KBC Group: Third-quarter result of 868 million euros
November 07 2024 - 1:00AM
UK Regulatory
KBC Group: Third-quarter result of 868 million euros
KBC Group – overview (consolidated,
IFRS) |
3Q2024 |
2Q2024 |
3Q2023 |
9M2024 |
9M2023 |
Net result (in millions of EUR) |
868 |
925 |
877 |
2 300 |
2 725 |
Basic earnings per share (in EUR) |
2.14 |
2.25 |
2.07 |
5.58 |
6.44 |
Breakdown of the net result by business unit (in millions of
EUR) |
|
|
|
|
|
Belgium |
598 |
519 |
517 |
1 359 |
1 392 |
Czech Republic |
179 |
244 |
200 |
620 |
661 |
International Markets |
205 |
224 |
200 |
576 |
498 |
Group Centre |
-114 |
-61 |
-41 |
-255 |
174 |
Parent shareholders’ equity per share (in EUR, end of period) |
54.1 |
53.2 |
52.2 |
54.1 |
52.2 |
We recorded a net profit of 868 million euros in the third
quarter of 2024. Compared to the result for the previous quarter,
our total income benefited from several factors, including higher
net interest income (despite significantly lower income on
inflation-linked bonds), increased insurance revenues supported by
commercial actions, and higher net fee and commission income driven
by excellent business performance. These items were offset by a
decrease in trading & fair value income and the drop in
dividend income following its seasonal peak in the second
quarter.
Our loan portfolio continued to expand, increasing by 1%
quarter-on-quarter and by 5% year-on-year. Customer deposits –
excluding volatile, low-margin short-term deposits at KBC Bank’s
foreign branches – were up 3% quarter-on-quarter and 5%
year-on-year. As regards Belgium, deposits grew by as much as 5%
quarter-on-quarter and 8% year-on-year, owing to the successful
recuperation of customer funds following the maturity of the
Belgian state note issued a year earlier. In fact, thanks to our
proactive, multi-phased and multi-product customer offering, the
total inflow of core customer money after the state note matured
amounted to 6.5 billion euros, outpacing last year’s
5.7-billion-euro outflow to the state note by 0.8 billion
euros.
Operational expenses were up in the quarter under review but
remained perfectly within our full-year 2024 guidance. Insurance
service expenses were higher, partly as a result of the storms and
floods in Central Europe, especially Storm Boris. To date, we are
helping some 10 000 customers alleviate the impact of the floods
caused by this storm. Next to that, we established a donation fund.
Loan loss impairment charges, excluding the reserve for
geopolitical and macroeconomic uncertainties, were up on the level
recorded in the previous quarter, leading to a credit cost ratio of
16 basis points for the first nine months of 2024, substantially
below the guidance. Including the reserve for geopolitical and
macroeconomic uncertainties, the credit cost ratio stood at 10
basis points for the first nine months of 2024. In the quarter
under review, we also booked a one-off 79-million-euros gain, under
‘share in results of associated companies & joint
ventures’.
Our solvency position remained strong, with a fully loaded
common equity ratio of 15.2% at the end of September 2024. Our
liquidity position remained very solid too, as illustrated by an
LCR of 159% and NSFR of 142%. As already announced earlier, we will
– in line with our general dividend policy – pay an interim
dividend of 1 euro per share on 14 November 2024 as an advance on
the total dividend for financial year 2024.
The share of bank and insurance products sold digitally has
continued to rise: based on a selection of core products, around
55% of our banking and 29% of our insurance products were sold
through a digital channel, up from 51% and 26% a year ago. And
Kate, our personal digital assistant, is making good progress too:
to date, over 5 million customers have already used Kate, an
increase of no less than 37% on the year-earlier figure, while the
proportion of cases resolved fully autonomously by Kate continues
to improve and now stands at 67% in Belgium and 69% in the Czech
Republic. I’m also delighted to add that our successful
digitalisation and innovation journey regularly receives
recognition from external parties. I am particularly proud that,
just a few weeks ago, the independent international research agency
Sia Partners honoured us by naming KBC Mobile the best mobile
banking app in the world.
Our ultimate aim is to be the reference bank-insurer in all our
core markets. This ambition is fuelled by our customer-centric
business model and, most importantly, by the trust our customers,
employees, shareholders, and other stakeholders place in us. We
appreciate and are deeply grateful for this continued trust.
Johan Thijs
Chief Executive Officer
- 3q2024-pb-en
- 3q2024-quarterly-report-en
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