
recognised in the revaluation reserve in equity.
impairment loss for a given loan or receivable,
individually significant or not, it includes it in a
group of financial assets presenting the same credit
risk characteristics and examines the possibility of
an impairment loss on a collective basis. The assets
evaluated individually and for which an impairment
loss is recognised are not examined collectively.
Embedded derivatives
Derivatives embedded in financial instruments that
are not measured at fair value through profit or loss
are separated from the financial instrument and
measured at fair value through profit or loss if the
economic characteristics and risks of the embedded
derivative are not closely related to the economic
characteristics and risks of the host contract.
Hedge accounting is discontinued once the hedge
accounting requirements are no longer met or if the
hedging instrument expires or is sold. In this case,
and for debt instruments, the cumulative change to
the carrying amount of the hedged instrument
(relating to hedged risks) is transferred to the
income statement prorata temporis until the
instrument expires.
In practice, financial assets with embedded
derivatives are however primarily classified as
financial instruments at fair value through profit or
loss, making it unnecessary to separate the
embedded derivative from the hybrid (combined)
instrument, since the entire financial instrument is
measured at fair value, with changes in fair value
being recognised in the income statement.
As regards to cash flow hedge (not currently used
by the KBL epb group), hedging instruments are
measured at fair value. The portion of the gain or
loss that is determined to be an effective hedge is
recognised in other comprehensive income. The
ineffective portion is recognised in the income
statement. Hedge accounting is discontinued if the
hedge accounting criteria are no longer met. In this
case, the hedging instruments shall be treated as
held-for-trading and measured accordingly.
Hedge accounting
The Group makes little use of macro-hedge
accounting. It is used to hedge a mortgage portfolio
in one of the Group’s subsidiary.
It does however apply micro-hedge accounting
when all the following conditions are met: the
hedging relationship must be designated at
inception and formally documented, the hedge is
expected to be highly effective and it must be
possible to reliably measure the effectiveness of the
hedge, forecast transactions (for cash flow hedges)
must be highly probable and the hedge is measured
on an ongoing basis and is determined actually to
have been highly effective throughout the periods
covered by the consolidated accounts for which the
hedge was designated.
Foreign currency funding of a net investment in a
foreign entity is accounted for as a hedge of that
net investment. Translation differences (taking
account of deferred taxes) on the financing are
recorded in equity, along with translation
differences on the net investment.
Determination of fair value
When available, published price quotations on
active markets are used to determine the fair value
of financial assets or liabilities.
Fair value hedge accounting is used by the Group to
cover the exposure of a financial instrument (e.g.
loans, available-for-sale bonds and some issued debt
securities) to changes in fair value attributable to
changes in interest rates or exchange rates. In this
case those derivatives designated as hedging
If such quotations are not available fair value can be
obtained:
- 74 -
ƒ by reference to recent ‘at arm’s length’ market
transactions between knowledgeable, willing
parties;
ƒ by using a valuation technique (discounted cash
flow analysis and option pricing models). The
valuation technique must then incorporate all
factors that market participants would consider
in setting a price and be consistent with
accepted financial methodologies used for
pricing financial instruments;
ƒ by using the European Venture Capital
Association (EVCA) guidance for private equity
instruments.
D. GOODWILL,
BADWILL
INTANGIBLE ASSETS
AND
This type of intangible assets is not amortised, but
is tested for impairment at least annually. The
criteria and methodologies used for impairment
testing are those initially used to measure the
purchase price (percentage of assets under
management, gross margin multiple, etc.).
Whenever available, the result of the impairment
test is compared with an estimate based on the
parameters deduced from similar transactions.
When the recognition criteria are met and when the
amounts are not immaterial, software is recognised
as an intangible asset. Internal and external
expenses incurred during the development phase of
internally generated strategic software are
recognised in assets and amortised using the
straight-line method over the estimated useful life
(average annual depreciation rate: 25%). However,
the useful life of two specific IT projects (Corporate
Action Management - CAMA - and Globus T24) has
been estimated at 7 years (average annual rate:
14.3%).
OTHER
Goodwill arising in a business combination is
defined as any excess of the cost of the business
combination over the acquirer’s interest in the net
fair value of the identifiable assets and liabilities
acquired and contingent liabilities recorded at the
date of acquisition.
Research expenses for these projects and all
expenses that relate to non-strategic projects are
recognised directly in the income statement.
Goodwill arising in a business combination is not
amortised but is tested for impairment at least on
an annual basis.
E.
An impairment loss is recognised if the carrying
amount of the goodwill exceeds its recoverable
amount. The recoverable amount is estimated using
various methods such as discounted cash flow
analysis, percentage of assets under management or
a price/earnings ratio multiple. Impairment losses on
goodwill cannot be reversed.
PROPERTY AND EQUIPMENT
Property and equipment are initially recognised at
cost.
Property and equipment the use of which is limited
in time are depreciated using the straight-line
method over their estimated useful lives.
Badwill (negative goodwill) is the excess of KBL epb’s
interests in the net fair value of the identifiable assets,
liabilities and contingent liabilities of a subsidiary, joint
venture or associate at the date of acquisition over the
acquisition cost. Where negative goodwill exists after reexamination and re-estimation of the fair value of the
identifiable assets, liabilities and contingent liabilities of
a subsidiary, joint venture or associate, it is immediately
recognised as a profit in the income statement.
Overview of average depreciation rates
Type of investment
The purchase of a portfolio of customers generally
includes the transfer of the client assets under
management to the Group and the recruitment of all
or part of the account officers in charge of client
relationships.
- 75 -
Depreciation rate
Land
Non depreciable
Buildings
2%-3%
Technical installations
5%-10%
Furniture
25%
IT hardware
25%
Vehicles
25%
Works of art
Non depreciable
Luxembourg. Life insurance provision is calculated
on the basis of a prospective actuarial method.
An impairment loss must be recognised if the
carrying value exceeds the recoverable value (which
is the greater of the asset’s value in use and its fair
value less costs to sell).
– Discretionary participation feature (DPF) –
The provision for DPF is estimated separately for
each contract.
When property or equipment is sold, the realised
gains or losses are recognised in the income
statement. If property or equipment is destroyed,
the carrying amount to be written off is
immediately recognised in the income statement.
F.
H. PENSIONS
In addition to the general and legally prescribed
retirement plans, KBL epb group maintains a certain
number of complementary systems in the form of
both defined contribution and defined benefit
pension plans. Defined benefit plans are those under
which the Group has a legal or constructive
obligation to pay further contributions if the
pension fund does not hold sufficient assets to pay
all employee benefits for the current and past
periods.
INVESTMENT PROPERTIES
Investment property is property held to earn rentals
or for capital appreciation or both.
Investment property is recognised only when it is
probable that future economic benefits associated
with the investment property will flow to KBL epb
group and if its cost can be measured reliably.
Defined contribution plans are those under which
the Group has no further legal or constructive
liability beyond the amount it pays into the fund.
Investment property is measured at cost less any
accumulated depreciation and impairment. It is
depreciated using the straight-line method over its
estimated useful live (average rate: 2% - 3%).
In the case of defined benefit pension plans, the
pension cost in the income statement and the
liability on the balance sheet are calculated in
accordance with IAS 19, based on the Projected
Unit Credit Method, which sees each period of
service as giving rise to an additional unit of benefit
entitlement. The calculations are made each year by
independent actuaries.
G. TECHNICAL PROVISIONS, INSURANCE
Sufficient technical provisions are made to enable
the Group to face its commitments resulting from
insurance contracts. The reinsurers’ share in
technical provisions is included within assets on the
balance sheet.
Actuarial gains and losses are recognised using
what is known as the ‘corridor method’. The portion
of gains and losses exceeding 10% of the greater of
the two values below shall be recognised in the
income statement on a straight-line basis over a
period representing the expected average remaining
working lives of the employees participating in the
plan:
– Provision for unearned premiums –
Premiums earned represent premiums received or
receivable for all insurance policies issued before
year end. The part of the premiums earned which
relates to subsequent accounting periods (i.e. the
entrance fee) is calculated individually prorata
temporis for each contract with fixed duration and
deferred through the transfer to the provision for
unearned premiums.
ƒ
ƒ
– Life insurance provision –
Life insurance provision, which comprises the
actuarial value of the Group’s liabilities after
deducting the actuarial value of future premiums, is
estimated separately for each insurance policy on
the basis of mortality tables accepted in
the discounted value of the defined benefit
obligation at the balance sheet date (before
deducting plan assets); and
the fair value of the plan assets at the balance
sheet date.
In the case of defined contribution plans, the
contributions payable are expensed when the
employees render the corresponding service which
- 76 -
at the higher of (i) the amount initially recognised
less, when appropriate, cumulative amortisation and
(ii) the Group’s best estimate of the expenditure
required to settle the present obligation at the
reporting date.
generally coincides with the year in which the
contributions are actually paid.
I.
TAX ASSETS AND LIABILITIES
These balance sheet headings include both current
and deferred tax assets and liabilities.
L.
Equity is the residual interest in the assets of the
KBL epb group after all its liabilities have been
deducted.
Current tax is the amount expected to be paid or
recovered, using the tax rates which have been
enacted or substantively enacted at the balance
sheet date.
Equity instruments have been differentiated from
financial instruments in accordance with the
provisions of IAS 32.
Deferred tax liabilities are recognised for all taxable
temporary differences between the carrying amount
of an asset or liability and its tax base. They are
valued using the tax rates in effect for the periods
when the assets are realised or the liabilities settled,
on the basis of the tax rates enacted or
substantively enacted at the balance sheet date.
The acquisition cost of KBL epb treasury shares that
have been or are being purchased is deducted from
equity. Gains and losses realised on sale or
cancellation of treasury shares are recognised
directly in equity.
Deferred tax assets are recognised for the
carryforward of all unused tax losses and unused
tax credits and for all deductible temporary
differences between the carrying value of the assets
and liabilities and their tax base, to the extent that
it is probable that future taxable profit will be
available against which these losses, tax credits and
deductible temporary differences can be utilised.
The revaluation reserve for available-for-sale
financial assets is included in equity until any
impairment or sale. In such a case, the gains and
losses are transferred to the income statement of
the period.
As regards to cash flow hedges and hedges of a net
investment in a foreign operation, the portion of the
gain or loss on the hedging instrument that is
determined to be an effective hedge is recognised
directly in equity.
Where required by IAS 12, tax assets and liabilities
are offset.
J.
EQUITY
PROVISIONS
M. REVENUE
A provision is recognised when and only when the
following three conditions are met:
ƒ the Group has a present obligation (at the
reporting date) as a result of a past event;
ƒ it is more likely than not that an outflow of
resources embodying economic benefits will be
required to settle this obligation; and
ƒ the amount of the obligation can be estimated
reliably.
KBL epb group recognises revenue relating to
ordinary activities if and only if the following
conditions are met:
ƒ it is probable that the economic benefits
associated with the transaction will flow to the
KBL epb group, and
ƒ the amount of revenue can be measured
reliably.
K. FINANCIAL GUARANTEES
The specific conditions below must also be met
before recognising the related revenue:
Financial guarantees contracts are initially
recognised at fair value and subsequently measured
- 77 -
Net interest income
Rendering of services
Interest is recognised prorata temporis using the
effective interest rate, which is the rate that exactly
discounts the estimated future cash payments or
receipts through the expected life of the financial
instrument or, when appropriate, a shorter period,
to the net carrying amount of the financial asset or
liability.
All interest paid and received on financial
instruments are recorded under the heading “Net
interest income” except interest on held-for-trading
derivative instruments, which are presented under
the heading “Net gains/losses on financial
instruments at fair value” in the income statement.
Revenue from services is recognised by reference to
the stage of completion at the balance sheet date.
According to this method, the revenue is recognised
in the periods when the services are provided.
Gross premiums, insurance
For single premium business, revenue is recognised
on the date on which the policy is effective.
Dividends
Dividends are recognised when the right of the
shareholder to receive the payment is established.
They are presented under the heading “Dividend
income” in the income statement irrespective of the
IFRS category of the related assets.
- 78 -
NOTE 3A – OPERATING SEGMENTS BY BUSINESS SEGMENT
KBL epb group distinguishes between the following primary segments :
The ‘Private Banking’ segment includes the wealth management activities provided to private clients, as well as
the management of investment funds, mainly distributed to private clients. This segment includes all major
subsidiaries of KBL epb group (KBL (Switzerland) Ltd, KBL Monaco Private Bankers, KBL Richelieu Banque Privée
S.A., Puilaetco Dewaay Private Bankers S.A., Theodoor Gilissen Bankiers N.V., Brown Shipley & Co Limited, and
Merck Finck & Co), the private banking activities of KBL epb, Kredietrust Luxembourg S.A. and, finally Vitis Life
S.A. (Insurance) consolidated as per April 2010.
The ‘Global Investor Services’ segment includes services provided to institutional clients. This segment includes
custodian bank and fund domiciliation and administration activities, paying agent activities, central securities
depository Clearstream / Euroclear activities, as well as intermediation and portfolio management services for
KBL epb institutional clients.
The ‘ALM Activities' segment includes "Client Dealing and Treasury" activities, which represent the extension of
intermediation activities provided to KBL epb clients and operates cash management within the Group by means
of treasury activities, securities lending and repos / reverse repos, as well as 'Credit & Securities' portfolios, which
cover “credit” exposure (including direct loans to non-private clients of the Group) and securities held on its own
behalf by KBL epb group.
The ‘Other’ segment includes support activity provided by KBL epb for the network of subsidiaries, acting in its
capacity as parent company, and all other elements not directly linked to the previous three segments, including
reallocation of excess equity, net of the cost of financing holdings, and extraordinary elements not directly linked
to other business segments.
The various items of the income statement include inter-segment transfers, calculated on an arm’s length or cost
recovery basis.
The net result of each entity included in the scope of consolidation is allocated to the various sectors after taking
into account consolidation adjustments, after elimination of non-controlling interests and before elimination of the
intercompanies accounts.
- 79 -
Income statement
GLOBAL
INVESTOR
SERVICES
PRIVATE
BANKING
(in EUR million)
ALM
ACTIVITIES
TOTAL
GROUP
OTHER
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
Net interest income
73.4
86.5
15.2
15.9
59.2
46.4
2.5
-3.6
150.3
145.3
Gross earned premiums, insurance
Gross technical charges, insurance
Ceded reinsurance result, insurance
3.3
-11.7
-0.1
2.3
-14.4
-0.4
-
-
-
-
-
2.9
-
3.3
-11.7
-0.1
2.3
-11.5
-0.4
2.4
2.7
-
0.0
4.2
1.2
-
-0.0
6.6
3.9
13.0
10.2
5.2
5.3
24.7
-11.9
4.0
-12.8
46.9
-9.2
Dividend income
Net gains/losses on financial
instruments designated at fair
value through profit or loss
Net realised gains/losses on financial
assets and liabilities not measured at
fair value through profit or loss
9.9
-7.4
1.1
0.1
12.2
13.4
3.8
56.3
26.9
62.4
331.1
299.3
41.3
44.2
-1.0
-3.0
7.3
8.4
378.7
348.9
Other net income
-1.6
1.5
0.2
0.0
0.6
2.8
2.5
3.4
1.8
7.7
GROSS INCOME
419.6
380.2
63.0
65.6
99.8
48.8
20.2
54.7
602.6
549.3
Operating expenses
-367.4 -344.4
-33.2
-32.3
-21.8
-20.7
-80.8
-41.3
-503.2
-438.8
Net fee and commission income
Impairment
Badwill
-4.8
-
-45.7
-
0
-
0
-
-0.2
-
-3.9
-
-39.6
29.0
-49.8
-
-44.6
29.0
-99.4
-
-
-
1.6
0.6
-
-
-
-
1.6
0.6
PROFIT BEFORE TAX
47.4
-9.8
31.4
33.9
77.8
24.2
-71.2
-36.4
85.4
11.8
Income tax (expenses) / income
-20.8
-10.2
-8.5
-9.6
-22.2
-6.9
33.8
35.0
-17.7
8.3
KBL epb GROUP PROFIT
26.6
-20.1
22.9
24.3
55.6
17.3
-37.4
-1.4
67.7
20.1
0
0
-
-
-
-
0
0
0
0
26.6
-20.1
22.9
24.3
55.6
17.3
-37.4
-1.4
67.7
20.1
Share of profit of associates
Attributable to non-controlling interest
ATTRIBUTABLE TO
THE OWNERS OF THE PARENT
- 80 -
Balance sheet
PRIVATE
BANKING
(in EUR million)
GLOBAL
INVESTOR
SERVICES
ALM
ACTIVITIES
TOTAL
GROUP
OTHER
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
98
202
-
-
339
875
-
-
437
1,076
4,953
4,805
185
169
8,064
7,629
286
116
91
-
-
457
537
-
At fair value through profit or loss
1,822
1,791
-
-
14
15
-
-
1,836
1,806
Available-for-sale financial assets
1,507
1,414
115
103
3,437
2,095
219
271
5,278
3,883
Loans and receivables
1,507
1,509
70
66
4,156
4,982
-
0
5,733
6,557
-
-
-
-
-
-
67
45
67
45
32
18
-
-
-
-
54
81
86
99
Cash and balances with central banks
Financial assets
Held-for-trading
Hedging derivatives
Tax assets
315 13,488 12,919
-
574
628
Current tax assets
17
1
-
-
-
-
4
0
21
1
Deferred tax assets
15
16
-
-
-
-
49
81
64
97
Investments in associates
-
-
14
13
-
-
-
-
14
13
Investment properties
-
-
-
-
-
-
37
36
37
36
Property and equipment
139
132
13
11
6
11
39
36
197
189
Goodwill and other intangible assets
325
266
-
-
-
-
30
41
356
306
-
108
115
Other assets
108
115
-
-
-
-
-
TOTAL ASSETS
5,656
5,537
211
193
8,409
8,514
446
509 14,722 14,753
Financial liabilities
7,595
7,797
2,000
2,417
2,079
2,467
1,115
284 12,788 12,965
114
89
-
-
236
260
10
At fair value through profit or loss
1,822
1,790
-
-
-
-
-
At amortised cost
5,646
5,897
2,000
2,417
1,783
2,133
1,089
13
20
-
-
60
74
16
-
89
94
475
429
-
-
-
-
-
-
475
429
10
5
-
-
-
-
-
-
10
5
Current tax liabilities
5
1
-
-
-
-
-
-
5
1
Deferred tax liabilities
5
4
-
-
-
-
-
-
5
4
26
24
-
-
-
-
7
5
33
29
361
318
-
-
-
-
-
-
361
318
8,466
8,574
2,000
2,417
2,079
2,467
1,123
Held-for-trading
Hedging derivatives
Gross technical provisions, insurance
Tax liabilities
Provisions
Other liabilities
TOTAL LIABILITIES (EXCLUDING EQUITY )
9
360
359
-
1,822
1,790
275 10,518 10,722
289 13,667 13,747
Management monitors the operating results of its operating segments separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently
with operating profit or loss in the consolidated accounts.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
- 81 -
NOTE 3B – OPERATING SEGMENTS BY GEOGRAPHIC SECTOR
KBL epb group, as the driver for the development of private banking within the KBC Group, distinguishes
between the secondary segments ‘OFF-SHORE’, covering the activities of the Luxembourg, Swiss and of Monaco
companies, and ‘ON- SHORE’, covering the activities of the other companies included in the scope of consolidation
Off-shore
KBL epb group
2010 2011 2010 2011
(in EUR million)
On-shore
2010 2011
Gross income
Total assets
245
2,788
215
357
334
603
549
2,687 11,934 12,065 14,722 14,752
TOTAL LIABILITIES(excluding equity)
3,273
3,266 10,394 10,481 13,667 13,747
NOTE 4 – NET INTEREST INCOME
(in EUR thousand)
31/12/2010
31/12/2011
321,207
273,710
163,003
126,787
69,862
99,764
452
667
233,317
227,218
8,423
8,738
75,574
37,574
3,893
180
-170,933
-128,457
-82,617
-76,567
-1,009
-517
Sub-total of interest expense on financial liabilities not measured at
fair value through profit or loss
-83,625
-77,085
Net interest on hedging derivatives
-87,307
-51,373
150,274
145,253
BREAKDOWN BY PORTFOLIO
INTEREST INCOME
Available-for-sale financial assets
Loans and receivables
Other
Sub-total of interest income from financial assets not measured at fair
value through profit or loss
Financial assets held-for-trading
Net interest on hedging derivatives
Other financial assets at fair value through profit or loss
INTEREST EXPENSE
Financial liabilities at amortised cost
Other
TOTAL
- 82 -
NOTE 5 – GROSS EARNED PREMIUMS, INSURANCE
As of 31 December 2011 and 2010, the gross earned premiums only include individual and single premiums.
NOTE 6 – GROSS TECHNICAL CHARGES, INSURANCE
(in EUR thousand)
Claims paid
Change in life provision
Profit sharing
Other technical charges / income
TOTAL
31/12/2010
31/12/2011
-38,829
29,500
-185
-2,211
-11,725
-51,503
44,821
158
-4,966
-11,489
31/12/2010
31/12/2011
6,248
339
4
6,591
3,535
324
7
3,866
NOTE 7 – DIVIDEND INCOME
(in EUR thousand)
Available-for-sale equity instruments
Equity instruments held-for-trading
Equity instruments at fair value through profit or loss
TOTAL
NOTE 8 –
NET GAINS / LOSSES ON FINANCIAL INSTRUMENTS AT FAIR VALUE
DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS
(in EUR thousand)
31/12/2010
31/12/2011
16,276
-13,698
1,076
392
Exchange differences
30,829
4,547
Fair value adjustments in hedge accounting
-1,275
-416
-975
94
Fair value of hedged items
10,718
17,122
Fair value of hedging items
-11,693
-17,028
-300
-510
Fair value of hedged items
743
5,306
Fair value of hedging items
-1,043
-5,816
46,905
-9,176
Held-for-trading (including interest and valuation of trading
derivatives)
Other financial instruments at fair value
Micro-hedging
Macro-hedging
TOTAL
- 83 -
NOTE 9 –
NET REALISED GAINS/LOSSES ON FINANCIAL ASSETS AND LIABILITIES NOT
MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS
(in EUR thousand)
31/12/2010
31/12/2011
26,903
21,130
5,773
0
26,904
13,846
5,063
8,783
-31
48,323
243
62,381
31/12/2010
31/12/2011
483,169
450,610
Asset management
278,669
277,075
Securities transactions
165,510
138,339
38,990
35,196
-104,505
-101,732
Asset management
-56,676
-58,021
Securities transactions
-37,033
-32,822
-10,796
-10,889
378,663
348,878
10,197
9,464
Available-for-sale financial assets
Debt instruments
Equity instruments
Loans and receivables
Financial liabilities measured at amortised cost
Other
TOTAL
1)
EUR 48,3 million generated by the early redemption of an hybrid instrument
NOTE 10 – NET FEE AND COMMISSION INCOME
(in EUR thousand)
FEE AND COMMISSION INCOME
Other
1)
FEE AND COMMISSION EXPENSE
Other
1)
TOTAL
1)
of which net commissions on Unit Link activities of the Insurance subsidiary
NOTE 11 – OTHER NET INCOME
(in EUR thousand)
31/12/2010
31/12/2011
1,776
7,697
735
825
Net proceeds from precious metals transactions
2,641
2,825
Withholding tax on dividends and wealth tax
-3,722
-2,306
221
-
-
2,086
2,343
2,492
Total
of which:
Write-back of provisions for various expenses
Net proceeds on sale of other activities
Net proceeds from the sale of “Gestoland” building
Rental income
- 84 -
NOTE 12 – OPERATING EXPENSES
Operating expenses include staff costs, amortisation and depreciation of investment properties, amortisation and
depreciation of property and equipment and intangible assets, changes in provisions and general administrative
expenses.
General administrative expenses include in particular repair and maintenance expenses, advertising expenses,
rent, professional duties, IT costs and various (non-income) taxes.
(in EUR thousand)
31/12/2010
31/12/2011
Staff expenses
General administrative expenses
Depreciation and amortisation of property and equipment,
intangible assets and investment properties
Net provision allowances
-352,332
-116,039
-292,097
-120,060
-24,111
-24,076
-10,711
-2,536
TOTAL
-503,194
-438,769
31/12/2010
31/12/2011
2,607
2,408
31/12/2010
31/12/2011
1,887
245
134
341
2,607
1,749
214
120
325
2,408
31/12/2010
31/12/2011
1,281
1,326
2,607
1,182
1,226
2,408
NOTE 13 – STAFF
TOTAL AVERAGE NUMBER OF PERSONS EMPLOYED
(IN FULL-TIME EQUIVALENTS)
BREAKDOWN BY BUSINESS SEGMENT (1)
Private Banking
Global Investor Services
ALM Activities
Other
TOTAL
GEOGRAPHIC BREAKDOWN
On-shore
Off-shore
TOTAL
(1)
The breakdown of commercial, administrative and support staff has been made on the same basis as for
drawing up Note 3a on operating segments by business segment.
- 85 -
NOTE 14 – IMPAIRMENT
(in EUR thousand)
31/12/2010
31/12/2011
1,740
-4,531
-41,812
-44,603
-2,174
-33,859
-63,321
-99,354
(Impairment)/reversal of impairment of:
Loans and receivables
Available-for-sale financial assets
Goodwill
Total
Impairment of loans and receivables
More detailed information on impairment is provided in the annex to the consolidated management report.
(in EUR thousand)
31/12/2010
31/12/2011
1,671
-2,390
69
216
1,740
-2,174
On-shore
1,565
249
Off-shore
175
-2,423
1,740
-2,174
31/12/2010
31/12/2011
-1,084
-3,447
-4,531
-22,977
-10,882
-33,859
31/12/2010
31/12/2011
-39.764
-2.048
-41,812
-45,904
-17,417
-63,321
BREAKDOWN BY TYPE
(Impairment)/reversal of impairment of:
Specific impairment on loans and receivables
Portfolio-based impairments
TOTAL
GEOGRAPHIC BREAKDOWN
TOTAL
See also Note 23 – Impairment of loans and receivables – and Note 31 – Provisions.
Impairment of available-for-sale financial assets
(in EUR thousand)
(Impairment)/reversal of impairment of:
Debt instruments
Equity instruments
TOTAL
Impairment on goodwill
(in EUR thousand)
Goodwill arising in a business combination
Purchased portfolio of customers
Total
The values of goodwill in the Group’s consolidated accounts are subject to an impairment test which is performed
at least annually in the course of the fourth quarter. These impairment tests are primarily based on the
Discounted Cash Flow (DCF) method according to the following main assumptions :
•
For all periods, cash flows are discounted at annual rate of 11.5%.
- 86 -
•
For the period covering the next three years, cash flows are based on each available subsidiary’s business
plan as approved by the KBL epb Executive Committee.
•
For the period from three years to ten years, two key assumptions are considered:
o Annual growth of the gross income by 5.0%.
o Annual growth of the operating expenses by 4.0%.
•
For the period after 10 years, a terminal value is calculated based on a long term (LT) growth rate of cash
flows of 5.0%. For reference, the combination in the terminal value of a [LT growth rate of 5% and a discount
rate of 11.5%] corresponds to an implied PER valuation at terminal value of “15.3x”.
Other cross-check methods such as the “NAV + multiple of AuM” are used to corroborate the results of the DCF
method.
NOTE 15 – SHARE OF PROFIT OF ASSOCIATES
(in EUR thousand)
31/12/2010
31/12/2011
1,596
1,596
604
604
31/12/2010
31/12/2011
-3,826
-13,872
-17,698
1,545
6,800
8,345
31/12/2010
31/12/2011
Profit before tax
85,424
11,763
Luxembourg income tax rate
28.80%
28.80%
-24,602
-3,388
Differences in tax rates, Luxembourg – abroad
-5,272
18,863
Tax-free income
21,253
11,815
Other non-deductible expenses
-1,016
-14,580
Adjustments related to prior years
-414
6,299
Adjustments to opening balance due to tax rate change
577
149
Unused tax losses and tax credits
-5,608
-8,224
Other
-2,616
-2,589
6,904
11,733
-17,698
8,345
European Fund Administration S.A. and EFA Partners S.A.
TOTAL
NOTE 16 – INCOME TAX (EXPENSES) / INCOME
(in EUR thousand)
BREAKDOWN BY TYPE
Current tax
Deferred tax
TOTAL
(in EUR thousand)
BREAKDOWN BY MAJOR COMPONENTS:
INCOME TAX CALCULATED AT THE LUXEMBOURG INCOME TAX RATE
Plus/minus tax effects attributable to:
INCOME TAX ADJUSTMENTS
TOTAL
Details of tax assets and liabilities are given in Note 26.
- 87 -
NOTE 17 – CLASSIFICATION OF FINANCIAL INSTRUMENTS: BREAKDOWN BY PORTFOLIO
AND BY PRODUCT
•
Financial instruments are classified into several categories (“portfolios”). Details of these various categories
and the valuation rules linked to them are given in Note 2b, point c, dealing with financial assets and
liabilities (IAS 39).
•
The balance sheet analyses below have been conducted at the clean price. Thus the interest accrued is
presented separately, except for trading derivatives, which are presented at the dirty price.
CARRYING AMOUNT
31/12/2010
ASSETS
(in EUR million)
Financial
instruments
at fair value
Held-for(FIFV)
trading
through
(HFT) assets profit or loss
Availablefor-sale
(AFS) Loans and
financial receivables
Hedging
(L&R) derivatives
assets
Total
LOANS AND ADVANCES TO BANKS
AND INVESTMENT FIRMS
-
-
-
4,324
-
4,324
Loans and advances to customers
Discount and acceptance credits
Consumer credits
Mortgage loans
Term loans
Current accounts
Other
-
14
14
-
1,402
12
7
438
456
437
51
-
1,416
12
7
438
456
437
65
Investment contracts (Insurance
“branche 23”)
-
1,822
-
-
-
1,822
EQUITY INSTRUMENTS
3
0
292
-
-
295
DEBT INSTRUMENTS
Government bodies
Banks and investment firms
Corporates
280
40
119
120
-
4,916
2,180
502
2,234
-
-
5,196
2,220
622
2,354
FINANCIAL DERIVATIVES
284
-
-
-
35
319
ACCRUED INTEREST
7
0
71
8
32
117
TOTAL
Of which reverse repos
574
-
1,836
-
5,278
-
5,733
2,530
67
-
13,488
2,530
- 88 -
CARRYING AMOUNT
31/12/2010
ASSETS
(in EUR million)
Financial
instruments
at fair value
Held-for(FIFV)
trading
through
(HFT) assets profit or loss
Availablefor-sale
(AFS) Loans and
financial receivables
Hedging
assets
(L&R) derivatives
Total
LOANS AND ADVANCES TO BANKS AND
INVESTMENT FIRMS
-
-
-
5,062
-
5,062
LOANS AND ADVANCES TO CUSTOMERS
Discount and acceptance credits
Consumer credits
Mortgage loans
Term loans
Current accounts
Other
-
15
15
-
1,486
6
465
543
419
54
-
1,501
6
465
543
419
69
INVESTMENT CONTRACTS
(INSURANCE “BRANCHE 23”)
-
1,790
-
-
-
1,790
EQUITY INSTRUMENTS
2
0
276
-
-
278
DEBT INSTRUMENTS
Government bodies
Banks and investment firms
Corporates
235
45
60
131
-
3,548
1,955
378
1,216
-
-
3,784
2,000
437
1,346
FINANCIAL DERIVATIVES
387
-
-
-
34
420
4
0
59
9
11
82
628
1,806
3,883
6,557
45
12,919
-
-
-
4,379
-
4,379
ACCRUED INTEREST
TOTAL
Of which reverse repos
- 89 -
CARRYING AMOUNT
31/12/2010
Held-fortrading
(HFT)
liabilities
Financial
liabilities at
fair value
(FIFV)
through
profit
or loss
DEPOSITS FROM BANKS AND INVESTMENT
FIRMS
-
DEPOSITS FROM CUSTOMERS
Current accounts/demand deposits
Time deposits
Other deposits
Hedging
derivatives
Financial
liabilities at
amortised
cost
Total
-
-
2,717
2,717
-
-
-
6,920
5,048
1,853
20
6,920
5,048
1,853
20
DEBT CERTIFICATES
Deposits certificates
Customer savings bonds
Debt certificates
Non-convertible bonds
Non-convertible subordinated liabilities
-
-
-
840
0
4
3
833
840
0
4
3
833
INVESTMENT CONTRACTS (INSURANCE)
-
1,822
-
-
1,822
336
-
67
-
403
24
0
24
-
-
-
24
0
24
0
-
21
40
62
360
1,822
89
10,518
12,788
-
-
-
1,078
1,078
LIABILITIES
(in EUR million)
FINANCIAL DERIVATIVES
SHORT SALES
Equity instruments
Debt instruments
ACCRUED INTEREST
TOTAL
Of which, repos
- 90 -
CARRYING AMOUNT
31/12/2011
Held-fortrading
(HFT)
liabilities
Financial
liabilities at
fair value
(FIFV)
through
profit or
loss
DEPOSITS FROM BANKS AND INVESTMENT
FIRMS
-
DEPOSITS FROM CUSTOMERS
Current accounts/demand deposits
Time deposits
Other deposits
Hedging
derivatives
Financial
liabilities at
amortised
cost
Total
-
-
2,821
2,821
-
-
-
7,498
5,609
1,881
9
7,498
5,609
1,881
9
DEBT CERTIFICATES
Deposits certificates
Customer savings bonds
Debt certificates
Non-convertible bonds
Non-convertible subordinated liabilities
-
-
-
385
0
3
114
6
262
385
0
3
114
6
262
INVESTMENT CONTRACTS (INSURANCE)
-
1,790
-
-
1,790
330
-
73
-
403
29
0
28
-
-
-
29
0
28
0
-
21
17
39
359
1,790
94
10,722
12,965
-
-
-
497
497
LIABILITIES
(in EUR million)
FINANCIAL DERIVATIVES
SHORT SALES
EQUITY INSTRUMENTS
DEBT INSTRUMENTS
ACCRUED INTEREST
TOTAL
Of which, repos
- 91 -
FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table summarises the carrying amounts and fair values of the financial assets and liabilities not
measured at fair value, excluding accrued interest.
CARRYING AMOUNT
(in EUR million)
31/12/2010
FAIR VALUE
31/12/2011
31/12/2010
31/12/2011
ASSETS
Loans and advances to banks and investment
firms
4,324
5,062
4,324
5,063
Loans and advances to customers
Discount and acceptance credits
Consumer credits
Mortgage loans
Term loans
Current accounts
Other
1,402
12
7
438
456
437
51
1,486
6
465
543
419
54
1,402
12
7
438
456
437
51
1,486
6
465
543
419
54
Deposits from banks and investment firms
2,717
2,821
2,717
2,822
Deposits from customers
Current accounts/demand deposits
Time deposits
Other deposits
6,920
5,048
1,853
20
7,498
5,609
1,881
9
6,919
5,046
1,853
20
7,498
5,609
1,881
9
840
0
4
3
833
385
0
3
114
6
262
830
0
4
3
823
366
0
3
114
6
243
LIABILITIES
Debt certificates
Deposits certificates
Customer savings bonds
Debt certificates
Non-convertible bonds
Non-convertible subordinated liabilities
- 92 -
FAIR VALUE HIERARCHY
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: quoted (unadjusted) price in active market for identical assets or liabilities;
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly;
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not
based on observable market data.
31/12/2010
(in EUR million)
Level 1
Level 2
Level 3
Accrued
interest
TOTAL
309
258
-
7
574
2
1
-
-
3
227
52
-
7
287
80
204
-
-
284
AT FAIR VALUE THROUGH PROFIT OR LOSS
1,822
14
-
0
1,836
AVAILABLE-FOR-SALE
3,233
1,930
38
71
5,272
Equity instruments
234
13
38
-
285
2,999
1,917
-
71
4,987
-
35
-
32
67
5,364
2,237
38
109
7,749
103
257
-
0
360
0
-
-
-
0
Debt instruments
21
2
-
0
24
Derivatives
81
255
-
-
336
1,822
-
-
-
1,822
0
67
-
21
89
1,924
324
-
22
2,271
ASSETS
HELD-FOR-TRADING
Equity instruments
Debt instruments
Derivatives
Debt instruments
HEDGING DERIVATIVES
TOTAL
LIABILITIES
HELD-FOR-TRADING
Equity instruments
AT FAIR VALUE THROUGH PROFIT OR LOSS
HEDGING DERIVATIVES
TOTAL
- 93 -
31/12/2011
(in EUR million)
Level 1
Level 2
Level 3
Accrued
interest
TOTAL
201
423
0
4
628
1
1
0
-
2
151
84
0
4
239
49
338
-
-
387
AT FAIR VALUE THROUGH PROFIT OR LOSS
1,791
15
-
0
1,806
AVAILABLE-FOR-SALE
2,991
827
0
59
3,877
Equity instruments
242
27
0
-
269
2,749
799
0
59
3,607
-
34
-
11
45
4,982
1,299
0
73
6,355
77
282
-
0
359
-
-
-
-
-
Debt instruments
28
1
-
0
29
Derivatives
49
282
-
-
330
1,790
-
-
-
1,790
-
73
-
21
94
1,867
355
-
21
2,243
ASSETS
HELD-FOR-TRADING
Equity instruments
Debt instruments
Derivatives
Debt instruments
HEDGING DERIVATIVES
TOTAL
LIABILITIES
HELD-FOR-TRADING
Equity instruments
AT FAIR VALUE THROUGH PROFIT OR LOSS
HEDGING DERIVATIVES
TOTAL
- 94 -
Level 3 items measured at fair value
(in EUR million)
Financial
instruments at
fair value through
profit or loss
Available-for-sale
financial assets
Total
7
33
40
BALANCE AS AT 01/01/2010
Total profit / loss for the year
recognised in the income statement
0
-2
-2
recognised in other components of
comprehensive income
-
1
1
-
6
6
-7
-1
-8
Transfers from / to level 3
-
-
-
BALANCE AS AT 31/12/2010
-
38
38
Total profit / loss for the year recognised in the
income statement and relating to assets held as at
31/12/2010
0
-
0
Financial
instruments at fair
value through profit
or loss
Available-for-sale
financial assets
Total
-
38
38
recognised in the income statement
-
0
0
recognised in other components of
comprehensive income
-
-
-
Purchases
-
-
-
Sales
-
-38
-38
Transfers from / to level 3
-
-
-
BALANCE AS AT 31/12/2011
-
0
0
Total profit / loss for the year recognised in the
income statement and relating to assets held as
at 31/12/2011
-
0
0
Purchases
Sales
(in EUR million)
BALANCE AS AT 01/01/2011
Total profit / loss for the year
Transfers between the level 1 and level 2 categories
Transfers between the level 1 and level 2 categories which occur in 2011 were not significant. Reasons for the
transfers were mainly linked to evolution in the liquidity of the related instruments.
No transfer between the level 1 and level 2 categories occurred in 2010.
- 95 -
GOVERNEMENT BONDS BY COUNTRY
Available-for-sale financial assets
Held-for-trading assets
Nominal
Carrying
amount
Availablefor-sale
reserve
Austria
66
69
2
-
Belgium
448
467
9
Cyprus
10
10
Denmark
1
Finland
France
31/12/2010
(in EUR million)
Related
hedging
Impairment derivatives
Nominal
Carrying
amount
-
1
1
-
-3
4
4
0
-
0
0
0
0
0
-
-
1
1
2
3
0
-
-
-
-
107
112
2
-
-
-
-
Germany
95
102
5
-
-
-
-
Greece
48
34
-13
-
-
-
-
Ireland
2
2
-0
-
-
-
-
242
246
1
-
-
0
0
97
100
3
-
1
7
7
280
290
5
-
-
-
-
-
-
-
-
-
-
-
21
19
-2
-
-
-
-
162
163
-3
-
-3
-
-
Sweden
23
24
1
-
-
-
0
Swiss
33
51
1
-
-
-
-
Supranational
355
369
10
-
2
22
22
Rest
112
119
11
-1
-1
6
5
2,103
2,180
32
-1
-4
41
40
Italy
Luxembourg
The Netherlands
Poland
Portugal
Spain
Total
- 96 -
In EUR million
(31/12/2011)
Maturity
Austria
2012
2013 or 2014
2017 and later
Belgium
2012
2013 or 2014
2015 or 2016
2017 and later
Cyprus
2012
Denmark
2013 or 2014
Finland
2015 or 2016
France
2012
2013 or 2014
2015 or 2016
2017 and later
Germany
2012
2013 or 2014
2015 or 2016
2017 and later
Greece
2012
2013 or 2014
2015 or 2016
Ireland
2017 and later
Italy
2012
2013 or 2014
2015 or 2016
Luxembourg
2012
2013 or 2014
2015 or 2016
2017 and later
The Netherlands
2012
2013 or 2014
2015 or 2016
2017 and later
Poland
2013 or 2014
Portugal
2012
2013 or 2014
2015 or 2016
2017 and later
Supranational
2012
2013 or 2014
2015 or 2016
2017 and later
Spain
2012
2013 or 2014
2015 or 2016
2017 and later
Sweden
2012
2013 or 2014
Switzerland
2012
2013 or 2014
2015 or 2016
Rest
2012
2013 or 2014
2015 or 2016
2017 and later
Total
Nominal
Available-for-sale financial assets
Carrying AvailableImpairment
amount
for-sale
Held-for-trading assets
Carrying
Nominal
amount
Related
hedging
88
19
2
67
387
219
67
81
20
10
10
0
0
2
2
232
64
104
32
32
105
3
47
25
30
39
1
4
34
2
2
83
5
24
54
97
47
50
142
56
20
33
33
0
0
21
1
5
15
475
16
108
189
162
138
54
38
34
12
23
23
49
9
25
16
24
5
19
95
20
2
73
397
223
68
84
22
10
10
0
2
243
65
110
34
34
116
3
51
27
35
9
1
1
8
2
2
80
5
24
50
104
49
55
151
57
21
36
38
0
0
12
1
3
8
494
16
112
198
168
139
53
39
34
12
25
25
53
9
26
17
23
5
18
2
0
0
2
1
2
1
-3
1
-0
-0
0
0
0
0
4
0
2
1
1
5
-0
2
2
2
-0
-0
-3
0
-0
-3
3
2
1
6
0
1
2
3
-0
-0
-9
-0
-2
-7
7
0
2
5
-0
-2
-2
0
0
-0
1
1
1
0
0
1
4
0
4
-22
-1
-3
-18
-1
-0
-1
-4
-0
-4
0
-0
-4
-4
-5
-5
-1
-1
0
-
0
0
0
0
0
3
2
1
40
1
3
20
17
1
0
0
0
1
0
0
0
0
0
3
2
1
41
1
3
21
17
0
0
0
0
0
1,919
1,955
21
-23
-14
44
45
- 97 -
NOTE 18 – AVAILABLE-FOR-SALE FINANCIAL ASSETS AND LOANS AND RECEIVABLES:
BREAKDOWN BY PORTFOLIO AND QUALITY
(in EUR million)
31/12/2010
Unimpaired assets
Impaired assets
Impairment
TOTAL
(in EUR million)
31/12/2011
Unimpaired assets
Impaired assets
Impairment
Total
- 98 -
Available-forsale (AFS)
financial assets
Loans and
receivables
(L&R)
TOTAL
5,217
128
-66
5,278
5,728
123
-117
5,733
10,945
250
-184
11,012
Available-forsale (AFS)
financial assets
Loans and
receivables
(L&R)
TOTAL
3,809
168
-94
3,883
6,552
57
-52
6,557
10,361
225
-146
10,440
NOTE 19 – FINANCIAL ASSETS AND LIABILITIES: BREAKDOWN BY PORTFOLIO AND
RESIDUAL MATURITY
ASSETS
(in EUR million)
Financial
instruments
at fair value
Held-for(FIFV)
trading
through
(HFT) assets profit or loss
Availablefor-sale
(AFS)
financial
assets
Loans and
receivables
(L&R)
Hedging
derivatives
Total
31/12/2010
Less than or equal to 1 year
More than 1 but less than or equal to 5 years
More than 5 years
Indefinite period
Accrued interest
TOTAL
31/12/2011
Less than or equal to 1 year
More than 1 but less than or equal to 5 years
More than 5 years
Indefinite period
Accrued interest
TOTAL
LIABILITIES
(in EUR million)
264
159
141
3
7
574
14
1,822
0
1,836
948
2,692
1,276
292
71
5,278
5,082
209
435
8
5,733
32
67
6,295
3,075
1,885
2,117
117
13,488
341
177
105
2
4
628
15
1,791
0
1,806
813
1,686
1,049
276
59
3,883
5,762
316
470
9
6,557
0
34
11
45
6,916
2,228
1,624
2,069
82
12,919
Financial
instruments at
fair value Liabilities at
(FIFV) through amortised
profit or loss
cost
Hedging
derivatives
Total
10,013
Held-fortrading
(HFT)
liabilities
1
0
34
31/12/2010
Less than or equal to 1 year
221
-
9,791
1
More than 1 but less than or equal to 5 years
32
-
253
28
314
More than 5 years
82
-
433
39
554
Indefinite period
24
1,822
-
-
1,845
Accrued interest
0
-
40
21
62
360
1,822
10,518
89
12,788
241
-
10,113
5
10,359
More than 1 but less than or equal to 5 years
30
-
587
37
654
More than 5 years
59
-
5
30
95
Indefinite period
29
1,790
-
-
1,819
Accrued interest
0
-
17
21
39
359
1,790
10,722
94
12,965
TOTAL
31/12/2011
Less than or equal to 1 year
TOTAL
- 99 -
NOTE 20 – SECURITIES LENDING AND SECURITIES GIVEN IN GUARANTEE
The Group regularly carries out transactions in which the assets transferred do not qualify for derecognition
under IAS 39. This mainly concerns the following operations:
-
repurchase agreements (“repo”);
-
securities lending; and
-
securities given as collateral (in particular for securities borrowing or to guarantee credit lines received).
These transactions can be broken down as follows:
Repo **
Securities lending
Other
Debt
instruments
Debt
instruments
Equity
instruments
Debt
instruments
Financial assets held-for-trading
-
6
-
-
Financial instruments at fair value through
profit or loss
-
-
-
-
Available-for-sale financial assets
198
120
2
1,311
Total financial assets not derecognised
198
126
2
1,311
Other (*)
872
1,301
0
1,633
1,070
1,427
2
2,944
Financial assets held-for-trading
-
10
-
-
Financial instruments at fair value through
profit or loss
-
-
-
-
Available-for-sale financial assets
298
88
-
1,062
Total financial assets not derecognised
298
98
-
1,062
Other (*)
185
494
31
1,580
TOTAL
483
592
31
2,642
(in EUR million)
31/12/2010
TOTAL
31/12/2011
(*) The item ‘Other’ relates to securities borrowed or received as collateral for other operations.
(**) The carrying amount of debts associated with repo operations is available in Note 17.
- 100 -
NOTE 21 – SECURITIES RECEIVED IN GUARANTEE
The Group mainly receives securities as collateral in relation to its reverse repurchase agreement operations and
securities lending.
These securities are generally transferred under full ownership and the Group is able to re-use them in other
operations.
The fair value of these guarantees can be broken down as follows:
(in EUR million)
Reverse repurchase agreements
Collateral received in securities lending
TOTAL
Of which, transferred to:
Repurchase agreements
Securities lent
Collateral given for securities borrowing
Other
TOTAL
31/12/2010
31/12/2011
2,522
1,322
3,844
4,502
563
5,065
26
1
1,633
1,660
7
1
633
947
1,588
NOTE 22 – IMPAIRMENT OF AVAILABLE-FOR-SALE FINANCIAL ASSETS
(in EUR million)
Debt instruments
CHANGES
BALANCE AS AT 01/01/2010
Changes affecting the income statement
Allowances
Reversals
Changes not affecting the income statement
Securities sold/matured
Other
BALANCE AS AT 31/12/2010
55
1
4
-3
-36
-34
-2
21
(in EUR million)
Debt instruments
CHANGES
BALANCE AS AT 01/01/2011
Changes affecting the income statement
Allowances
Reversals
Changes not affecting the income statement
Securities sold/matured
Other
BALANCE AS AT 31/12/2011
21
23
23
0
-2
-3
2
42
- 101 -
Equity instruments
31
3
3
11
1
10
46
Equity instruments
46
11
11
-4
-3
-1
53
NOTE 23 – IMPAIRMENT OF LOANS AND RECEIVABLES
The annex to the consolidated management report contains information relating to non-performing receivables
and the management of the related impairments.
31/12/2010
31/12/2011
TOTAL
118
52
BREAKDOWN BY TYPE
Specific impairments of loans and receivables
Portfolio-based impairment
TOTAL
116
1
118
50
1
52
BREAKDOWN BY COUNTERPARTY
Loans and advances to banks
Loans and advances to customers
TOTAL
117
118
52
52
GEOGRAPHIC BREAKDOWN
On-shore
Off-shore
TOTAL
24
94
118
24
28
52
(in EUR million)
(in EUR million)
CHANGES
BALANCE AS AT 01/01/2010
Changes affecting the income statement
Allowances
Reversals
Changes not affecting the income statement
Use of provision
Other / Change impact
BALANCE AS AT 31/12/2010
(in EUR million)
CHANGES
BALANCE AS AT 01/01/2011
Changes affecting the income statement
Allowances
Reversals
Changes not affecting the income statement
Use of provision
Other / Change impact
BALANCE AS AT 31/12/2011
Specific
impairments
on loans and
receivables
Portfoliobased
impairment
Total
122
-2
1
-3
-4
-1
-3
116
1
0
0
0
1
124
-2
1
-3
-4
-1
-3
118
Specific
impairments
on loans and Portfolio-based
impairment
receivables
Total
116
2
3
-1
-68
-69
1
50
- 102 -
1
0
0
0
1
118
2
3
-1
-68
-69
1
52
NOTE 24 – DERIVATIVES
HEDGING
HELD-FOR-TRADING
31/12/2010
(in EUR million)
TOTAL
Fair value
Assets
FAIR VALUE HEDGING
Notional value
Liabilities
Assets
Fair value
Liabilities
Assets
Notional value
Liabilities
Assets
Liabilities
284
336
28,266
28,313
35
67
1,880
1,882
73
84
19,539
19,539
35
65
1,873
1,873
71
81
18,879
18,879
35
65
1,873
1,873
Futures
0
0
91
91
-
-
-
-
Forward rate agreements
-
-
-
-
-
-
-
-
Other
3
3
569
569
-
-
-
-
88
129
5,580
5,628
-
2
7
9
87
129
5,571
5,615
-
-
-
-
Cross currency swaps
-
-
-
-
-
2
7
9
Futures
0
0
-
3
-
-
-
-
Options
0
0
-
1
-
-
-
-
Other
0
0
9
9
-
-
-
-
121
121
3,112
3,112
-
-
-
-
Futures
1
1
188
188
-
-
-
-
Options
102
102
2,414
2,414
-
-
-
-
18
18
510
510
-
-
-
-
LOAN CONTRACTS
0
0
3
3
-
-
-
-
COMMODITIES AND OTHER
CONTRACTS
1
1
31
31
-
-
-
-
INTEREST RATE CONTRACTS
Interest rate swaps
FOREIGN EXCHANGE
CONTRACTS
Foreign exchange forward
EQUITY CONTRACTS
Other
- 103 -
HEDGING
HELD-FOR-TRADING
31/12/2011
(in EUR million)
TOTAL
Fair value
Assets
FAIR VALUE HEDGING
Notional value
Liabilities
Assets
Fair value
Liabilities
Assets
Notional value
Liabilities
Assets
Liabilities
387
330
23,813
23,753
34
73
1,415
1,415
55
72
12,810
12,810
34
70
1,405
1,405
0
0
27
27
-
-
-
-
51
66
12,123
12,123
34
70
1,291
1,291
Futures
0
2
116
116
-
-
-
-
Other
4
4
544
544
-
0
114
114
208
142
8,385
8,326
-
3
7
10
208
142
8,379
8,312
-
-
-
-
Cross currency swaps
-
-
-
3
7
10
Futures
-
0
7
-
-
-
-
Other
1
0
6
6
-
-
-
-
123
116
2,597
2,597
-
-
-
-
Futures
4
4
257
257
-
-
-
-
Options
82
81
1,924
1,924
-
-
-
-
Other
37
30
416
416
-
-
-
-
LOAN CONTRACTS
0
0
2
2
-
-
-
-
COMMODITIES AND OTHER
CONTRACTS
1
1
19
19
-
-
-
-
INTEREST RATE CONTRACTS
Options
Interest rate swaps
FOREIGN EXCHANGE
CONTRACTS
Foreign exchange forward
EQUITY CONTRACTS
- 104 -
NOTE 25 – OTHER ASSETS
The heading ‘Other assets’ covers various short-term receivables such as dividends and coupons that clients
bring to KBL epb group to be cashed and the value of which has already been paid.
NOTE 26 – TAX ASSETS AND LIABILITIES
(in EUR million)
31/12/2010
31/12/2011
CURRENT TAX ASSETS
21
1
DEFERRED TAX ASSETS
64
97
Employee benefits
-3
-2
Losses carried forward
67
79
0
0
-18
-18
Financial instruments at fair value through profit or loss
0
0
Available-for-sale financial instruments
-5
20
Other
22
17
86
99
Tangible and intangible assets
Provisions
TAX ASSETS
(1)
Tax losses and tax credits not capitalised
78
94
Tax losses and tax credits not capitalised concern tax losses of Group companies, which are not recognised
because of uncertainty about future taxable profits.
(1)
(in EUR million)
31/12/2010
31/12/2011
CURRENT TAX LIABILITIES
5
1
DEFERRED TAX LIABILITIES
5
4
Employee benefits
-
-
Tangible and intangible assets
0
0
Provisions
0
-
Financial instruments at fair value through profit or loss
0
0
Available-for-sale financial instruments
2
1
Other
3
3
10
5
TAX LIABILITIES
Changes in deferred tax assets and liabilities are not equal to the deferred tax charge/income recognised in the
income statement during the year. This is mainly due to the deferred tax linked to the recognition in the
revaluation reserve of fair value changes in unimpaired available-for-sale financial instruments.
- 105 -
NOTE 27 – INVESTMENTS IN ASSOCIATES
Associates are companies over which the KBL epb group has a significant influence, either directly or indirectly,
without having full or joint control.
(in EUR million)
TOTAL
OVERVIEW OF INVESTMENTS IN ASSOCIATES
(INCLUDING GOODWILL)
European Fund Administration S.A. and EFA Partners S.A.
GOODWILL IN ASSOCIATES
Gross amount
Cumulative impairment
CHANGES
OPENING BALANCE
Share of profit for the year
Dividends paid
Changes in scope
ENDING BALANCE
31/12/2010
31/12/2011
14
13
14
13
-
-
31/12/2010
31/12/2011
15
2
-3
14
14
1
-2
13
Summary financial information
(in EUR thousand)
Total assets
31/12/2011 (provisional figures)
European Fund Administration S.A. (Group)
EFA Partners S.A.
38,321
2,912
- 106 -
Total liabilities
excluding equity
14,752
4
Net profit
1,133
822
NOTE 28 – GOODWILL AND OTHER INTANGIBLE ASSETS
(in EUR million)
Goodwill
arising in a Purchased Software
business Portfolio of developed Software
combination customers
in-house purchased
Other
Total
CHANGES
BALANCE AS AT 01/01/2010
322
38
10
5
-
374
Acquisitions
2
-
19
10
0
30
Disposals
-
-
-4
-
-
-4
Amortisation
-
-
-2
-2
-
-5
-39
-1
-
-
-
-41
-39
-1
-
-
-
-41
Reversals
-
-
-
-
-
-
Changes in scope
-
-
-
1
-
1
Other
-
-
0
0
0
0
284
36
22
13
0
356
-43
-49
-6
-28
0
-125
284
36
22
13
0
356
Acquisitions
-
4
13
1
0
19
Disposals
-
0
0
-
-
0
Amortisation
-
-
-1
-4
-
-5
-46
-17
-
-
-
-63
-46
-17
-
-
-
-63
Reversals
-
-
-
-
-
-
Changes in scope
-
-
-
-
-
-
Other
-
0
0
0
0
0
238
23
35
10
0
306
-89
-66
-7
-29
0
-191
Impairment
Allowances
BALANCE AS AT 31/12/2010
Of which, cumulative amortisation
and impairment
BALANCE AS AT 01/01/2011
Impairment
Allowances
BALANCE AS AT 31/12/2011
Of which, cumulative amortisation
and impairment
- 107 -
NOTE 29 – PROPERTY AND EQUIPMENT AND INVESTMENT PROPERTIES
(in EUR million)
31/12/2010
31/12/2011
197
189
37
46
2
36
47
2
PROPERTY AND EQUIPMENT
INVESTMENT PROPERTIES
Carrying amount
Fair value
Investment properties – Rental income
(in EUR million)
CHANGES
BALANCE AS AT 01/01/2010
Acquisitions
Disposals
Depreciation
Impairment
Allowances
Reversals
Translation differences
Changes in scope
Other
BALANCE AS AT 31/12/2010
Of which, cumulative
depreciation and impairment
(in EUR million)
CHANGES
BALANCE AS AT 01/01/2011
Acquisitions
Disposals
Depreciation
Impairment
Allowances
Reversals
Translation differences
Changes in scope
Other
BALANCE AS AT 31/12/2011
Of which, cumulative
depreciation and impairment
Land and
buildings IT equipment
Other TOTAL PROPERTY
equipment AND EQUIPMENT
Investment
properties
152
3
0
-7
4
0
152
16
7
0
-7
0
0
-2
14
30
3
-1
-5
1
0
2
31
199
13
-1
-19
4
0
0
197
37
1
-1
0
37
-85
-46
-50
-182
-10
Other TOTAL PROPERTY
equipment AND EQUIPMENT
Investment
properties
Land and
buildings IT equipment
152
2
-1
-7
1
0
147
-91
14
6
- 108 -
-6
0
-1
13
31
2
0
-5
0
0
28
197
10
-1
-18
1
0
189
37
0
0
-1
0
36
-45
-54
-190
-11
NOTE 30 – GROSS TECHNICAL PROVISIONS, INSURANCE
(in EUR million)
31/12/2010
31/12/2011
475
0
474
0
429
0
429
0
31/12/2010
31/12/2011
-
475
3
2
-39
-51
-
-
11
12
Attributed profit sharing
0
0
Translation differences
-
-
Other movements
-5
-8
Changes in scope
504
-
CLOSING BALANCE
475
429
TOTAL
Provision for unearned premiums
Life insurance provision
Discretionary participation features
(in EUR million)
CHANGES
OPENING BALANCE
Net payments received/premiums receivable
Liabilities paid for surrenders, benefits and claims
(Theoretical) risk premiums deducted
Credit of interest or change in unit-prices
- 109 -
NOTE 31 – PROVISIONS
(in EUR million)
Specific
impairment for
Provisions for
credit
Other
(1)
restructuring
commitments provisions
CHANGES
BALANCE AS AT 01/01/2010
Changes affecting the income statement
Allowances
Reversals
Other changes
BALANCE AS AT 31/12/2010
(in EUR million)
8
-8
0
0
0
TOTAL
18
11
14
-4
4
33
26
11
14
-4
-4
33
Specific
impairment for
credit
Other
Provisions for
restructuring
commitments provisions (1)
TOTAL
CHANGES
BALANCE AS AT 01/01/2011
0
0
33
33
-
0
2
2
Allowances
-
-
10
10
Reversals
-
-
-8
-8
Other changes
-
-
-8
-8
BALANCE AS AT 31/12/2011
-
0
27
28
Changes affecting the income statement
(1) The column ‘Other provisions’ mainly contains provisions for the expenses relating to disputes, consultancy
and miscellaneous fees.
NOTE 32 – OTHER LIABILITIES
The heading ‘Other liabilities’ in particular covers various items payable in the short term such as coupons and
redeemable securities as paying agent.
The net liabilities related to staff pension funds (see Note 33) and restructuration plans are also included in this
item.
- 110 -
NOTE 33 – RETIREMENT BENEFIT OBLIGATIONS
In addition to the legally prescribed plans, KBL epb group maintains various complementary pension plans, of
both the defined contribution and defined benefit kind.
The staff of the various KBL epb group companies is covered by means of a number of funded and insured
pension plans most of which are defined benefit plans. In order to be able to participate in some of these plans, a
minimum period of service with the KBL epb group is required and the benefits may also depend on the
employees’ years of affiliation to the plans as well as on their remuneration in the years before retirement. The
annual funding requirements for these various complementary pension plans are determined based on actuarial
cost methods.
Defined benefit plans
(in EUR million)
31/12/2010
31/12/2011
DEFINED BENEFIT PLAN OBLIGATIONS
Value of obligations as at 01/01
Current service cost
Interest cost
Plan amendments
Actuarial gain/(losses)
Benefits paid
Currency adjustments
Changes in scope
Other
Value of obligations as at 31/12
183
7
8
7
-17
8
1
196
196
7
8
0
-2
-12
2
1
199
FAIR VALUE OF PLAN ASSETS
Fair value of assets as at 01/01
Actual return on plan assets
Employer contributions
Plan participants contributions
Benefits paid
Currency adjustments
Changes in scope
Other
Fair value of assets as at 31/12
Of which financial instruments issued by KBL epb group
115
6
7
2
-14
7
2
125
-
125
-6
8
1
-9
2
0
121
-
FUNDED STATUS
Plan assets in excess of defined benefit obligations
Unrecognised net actuarial gains (-) / losses (+)
Unrecognised past service costs
Unrecognised assets
Plan over-/(under-) funding
-71
17
-1
-55
-78
25
-1
-54
- 111 -
31/12/2010
31/12/2011
CHANGES RELATING TO NET LIABILITY
Net liability as at 01/01
Net period cost in the income statement
Employer contributions
Currency adjustments
Change in scope of consolidation
Other
Net liability as at 31/12
-56
-10
6
1
4
-55
-55
-11
7
1
3
-54
AMOUNTS RECOGNISED IN PROFIT OR LOSS
Current service cost
Interest cost
Expected return on plan assets
Adjustments to asset limits recognised
Amortisation of unrecognised past service costs
Amortisation of unrecognised net actuarial (gains)/losses
Other
Change in scope
Net period cost in the income statement
-7
-8
5
0
0
-1
-10
-7
-8
5
0
-1
0
-11
5.29%
-4.41%
from 3.50% to 5.70%
from 4.00% to 5.70%
from 2.50% to 3.00%
from 1.80% to 5.00%
from 2.00% to 4.75%
from 3.00% to 5.30%
from 2.00% to 3.00%
from 1.80% to 2.80%
Actual return on plan assets (in %)
PRINCIPAL ACTUARIAL ASSUMPTIONS USED (1)
Discount rate
Expected rate of return on plan assets
Expected rate of salary increase
Expected rate of pension increase
(1) Ranges of assumptions taking into account the local situation of each KBL epb group company.
Defined benefit plans
(in EUR million)
Year-end amount of liability
Year-end fair value of assets
Plan assets in excess of obligations
Plan excess/(under-) funding
31/12/2007 31/12/2008 31/12/2009 31/12/2010 31/12/2011
138
79
-59
-55
150
75
-75
-53
183
115
-68
-56
196
125
-71
-55
199
121
-78
-54
The estimate of the employer contribution payable to the defined benefit pension plan assets for 2012 is EUR 7 million.
Defined contribution plans
(in EUR million)
AMOUNT RECORDED IN THE INCOME STATEMENT
- 112 -
31/12/2010
31/12/2011
-6
-6
NOTE 34 – EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT
The subscribed and paid-up capital is EUR 187,2 million, represented by 18,186,877 ordinary shares without par
value and by 1,949,711 non-voting preference shares without par value. Following article 6 of the Bank’s articles
of incorporation, the Board of Directors is authorized to increase the subscribed and paid-up capital to maximum
EUR 300 million by issuing ordinary shares until 25 April 2012.
Holders of preference shares are entitled to receive an initial dividend of EUR 0.25 per share, as established in
the Bank’s articles of association, and are therefore guaranteed a minimum annual return. If there are no profits,
this dividend entitlement is carried forward to subsequent periods. Any profits remaining once this first dividend
has been paid are shared out between all shareholders, whether they hold ordinary or preference shares, in such
a way that both categories of shareholders ultimately receive an identical dividend. The Bank is thus twice
indebted of EUR 0.5 million to preference shareholders for 2010, where no dividend has been paid-up and for
2011, if the Annual General Meeting approves the proposal of the Board of Directors to allocate the loss in
deduction of the retained earnings (see Note 35).
The Bank’s articles of association specify that, if the Bank is wound up, holders of preference shares are
guaranteed repayment of the capital initially invested, that is EUR 14.56. Holders of preference shares are not
however entitled to receive a share of any accumulated reserves.
(in number of shares)
31/12/2010
31/12/2011
TOTAL NUMBER OF SHARES ISSUED
Ordinary shares
Preference shares
Of which: shares entitling the holder to a dividend payment
Of which: treasury shares, including commitments
Of which: shares representing equity under IFRS
20,136,588
18,186,877
1,949,711
20,135,744
844
20,135,744
20,136,588
18,186,877
1,949,711
20,135,744
844
20,135,744
Ordinary shares Preference shares
Total
Changes
18,186,877
18,186,877
1,949,711
1,949,711
20,136,588
20,136,588
Ordinary shares Preference shares
Total
BALANCE AS AT 01/01/2010
Cancellation of shares bought back
BALANCE AS AT 31/12/2010
Changes
18,186,877
18,186,877
BALANCE AS AT 01/01/2011
Cancellation of shares bought back
BALANCE AS AT 31/12/2011
1,949,711
1,949,711
20,136,588
20,136,588
NOTE 35 – RESULT ALLOCATION PROPOSAL
At its meeting on 22 February 2012, the Board of Directors proposes to allocate the 2011 loss of EUR 29.3
million of the Mother Company in deduction of the retained earnings.
On 21 March 2012, this affectation will be submitted to the approval of the Annual General Meeting.
- 113 -
NOTE 36 – LOANS COMMITMENTS, FINANCIAL GUARANTEES AND OTHER COMMITMENTS
(in EUR million)
Confirmed credits, unused
Financial guarantees
Other commitments
(securities issuance facilities, spot transaction settlement, etc.)
TOTAL
31/12/2010
31/12/2011
578
68
942
55
594
39
1,241
1,036
In the course of 2000, several (current and former) directors, managers and members of KBL epb staff, were
charged by a Belgian examining magistrate with offences relating to a tax suit as a result of their professional
activities at the Bank. The case was brought before the Council Chamber of the Court of Brussels on 24 January
2006. After the order of this court on 11 January 2008, six persons from KBL epb were referred to the criminal
court.
The case was brought before the Brussels Criminal Court on 3 April 2009. After several weeks of hearings where
it was exclusively pleaded that the investigation had been conducted in an improper and even illegal manner, a
judgement was issued on 8 December 2009. The Court considered that the evidence on which all the legal
proceedings were based had been introduced into the procedure in a seriously irregular or even illegal manner by
the policemen and by the magistrates in charge of the enquiry. The flaws were so serious that they were
considered to have a structural effect on the investigation and so the whole legal suit was declared invalid and
the proceedings inadmissible.
As a result, all the accused were discharged from all proceedings.
On 10 December 2009, the Public Prosecutor filed an appeal against this judgement. The proceedings were then
brought before the Court of Appeal of Brussels. On 16 September 2010, the Court of Appeal, after hearing the
pleadings of the defence, decided to split the proceedings in two: the admissibility of the prosecution would be
judged first, followed by a separate decision on the merits of the accusation. Pleadings took place from 16
September 2010 to 8 October 2010. In its arrest dated 10 December 2010, the Court of Appeal confirmed the
judgment of the Court dated 8 December 2009 and ruled that the legal suit against all accused persons were
inadmissable.
Two recourses against the decision of the Court of Appeal were filed before the Supreme Court ("pourvois en
cassation"): one by the Public Prosecutor on 20 December 2010 and the other by the Belgian State on 24
December 2010. On 31 May 2011, the Supreme Court rejected both recourses. This decision finally closes the
KBL case.
NOTE 37 – ASSETS UNDER MANAGEMENT
Total assets under management as at 31 December 2011 are EUR 44.30 billion, of which EUR 35.12 billion
relate to clients in the private banking sector (2010: EUR 48.66 billion, of which EUR 39.00 billion related to the
private banking sector).
- 114 -
NOTE 38 – RELATED PARTY TRANSACTIONS
‘Related parties’ refers to the parent company of KBL epb, its subsidiaries and key management personnel.
Transactions with related parties are carried out under conditions equivalent to those applicable to transactions
subject to conditions of normal competition.
Transactions with associates are not included below because they are not material.
31/12/2010
31/12/2011
ASSETS
2,355
789
of which financial assets with KBC Group
2,009
451
Held-for-trading
At fair value through profit or loss
Available-for-sale
Loans and receivables
Hedging derivatives
27
1,469
792
66
111
584
50
44
LIABILITIES
294
255
of which financial liabilities with KBC Group
294
255
Held-for-trading
At amortised cost
Hedging derivatives
65
201
28
46
165
44
74
65
3
9
0
0
-2
52
42
10
0
-
31/12/2010
31/12/2011
45
41
37
28
0
68
1
19
8
0
62
1
(in EUR million)
INCOME STATEMENT
Net interest income
Net realised gains on available-for-sale financial assets
Net fee and commission income
Other net income / (charges)
Operating expenses
Impairment of financial assets not measured at fair value through profit or loss
With Key Management Personnel
(in EUR million)
Amount of remuneration to key management personnel of KBL epb group
on the basis of their activity, including the amount paid to former key
management personnel
Credit facilities and guarantees granted
Loans outstanding
Guarantees outstanding
Pension commitments
Expenses for defined contribution plans
- 115 -
NOTE 39 – SOLVENCY
The table below gives the solvency ratios calculated pursuant to CSSF circular 06/273 as amended.
In accordance with CSSF instructions, Vitis Life S.A. is excluded from the scope of consolidation for the
calculation of the solvency ratios.
(in EUR million)
31/12/2010
31/12/2011
REGULATORY CAPITAL
1,096
896
TIER 1 CAPITAL
Capital and reserves
Purchased portfolio of customers and intangible assets
Goodwill arising in business combinations
Hybrid capital
Non controlling interest
Eliminations:
Profit for the year, unaudited
Preference shares and relatives share premiums
Positive AFS revaluation reserve for equity instruments
AFS revaluation reserve for debt instruments
Deductions
680
1,028
-71
-284
105
0
-75
-33
-30
-47
35
-24
653
1,007
-67
-238
0
-24
-47
-30
-24
77
-24
418
30
79
47
285
243
30
24
213
-24
-24
406
304
26
75
321
242
11
69
11.3%
13.4%
21.6%
16.3%
16.3%
22.3%
TIER 2 CAPITAL
Preference shares and relative shares premiums
Hybrid capital not assimilated in Tier 1(1)
Positive AFS revaluation reserve for equity instruments
Subordinated liabilities
Complementary equity (Tier 3)
Deductions
OVERALL OWN FUNDS REQUIREMENTS
Credit risk
Market risk
Operational risk
SOLVENCY RATIOS
Core Tier-1 ratio
Tier-1 ratio
CAD ratio
(1) Hybrid instrument redemption
- 116 -
NOTE 40 – MAXIMUM CREDIT RISK EXPOSURE
(in EUR million)
31/12/2010
31/12/2011
12,274
414
11,667
574
15
5,278
5,733
67
86
108
12,391
1,049
11,128
628
15
3,883
6,557
45
99
115
1,241
578
68
1,036
942
55
594
39
13,515
13,427
ASSETS
Balances with central banks
Financial assets
Held-for-trading
At fair value through profit or loss
Available-for-sale financial assets
Loans and receivables
Hedging derivatives
Tax assets
Other assets
OFF-BALANCE SHEET ITEMS
Loans commitments
Financial guarantees
Other commitments (securities issuance facilities, spot transaction
settlement, etc.)
MAXIMUM CREDIT RISK EXPOSURE
For the instruments carried at fair value, the amounts disclosed above represent the current credit risk exposure
and not the maximum credit risk that could apply as a consequence of future changes in the estimates made.
Collateral received to mitigate the maximum exposure to credit risk
(in EUR million)
31/12/2010
31/12/2011
1,285
3,644
186
126
278
5,606
249
151
5,241
6,284
Equity
Debt instruments
Loans and advances
of which designated at fair value
Derivatives
Other (including loans commitments given, undrawn amount)
COLLATERAL RECEIVED TO MITIGATE
THE MAXIMUM EXPOSURE TO CREDIT RISK
The amount and type of collateral required depend on the type of business considered and the Group’s
assessment of the debtor’s credit risk.
The main types of collateral received are as follows:
-
Cash;
-
Securities (in particular for reverse repo operations and securities lending); and
-
Other personal and/or collateral guarantees (mortgages).
These guarantees are monitored on a regular basis to ensure their market value remains adequate as regards the
assets they are intended to cover. If a guarantee is noted to be insufficient, margin calls are made in accordance
with the agreements signed with the various counterparties concerned.
- 117 -
Following the Bank’s request, the CSSF has approved an exemption from including in its calculation of the large
risks exposures, in accordance with Part XVI, point 24 of the CSSF Circular 06/273, as amended, the risks to
which the Group is exposed within the KBC Group. The exposures on related parties are disclosed in Note 38.
NOTE 41 – RISK MANAGEMENT
Information on risk management (credit risk, market risks, operational risks, etc) is given in the annex to the
consolidated management report
NOTE 42 – AUDIT FEES
(in EUR thousand)
31/12/2010
31/12/2011
2,485
--432
2,917
2,548
721
25
3,294
Standard audit services
Audit related services
Other services
TOTAL
NOTE 43 – LIST OF SIGNIFICANT SUBSIDIARIES AND ASSOCIATES
Ownership
percentage
as at
31/12/2011
Company
Registered office
KBL European Private Bankers S.A.
Luxembourg - LU
100.00%
Bank
London - GB
London - GB
London - GB
Leatherhead - GB
London - GB
Leatherhead - GB
London - GB
La Rochelle - FR
Luxembourg - LU
Luxembourg - LU
Luxembourg - LU
Isle of Man - IoM
Monaco - MC
Monaco - MC
Monaco - MC
Monaco - MC
Mainz - DE
Mainz - DE
Munich - DE
Munich - DE
Munich - DE
Paris - FR
Paris - FR
Paris - FR
Luxembourg - LU
Geneva - CH
Geneva - CH
Luxembourg - LU
Brussels - BE
Luxembourg - LU
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
79.06%
100.00%
100.00%
100.00%
100.00%
100.00%
68.92%
100.00%
99.99%
99.99%
100.00%
100.00%
100.00%
Bank
Other - financial
Other - financial
Other - financial
Other - financial
Other - financial
Other - financial
Other - financial
Other - financial
Real estate
Real estate
Real estate
Real estate
Bank
Real estate
Insurance
Holding
Real estate
Bank
Management (Funds, Pensions, Portfolios)
Other - financial
Bank
Management (Funds, Pensions, Portfolios)
Other - Commercial
IT
Bank
Management (Funds, Pensions, Portfolios)
Management (Funds, Pensions, Portfolios)
Bank
Bank
Sector of activity
FULLY CONSOLIDATED SUBSIDIARIES
(global method)
Brown, Shipley & Co. Limited
Cawood Smithie & Co Limited
Fairmount Pension Trustee Limited
Fairmount Trustee Services Ltd
The Brown Shipley Pension Portfolio Ltd
Slark Trustee Company Ltd
White Rose Nominees Ltd
Fidef Ingénierie Patrimoniale S.A.
Financière et Immobilière S.A.
KB Lux Immo S.A.
Centre Europe S.A.
Rocher Ltd
S.C.I. KB Luxembourg Immo III (Monaco)
KBL Monaco Private Bankers
S.C.I. KB Luxembourg Immo I (Monaco)
KBL Monaco Conseil et Courtage en Assurance
KBL Beteiligungs A.G.
Modernisierungsgesellschaft Lübecker Str. 28/29 Gbr
Merck Finck & Co.
Merck Finck Pension Universal Funds
Merck Finck Treuhand A.G.
KBL Richelieu Banque Privée S.A.
KBL Richelieu Gestion (ex-KBL France Gestion)
S.E.V.
Kredietbank Informatique G.I.E.
KBL (Switzerland) Ltd
Privagest
Kredietrust Luxembourg S.A.
Puilaetco Dewaay Private Bankers S.A.
Banque Puilaetco Dewaay Luxembourg S.A.
- 118 -
Company
Registered office
Theodoor Gilissen Bankiers N.V.
TG Fund Management B.V.
TG Ventures B.V
Theodoor Gilissen Trust B.V.
Theodoor Gilissen Global Custody B.V.
Lange Voorbehout B.V.
Stroeve Asset Management B.V.
Wereldeffect B.V.
Vitis Life S.A.
Data Office
Amsterdam - NL
Amsterdam - NL
Amsterdam - NL
Amsterdam - NL
Amsterdam - NL
Amsterdam - NL
Amsterdam - NL
Amsterdam - NL
Luxembourg - LU
Brussels - BE
Company
Registered office
Ownership
percentage
as at
31/12/2011
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Ownership
percentage
as at
31/12/2011
Sector of activity
Bank
Management (Funds, Pensions, Portfolios)
Corporate Finance
Management (Funds, Pensions, Portfolios)
Custodian
Real estate
Management (Funds, Pensions, Portfolios)
Management (Funds, Pensions, Portfolios)
Insurance
Other - financial
Sector of activity
ASSOCIATES
EFA Partners S.A. (1)
European Fund Administration S.A. (1)
European Fund Administration France S.A.S.
Luxembourg - LU
Luxembourg - LU
Paris - FR
52.70%
51.13%
51.13%
Holding
Fund administration
Fund administration
NON-CONSOLIDATED COMPANIES (materiality threshold not reached)
KBL epb
Forest Value Management Investment S.A.
Horacio sarl
KBL Beteiligungs AG
Steubag G. Betriebsw. & Bankendienst. GmbH
KB Lux Immo S.A.
Plateau Real Estate Limited
SCI KB Luxembourg Immo II (Monaco)
Theodoor Gilissen Bankiers N.V.
Damsigt SCP
Luxembourg - LU
Luxembourg - LU
26.13%
100.00%
Mainz - DE
100.00%
Douglas - IoM
Monaco - MC
100.00%
100.00%
Utrecht - NL
24.60%
Note:
(1)
Despite the ownership percentage, KBL epb does not exercise control or joint control over EFA Partners S.A. or European Fund
Administration S.A. These two companies are thus considered as associates over which KBL epb exercises a significant influence and are
equity reported.
NOTE 44 – MAIN CHANGES IN THE SCOPE OF CONSOLIDATION
Ownership
percentage
(direct +
indirect)
31/12/2010
Activity
Company
Comments
REMOVED FROM SCOPE OF CONSOLIDATION
KBL Investment Funds Ltd
Fairmount Group Nominees Ltd
Management (Funds,Pensions, Portfolios)
Other – financial
100.00%
100.00%
Liquidated by Brown Shipley & Co Ltd
Liquidated by Brown Shipley & Co Ltd
Adm. Kantoor Interland B.V.
Trust- en Adm. My. Interland B.V.
Company administration
Company administration
100.00%
100.00%
Liquidated by Theodoor Gilissen Bankiers N.V.
Liquidated by Theodoor Gilissen Bankiers N.V.
- 119 -
NOTE 45 – ACQUISITATION OF VITIS LIFE S.A. IN 2010
The consolidation of Vitis Life S.A. following its acquisition in April 2010 generated a badwill of EUR 29 million as
of 31 December 2010.
NOTE 46 – EVENTS AFTER THE BALANCE SHEET DATE
There was, after the closing date, no significant event requiring an update of the provided information or
adjustments in the consolidated accounts as at 31 December 2011.
- 120 -
Annual accounts,
Report of
the independent auditor
and Management report
as at 31 December 2011
Les comptes consolidés et non consolidés ne sont disponibles que en version anglaise
Contents
UNQUALIFIED CERTIFICATION OF THE INDEPENDENT AUDITOR........................................................................................................................................... 123
INCOME STATEMENT ............................................................................................................................................................................................................................... 125
STATEMENT OF COMPREHENSIVE INCOME .................................................................................................................................................................................... 125
BALANCE SHEET........................................................................................................................................................................................................................................ 126
STATEMENT OF CHANGES IN EQUITY................................................................................................................................................................................................ 127
CASH FLOW STATEMENT ....................................................................................................................................................................................................................... 128
Notes to the annual accounts................................................................................................................................................................................................................. 129
Note 1 – General ................................................................................................................................................................................................................................... 129
Note 2a – Statement of compliance................................................................................................................................................................................................... 129
Note 2b – Significant accounting policies ........................................................................................................................................................................................ 132
Note 3a – Operating segments by business segment.................................................................................................................................................................. 138
Note 3b – Operating segments by geographic sector .................................................................................................................................................................. 140
Note 4 – Net interest income ............................................................................................................................................................................................................ 141
Note 5 – Dividend income .................................................................................................................................................................................................................. 141
Note 6 – Net gains/losses on financial instruments designated at fair value through profit or loss .......................................................................... 141
Note 7 – Net realised gains/losses on financial assets and liabilities not measured at fair value through profit or loss...................................... 142
Note 8 – Net fee and commission income ..................................................................................................................................................................................... 142
Note 9 – Other net income................................................................................................................................................................................................................. 142
Note 10 – Operating expenses ............................................................................................................................................................................................................ 143
Note 11 – Staff......................................................................................................................................................................................................................................... 143
Note 12 – Impairment ............................................................................................................................................................................................................................ 144
Note 13 – Income tax (expenses) / income...................................................................................................................................................................................... 145
Note 14 – Classification of financial instruments: breakdown by portfolio and by product ............................................................................................ 146
Note 15 – Available-for-sale financial assets and Loans and receivables: breakdown by portfolio and quality ........................................................ 155
Note 16 – Financial assets and liabilities: breakdown by portfolio and residual maturity ............................................................................................... 156
Note 17 – Securities lending and securities given in guarantee ............................................................................................................................................... 157
Note 18 – Securities received in guarantee..................................................................................................................................................................................... 158
Note 19 – Impairment of available-for-sale financial assets....................................................................................................................................................... 158
Note 20 – Impairment of loans and receivables............................................................................................................................................................................. 159
Note 21 – Derivatives ............................................................................................................................................................................................................................ 160
Note 22 – Other assets .......................................................................................................................................................................................................................... 162
Note 23 – Tax assets .............................................................................................................................................................................................................................. 162
Note 24 – Intangible assets.................................................................................................................................................................................................................. 163
Note 25 – Property and equipment and investment properties................................................................................................................................................ 164
Note 26 – Provisions .............................................................................................................................................................................................................................. 165
Note 27 – Other liabilities ..................................................................................................................................................................................................................... 165
Note 28 – Retirement benefit obligations........................................................................................................................................................................................ 166
Note 29 – Equity...................................................................................................................................................................................................................................... 168
Note 30 – Result allocation proposal................................................................................................................................................................................................. 168
Note 31 – Loans commitments, financial guarantees and other commitments ................................................................................................................... 169
Note 32 – Assets under management............................................................................................................................................................................................... 169
Note 33 – Related party transactions ............................................................................................................................................................................................... 170
Note 34 – Solvency................................................................................................................................................................................................................................. 171
Note 35 – Maximum credit risk exposure and collateral received to mitigate ..................................................................................................................... 172
Note 36 – Risk management................................................................................................................................................................................................................ 173
Note 37 – Audit fees............................................................................................................................................................................................................................... 173
Note 38 – Significant subsidiaries ...................................................................................................................................................................................................... 174
Note 39 – Events after the balance sheet date.............................................................................................................................................................................. 174
MANAGEMENT REPORT.............................................................................................................................................................................................................................52
The quantitative tables in the following pages may sometimes show small differences due to the use of concealed decimals. These
differences, however, do not in any way affect the true and fair view of the annual accounts of the Bank. Similarly, the value zero “0”
in the following tables indicates the presence of a number after the decimal, while “-” represents the value nil.
- 122 -
Unqualified certification of the independent auditor
To the Board of Directors of KBL European Private Bankers S.A.
Société Anonyme Luxembourg
Report on the annual accounts
Following our appointment by the Board of Directors, we have audited the accompanying annual accounts of KBL
European Private Bankers S.A., which comprise the balance sheet as at 31 December 2011, the income statement, the
statement of comprehensive income, the statement of changes in equity, the cash flow statement for the year then
ended, and a summary of significant accounting policies and other explanatory information.
Board of Directors’ responsibility for the annual accounts
The Board of Directors is responsible for the preparation and fair presentation of these annual accounts in accordance
with International Financial Reporting Standards as adopted by the European Union and for such internal control as the
Board of Directors determines is necessary to enable the preparation and presentation of annual accounts that are free
from material misstatement, whether due to fraud or error.
Responsibility of the “réviseur d’entreprises agréé”
Our responsibility is to express an opinion on these annual accounts based on our audit. We conducted our audit in
accordance with International Standards on Auditing as adopted for Luxembourg by the “Commission de Surveillance du
Secteur Financier”. Those standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the annual accounts are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual
accounts. The procedures selected depend on the judgement of the “réviseur d’entreprises agréé”, including the
assessment of the risks of material misstatement of the annual accounts, whether due to fraud or error. In making those
risk assessments, the “réviseur d’entreprises agréé” considers internal control relevant to the entity’s preparation and
fair presentation of the annual accounts in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by the Board of Directors, as well as evaluating the overall presentation of the annual accounts.
- 123 -
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the annual accounts give a true and fair view of the financial position of KBL European Private Bankers
S.A. as of 31 December 2011, and of its financial performance and its cash flows for the year then ended in accordance
with International Financial Reporting Standards as adopted by the European Union.
Report on other legal and regulatory requirements
The management report, which is the responsibility of the Board of Directors, is consistent with the annual accounts.
ERNST & YOUNG
Société Anonyme
Cabinet de révision agréé
Sylvie TESTA
Luxembourg, 22 February 2012
- 124 -
Income statement
In EUR thousand
Notes
31/12/2010
31/12/2011
Net interest income
4, 33
98,873
90,832
Dividend income
5, 33
44,082
40,961
Net gains/losses on financial instruments designated at fair
value through profit or loss
6
36,289
-17.837
Net realised gains/losses on financial assets and liabilities not
measured at fair value through profit or loss
7
22,171
69,938
Net fee and commission income
8, 33
95,950
89,529
Other net income
9, 33
2,393
5,986
299,758
279,408
GROSS INCOME
Operating expenses
10, 33
-176,224
-142,897
Staff expenses
11, 28
-126,610
-95,684
37
-39,916
-36,355
24, 25, 26
-9,698
-10,858
12, 19, 20,
33
-48,747
-174,244
74,787
-37,732
-7,165
8,399
67,622
-29,333
General administrative expenses
Other
Impairment
PROFIT BEFORE TAX
Income tax (expenses) / income
13
PROFIT AFTER TAX
Statement of comprehensive income
In EUR thousand
31/12/2010
31/12/2011
67,622
-29,333
Revaluation at fair value
26,157
-81,832
Net realised gains/losses on sales
-9,918
-14,302
-
-171
-4,682
27,736
11,557
-68,569
146
30
OTHER COMPREHENSIVE INCOME
11,703
-68,539
TOTAL COMPREHENSIVE INCOME
79,325
-97,872
PROFIT AFTER TAX
Impairment
Income tax (expenses) / income
Available-for-sale financial assets
Exchange differences on translation of foreign operations
The notes refer to the ‘Notes to the annual accounts’.
- 125 -
Balance sheet
ASSETS
(In EUR million)
Notes
Cash and balances with central banks
Financial assets
Held-for-trading
14, 15, 16, 17, 18, 33
21
At fair value through profit or loss
31/12/2010 31/12/2011
339
875
10,369
10,146
477
564
14
15
Available-for-sale financial assets
19, 38
5,092
3,724
Loans and receivables
20
4,720
5,799
Hedging derivatives
21
66
44
23
54
81
Current tax assets
4
-
Deferred tax assets
49
81
Tax assets
Investment properties
25
14
13
Property and equipment
25
106
101
Intangible assets
24
115
125
Other assets
22
30
28
11,026
11,369
TOTAL ASSETS
Equity and liabilities
(In EUR million)
Financial liabilities
31/12/2010 31/12/2011
9,454
9,932
264
295
9,115
9,563
21
76
74
Provisions
26
8
6
Other liabilities
27, 28
173
138
9,636
10,076
1,391
1,293
11,026
11,369
Held-for-trading
14, 16, 33
21
At amortised cost
Hedging derivatives
TOTAL LIABILITIES
TOTAL EQUITY
29
TOTAL EQUITY AND LIABILITIES
The notes refer to the ‘Notes to the annual accounts’.
- 126 -
Total equity
Foreign
currency
translation
reserve
Reserves
Revaluation
reserve (AFS
investments)
1.9
801.4
-0.2
1,311.5
Net movements on treasury shares
-
-
-
-
-
-
-
Dividends and profit-sharing
-
-
-
-
-
-
-
Total comprehensive income for the
year
-
-
-
11.6
67.6
-
79.2
Other
-
-
-
-
-0.3
0.1
-0.1
Total variations
-
-
-
11.6
67.3
0.1
79.0
187.2
321.3
-0.1
13.4
868.8
-0.0
1,390.6
Balance as at 01/01/2011
Reserves
In EUR million
Treasury
shares
2011
Share
premium
Balance as at 31/12/2010
Total equity
-0.1
Foreign
currency
translation
reserve
321.3
Revaluation
reserve (AFS
investments)
187.2
Issued and
paid-up share
capital
Balance as at 01/01/2010
Treasury
shares
In EUR million
Issued and
paid-up share
capital
2010
Share premium
Statement of changes in equity
187.2
321.3
-0.1
13.4
868.8
-0.0
1,390.6
Net movements on treasury shares
-
-
-
-
-
-
-
Dividends and profit-sharing
-
-
-
-
-
-
-
Total comprehensive income
for the year
-
-
-
-68.6
-29.3
-
-97.9
Other
-
-
-
-
-
0.0
0.0
Total variations
-
-
-
-68.6
-29.3
0.0
-97.9
187.2
321.3
-0.1
-55.2
839.5
-
1,292.7
Balance as at 31/12/2011
- 127 -
Cash flow statement
In EUR million
31/12/2010
31/12/2011
74.8
-37.7
57.8
181.7
-0.2
-0.2
0.8
-6.4
-2.1
2.5
0.9
4.8
126.7
-113.9
252.7
-1.0
264.6
150.1
1,839.7
66.1
10.9
2,066.8
Purchase of subsidiaries or business units
Proceeds from sale of subsidiaries or business units
Purchase of intangible assets
Purchase of property and equipment
Proceeds from sale of property and equipment
Net cash flows from /(used in) investing activities
-55.3
0.2
-8.1
-4.0
0.5
-66.7
-3.3
0.4
-0.1
-2.8
2.7
-3.1
Purchase/sale of treasury shares
Issue/repayment of loans
Issue/repayment of subordinated debts
Dividends paid and profit-sharing
NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES
-10.4
-22.8
-33.2
116.0
-571.0
-455.0
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (3)
164.7
1,608.7
2,348.3
164.7
2,513.0
2,513.0
1,608.7
4,121.7
171.9
281.0
44.1
151.7
226.9
41.0
2,513.0
338.8
3,396.5
-1,222.2
323.6
4,121.7
874.7
4,895.0
-1,648.0
123.6
Profit before tax
Adjustments for:
Impairment of securities, amortisation and depreciation of property and
equipment, intangible assets and investment properties
Profit/loss on the disposal of investments
Change in impairment for losses on loans and advances
Change in other provisions
Unrealised foreign currency gains and losses
Cash flows from operating activities, before tax and changes in operating assets and liabilities
Changes in operating assets (1)
Changes in operating liabilities (2)
Income taxes
Net cash from/(used in) operating activities
CASH AND CASH EQUIVALENTS AS AT 01/01
Net increase/decrease in cash and cash equivalents
Net foreign exchange difference
CASH AND CASH EQUIVALENTS AS AT 31/12
ADDITIONAL INFORMATION
Interest paid during the year
Interest received during the year
Dividends received (including equity method)
COMPONENTS OF CASH AND CASH EQUIVALENTS
Cash and balances with central banks (including legal reserve with the central bank)
Loans and advances to banks repayable on demand
Deposits from banks repayable on demand
Of which: not available (4)
(1)
(2)
(3)
(4)
Including loans and advances to banks and customers, securities, derivatives and other assets.
Including deposits from banks and customers, bonds issued, derivatives and other liabilities.
Cash includes cash and deposits payable on demand; cash equivalents are short-term investments that are very liquid, easily convertible into a
known cash amount and subject to a negligible risk of a change in value.
Cash and cash equivalents not available mainly comprise of the legal reserve held with the Luxembourg Central Bank and the ‘margin’ accounts
held with clearing houses (futures markets, etc.).
- 128 -
Notes to the
annual accounts
NOTE 1 – GENERAL
KBC wants to refocus on its basic business, namely
bank-insurance on its domestic markets. It has decided
to sell certain high-quality assets, of which KBL epb.
The Executive Committee of KBL epb was designated
by KBC to pilot the process of searching for a new
shareholder.
KBL European Private Bankers S.A. (hereafter “KBL
epb" or the “Bank”) is specialised in private banking. In
support of and complementary to this activity, KBL epb
has also developed several niche activities specific to its
various markets.
The business purpose of KBL epb is to carry out all
banking and credit activities. In addition, KBL epb is
allowed to carry out all commercial, industrial or other
transactions, including real estate transactions, in order
to achieve its main business purpose, either directly or
through participation, or in any other manner, these
provisions to be understood in the widest manner
possible. KBL epb may carry out any activity which
contributes in any way to the achievement of its
business purpose. The Bank’s main activities are
described in Note 3a.
On 10 October 2011, an agreement was concluded on
the sale of KBL epb by KBC to a Qatari investment
group represented by a Luxembourg entity, Precision
Capital. The closing should take place during the first
months of the financial year 2012.
The Bank prepares consolidated accounts in accordance
with International Financial Reporting Standards as
adopted by the European Union, as well as a
consolidated management report, which are available at
its head office.
KBL epb is a public limited liability company (société
anonyme) incorporated in Luxembourg and having its
registered office at:
The Bank’s consolidated accounts are consolidated in
the KBC Group consolidated accounts. KBC Group’s
consolidated accounts and management report are
available at its head office.
43, boulevard Royal,
L-2955 Luxembourg
KBL epb’s non-consolidated accounts include those of
the Spanish branch opened on 7 April 2010 and of the
Polish branch opened on 1 April 2009 and closed on 20
December 2011.
KBL epb is part of the KBC Group. Born on 2 March
2005 from the merger of KBC Bank and Insurance
Holding N.V. and its parent company Almanij, the KBC
Group is today one of the major financial groups in
Europe. As a multi-channel, independent bankinsurance group, active in Europe, the KBC Group
provides individual clients, as well as small and
medium-sized companies, with retail and private
banking services. It is also active in asset management,
corporate banking and private equity markets. The KBC
Group is a major player on the Belgian and Central and
Eastern European markets and has created a large
network of private bankers in Western Europe. The
KBC Group has also selectively developed a presence in
certain other countries and regions across the world.
NOTE 2A – STATEMENT OF COMPLIANCE
The annual accounts presented in this report were
approved by the Board of Directors of KBL epb on 22
February 2012.
KBL epb’s annual accounts have been prepared in
accordance with International Financial Reporting
Standards as adopted by the European Union (IFRS).
Given its activity, KBL epb is not concerned de facto by
IFRS 4 on insurance contracts. In preparing the annual
accounts under IFRS, the Board of Directors is required
to make estimates and assumptions that affect reported
But, on 18 November 2009, the KBC Group
communicated its strategic plan as requested by the
European Commission to repay the support from
Belgian national and Flemish governments. This plan
was formally approved by the European Commission.
- 129 -
income, expenses, assets, liabilities and disclosure of
contingent assets and liabilities.
-
Use of available information and application of
judgement are inherent in the formation of estimates.
Actual results in the future could differ from such
estimates and the differences may be material to the
annual accounts.
In May 2010, the IASB issued its third omnibus of
amendments to its standards, primarily with a view to
removing inconsistencies and clarifying wording. There
are separate transitional provisions for each standard.
The adoption of the following amendments resulted in
changes to accounting policies, but had no impact on
the financial position or performance of the Bank.
The accounting policies adopted are consistent with
those of the previous financial year, except for the
following new and amended IFRS and IFRIC
interpretations effective as of 1 January 2011. Those
newly applicable requirements have had no significant
impact on the financial position and performance of the
Bank:
-
lAS 24 Related Party Disclosures (amendment)
effective 1 January 2011.
lAS
-
Improvements to IFRSs (May 2010).
IAS 24 Related Party Transactions (Amendment)
-
lAS 1 Presentation of Financial Statements: the
amendment clarifies that an entity may present an
analysis of each component of other comprehensive
income maybe either in the statement of changes in
equity or in the notes to the financial statements.
-
The IASB issued an amendment to lAS 24 that clarifies
the definitions of a related party. The new definitions
emphasise a symmetrical view of related party
relationships and clarifies the circumstances in which
persons and key management personnel affect related
party relationships of an entity. In addition, the
amendment introduces an exemption from the general
related party disclosure requirements for transactions
with government and entities that are controlled, jointly
controlled or significantly influenced by the same
government as the reporting entity. The adoption of the
amendment did not have any impact on the financial
position or performance of the Bank.
-
IFRS 7 Financial Instruments - DiscIosures: the
amendment was intended to simplify the
disclosures provided by reducing the volume of
disclosures around collateral held and improving
disclosures by requiring qualitative information to
put the quantitative information in context.
Other amendments resulting from Improvements to
IFRSs to the following standards did not have any
impact on the accounting policies, financial position or
performance of the Bank:
The adoption of the standards or interpretations is
described below:
-
-
32 Financial Instruments: Presentation
(amendment) effective 1 February 2010.
-
lAS 32 Financial
(Amendment)
Instruments:
Improvements to IFRSs
lAS 27 Consolidated and Separate Financial
Statements
-
lAS 34 Interim Financial Statements
The following interpretation and amendment to
interpretations did not have any impact on the
accounting policies, financial position or performance of
the Bank:
-
IFRIC 19 Extinguishing Financial Liabilities with
Equity Instruments
KBL epb has also decided not to adopt the standards,
amendments to standards and interpretations of the
IFRIC which have been published but are not applicable
for the year ending 31 December 2011. KBL epb will
adopt these standards on the date of their effective
application and when they will be approved by the
European Union.
Presentation
The IASB issued an amendment that alters the
definition of a financial liability in lAS 32 to enable
entities to classify rights issues and certain options or
warrants as equity instruments. The amendment is
applicable if the rights are given prorata to all of the
existing owners of the same class of an entity’s nonderivative equity instruments, to acquire a fixed
number of the entity’s own equity instruments for a
fixed amount in any currency. The amendment has had
no effect on the financial position or performance of the
Bank because the Bank does not have this type of
instruments.
- 130 -
amendment becomes effective for annual periods
beginning on or after 1 January 2013.
This basically concerns the following publications (only
the standards, amendments to standards and IFRIC
which may have an effect on KBL epb financial position
or performance are mentioned below):
-
-
As a consequence of the new IFRS 10 and IFRS
12, what remains of lAS 27 is limited to
accounting for subsidiaries, jointly controlled
entities, and associates in separate financial
statements. The amendment becomes effective for
annual periods beginning on or after 1 January
2013.
IFRS 9 Financial Instruments (Amended)
This standard, which is being developed to
ultimately replace IAS 39 in its entirety, has been
divided into three main phases. The first phase,
which relates to the recognition and measurement
of financial assets and financial liabilities, has
already been completed. It introduces significant
changes in the accounting requirements of
financial assets, such as: a reduction in the
number of available categories, business modeloriented classification rules and the prohibition to
recycle (into P&L) any gains and losses on
financial assets measured at fair value through
other comprehensive income.
The last two phases which concern impairment
and hedge accounting are still to be finalized.
The standard (including its first phase on a standalone basis) is applicable for annual periods
beginning on or after 1 January 2015. Earlier
application is permitted.
Up to now, however, no portion of the standard
has been endorsed by the European Union.
-
-
IFRS 7 Financial Instruments: Disclosures Enhanced Derecognition Disclosure Requirements
The amendment requires additional disclosure
about financial assets that have been transferred
but not derecognised to enable the user of the
Bank’s annual accounts to understand the
relationship with those assets that have not been
derecognised and their associated liabilities. In
addition, the amendment requires disclosures
about continuing involvement in derecognised
assets to enable the user to evaluate the nature
of, and risks associated with, the entity’s
continuing involvement in those derecognised
assets. The amendment becomes effective for
annual periods beginning on or after 1 July 2011.
-
IFRS 13 Fair Value Measurement
IFRS 13 establishes a single source of guidance
under IFRS for all fair value measurements. IFRS
13 does not change when an entity is required to
use fair value, but rather provides guidance on
how to measure fair value under IFRS when fair
value is required or permitted. This standard
becomes effective for annual periods beginning on
or after 1 January 2013.
lAS 1 Financial Statements Presentation Presentation of Items of Other Comprehensive
Income (OCI)
The amendments to lAS 1 change the grouping of
items presented in OCI. Items that could be
reclassified (or ‘recycled’) to profit or loss at a
future point in time (for example, upon
derecognition or settlement) would be presented
separately from items that will never be
reclassified. The amendment affects presentation
only and has there no impact on the Bank’s
financial position or performance. The amendment
becomes effective for annual periods beginning on
or after 1 July 2012.
-
lAS 27 Separate Financial Statements (as revised
in 2011)
lAS 19 Employee Benefits (Amendment)
The IASB has issued numerous amendments to
lAS 19. These range from fundamental changes
such as removing the corridor mechanism and the
concept of expected returns on plan assets to
simple clarifications and re-wording. The
- 131 -
NOTE 2B – SIGNIFICANT ACCOUNTING
POLICIES
KBL European Private Bankers S.A.’s accounts are
presented in EUR, which is also its functional currency.
words, the change in value is not recognised for assets
measured at cost or at amortised cost; it is recognised
in the income statement for assets classified as
financial assets at fair value through profit or loss and
in equity for those classified as available-for-sale.
KBL European Private Bankers S.A. maintains a multicurrency accounting system under which any
transaction is registered in its original foreign currency.
In the case of sales, the assets at fair value are
measured at their sale price during the period between
the transaction date and the payment date.
In preparing the annual accounts, assets and liabilities
in foreign currencies are translated into EUR. Monetary
items denominated in foreign currencies are converted
at the closing rate prevailing at the reporting date;
differences arising from such conversion are recorded
in the income statement. Non-monetary items
denominated in foreign currencies that are measured in
terms of historical cost are translated at the historical
exchange rate prevailing at the date of the transaction.
Non-monetary items denominated in foreign currencies
measured at fair value are translated using the spot
exchange rate at the date when the fair value is
determined and translation differences are reported
together with changes in fair value.
Pursuant to the provisions of IAS 39 on derecognition,
the Bank keeps securities lent in its securities portfolio
but securities borrowed are not recorded on the
balance sheet. Similarly, the securities transferred
through repurchase agreements are kept in the
securities portfolio but those under reverse repurchase
agreements are not recorded on the balance sheet.
A. FOREIGN CURRENCY TRANSLATION
Definition of IAS 39 categories of financial assets and
financial liabilities
All financial assets and liabilities – including derivatives
– must be measured on the balance sheet according to
their IAS 39 category. Each category is subject to
specific measurement rules.
Income and expense items denominated in foreign
currencies are recognised in the income statement in
their respective currencies and periodically translated
at the average monthly exchange rate.
B.
The IAS 39 categories are:
Held-to-maturity assets are all non-derivative
financial assets with fixed maturities and fixed or
determinable payments that KBL European
Private Bankers S.A. intends and is able to hold to
maturity. The Bank’s management has decided not
to class financial instruments in this category.
FINANCIAL ASSETS AND LIABILITIES
General principles of recognition and derecognition of
financial instruments
A financial instrument is recognised in the balance
sheet when and only when the Bank becomes a party
to the contractual provisions of the instrument.
A financial asset is derecognised when and only when
the contractual rights to receive cash flows from the
asset have expired or KBL European Private Bankers
S.A. transfers the financial asset.
-
Loans and receivables are all non-derivative
financial assets with fixed or determinable
payments that are not quoted in an active market.
Financial assets at fair value through profit or loss
include held-for-trading assets and any other
financial assets initially designated at fair value
through profit or loss. Held-for-trading assets are
those acquired principally for the purpose of
selling them in the near term and those which are
part of a portfolio with indications of recent shortterm profit-taking. All derivative assets are
considered as being held for trading unless
designated as effective hedging instruments.
Other assets at fair value through profit or loss
are valued in the same way as held-for-trading
assets, even if there is no intention of short-term
profit taking. The ‘fair value option’ may be used
when a contract contains one or more embedded
A financial liability is derecognised when and only
when the contractual liability is settled, cancelled or
expires.
The purchases and sales of financial assets are
recognised on the payment date, which is the date on
which the asset is delivered. Any variation in the fair
value of the asset to be received during the period from
the transaction date to the payment date is recognised
in the same way as for the asset acquired. In other
- 132 -
derivatives under certain conditions or when its
application produces more pertinent information:
o either because a group of financial
assets/liabilities is managed on a fair value
basis and its performance measured on a fair
value basis, following a documented
investment or risk management strategy,
o or because the application of this option
reduces a measurement or recognition
inconsistency that would otherwise arise
from measuring assets or liabilities or
recognising the gains and losses on them on
different bases.
This option is mainly used by the Bank firstly for
contracts with one or more embedded derivatives
and secondly as an alternative to hedge
accounting (aligning the valuation of the hedged
instrument with that of the hedging instrument).
-
General principles
Loans and receivables with a fixed maturity are
measured at amortised cost using the effective interest
rate (hereinafter “EIR”) method, that is the rate that
precisely discounts the future cash inflows or outflows
to obtain the carrying amount. Instruments without a
fixed maturity are measured at cost.
The available-for-sale financial assets are measured at
fair value with changes in fair value recognised in
equity (‘Revaluation reserve (available-for-sale financial
instruments)’) until the sale or impairment of these
instruments. In the latter cases, the cumulative result of
the revaluation is transferred from equity to the income
statement of the period.
Non listed participating interests in subsidiaries,
controlled entities and associates are measured at cost,
less possible impairment.
Available-for-sale financial assets are all nonderivative financial assets which do not fall into
one of the above categories.
The financial assets and liabilities at fair value through
profit or loss are measured at fair value with changes in
fair value recognised in the income statement.
-
Financial liabilities at fair value through profit or
loss encompass held-for-trading liabilities and
financial liabilities initially designated at fair
value through profit or loss. Held-for-trading
liabilities are liabilities held mainly with the
Other financial liabilities are measured at amortised
cost. The difference between the amount made
available and the nominal amount is recognised in the
income statement (net interest income) prorata
temporis, on an actuarial basis using the EIR method.
intention of repurchasing them in the near term.
All derivative liabilities are considered as being
held for trading unless designated as effective
hedging instruments.
Other participating interests are valued according to
IAS 39 at fair value or at cost less possible impairment
if the fair value cannot be measured reliably.
Financial liabilities initially designated at fair
value through profit or loss are those liabilities
accounted for under the ‘fair value option’.
Impairment
No liability is currently recognized under this
category in the KBL epb’s annual accounts.
-
Available-for-sale financial assets and loans and
receivables are also subject to impairment tests and
Other financial liabilities are all other financial
impairment losses are recognised if evidence of
impairment exists on the balance sheet date.
instruments not at fair value through profit or
loss.
-
Available-for-sale financial assets
Hedging derivatives are derivatives used for
hedging purposes.
For listed shares, an impairment is recognised if the
market value is less than 70% of the purchase value or
if the market price of the share is less than the
acquisition price over one year. For debt and other
equity instruments, the impairment amount is
measured from the recoverable value.
Evaluation of financial instruments
Financial assets and liabilities are initially recognised at
fair value and are subsequently measured in
accordance with the principles governing the IAS 39
category in which they are placed.
Impairment losses are always recognised in the income
statement. Impairment reversals are recognised in the
income statement for debt instruments and in other
comprehensive income (available-for-sale revaluation
reserve) for listed shares and other equity instruments.
- 133 -
-
interest rate swaps and cross-currency interest rate
swaps) are measured at fair value with changes in fair
value recognised in the income statement. Furthermore,
the gain or loss on the hedged item attributable to the
hedged risk adjusts the carrying amount of the hedged
element and is also recognised in the income statement.
If the hedged item is an available-for-sale financial asset
already measured at fair value under other IFRS
requirements, applying hedge accounting leads to
splitting the change in the instrument fair value
between the portion addressed by the hedge
relationship, recognised in the income statement, and
the portion that relates to unhedged risks, recognised
in the revaluation reserve in equity.
Loans and receivables
The amount of the impairment loss is the excess of the
carrying amount over the recoverable amount of the
asset. The Bank firstly evaluates if there is an
impairment loss for each individually significant loan or
receivable or for each group of loans or receivables not
individually significant. If the Bank considers that there
is no evidence of an impairment loss for a given loan or
receivable, individually significant or not, it includes it
in a group of financial assets presenting the same credit
risk characteristics and examines the possibility of an
impairment loss on a collective basis. The assets
evaluated individually and for which an impairment loss
is recognised are not examined collectively.
Hedge accounting is discontinued once the hedge
accounting requirements are no longer met or if the
hedging instrument expires or is sold. In this case, and
for debt instruments, the cumulative change to the
carrying amount of the hedged instrument (relating to
hedged risks) is transferred to the income statement
prorata temporis until the instrument expires.
Embedded derivatives
Derivatives embedded in financial instruments that are
not measured at fair value through profit or loss are
separated from the financial instrument and measured
at fair value through profit or loss if the economic
characteristics and risks of the embedded derivative are
not closely related to the economic characteristics and
risks of the host contract.
In practice, financial assets with embedded derivatives
are however primarily classified as financial
instruments at fair value through profit or loss, making
it unnecessary to separate the embedded derivative
from the hybrid (combined) instrument, since the entire
financial instrument is measured at fair value, with
changes in fair value being recognised in the income
statement.
Hedge accounting
The Bank applies micro-hedge accounting when all the
following conditions are met: the hedging relationship
must be designated at inception and formally
documented, the hedge is expected to be highly
effective, and it must be possible to reliably measure
the effectiveness of the hedge, forecast transactions
(for cash flow hedges) must be highly probable and the
hedge is measured on an ongoing basis and is
determined actually to have been highly effective
throughout the periods covered by the annual accounts
for which the hedge was designated.
Fair value hedge accounting is used by the Bank to
cover the exposure of a financial instrument
(participating interests in foreign currency, availablefor-sale financial assets and certain financial liabilities)
to changes in fair value attributable to changes in
interest rates or exchange rates. In this case those
derivatives designated as hedging instruments (mainly
- 134 -
of assets under management, gross margin multiple,
etc.). Whenever available, the result of the impairment
test is compared with an estimate based on the
parameters deduced from similar transactions.
As regards to cash flow hedge (not currently used by
the Bank) hedging instruments are measured at fair
value. The portion of the gain or loss that is determined
to be an effective hedge is recognised in other
comprehensive income. The ineffective portion is
recognised in the income statement. Hedge accounting
shall be discontinued if the hedge accounting criteria
are no longer met. In this case, the hedging instruments
shall be treated as held-for-trading instruments and
measured accordingly.
When the recognition criteria are met and when the
amounts are not immaterial, software is recognised as
an intangible asset. Internal and external expenses
incurred during the development phase of internally
generated strategic software are recognised in assets
and amortised using the straight-line method over the
estimated useful life (average annual rate: 25%).
However, the useful life of two specific IT projects
(Corporate Action Management - CAMA - and Globus
T24) has been estimated at 7 years (average annual
rate: 14.3%).
Foreign currency financing of a net investment in a
foreign entity is accounted for as a hedge of that net
investment. Translation differences (taking account of
deferred taxes) on the financing are recorded in equity,
along with translation differences on the net
investment.
This only applied to the Polish branch.
Research expenses for these projects and all expenses
that relate to non-strategic projects are recognised
directly in the income statement.
Determination of fair value
When available, published price quotations on active
markets are used to determine the fair value of
financial assets or liabilities.
D.
If such quotations are not available, fair value can be
obtained:
by reference to recent ‘at arm’s length’ market
transactions between knowledgeable, willing
parties;
by using a valuation technique (discounted cash
flow analysis and option pricing models). The
valuation technique must then incorporate all
factors that market participants would consider in
setting a price and be consistent with accepted
financial methodologies used for pricing financial
instruments;
by using the European Venture Capital Association
(EVCA) guidance for private equity instruments.
Property and equipment the use of which is limited in
time are depreciated using the straight-line method
over their estimated useful lives.
C.
PROPERTY AND EQUIPMENT
Property and equipment are initially recognised at cost.
Overview of average depreciation rates
Type of investment
Land
Buildings
Technical installations
Furniture
IT hardware
Vehicles
Works of art
INTANGIBLE ASSETS
Intangible assets acquired are initially measured at
cost. Value adjustments or impairment are then
recognised according to the nature of the assets and
the duration of its life (finite or indefinite).
The purchase of a portfolio of customers generally
includes the transfer of the client assets under
management to the Bank and the recruitment of all or
part of the account officers in charge of client
relationships.
This type of intangible assets is not amortised, but is
tested for impairment at least annually. The criteria and
methodologies used for impairment testing are those
initially used to measure the purchase price (percentage
- 135 -
Depreciation rate
Non depreciable
2%-3%
5%-10%
25%
25%
25%
Non depreciable
The portion of gains and losses exceeding 10% of the
greater of the two values below shall be recognised in
the income statement on a straight-line basis over a
period representing the expected average remaining
working-lives of the employees participating in the
plan :
the discounted value of the defined benefit
obligation at the balance sheet date (before
deducting plan assets), and
the fair value of the plan assets at the balance
sheet date.
An impairment loss must be recognised if the carrying
value exceeds the recoverable value (which is the
greater of the asset’s value in use and its fair value less
costs to sell).
When property or equipment is sold, the realised gains
or losses are recognised in the income statement. If
property or equipment is destroyed, the carrying
amount to be written off is immediately recognised in
the income statement.
E.
INVESTMENT PROPERTIES
In the case of defined contribution plans, the
contributions payable are expensed when the
employees render the corresponding service which
generally coincides with the year in which the
contributions are actually paid.
Investment property is property held to earn rentals or
for capital appreciation or both.
Investment property is recognised only when it is
probable that future economic benefits associated with
the investment property will flow to KBL epb and if its
cost can be measured reliably.
G.
These balance sheet headings include both current and
deferred tax assets and liabilities.
Investment properties are measured at cost less any
accumulated depreciation and impairment. They are
depreciated using the straight-line method over their
estimated useful life (average rate: 2% - 3%).
F.
TAX ASSETS AND TAX LIABILITIES
Current tax is the amount expected to be paid or
recovered, using the tax rate which has been enacted at
the balance sheet date.
PENSIONS
Deferred tax liabilities are recognised for all taxable
temporary differences between the carrying amount of
an asset or liability and its tax base. They are valued
using the tax rates in effect for the periods when the
assets are realised or the liabilities settled, on the basis
of the tax rates enacted or substantively enacted at the
balance sheet date.
In addition to the general and legally prescribed
retirement plans, the Bank maintains a certain number
of complementary systems in the form of both defined
contribution and defined benefit pension plans. Defined
benefit plans are those under which the Bank has a
legal or constructive obligation to pay further
contributions if the pension fund does not hold
sufficient assets to pay all employee benefits for the
current and past periods. Defined contribution plans are
those under which the Bank has no further legal or
constructive liability beyond the amount it pays into
the fund.
Deferred tax assets are recognised for the carryforward
of unused tax losses and unused tax credits and for all
deductible temporary differences between the carrying
value of the assets and liabilities and their tax base, to
the extent that it is probable that future taxable profit
will be available against which these losses, tax credits
and deductible temporary differences can be utilised.
In the case of defined benefit pension plans, the
pension cost in the income statement and liability on
the balance sheet are calculated in accordance with IAS
19, based on the Projected Unit Credit Method, which
sees each period of service as giving rise to an
additional unit of benefit entitlement. The calculations
are made each year by independent actuaries.
Where required by IAS 12, tax assets and liabilities are
offset.
Actuarial gains and losses are recognised using what is
known as the ‘corridor method’.
- 136 -
H.
PROVISIONS
Net interest income
A provision is recognised when and only when the
following three conditions are met:
KBL epb has a present obligation (at the reporting
date) as a result of a past event,
it is more likely than not that an outflow of
resources embodying economic benefits will be
required to settle this obligation, and
the amount of the obligation can be estimated
reliably.
I.
Interest is recognised prorata temporis using the
effective interest rate, which is the rate that exactly
discounts the estimated future cash payments or
receipts through the expected life of the financial
instrument or, when appropriate, a shorter period, to
the net carrying amount of the financial asset or
liability.
All interests paid and received on financial instruments
are recorded under the heading “Net interest income”
except interests on held-for-trading derivative
instruments, which are presented under the heading
“Net gains/losses on financial instruments at fair value”
in the income statement.
FINANCIAL GUARANTEES CONTRACTS
Financial guarantees contracts are initially recognised
at fair value and subsequently measured at the higher
of (i) the amount initially recognized less, when
appropriate, cumulative amortisation and (ii) the Bank’s
best estimate of the expenditure required to settle the
present obligation at the reporting date.
J.
Dividends
Dividends are recognised when the right of the
shareholder to receive the payment is established. They
are presented under the heading “Dividend income” in
the income statement irrespective of the IFRS category
of the related assets.
EQUITY
Equity is the residual interest in the assets of KBL epb
after all its liabilities have been deducted.
Rendering of services
Equity instruments have been differentiated from
financial instruments in accordance with the provisions
of IAS 32.
Revenue from services is recognised by reference to
the stage of completion at the balance sheet date.
According to this method, the revenue is recognised in
the periods when the services are provided.
The acquisition cost of KBL epb treasury shares that
have been or are being purchased is deducted from
equity. Gains and losses realised on sale or cancellation
of treasury shares are recognised directly in equity.
The revaluation reserve for available-for-sale financial
assets is included in equity until any impairment or
sale. In such a case, the gains and losses are transferred
to the income statement of the period.
As regards to cash flow hedges and hedges of a net
investment in a foreign operation, the portion of the
gain or loss on the hedging instrument that is
determined to be an effective hedge is recognised
directly in equity.
K.
REVENUE
KBL epb recognises revenue relating to ordinary
activities if and only if the following conditions are met:
it is probable that the economic benefits
associated with the transaction will flow to KBL
epb, and
the amount of revenue can be measured reliably.
The specific conditions below must also be met before
recognising the related revenue:
- 137 -
NOTE 3A – OPERATING SEGMENTS BY BUSINESS SEGMENT
KBL distinguishes between the following primary segments:
-
The ‘PRIVATE BANKING’ segment includes the advisory and wealth management activities provided to
KBL epb private clients.
-
The ‘GLOBAL INVESTOR SERVICES’ segment includes services provided to institutional clients. This
segment includes custodian bank and fund domiciliation and administration activities, paying agent
activities, central securities depository Clearstream / Euroclear activities, as well as intermediation and
portfolio management services for KBL epb institutional clients.
-
The ‘ALM ACTIVITIES' segment includes "Client Dealing and Treasury" activities, which represent the
extension of intermediation activities provided to KBL epb clients and operates cash management within
the Group by means of treasury activities, securities lending and repos / reverse repos, as well as 'Credit
& Securities' portfolios, which cover “credit” exposure (including direct loans to non-private clients of
KBL epb) and securities held on its own behalf by KBL epb.
-
The ‘OTHER’ segment includes support activity provided by KBL epb to the network of subsidiaries,
acting in its capacity as parent company, and all other elements not directly linked to the previous three
segments, including reallocation of excess equity, net of the cost of financing of the holdings, and
extraordinary elements not directly linked to other business segments.
The various items of the income statement include inter-segment transfers, calculated on an arm’s length or cost
recovery basis.
- 138 -
Income statement
GLOBAL
INVESTOR
SERVICES
PRIVATE
BANKING
In EUR million
Net interest income
ALM
ACTIVITIES
KBL epb
OTHER
2010 2011 2010 2011 2010 2011 2010 2011 2010 2011
13.9
16.9
15.2
15.9
58.9
45.8
10.9
12.2
98.9
90.8
-
-
-
-
4.2
1.2
39.9
39.8
44.1
41.0
Net gains/losses on financial
instruments designated at fair value
through profit or loss
2.2
1.3
5.2
5.3
24.7
-11.6
4.2
-12.9
36.3 -17.8
Net realised gains/losses on financial
assets and liabilities not measured at
fair value through profit or loss
2.2
0.3
1.1
0.1
13.0
13.4
5.9
56.1
22.2
69.9
Net fee and commission income
57.6
50.4
32.1
34.3
-1.1
-3.0
7.2
7.9
96.0
89.5
Other net income
-0.4
0.0
0.2
0.0
0.6
2.8
1.9
3.2
2.4
6.0
GROSS INCOME
75.5
69.0
53.9
55.6 100.3
48.5
70.1 106.3 299.8 279.4
Operating expenses
-56.9
-54.7
-29.2
-29.2
-21.8
-20.7
-68.4
0.1
-0.1
0.0
0.0
-0.2
-3.9
18.7
14.3
24.7
26.4
78.3
-8.5
-6.8
-8.4
-7.6
-22.1
10.2
7.5
16.3
18.8
56.1
Dividend income
Impairment
PROFIT BEFORE TAX
Income tax (expense) / income
PROFIT AFTER TAX
- 139 -
-38.3 -176.2 -142.9
-48.6 -170.3 -48.7 -174.2
23.9 -46.9 -102.3
-6.9
31.9
29.6
17.0 -14.9 -72.6
74.8 -37.7
-7.2
8.4
67.6 -29.3
Balance sheet
GLOBAL
INVESTOR
SERVICES
PRIVATE
BANKING
In EUR million
Cash and balances with central banks
2010
2011
2010
ALM
ACTIVITIES
2011
2010
KBL epb
OTHER
2011
2010
2011
2010
-
-
-
-
339
875
-
505
818
185
169
8,064
7,439
1,615
Held-for-trading
-
-
-
-
457
537
20
27
477
564
At fair value through profit or loss
-
-
-
-
14
15
-
-
14
15
Available-for-sale financial assets
302
532
115
104
3,437
1,953
1,237
1,136
5,092
3,724
Loans and receivables
203
286
70
66
4,156
4,934
291
513
4,720
5,799
-
-
-
-
-
-
66
44
66
44
-
-
-
-
-
-
54
81
54
81
Current tax assets
-
-
-
-
-
-
4
-
4
-
Deferred tax assets
-
-
-
-
-
-
49
81
49
81
-
-
-
-
-
-
14
13
14
13
87
85
12
11
6
6
-
-
106
101
-
-
-
-
-
-
115
125
115
125
Other assets
30
28
-
-
-
-
-
-
30
28
TOTAL ASSETS
622
931
197
180
8,409
8,319
1,798
1,939 11,026 11,369
1,827
1,723
2,000
2,417
2,079
2,493
3,549
3,299
9,454
9,932
-
-
-
-
236
286
28
9
264
295
1,827
1,723
2,000
2,417
1,783
2,133
3,505
3,289
9,115
9,563
-
-
-
-
60
74
16
-
76
74
-
-
-
-
-
-
8
6
8
6
173
138
-
-
-
-
-
-
173
138
2,000
1,861
2,000
2,417
2,079
2,493
3,558
3,305
Financial assets
Hedging derivatives
Tax assets
Investment properties
Property and equipment
Intangible assets
Financial liabilities
Held-for-trading
At amortised cost
Hedging derivatives
Provisions
Other liabilities
TOTAL LIABILITIES (excluding equity)
-
2011
339
875
1,720 10,369 10,146
9,636 10,076
Management monitors the operating results of its operating segments separately for the purpose of making
decisions about resource allocation and performance assessment. Segment performance is evaluated based on
operating profit or loss and is measured consistently with operating profit or loss in the annual accounts.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with
third parties.
NOTE 3B – OPERATING SEGMENTS BY GEOGRAPHIC SECTOR
The Bank carries out most of its activities in Western Europe.
- 140 -
NOTE 4 – NET INTEREST INCOME
In EUR thousand
31/12/2010
31/12/2011
267,648
138,305
43,292
37
220,760
101,968
75,168
30
Sub-total of interest income from financial assets not measured at fair value
through profit or loss
181,634
177,166
Financial assets held-for-trading
Net interest on hedging derivatives
Other financial assets at fair value through profit or loss
8,423
73,989
3,601
8,736
34,678
180
-168,774
-87,608
-967
-129,928
-85,297
-496
Sub-total of interest expense on financial liabilities not measured at fair
value through profit or loss
-88,575
-85,792
Net interest on hedging derivatives
-80,199
-44,136
98,873
90,832
31/12/2010
31/12/2011
39,926
4,156
44,082
39,770
1,191
40,961
BREAKDOWN BY PORTFOLIO
INTEREST INCOME
Available-for-sale financial assets
Loans and receivables
Other
INTEREST EXPENSE
Financial liabilities at amortised cost
Other
NET INTEREST INCOME
NOTE 5 – DIVIDEND INCOME
In EUR thousand
Participating interests
Other equity instruments available-for-sale
Other equity instruments held-for-trading
DIVIDEND INCOME
NOTE 6 – NET GAINS/LOSSES ON FINANCIAL INSTRUMENTS DESIGNATED AT FAIR VALUE
THROUGH PROFIT OR LOSS
In EUR thousand
Held-for-trading (including interest and valuation of trading derivatives)
Other financial instruments at fair value
Exchange differences
Fair value adjustments in hedge accounting
Fair value micro-hedging
Fair value of hedged items
Fair value of hedging items
NET GAINS/LOSSES ON FINANCIAL INSTRUMENTS
DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS
- 141 -
31/12/2010
31/12/2011
23,749
638
12,877
-975
-20,771
434
2,406
94
-975
11,635
-12,610
94
-8,675
8,769
36,289
-17,837
NOTE 7 – NET REALISED GAINS/LOSSES ON FINANCIAL ASSETS AND LIABILITIES NOT
MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS
In EUR thousand
31/12/2010
31/12/2011
22,171
16,903
5,268
-
21,646
13,557
8,089
-31
48,323
22,171
69,938
31/12/2010
31/12/2011
137,335
136,412
Asset management
92,670
96,108
Securities transactions
31,471
27,622
Other
13,195
12,683
-41,385
-46,883
-36,374
-42,673
Securities transactions
-3,480
-2,626
Other
-1,531
-1,584
95,950
89,529
31/12/2010
31/12/2011
2,393
5,986
2,641
743
-2,002
378
2,825
2,086
825
-210
-
Available-for-sale financial assets
Debt instruments
Equity instruments
Loans and receivables
Financial liabilities measured at amortised cost
NET REALISED GAINS/LOSSES ON FINANCIAL ASSETS AND LIABILITIES
NOT MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS
1)
EUR 48,3 million generated by the early redemption of an hybrid instrument
NOTE 8 – NET FEE AND COMMISSION INCOME
In EUR thousand
FEE AND COMMISSION INCOME
FEE AND COMMISSION EXPENSE
Asset management
NET FEE AND COMMISSION INCOME
NOTE 9 – OTHER NET INCOME
In EUR thousand
OTHER NET INCOME
Of which :
Net proceeds from precious metals transactions
Net proceeds from the sale of "Gestoland" building
Write-back of provisions
Withholding tax on dividends
Net proceeds from the partial sale of European Fund Administration
- 142 -
NOTE 10 – OPERATING EXPENSES
Operating expenses include staff costs, amortisation and depreciation of investment properties, amortisation and
depreciation of property and equipment and intangible assets, changes in provisions and general administrative
expenses.
General administrative expenses include in particular repair and maintenance expenses, advertising expenses,
rent, professional duties, IT costs and various (non-income) taxes.
In EUR thousand
Staff expenses
General administrative expenses
Depreciation and amortisation of property and equipment, intangible assets
and investment properties
Net provision allowances
OPERATING EXPENSES
31/12/2010
31/12/2011
-126,610
-39,916
-8,879
-95,684
-36,355
-9,971
-819
-176,224
-887
-142,897
31/12/2010
31/12/2011
1,047
938
379
223
134
311
326
195
120
297
NOTE 11 – STAFF
TOTAL AVERAGE NUMBER OF PERSONS EMPLOYED
(IN FULL-TIME EQUIVALENTS)
Breakdown by business segment (1)
Private Banking
Global Investor Services
ALM activities
Other
(1)
The breakdown of commercial, administrative and support staff has been made on the same basis than for
drawing up Note 3a on operating segments by business segment.
- 143 -
NOTE 12 – IMPAIRMENT
In EUR thousand
31/12/2010
31/12/2011
170
-48,917
-48,747
-2,514
-171,730
-174,244
(Impairment)/reversal of impairment of:
Loans and receivables
Available-for-sale financial assets
IMPAIRMENT
Impairment on loans and receivables
More detailed information on impairment is provided in the management report.
In EUR thousand
31/12/2010
31/12/2011
170
-2,514
101
69
-2,652
138
31/12/2010
31/12/2011
-48,917
-171,730
-334
-2,447
-48,583
-169,283
-46,200
-160,617
-46,200
-83,469
KBL Beteiligungs – Germany
-
-45,890
Theodoor Gilissen Bankiers – The Netherlands
-
-31,258
TOTAL
Breakdown by type
(Impairment)/reversal of impairment
Specific impairment on loans and receivables
Portfolio-based impairments
See also Note 20 – Impairment on loans and receivables
Impairment on available-for-sale financial assets
In EUR thousand
TOTAL
(Impairment)/reversal of impairment of:
Debt instruments
Equity instruments
On participating interests
KBL Richelieu Banque Privée – France
See also Note 19 – Impairment on available-for-sale financial assets
The values of the Bank’s subsidiaries as well as the values of goodwill in its annual accounts are subject to an
impairment test which is performed at least annually in the course of the fourth quarter.
These impairment tests are primarily based on the Discounted Cash Flow (DCF) method according to the
following main assumptions :
•
For all periods, cash flows are discounted at annual rate of 11.5%.
•
For the period covering the next three years, cash flows are based on each available subsidiary’s business
plan as approved by the KBL epb Executive Committee.
•
For the period from three years to ten years, two key assumptions are considered:
o Annual growth of the gross income by 5.0%.
o Annual growth of the operating expenses by 4.0%.
- 144 -
•
For the period after 10 years, a terminal value is calculated based on a long term (LT) growth rate of cash
flows of 5.0%. For reference, the combination in the terminal value of a [LT growth rate of 5% and a discount
rate of 11.5%] corresponds to an implied PER valuation at terminal value of “15.3x”.
Other cross-check methods such as the “NAV + multiple of AuM” are used to corroborate the results of the DCF
method.
NOTE 13 – INCOME TAX (EXPENSES) / INCOME
In EUR thousand
31/12/2010
31/12/2011
TOTAL
-7,165
8,399
BREAKDOWN BY TYPE
-7,165
8,399
-
4,616
-7,165
3,783
-4,462
6,506
BREAKDOWN BY MAJOR COMPONENTS:
-7,165
8,399
Profit before tax excluding branches
82,372
-28,536
Luxembourg income tax rate
28.80%
28.80%
-23,723
8,218
19,616
11,631
-526
-1,536
-
4,616
456
-
-
-11,860
-2,988
-2,669
16,558
181
Current tax
Deferred tax
of which: Losses carried forward
INCOME TAX CALCULATED AT THE LUXEMBOURG INCOME TAX RATE
Plus/minus tax effects attributable to:
Tax-free income
Other non-deductible expenses
Adjustments related to prior years
Adjustments opening deferred tax due to change in tax rate
Unused tax losses and unused tax credits
Other
INCOME TAX ADJUSTMENTS
Details of tax assets are given in Note 23.
In 2002, under Article 164 bis of the Luxembourg Income Tax Law (LIR), the Bank obtained approval for the
fiscal consolidation of the following subsidiaries : Kredietrust Luxembourg S.A., Financière et Immobilière S.A.,
Centre Europe S.A., Renelux (sold in 2007) and KB Lux Immo S.A..
In 2011, the Bank has not recognised EUR 11.9 million of deferred tax based on its available business plan as
approved by its Executive Committee and the remaining existing stock of deferred tax relating to 2008 loss. It
has therefore booked in 2011 EUR 6.5 million of deferred tax for losses carried forward.
- 145 -
NOTE 14 – CLASSIFICATION OF FINANCIAL INSTRUMENTS: BREAKDOWN BY PORTFOLIO
AND BY PRODUCT
•
Financial instruments are classified into several categories (“portfolios”). Details of these various categories
and the valuation rules linked to them are given in Note 2b, point b dealing with financial assets and
liabilities (IAS 39).
•
The balance sheet analyses below have been conducted at the clean price. Thus the accrued interest is
presented separately, except for trading derivatives, which are presented at the dirty price.
CARRYING AMOUNT
31/12/2010
Financial
instruments
at fair value
Held-for(FIFV)
trading
through
(HFT) assets profit or loss
ASSETS
In EUR million
LOANS AND ADVANCES TO
BANKS AND INVESTMENT
FIRMS
Availablefor-sale
(AFS) Loans and
financial receivables
assets
(L&R)
Hedging
derivatives
Total
-
-
-
4,235
-
4,235
-
14
-
482
-
496
Consumer credits
-
-
-
6
-
6
Mortgage loans
-
-
-
67
-
67
Term loans
-
-
-
253
-
253
Current accounts
-
-
-
109
-
109
Other
-
14
-
47
-
61
1
-
1,212
-
279
-
3,830
-
-
4,109
40
-
1,395
-
-
1,435
119
-
237
-
-
356
120
-
2,199
-
-
2,319
189
-
-
-
35
224
7
0
49
2
31
90
477
14
5,092
4,720
66
10,369
-
-
-
2,534
-
2,534
Loans and advances to
customers
EQUITY INSTRUMENTS
DEBT INSTRUMENTS
issued by
- government bodies
- banks
firms
and
investment
- corporates
FINANCIAL DERIVATIVES
ACCRUED INTEREST
TOTAL
Of which reverse repos
- 146 -
1,214
CARRYING AMOUNT
31/12/2011
ASSETS
In EUR million
Financial
instruments
at fair value
Availablefor-sale
(FIFV)
through
(HFT) assets profit or loss
(AFS)
financial
assets
Loans and
receivables
(L&R)
Hedging
derivatives
Total
Held-fortrading
LOANS AND ADVANCES
TO BANKS AND
INVESTMENT FIRMS
-
-
-
5,022
-
5,022
Loans and advances to
customers
-
15
-
769
-
784
Consumer credits
-
-
-
5
-
5
Mortgage loans
-
-
-
89
-
89
Term loans
-
-
-
483
-
483
Current accounts
-
-
-
128
-
128
Other
-
15
-
64
-
79
1
-
1,052
-
-
1,053
235
-
2,631
-
-
2,867
45
-
1,264
-
-
1,309
59
-
176
-
-
236
131
-
1,191
-
-
1,322
323
-
-
-
34
357
4
0
41
7
10
63
564
15
3,724
5,799
44
10,146
-
-
-
4,388
-
4,388
EQUITY INSTRUMENTS
Debt instruments
issued by
- government bodies
- banks and investment
firms
- corporates
FINANCIAL DERIVATIVES
ACCRUED INTEREST
TOTAL
Of which reverse repos
- 147 -
CARRYING AMOUNT
31/12/2010
(HFT) liabilities
Hedging
derivatives
Financial
liabilities at
amortised cost
Total
DEPOSITS FROM BANKS AND
INVESTMENT FIRMS
-
-
4,335
4,335
DEPOSITS FROM CUSTOMERS
-
-
3,898
3,898
Current accounts/demand deposits
-
-
2,626
2,626
Time deposits
-
-
1,252
1,252
Other deposits
-
-
20
20
DEBT CERTIFICATES
-
-
840
840
Deposit certificates
-
-
0
0
Customer savings bonds
-
-
4
4
Non-convertible bonds
-
-
3
3
Non-convertible subordinated
liabilities
-
-
833
833
239
59
-
298
24
-
-
24
0
-
-
0
24
-
-
24
0
17
41
58
264
76
9,115
9,454
-
-
1,220
1,220
LIABILITIES
In EUR million
FINANCIAL DERIVATIVES
SHORT SALES
Equity instruments
Debt instruments
ACCRUED INTEREST
TOTAL
Of which repos
Held-for-trading
- 148 -
CARRYING AMOUNT
31/12/2011
(HFT) liabilities
Hedging
derivatives
Financial
liabilities at
amortised cost
Total
DEPOSITS FROM BANKS AND
INVESTMENT FIRMS
-
-
4,917
4,917
DEPOSITS FROM CUSTOMERS
-
-
4,241
4,241
Current accounts/demand deposits
-
-
3,125
3,125
Time deposits
-
-
1,107
1,107
Other deposits
-
-
9
9
DEBT CERTIFICATES
-
-
385
385
Deposit certificates
-
-
0
0
Customer savings bonds
-
-
3
3
Debt certificates
-
-
114
114
Non-convertible bonds
-
-
6
6
Non-convertible subordinated
liabilities
-
-
262
262
267
57
-
324
28
-
-
28
0
-
-
0
28
-
-
28
0
17
19
36
295
74
9,563
9,932
-
-
751
751
LIABILITIES
In EUR million
FINANCIAL DERIVATIVES
SHORT SALES
Equity instruments
Debt instruments
ACCRUED INTEREST
TOTAL
Of which repos
Held-for-trading
- 149 -
FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table summarises the carrying amounts and fair values of the financial assets and liabilities not
measured at fair value (excluding accrued interest).
CARRYING AMOUNT
In EUR million
31/12/2010
FAIR VALUE
31/12/2011
31/12/2010
31/12/2011
ASSETS
Loans and advances to banks and investment
firms
4,235
5,022
4,236
5,023
482
769
482
769
6
5
6
5
67
89
67
89
Term loans
253
483
253
483
Current accounts
109
128
109
128
47
64
47
64
Deposits from banks and investment firms
4,335
4,917
4,336
4,918
Deposits from customers
3,898
4,241
3,896
4,241
Current accounts/demand deposits
2,626
3,125
2,625
3,125
Time deposits
1,252
1,107
1,252
1,107
20
9
20
9
840
385
830
366
Deposit Certificates
0
0
0
0
Customer savings bonds
4
3
4
3
Debt certificates
-
114
-
114
Non-convertible bonds
3
6
3
6
833
262
823
243
Loans and advances to customers
Consumer credits
Mortgage loans
Other
LIABILITIES
Other deposits
Debt certificates
Non-convertible subordinated liabilities
- 150 -
FAIR VALUE HIERARCHY
The Bank uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: quoted (unadjusted) price in active market for identical assets or liabilities;
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value
are observable, either directly or indirectly;
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are
not based on observable market data.
31/12/2010
In EUR million
Level 1
Level 2
Level 3
Accrued
interest
TOTAL
0
1
-
-
1
227
52
-
7
286
Derivatives held-for-trading
0
189
-
-
189
Financial assets designated at fair value through
profit or loss
-
14
-
0
14
152
4
38
-
194
1,950
1,849
-
49
3,848
-
35
-
31
66
2,329
2,145
38
87
4,599
0
0
-
-
0
21
2
-
0
24
Derivatives held-for-trading
-
239
-
-
239
Hedging derivatives
-
59
-
17
76
21
301
-
17
339
ASSETS
Financial assets at fair value
through profit or loss
Equity instruments held-for-trading
Debt instruments held-for-trading
Available-for-sale financial assets
Equity instruments
Debt instruments
Hedging derivatives
TOTAL
LIABILITIES
Financial liabilities at fair value through profit
or loss
Equity instruments held-for-trading
Debt instruments held-for-trading
TOTAL
- 151 -
31/12/2011
In EUR million
Level 1
Level 2
Level 3
Accrued
interest
Total
0
1
-
-
1
151
84
-
4
239
Derivatives held-for-trading
-
323
-
-
323
Instruments designated at fair value through profit or loss
-
15
-
0
15
168
18
-
-
186
1,878
753
-
41
2,673
-
34
-
10
44
2,197
1,226
-
55
3,481
-
0
-
-
0
28
0
-
0
28
Derivatives held-for-trading
-
267
-
-
267
Hedging derivatives
-
57
-
17
74
28
324
-
17
369
Financial instruments
designated
at fair value
through profit or loss
Available-for-sale
financial assets
Total
4
33
36
ASSETS
Financial assets at fair value
through profit or loss
Equity instruments held-for-trading
Debt instruments held-for-trading
Available-for-sale financial assets
Equity instruments
Debt instruments
Hedging derivatives
TOTAL
LIABILITIES
Financial liabilities at fair value through profit or loss
Equity instruments held-for-trading
Debt instruments held-for-trading
TOTAL
Level 3 financial instruments measured at fair value
In EUR million
BALANCE AS AT 01/01/2010
Total profit / loss for the year
- recognised in the income statement
0
-2
-2
- recognised in the other comprehensive income
-
1
1
-
6
6
-4
-1
-5
Transfers from / to level 3
-
-
-
BALANCE AS AT 31/12/2010
-
38
38
Purchases
Sales
- 152 -
In EUR million
Financial instruments
designated at fair
value through profit
or loss
Available-for-sale
financial assets
Total
-
38
38
BALANCE AS AT 01/01/2011
Total profit / loss for the year
- recognised in the income statement
- recognised in the other comprehensive
income
Purchases
Sales
Transfers from / to level 3
BALANCE AS AT 31/12/2011
-
0
0
-
-38
-
-38
-
Total profit / loss for the year recognised in
the income statement and relating to assets
held as at 31/12/2011
-
0
0
Transfers between the level 1 and level 2 categories
Transfers between the level 1 and level 2 categories which occur in 2011 were not significant. Reasons for the
transfers were mainly linked to evolution in the liquidity of the related instruments.
No transfer between the level 1 and level 2 categories occurred in 2010.
GOVERNEMENT BONDS BY COUNTRY
Available-for-sale financial assets
In EUR million
31/12/2010
Austria
Bulgaria
Belgium
Czech Republic
Cyprus
Finland
France
Germany
Greece
Ireland
Italy
Luxembourg
The
Netherlands
Poland
Portugal
Slovakia
Spain
Sweden
Supranational
Rest
Total
Nominal
300
10
47
15
1
156
94
Carrying
amount
308
10
50
16
1
158
97
230
108
21
256
112
1.349
237
109
22
266
119
1.394
Held-for-trading assets
AvailableRelated
for-sale
hedging
reserve Impairment derivatives
3
-3
-0
-0
0
1
-0
-0
3
1
3
-2
1
7
11
27
- 153 -
-1
-1
-3
2
-1
-4
Nominal
1
4
0
0
7
Carrying
amount
1
4
0
0
7
0
22
7
40
0
22
6
40
In EUR million
31/12/2011
Available-for-sale financial assets
Maturity
Austria
2012
2013 or 2014
2017 and later
Belgium
2012
2013 or 2014
2015 or 2016
2017 and later
Cyprus
2012
France
2012
2013 or 2014
2015 or 2016
2017 and later
Germany
2013 or 2014
2015 or 2016
2017 and later
Greece
2012
2013 or 2014
Italy
2012
2013 or 2014
Luxembourg
2012
2013 or 2014
2015 or 2016
2017 and later
The Netherlands
2012
2013 or 2014
2015 or 2016
2017 and later
Spain
2012
2013 or 2014
2015 or 2016
Sweden
2012
2013 or 2014
Supranational
2012
2013 or 2014
2015 or 2016
2017 and later
Rest
2012
2013 or 2014
2015 or 2016
2017 and later
TOTAL
Nominal
Carrying
amount
Held-for-trading assets
Availablefor-sale
reserve
Impairment
Related
hedging
derivative
s
Nominal
Carrying
amount
32
32
267
170
47
50
10
10
175
40
93
20
22
47
9
15
23
1
1
5
0
4
94
44
50
101
44
20
28
9
94
50
21
23
21
21
350
92
120
139
24
5
19
34
34
269
172
48
50
10
10
183
42
97
21
24
52
10
16
26
1
1
4
0
4
101
46
55
106
45
21
30
10
94
50
22
23
22
22
363
95
125
144
23
5
18
1
1
-3
1
0
-4
0
-0
3
0
1
1
1
2
0
1
1
0
0
0
-0
3
2
1
4
0
1
2
1
-1
-2
0
0
1
1
3
1
3
-1
4
0
4
-1
-1
-1
-0
-4
-0
-4
0
-0
-4
-4
-1
-1
-5
-5
0
-
0
0
0
0
0
3
2
1
40
1
3
20
17
1
0
0
0
1
0
0
0
0
0
3
2
1
41
1
3
21
17
0
0
0
0
0
1,221
1,264
17
-2
-14
44
45
- 154 -
NOTE 15 – AVAILABLE-FOR-SALE FINANCIAL ASSETS AND LOANS AND RECEIVABLES:
BREAKDOWN BY PORTFOLIO AND QUALITY
In EUR million
31/12/2010
Unimpaired assets
Impaired assets
Impairment
TOTAL
In EUR million
31/12/2011
Unimpaired assets
Impaired assets
Impairment
TOTAL
Available-for-sale
(AFS) financial
assets
Loans and
receivables
(L&R)
TOTAL
4,796
471
-175
5,092
4,719
98
-97
4,720
9,514
569
-272
9,812
Available-for-sale
(AFS) financial
assets
Loans and
receivables
(L&R)
TOTAL
3,335
730
-341
3,724
5,797
34
-32
5,799
9,133
764
-373
9,523
- 155 -
NOTE 16 – FINANCIAL ASSETS AND LIABILITIES: BREAKDOWN BY PORTFOLIO AND
RESIDUAL MATURITY
Financial
instruments
at fair value
(HFT) assets
(FIFV)
through
profit or
loss
Less than or equal to 1 year
238
-
More than 1 but less than or
equal to 5 years
163
ASSETS
In EUR million
Held-fortrading
Availablefor-sale
Loans and
receivables
(AFS)
financial
assets
(L&R)
Hedging
derivatives
TOTAL
741
4,562
1
5,543
14
2,057
67
0
2,302
68
-
1,032
89
34
1,222
Indefinite period
1
-
1,212
-
-
1,213
Accrued interest
7
0
49
2
31
90
477
14
5,092
4,720
66
10,369
Less than or equal to 1 year
319
-
564
5,541
0
6,424
More than 1 but less than or
equal to 5 years
182
15
1,194
147
34
1,572
57
-
873
103
-
1,034
Indefinite period
1
-
1,052
-
-
1,053
Accrued interest
4
0
41
7
10
63
564
15
3,724
5,799
44
10,146
31/12/2010
More than 5 years
TOTAL
31/12/2011
More than 5 years
TOTAL
LIABILITIES
In EUR million
31/12/2010
Less than or equal to 1 year
More than 1 but less than or
equal to 5 years
More than 5 years
Indefinite period
Accrued interest
TOTAL
31/12/2011
Less than or equal to 1 year
More than 1 but less than or
equal to 5 years
More than 5 years
Indefinite period
Accrued interest
TOTAL
Held-for-trading
(HFT) liabilities
Hedging
derivatives
Liabilities at
amortised cost
TOTAL
194
1
8,641
8,835
51
27
30
109
17
1
0
264
31
17
76
234
168
41
9,115
283
169
58
9,454
218
5
9,172
9,396
53
32
368
453
24
0
0
295
19
17
74
3
0
19
9,563
46
0
36
9,932
- 156 -
NOTE 17 – SECURITIES LENDING AND SECURITIES GIVEN IN GUARANTEE
The Bank regularly carries out transactions in which the assets transferred do not qualify for derecognition under
IAS 39. This mainly concerns the following operations:
•
•
•
repurchase agreements ("repo"),
securities lending,
securities given as collateral (in particular for securities borrowing or to guarantee credit lines received).
These transactions can be broken down as follows:
Repo (**)
Securities lending
Other
Debt
instruments
Debt
instruments
Equity
instruments
Debt
instruments
-
6
-
-
Available-for-sale financial assets
257
120
2
1,456
Total financial assets not derecognised
257
126
2
1,456
Other (*)
955
1,301
0
2,237
1,212
1,427
2
3,693
In EUR million
31/12/2010
Held-for-trading financial assets
TOTAL
In EUR million
Repo (**)
Securities lending
Debt
instruments
Debt
instruments
Other
Equity
instruments
Debt
instruments
31/12/2011
Held-for-trading financial assets
-
10
-
51
Financial assets at fair value through
profit or loss
4
-
-
-
Available-for-sale financial assets
450
88
-
1,312
Total financial assets not derecognised
455
98
-
1,363
Other (*)
284
494
31
2,424
TOTAL
739
592
31
3,787
(*) The item ‘Other’ relates to securities borrowed or received as collateral for other operations.
(**) The carrying amount of debts associated with repo operations is available in Note 14.
- 157 -
NOTE 18 – SECURITIES RECEIVED IN GUARANTEE
The Bank mainly receives securities as collateral in relation to its reverse repurchase agreement operations and
securities lending.
These securities are generally transferred under full ownership and the Bank is able to re-use them in other
operations.
The fair value of these guarantees can be broken down as follows:
In EUR million
31/12/2010
31/12/2011
Reverse repurchase agreements
2,529
4,508
Collateral received in securities lending
1,322
563
TOTAL
3,851
5,072
51
74
1
1
1,633
633
604
1,791
2,289
2,499
Of which, transferred to:
Repurchase agreements
Securities lent
Collateral given for securities borrowing
Other
TOTAL
NOTE 19 – IMPAIRMENT OF AVAILABLE-FOR-SALE FINANCIAL ASSETS
In EUR million
Debt instruments
Equity instruments
CHANGES
BALANCE AS AT 01/01/2010
Changes affecting the income statement
Allowances
Reversals
Changes not affecting the income statement
Securities sold / matured
Other
BALANCE AS AT 31/12/2010
54
0
3
-3
-36
-34
-2
19
105
49
49
3
3
156
BALANCE AS AT 01/01/2011
Changes affecting the income statement
Allowances
Reversals
Changes not affecting the income statement
Securities sold / matured
Other
BALANCE AS AT 31/12/2011
19
2
3
0
-3
-3
18
156
169
169
-3
-2
-1
323
- 158 -
NOTE 20 – IMPAIRMENT OF LOANS AND RECEIVABLES
The annex to the management report contains information relating to non-performing receivables and the
management of the related impairments.
In EUR million
31/12/2010
31/12/2011
TOTAL (BALANCE SHEET)
97
32
BREAKDOWN BY TYPE
Specific impairments on loans and receivables
Collective impairment
97
95
1
32
31
1
BREAKDOWN BY COUNTERPARTY
Loans and advances to banks
Loans and advances to customers
97
97
32
32
In EUR million
Specific
impairments on
loans and
receivables
Collective
impairment
TOTAL
99
0
0
0
-3
-7
4
95
1
0
0
1
100
0
0
0
-3
-7
4
97
Specific
impairments on
loans and
receivables
Collective
impairment
Total
95
3
3
0
-67
-67
0
31
1
0
0
0
1
97
2
3
0
-67
-67
0
32
CHANGES
BALANCE AS AT 01/01/2010
Changes affecting the income statement
Allowances
Reversals
Changes not affecting the income statement
Use of provision
Other / Change impact
BALANCE AS AT 31/12/2010
In EUR million
CHANGES
BALANCE AS AT 01/01/2011
Changes affecting the income statement
Allowances
Reversals
Changes not affecting the income statement
Use of provision
Other / Change impact
BALANCE AS AT 31/12/2011
- 159 -
NOTE 21 – DERIVATIVES
The notional value of the foreign-exchange contracts represents the nominal to be delivered.
HELD-FOR-TRADING
31/12/2010
In EUR million
TOTAL
Fair value
Assets
Liabilities
FAIR-VALUE MICRO-HEDGING
Fair value
Notional
value
Assets
Notional
value
Liabilities
189
239
26,208
66
76
1,657
88
97
19,989
66
73
1,648
85
94
19,342
66
73
1,648
Futures
0
0
78
-
-
-
Other
3
3
569
-
-
-
81
121
5,601
-
3
9
80
121
5,591
-
-
-
Foreign exchange options
0
0
1
-
-
-
Foreign exchange futures
0
0
3
-
-
-
Cross currency swaps
-
-
-
-
3
9
Other
0
0
7
-
-
-
20
20
584
-
-
-
Equity futures
0
0
29
-
-
-
Equity options
2
2
44
-
-
-
18
18
510
-
-
-
1
1
35
-
-
-
INTEREST RATE CONTRACTS
Interest rate swaps
FOREIGN EXCHANGE
CONTRACTS
Foreign exchange forwards
EQUITY CONTRACTS
Other
COMMODITIES AND OTHER
CONTRACTS
- 160 -
HELD-FOR-TRADING
In EUR million
31/12/2011
TOTAL
Fair value
Assets
Liabilities
FAIR-VALUE MICRO-HEDGING
Fair value
Notional
value
Assets
Liabilities
Notional
value
323
267
22,146
44
74
1,208
75
92
13,207
44
71
1,198
0
0
32
-
-
-
71
86
12,550
44
71
1,084
Futures
-
1
80
-
-
-
Other
4
4
544
0
0
114
206
140
8,308
-
3
10
206
140
8,294
-
-
-
Foreign exchange futures
0
0
7
-
-
-
Cross currency swaps
-
-
-
-
3
10
Other
1
0
6
-
-
-
41
34
610
-
-
Equity futures
0
0
3
-
-
-
Equity options
4
4
192
-
-
-
37
30
416
-
-
-
1
1
21
-
-
INTEREST RATE CONTRACTS
Options
Interest rate swaps
FOREIGN EXCHANGE
CONTRACTS
Foreign exchange
forwards
EQUITY CONTRACTS
Other
COMMODITIES AND
OTHER CONTRACTS
The notional value of the foreign-exchange contracts represents the nominal to be delivered.
- 161 -
NOTE 22 – OTHER ASSETS
The heading ‘Other assets’ covers various short-term receivables such as dividends and coupons that clients
bring to KBL epb to be cashed and the value of which has already been paid.
NOTE 23 – TAX ASSETS
In EUR million
31/12/2010
31/12/2011
4
-
49
81
Losses carried forward
58
64
Provisions
-22
-22
Available-for-sale financial instruments
-5
22
Other
19
16
54
81
CURRENT TAX ASSETS
DEFERRED TAX ASSETS
TAX ASSETS
Changes in deferred tax assets and liabilities are not equal to the deferred tax charge recognised in the income
statement during the year. This is mainly due to the deferred tax linked to the recognition in the revaluation
reserve of fair value changes in unimpaired available-for-sale financial instruments.
- 162 -
NOTE 24 – INTANGIBLE ASSETS
Goodwill
Software
developed
in-house
Software
purchased
TOTAL
84
10
0
94
Acquisitions
-
19
8
27
Disposals
-
-4
-
-4
Depreciation
-
-2
0
-2
Impairment
-
-
-
-
Allowances
-
-
-
-
Reversals
-
-
-
-
-
-
-
-
84
22
8
115
-
-6
-1
-7
84
22
8
115
Acquisitions
-
13
0
13
Disposals
-
0
0
0
Depreciation
-
-1
-2
-3
Impairment
-
-
-
-
Allowances
-
-
-
-
Reversals
-
-
-
-
-
0
-
0
84
35
6
125
-
-7
-1
-8
In EUR million
CHANGES
BALANCE AS AT 01/01/2010
Other
BALANCE AS AT 31/12/2010
Of which: cumulative amortisation
and impairment
BALANCE AS AT 01/01/2011
Other
BALANCE AS AT 31/12/2011
Of which: cumulative amortisation
and impairment
- 163 -
NOTE 25 – PROPERTY AND EQUIPMENT AND INVESTMENT PROPERTIES
In EUR million
PROPERTY AND EQUIPMENT
INVESTMENT PROPERTIES
Net carrying value
Fair value
Investment properties – Rental income
31/12/2010
31/12/2011
106
101
14
21
1
13
22
2
Land and
buildings
IT
equipment
Other
equipment
Total
property and
equipment
Investment
properties
91
4
13
109
14
Acquisitions
2
0
1
4
0
Disposals
-
0
0
0
-
Depreciation
-5
0
-1
-6
0
Impairment
-
-
-
-
-
Allowances
-
-
-
-
-
Reversals
-
-
-
-
-
0
-2
2
0
0
BALANCE AS AT 31/12/2010
89
1
15
106
14
Of which: cumulative amortisation and impairment
-56
-4
-9
-69
-7
BALANCE AS AT 01/01/2011
89
1
15
106
14
Acquisitions
2
0
1
3
-
Disposals
-1
-
0
-1
0
Depreciation
-5
0
-2
-7
0
Impairment
-
-
-
-
-
Allowances
-
-
-
-
-
Reversals
-
-
-
-
0
0
0
0
0
BALANCE AS AT 31/12/2011
85
1
14
101
13
Of which: cumulative amortisation and impairment
-60
-4
-11
-75
-8
CHANGES
BALANCE AS AT 01/01/2010
Other
Other
- 164 -
NOTE 26 – PROVISIONS
In EUR million
Specific
impairment
for credit
commitments
Other
provisions (1)
TOTAL
0
0
0
10
1
1
0
-2
8
10
1
1
0
-2
8
BALANCE AS AT 01/01/2010
Changes affecting the income statement
Allowances
Reversals
Other changes
BALANCE AS AT 31/12/2010
(1)
The column ‘Other provisions’ mainly contains provisions for the expenses relating to disputes, consultancy and miscellaneous fees.
In EUR million
Specific
impairment
for credit
commitments
Other
provisions (1)
TOTAL
0
0
0
0
0
8
1
2
-2
-3
6
8
1
3
-2
-3
6
BALANCE AS AT 01/01/2011
Changes affecting the income statement
Allowances
Reversals
Other changes
BALANCE AS AT 31/12/2011
(1)
The column ‘Other provisions’ mainly contains provisions for the expenses relating to disputes, consultancy and miscellaneous fees.
NOTE 27 – OTHER LIABILITIES
The heading ‘Other liabilities’ in particular covers various items payable in the short term such as coupons and
redeemable securities as paying agent.
The net liabilities related to staff pension funds (see Note 28) and restructuration plans are also included in this
item.
- 165 -
NOTE 28 – RETIREMENT BENEFIT OBLIGATIONS
In addition to the legally prescribed plans, KBL epb maintains various complementary pension plans, of both the
defined contribution and defined benefit kind.
The staff of KBL epb is covered by means of a number of funded and insured pension plans most of which are
defined-benefit plans. In order to be able to participate in some of these plans, a minimum period of service with
KBL epb is required and the benefits may also depend on the employees' years of affiliation to the plans as well
as on their remuneration in the years before retirement. The annual funding requirements for these various
complementary pension plans are determined based on actuarial cost methods.
Defined benefit plans
In EUR million
31/12/2010
31/12/2011
DEFINED BENEFIT PLAN OBLIGATIONS
Value of obligations as at 01/01
Current service cost
Interest cost
Plans amendments
Actuarial gains/(losses)
Benefits paid
Other
Value of obligations as at 31/12
59
2
2
2
-7
58
58
3
3
-1
-3
59
FAIR VALUE OF PLAN ASSETS
Fair value of assets as at 01/01
Actual return on plan assets
Employer contributions
Plan participants contributions
Benefits paid
Other
Fair value of assets as at 31/12
Of which: financial instruments issued by KBL epb
45
3
3
1
-7
45
-
45
-3
3
1
-3
42
FUNDED STATUS
Plan assets in excess of defined benefit obligations
Unrecognised net actuarial gains
Unrecognised past service costs
Unrecognised assets
Plan over-/(under-) funding
-14
9
-1
-6
-17
12
-1
-6
-6
-3
3
0
-6
-6
-3
3
0
-6
CHANGES RELATING TO NET LIABILITY
Net liability as at 01/01
Net period cost in the income statement
Employer contributions
Other
NET LIABILITY AS AT 31/12
- 166 -
In EUR million
31/12/2010
31/12/2011
Current service cost
-2
-3
Interest cost
-2
-3
Expected return on plan assets
2
2
Adjustments to asset limits recognised
0
0
Amortisation of unrecognised past service costs
-
-
Amortisation of unrecognised net actuarial (gains)/losses
0
0
Other
-
-
-3
-3
7.03%
-6.55%
Discount rate
4.15%
4.10%
Expected rate of return on plan assets
4.00%
4.00%
Expected rate of salary increase
3.00%
3.00%
Expected rate of pension increase
2.00%
2.00%
AMOUNTS RECOGNISED IN THE INCOME STATEMENT
NET PERIOD COST IN THE INCOME STATEMENT
Actual return on plan assets (in %)
PRINCIPAL ACTUARIAL ASSUMPTIONS USED
DEFINED BENEFIT PLANS
In EUR million
31/12/2007
31/12/2008
31/12/2009
31/12/2010
31/12/2011
Year-end amount of liability
55.2
56.1
58.5
58.3
58.9
Year-end fair value of assets
45.3
39.2
45.1
44.5
42.2
Plan assets in excess of
obligations
-10.0
-16.9
-13.4
-13.8
-16.7
-7.0
-6.5
-6.1
-5.8
-5.5
Plan excess/(under-) funding
The estimate of the employer contribution payable to the defined benefit pension plan assets for 2012 is EUR 4.1
million.
DEFINED CONTRIBUTION PLANS
In EUR million
Amount recorded in the income statement
- 167 -
31/12/2010
31/12/2011
1
1
NOTE 29 – EQUITY
The subscribed and paid-up capital is EUR 187.2 million, represented by 18,186,877 ordinary shares without par
value and by 1,949,711 non-voting preference shares without par value. Following article 6 of the Bank’s articles
of incorporation, the Board of Directors is authorized to increase the subscribed and paid-up capital to maximum
EUR 300 million by issuing ordinary shares until 25 April 2012.
Holders of preference shares are entitled to receive an initial dividend of EUR 0.25 per share, as established in
the Bank’s articles of association, and are therefore guaranteed a minimum annual return. If there are no profits,
this dividend entitlement is carried forward to subsequent periods. Any profits remaining once this first dividend
has been paid are shared out between all shareholders, whether they hold ordinary or preference shares, in such
a way that both categories of shareholders ultimately receive an identical dividend. The Bank is thus twice
indebted of EUR 0.5 million to preference shareholders for 2010, where no dividend has been paid-up and for
2011, if the Annual General Meeting approves the proposal of the Board of Directors to allocate the loss in
deduction of the retained earnings (see Note 30).
The Bank’s articles of association specify that, if the Bank is wound up, holders of preference shares are
guaranteed repayment of the capital initially invested, that is EUR 14.56. Holders of preference shares are not
however entitled to receive a share of any accumulated reserves.
As at 31 December 2011, the legal reserve is EUR 18.7 million representing 10% of the paid-up capital, the free
reserves and the reserve for the reduction of wealth tax amount to EUR 752.5 million and EUR 29.9 million
respectively. The retained earnings amount to EUR 67.6 million.
In number of shares
31/12/2010
31/12/2011
TOTAL NUMBER OF SHARES ISSUED
Ordinary shares
Preference shares
Of which: those that entitle the holder to a dividend payment
Of which: treasury shares, including commitments
Of which: shares representing equity under IFRS
20,136,588
18,186,877
1,949,711
20,135,744
844
20,135,744
20,136,588
18,186,877
1,949,711
20,135,744
844
20,135,744
CHANGES
Ordinary shares
Preference shares
TOTAL
18,186,877
18,186,877
1,949,711
1,949,711
20,136,588
20,136,588
BALANCE AS AT 01/01/2011
Cancellation of shares bought back
BALANCE AS AT 31/12/2011
NOTE 30 – RESULT ALLOCATION PROPOSAL
At its meeting on 22 February 2012, the Board of Directors proposes to allocate the 2011 loss of EUR 29.3
million in deduction of the retained earnings.
On 21 March 2012, this affectation will be submitted to the approval of the Annual General Meeting.
- 168 -
NOTE 31 – LOANS COMMITMENTS, FINANCIAL GUARANTEES AND OTHER COMMITMENTS
In EUR million
Confirmed credits, unused
Financial guarantees
Other commitments (securities issuance facilities, spot transaction settlement, etc.)
TOTAL
31/12/2010
31/12/2011
470
233
594
1,297
916
38
39
993
In the course of 2000, several (current and former) directors, managers and members of KBL epb staff, were
charged by a Belgian examining magistrate with offences relating to a tax suit as a result of their professional
activities at the Bank. The case was brought before the Council Chamber of the Court of Brussels on 24 January
2006. After the order of this court on 11 January 2008, six persons from KBL epb were referred to the criminal
court.
The case was brought before the Brussels Criminal Court on 3 April 2009. After several weeks of hearings where
it was exclusively pleaded that the investigation had been conducted in an improper and even illegal manner, a
judgement was issued on 8 December 2009. The Court considered that the evidence on which all the legal
proceedings were based had been introduced into the procedure in a seriously irregular or even illegal manner by
the policemen and by the magistrates in charge of the enquiry. The flaws were so serious that they were
considered to have a structural effect on the investigation and so the whole legal suit was declared invalid and
the proceedings inadmissible.
As a result, all the accused were discharged from all proceedings.
On 10 December 2009, the Public Prosecutor filed an appeal against this judgement. The proceedings were then
brought before the Court of Appeal of Brussels. On 16 September 2010, the Court of Appeal, after hearing the
pleadings of the defence, decided to split the proceedings in two: the admissibility of the prosecution would be
judged first, followed by a separate decision on the merits of the accusation. Pleadings took place from 16
September 2010 to 8 October 2010. In its arrest dated 10 December 2010, the Court of Appeal confirmed the
judgment of the Court dated 8 December 2009 and ruled that the legal suit against all accused persons were
inadmissable.
Two recourses against the decision of the Court of Appeal were filed before the Supreme Court ("pourvois en
cassation") : one by the Public Prosecutor on 20 December 2010 and the other by the Belgian State on 24
December 2010. On 31 May 2011, the Supreme Court rejected both recourses. This decision finally closes the
KBL case.
NOTE 32 – ASSETS UNDER MANAGEMENT
Total assets under management as at 31 December 2011 were 11.1 EUR billion, of which EUR 6.1 billion relates
to clients in the private banking sector (2010: EUR 12.2 billion, of which EUR 6.9 billion related to the private
banking sector).
- 169 -
NOTE 33 – RELATED PARTY TRANSACTIONS
‘Related parties’ refers to the parent company of KBL epb, its subsidiaries and key management personnel.
Transactions with related parties are carried out under conditions equivalent to those applicable to transactions
subject to conditions of normal competition.
Transactions with associates are not included below because they are not material.
In EUR million
31/12/2010
31/12/2011
FINANCIAL ASSETS
3,293
1,798
of which financial assets with KBC Group
1,971
435
79
138
-
-
Available-for-sale financial assets
2,077
1,111
Loans and receivables
1,070
506
66
44
2,967
3,151
284
246
70
52
2,869
3,056
28
44
Net interest income
23
14
Dividends
40
40
Net fee and commission income
8
-6
Other net income
1
1
Operating expenses
8
7
-48
-162
31/12/2010
31/12/2011
Amount of remuneration to key management personnel of KBL epb on
the basis of their activity, including the amounts paid to former key
management personnel
10
9
Credit facilities and guarantees granted
36
17
Loans outstanding
27
8
0
0
27
21
-
-
Held-for-trading
At fair value through profit or loss
Hedging derivatives
FINANCIAL LIABILITIES
of which financial liabilities with KBC Group
Held-for-trading
At amortised cost
Hedging derivatives
INCOME STATEMENT
Impairment of financial assets not measured at fair value through
profit or loss
WITH KEY MANAGEMENT PERSONNEL
Guarantees outstanding
Pension commitments
Expenses for defined contribution plans
- 170 -
NOTE 34 – SOLVENCY
The table below discloses the solvency ratios calculated according to the IFRS definition of own funds and
applying the prudential filters as defined by CSSF circular 06/273 as amended.
In EUR million
31/12/2010
31/12/2011
REGULATORY CAPITAL
1,662
1,413
TIER 1 CAPITAL
1,349
1,193
1,279
1,347
Hybrid capital
184
-
Intangible assets
-115
-125
-0
-0
Negative revaluation of AFS bonds (1)
-
-
Audited net loss
-
-29
360
268
Preference shares
30
30
Positive revaluation of AFS shares
45
25
285
213
DEDUCTIONS
-47
-47
OVERALL OWN FUNDS REQUIREMENTS
361
289
309
255
Exchange risk
11
1
Position risk linked to debt securities trading
14
9
Position risk linked to equities
0
0
Settlement risk linked to trading securities
-
0
26
24
Basic solvency ratio (Tier 1 ratio)
29.37%
32.38%
Solvency ratio (CAD ratio)
36.82%
39.14%
Capital and reserves (including profit/loss carried forward)
Treasury shares
TIER 2 CAPITAL
Subordinated liabilities
Credit risk, counterparty risk, securitisation and incomplete transaction
risk
Operational risk
SOLVENCY RATIOS
(1)
In July 2009, KBL epb notified the Commission de Surveillance du Secteur Financier (CSSF) of its choice to cease including unrealised
profits or losses on available-for-sale debt instruments when calculating its prudential capital figures.
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NOTE 35 – MAXIMUM CREDIT RISK EXPOSURE AND COLLATERAL RECEIVED TO MITIGATE
MAXIMUM CREDIT RISK EXPOSURE
In EUR million
ASSETS
Balances with central banks
Financial assets
Held-for-trading
At fair value through profit or loss
Available-for-sale financial assets
Loans and receivables
Hedging derivatives
Tax assets
Other assets
OFF-BALANCE SHEET ITEMS
Loans commitments
Financial guarantees
Other commitments (securities issuance facilities, spot transaction
settlement, etc.)
MAXIMUM CREDIT RISK EXPOSURE
31/12/2010
31/12/2011
10,777
324
10,369
477
11,112
857
10,146
564
14
15
5,092
4,720
3,724
5,799
66
44
54
30
81
28
1,297
993
470
916
233
38
594
39
12,074
12,106
For the instruments measured at fair value, the amounts disclosed above represent the current credit risk
exposure and not the maximum credit risk that could apply as a consequence of future changes in the estimates
made.
COLLATERAL RECEIVED TO MITIGATE
THE MAXIMUM EXPOSURE TO CREDIT RISK
In EUR million
Equity
Debt instruments
Loans and advances
of which designated at fair value
Derivatives
Other (including loans commitments given, undrawn amount)
COLLATERAL RECEIVED TO MITIGATE
THE MAXIMUM EXPOSURE TO CREDIT RISK
31/12/2010
31/12/2011
1,285
2,748
186
12
278
4,677
249
11
4,232
5,214
The amount and type of collateral required depend on the type of business considered and the Bank’s assessment
of the debtor’s credit risk.
The main types of collateral received are as follows:
•
•
•
cash,
securities (in particular for reverse repo operations and securities lending), and
other personal and/or collateral guarantees (mortgages).
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These guarantees are monitored on a regular basis to ensure their market value remains adequate as regards the
assets they are intended to cover. If a guarantee is noted to be insufficient, margin calls are made in accordance
with the agreements signed with the various counterparties concerned.
Following the Bank’s request, the CSSF has approved an exemption from including in its calculation of the large
risks exposures, in accordance with Part XVI, point 24 of the CSSF Circular 06/273, as amended, the risks to
which the Bank is exposed within the KBC Group. The exposures on related parties are disclosed in Note 33.
NOTE 36 – RISK MANAGEMENT
Information on risk management (credit risk, market risks, operational risks, etc) is given in the
appendix to the management report.
NOTE 37 – AUDIT FEES
in EUR thousand
Standard audit services
Other services
TOTAL
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31/12/2010
31/12/2011
643
643
627
25
652
NOTE 38 – SIGNIFICANT SUBSIDIARIES
As at 31 December 2011, the list of the consolidated companies in which the Bank has a significant holding of at
least 20% of the capital is as follows :
EQUITY
NAME AND HEAD OFFICE
Brown, Shipley & Co, Ltd – U.K. (1) and (3)
CAPITAL
HELD
Excluding result
of the year (2)
RESULT
(2)
100.00%
37,512,273
GBP
3,056,938 GBP
99.99%
89,405,643
CHF
404,149 CHF
KBL Richelieu Banque Privée – France
100.00%
157,158,691
KBL Monaco Private Bankers S.A.– Monaco
100.00%
12,450,191
EUR
67,302 EUR
Financière et Immobilière S.A. – Luxembourg (1)
100.00%
2,417,569
EUR
304,725 EUR
KB Lux Immo S.A. – Luxembourg (1)
100.00%
35,721,182
EUR
1,264,586 EUR
Centre Europe S.A. – Luxembourg (1)
100.00%
25,212,225
EUR
979,303 EUR
Merck Finck & Co – Germany (1)
100.00%
139,167,578
EUR
545,653 EUR
51.13%
22 396 319
EUR
1 122 301 EUR
Kredietrust Luxembourg S.A. – Luxembourg (1)
100.00%
7,198,513
EUR
9,264,507 EUR
Theodoor Gilissen Bankiers N.V. – The Netherlands (3)
100.00%
93,298,709
EUR
1,258,351 EUR
Fidef Ingenièrie Patrimoniale S.A. – France
100.00%
-2,810,882
EUR
0 EUR
Puilaetco Dewaay Private Bankers S.A. – Belgium (1)
100.00%
84,308,400
EUR 10,614,774 EUR
KBL Beteiligungs A.G.
100.00%
58,216,782
EUR -26,338,364 EUR
Vitis Life S.A.
100.00%
64,907,990
EUR -24,312,235 EUR
KBL (Switzerland) Ltd - Switzerland
European Fund Administration – Luxembourg (1)
EUR -17,962,456 EUR
(1) : percentage of direct and indirect holdings.
(2) : provisional, social, local GAAP figures.
(3) : Local GAAP = IFRS ; equity excluding reserves on the available-for-sale portfolio and cash flow hedge effects.
NOTE 39 – EVENTS AFTER THE BALANCE SHEET DATE
There was, after the closing date, no significant event requiring an update of the provided information or
adjustments in the annual accounts as at 31 December 2011.
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