KBC Group: Third-quarter result of 776 million euros
09 November 2022 - 7:00AM
KBC Group: Third-quarter result of 776 million euros
Press Release
Outside trading hours - Regulated information*
Brussels, 9 November 2022 (07.00 a.m. CET)
KBC Group: Third-quarter result of 776 million
euros
‘Almost nine months have now passed since Russia
invaded Ukraine and, unfortunately, there is no sign of an end to
the war. The tragedy in Ukraine is causing immense human suffering
and our heartfelt solidarity goes out to all victims of this
conflict. We sincerely hope that a respectful, peaceful and lasting
solution can be achieved as soon as possible. The war in Ukraine,
alongside other geopolitical uncertainties, is also sending
shockwaves throughout the global economy, resulting in high
inflation and weighing on economic growth. Given those
uncertainties, we have further increased our dedicated reserve for
geopolitical and emerging risks, bringing it close to 0.4 billion
euros at the end of the quarter under review.
The tragedy unfolding in Ukraine comes on top of
other pressing issues such as the climate crisis, as evidenced by
the extreme weather events of the past year. In that respect,
sustainability and ESG in general also remain high on our agenda.
In August, for example, we became the first Belgian financial
institution to issue a social bond, for an amount of 750 million
euros. The money raised will be used for investments in the health
care sector. What’s more, having already achieved or even surpassed
almost all our previously set sustainability objectives ahead of
schedule, we have – in accordance with our climate commitments –
now set new climate-related targets for a number of key sectors and
activities. You can read all about them in our first ever Climate
Report on www.kbc.com.
In early July, we finalised the acquisition of
Raiffeisenbank Bulgaria. This entity and our existing Bulgarian
subsidiary UBB will merge their operations, allowing us to
significantly expand our share of our Bulgarian core market to an
estimated 19% in terms of assets. Raiffeisenbank Bulgaria has now
been included in our consolidated results for the first time.
As regards our financial results, we posted an
excellent net profit of 776 million euros in the quarter under
review. Quarter-on-quarter total income was more or less stable,
with higher net interest income, technical insurance income and net
fee and commission income being offset by lower trading & fair
value income and net other income. Costs were also more or less at
the previous quarter’s level, though that quarter did include a
one-off 78-million euro charge in the form of a new additional bank
and insurance tax in Hungary. We recorded a net impairment release
on our loan book, which was more than offset by an increase in the
reserve for geopolitical and emerging risks. Our solvency position
remained very solid with a common equity ratio of 15% on a fully
loaded basis, and our liquidity position was excellent, as
illustrated by an NSFR of 140% and an LCR of 155%. As announced
earlier, we will – in line with our general dividend policy – pay
out an interim dividend of 1 euro per share on 16 November 2022 as
an advance on the total dividend for financial year 2022.
In closing, a few words about our mobile app. A
few weeks ago, independent international research agency Sia
Partners again named KBC Mobile one of the top performing mobile
banking apps worldwide. KBC Mobile is also the best mobile banking
and insurance app in Belgium where it has further consolidated the
leading position it already occupied. This is not only recognition
of the quality of service we provide, it’s also a clear sign that
we remain committed to innovation and ensuring maximum convenience
for our customers, who continue to put their trust in us. I would
like to thank our customers, our employees, our shareholders and
all our other stakeholders for their continuing trust and
support.’
Johan ThijsChief Executive Officer
Full press release attached
- 3q2022-pb-en
- 3q2022-quarterly-report-en
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