KBC Group: Second-quarter result of 745 million euros
08 Août 2019 - 7:00AM
KBC Group: Second-quarter result of 745 million euros
Press ReleaseOutside trading hours - Regulated information
Brussels, 8 August 2019 (07.00 a.m. CEST)
KBC Group: Second-quarter result of 745 million euros
KBC Group - overview (consolidated, IFRS) |
2Q2019 |
1Q2019 |
2Q2018 |
1H2019 |
1H2018 |
Net result (in millions
of EUR) |
745 |
430 |
692 |
1 175 |
1 248 |
Basic earnings per share (in EUR) |
1.76 |
0.98 |
1.61 |
2.75 |
2.91 |
Breakdown of the net
result by business unit (in millions of EUR) |
|
|
|
|
|
Belgium |
388 |
176 |
437 |
564 |
680 |
Czech
Republic |
248 |
177 |
145 |
425 |
316 |
International
Markets |
104 |
70 |
163 |
175 |
299 |
Group Centre |
4 |
7 |
-53 |
11 |
-48 |
Parent shareholders’ equity per share (in EUR, end of period) |
42.8 |
43.1 |
39.9 |
42.8 |
39.9 |
We generated a net profit of 745 million euros in the second
quarter of 2019. This is a good result, which – compared to the
previous quarter – benefited from increased net fee and commission
income, higher non-life insurance results, the seasonal uptick in
dividends received, lower costs (due to most of the bank taxes
being recorded in the first quarter of the year) and lower loan
loss impairment charges. On the one hand, the quarter benefited
from a number of positive one-off items, the bulk of which
concerned the 82-million-euro gain related to the acquisition of
the remaining 45% stake in the Czech building savings bank, ČMSS
(see further). On the other hand, trading and fair value income was
heavily impacted by several factors, including lower
long-term interest rates. On a comparable scope basis, our loans to
customers increased by 4% year-on-year, and deposits including debt
certificates were roughly stable (excluding debt certificates,
deposits were up 3%). Sales of our non-life and life insurance
products went up year-on-year, each by 8%. Our solvency position,
which does not include the profit for the first half of 2019,
remained strong too, with a common equity ratio of 15.6%. If we had
included the profit for the first half of the year, taking into
account the 59% dividend payout ratio of last year, our common
equity ratio would have amounted to 15.9%. Lastly, in line with our
dividend policy, we decided to pay an interim dividend of 1 euro
per share on 15 November 2019 as an advance payment on the total
dividend for 2019.
From this solid position, we are at the same
time also preparing for the future. With more and more customers
opting for digital channels, we are gradually aligning our
omni-channel distribution network with this changing customer
behaviour. As already announced, we are in the process of
converting a number of smaller branches into unstaffed ones and
closing some of the existing unstaffed branches in Flanders. At the
same time, we continue to invest in our full-service branches, in
KBC Live and in our digital channels. We also optimised our
group-wide governance model at management level and we are in the
process of further improving operational efficiency throughout the
entire organisation in order to take customer service to an even
higher level. This adaptation is essential in response to the new
environment in which organisations are expected to be more agile,
take decisions more quickly and thus continue to meet the
expectations of customers and society.
In the quarter under review, we finalised two
deals that we had announced in the previous quarter. We completed
the sale of our Irish subsidiary’s legacy portfolio of performing
corporate loans worth roughly 260 million euros, which means that
KBC Bank Ireland is now in a position to fully concentrate on its
core retail and micro SME customers. That deal had a negligible
impact on our profit and capital ratios. We also closed the
acquisition of the remaining 45% stake in the Czech building
savings bank ČMSS, for 240 million euros. That had an impact of
-0.3 percentage points on our common equity ratio. Due to the
revaluation of our existing 55% stake in ČMSS, we were able to book
a one-off gain of 82 million euros in the second quarter*. Our
Czech group company ČSOB now owns 100% of ČMSS and is thus
consolidating its position as the largest provider of financial
solutions for housing purposes in the Czech Republic.
I’d like to wrap up by repeating that we are
truly grateful for the trust that our customers place in our
company. The fact that we were named ‘Best Bank in Western Europe’
by Euromoney a few weeks ago is a clear illustration that we are
the reference in the financial sector. Rest assured that we will
remain fully committed and focused in our efforts to continue to be
the reference in customer-centric bank-insurance in all our core
countries.
Johan ThijsChief Executive Officer
Full press release en quarterly report
attached.
- 2Q2019_pb_20190808_en
- 2Q2019_Quarterly_Report_en
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