KBC Group: Second-quarter result of 966 million euros
10 Août 2023 - 7:00AM
KBC Group: Second-quarter result of 966 million euros
Press ReleaseOutside trading hours - Regulated
information*Brussels, 10 August 2023 (07.00 a.m. CEST)
"We generated an excellent net profit of 966 million euros in
the second quarter of 2023. Compared to the previous quarter, our
result benefited from higher net interest income, better insurance
service results, a higher level of net fee and commission income
and higher trading & fair value income, as well as the
traditional seasonal spike in dividend income. Net other income
fell, however, as the previous quarter had included a significant
positive one-off gain related to the sale of our Irish portfolio in
February. Costs decreased significantly, due entirely to the fact
that the bulk of the bank and insurance taxes for the full year
were booked in the previous quarter. We also recorded a small net
impairment charge, as opposed to a net release in the previous
quarter. Consequently, when adding up the results for the first and
second quarters, our net profit for the first half of 2023 amounted
to 1 848 million euros, up by 38% year-on-year.Our solvency
position remained strong with a fully loaded common equity ratio of
16.5%. The results of the recent EBA stress test reflect our strong
fundamentals in this regard. Our liquidity position remained
excellent, as illustrated by an NSFR of 145% and LCR of 152%, both
well above the minimum legal target of 100%.
After having received the approval of the ECB, our Board of
Directors decided to distribute 1.3 billion euros surplus capital
in the form of a share buyback. The share buyback will start as
soon as possible and end by August 2024. In line with our general
dividend policy, we will also pay out an interim dividend of 1 euro
per share in November 2023 as an advance on the total dividend for
financial year 2023. We also plan to further optimise our capital
structure by filling up our Pillar 2 Requirement with additional
tier-1 and tier-2 capital. Lastly, we received a final ECB decision
following model reviews of predominantly our Belgian corporate and
SME loan portfolio, leading to a RWA add-on of approximately 8.2
billion euros in the third quarter of 2023. However, the impact of
this add-on will be mitigated by a 1.7 billion euros RWA release in
the third quarter of 2023, an expected RWA relief of approximately
2 billion euros before year-end 2023 due to model simplification
and the fact that roughly 4.5 billion euros of the RWA add-on is
frontloading of the IRB Basel IV impact in 2025. You can read more
about these capital-related items in the section entitled ‘Our
guidance’ in our quarterly report.
Last but not least, we celebrated a special anniversary in June
2023. Twenty-five years have passed since the merger between the
Kredietbank, CERA Bank and ABB Insurance led to the creation of our
group. In that time, we have evolved from a new Belgian
bank-insurer to a bank-insurance group with a focus on five
European core markets and a frontrunner in digitalisation. More
than anything else, it is the story of our thousands of employees
who give their best every day to win and keep the trust of our
customers and hence constitute the most important factor in the
success that our group has become. I’d like to sincerely thank all
those employees, as well as all our customers, shareholders and all
other stakeholders for their continuing trust and support. We look
forward with enthusiasm to the next 25 years.’
Johan ThijsChief Executive Officer
Full press release attached
- 2q2023-pb-en
- 2q2023-quarterly-report-en
KBC Groep NV (EU:KBC)
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