Update: Belfius Bank SA/NV

The stable outlook reflects our view that Belfius solid franchise, good business diversification, and disciplined underwriting standards will allow it to maintain its creditworthiness over the next two years. The bank's profitability, supported by its bancassurance model and the rising interest rate environment, also positions it well to deliver its 2025 strategy. We could lower the rating if Belfius departs from its current capital management policy. This could happen if the bank unexpectedly upstreams higher dividends to its shareholders (potentially ahead of an IPO) or faces significant unforeseen one-off costs that weaken its RAC ratio below 10%. Though not our base-case scenario, we could also lower the rating if we see a risk that profitability falls significantly after the rebound

...Belfius Bank is largely on track with its "Inspire 2025" strategy. We understand the group's aim is to be at the center of customers' daily life and operations. Therefore, for individuals, the group's strategy largely focuses on improving the customer offering, notably through the digitalization of daily banking services, the availability of personal investment advisors, and access to real estate and mobility services via its digital platform. The group reinforces services to entrepreneurs and enterprises via a range of financing solutions, life and non-life insurance, and cross-selling between entrepreneurs and enterprises and its private wealth management business division. We consider the focus on efficiency (cost-to-income ratio target of below 57%), notably via increasing recourse to digital channels, critical to...

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