KBC Group: Fourth-quarter result of 663 million euros
10 Februar 2022 - 7:00AM
KBC Group: Fourth-quarter result of 663 million euros
Press Release
Outside trading hours - Regulated information*
Brussels, 10 February 2022 (07.00 a.m. CET)
KBC Group: Fourth-quarter result of 663 million
euros
At the end of 2021, the macroeconomic and
financial outlook remains challenging as the pandemic heads into
its third year. However, progress in booster vaccination and
antiviral treatment in many countries may mitigate extreme
overburdening of the healthcare systems and hence avoid the need
for comprehensive and long-lasting lockdowns. From the start of
this crisis, we have taken responsibility for safeguarding the
health of our staff and customers, while ensuring that services
continue to be provided (with our digital assistant Kate convincing
and supporting more and more customers). We have also worked
closely with government agencies to support all customers impacted
by the coronavirus, implementing various measures such as loan
payment holidays.
Meanwhile, we continued to implement our
strategy, including the further optimisation of our geographic
presence. In the fourth quarter of 2021, we reached an agreement to
acquire the Bulgarian operations of Raiffeisen Bank International.
This investment into a high-quality business with an excellent
reputation will allow us to further strengthen our leading position
in the Bulgarian financial market. Raiffeisenbank’s (Bulgaria)
clear focus on innovation and digitalisation, combined with a high
customer satisfaction rating, mirrors our own Digital First
strategy. Acquiring Raiffeisenbank (Bulgaria) is another testimony
to our commitment to the Bulgarian market and our support to the
Bulgarian economy. Closure of the deal is subject to regulatory
approval and will reduce our common equity ratio by approximately
1.0 percentage points upon closing, which is expected by
mid-2022.
On the sustainability front, we continue to play
an active role in the transition to a low-carbon economy by working
together with all our stakeholders, also demonstrated by the
extended assessment of our policy and performance. KBC wants to
minimise its negative impact on society as much as possible by
applying strict policies and guidelines and reducing our own
environmental footprint. As announced at the end of October, KBC
will no longer provide credit, advice or insurance for the
exploitation of new oil and gas fields. We have also started
offsetting our remaining greenhouse gas emissions to reach
net-climate neutrality with respect to our direct footprint. At the
same time, we are committed to gradually increasing the share of
renewable energy sources in the total energy loan portfolio to at
least 65% by 2030 at the latest. We continue to focus on activities
with a positive sustainability and climate impact, and have, among
other things, issued a third Green Bond at the beginning of
December to finance projects that have a positive impact on the
environment by reducing greenhouse gas emissions and promote the
sustainable use of resources and land. Last but not least, KBC
converted its two remaining Belgian pension savings funds into SRI
funds, in accordance with the KBC in-house developed, well-proven
and externally validated SRI framework.
As regards our financial results, we generated a
net profit of 663 million euros in the last quarter of 2021. Total
income benefited from higher net interest income, higher non-life
insurance result and higher net fee and commission income, which
was partly offset by the lower trading and fair value result, and
lower net other income. Costs, excluding bank taxes, consolidation
scope changes and one-offs ended in line with our full-year 2021
guidance of slightly below a 2% increase. Loan loss impairment
contributed positively to the result, as previously recorded
impairment charges for the coronavirus crisis were partly released.
Adding the result for this quarter to the one for the first nine
months of the year brings our net profit for full-year 2021 to 2
614 million euros.
For full-year 2021, our Board of Directors has
decided to propose to the General Meeting of Shareholders in May of
this year a final gross dividend of 7.6 euros per share, bringing
the total gross dividend to 10.6 euros per share. This includes a
dividend of 2.0 euros per share related to accounting year 2020
(already paid in November 2021), an ordinary dividend of 4.0 euros
per share related to accounting year 2021 (of which an interim
dividend of 1.0 euro per share was already paid in November 2021
and the remaining 3.0 euros per share is to be paid in May 2022)
and an extraordinary dividend of 4.6 euros per share (to be paid in
May 2022). If approved, it will lead to a fully loaded common
equity ratio (after capital distribution) of 15.5%, in line with
our announced capital deployment plan for full-year 2021. The
pay-out ratio (including AT1 coupon) amounts to approximately 66%
based on the proposed ordinary dividend of 4 euros per share
related to accounting year 2021 and 139% based on the proposed
total dividend of 8.6 euros per share (ordinary plus extraordinary
dividend).
As of full-year 2022, the pay-out ratio of at
least 50% of consolidated profit will be maintained and capital
above 15.0% fully loaded common equity ratio will be considered for
distribution to the shareholders, at the discretion of the Board of
Directors when announcing the full year results (full-year 2022
results will be announced on 9 February 2023).
Lastly, we have also updated our three-year
financial guidance. Between 2021 and 2024, we are aiming to achieve
a compound annual growth rate of approximately 4.5% for total
income and approximately 1.5% for operating expenses (excluding
bank taxes). Furthermore, we also want to achieve a combined ratio
below or equal to 92%.
In closing, I would like to take this
opportunity to explicitly thank all stakeholders who have continued
to put their trust in us. I also wish to express my utmost
appreciation to all our staff, who have continued to serve our
customers and support the sound functioning of the group in these
challenging times.
Johan ThijsChief Executive Officer
Full press release attached
- 4q2021-pb-en
- 4q2021-quarterly-report-en
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