KBC Group: Fourth-quarter result of 538 million euros
11 Februar 2021 - 7:00AM
KBC Group: Fourth-quarter result of 538 million euros
Press ReleaseOutside trading hours - Regulated information*
Brussels, 11 February 2021 (07.00 a.m. CET)
Fourth-quarter result of 538 million euros
In 2020, we were confronted with the outbreak
and challenges of the pandemic, a situation causing human suffering
all over the world and unprecedented economic upheaval. Recently,
some countries have started rolling out vaccination programmes,
which could bring some degree of relief going forward. We have
taken responsibility in safeguarding the health of our staff and
customers, while ensuring that services continue to be provided. We
have worked closely with government agencies to support all
customers impacted by coronavirus, by efficiently implementing
various relief measures, including loan deferrals. In our six home
countries combined, we had granted a total of 13.4 billion euros in
loan payment deferrals by the end of December 2020 (according to
the EBA definition), as well as 0.8 billion euros’ worth of loans
under public guarantee schemes introduced in response to the
pandemic. As a result of the lockdowns, which led to a far-reaching
digital boost, our digital sales increased significantly. In that
respect, the significant investments we made in digital
transformation over the past few years are clearly paying off. With
our renewed strategy ‘Differently, the next level’ – in which Kate,
our new personal AI-enabled digital assistant, plays an important
role – we are now going one step further by making our customer
interactions even more proactive and future-proof, through the use
of data and artificial intelligence. We plan to invest an
additional 1.4 billion euros in digitalisation in the period
2021-2023.
As regards our financial results, we generated a
net profit of 538 million euros in the last quarter of 2020. In the
quarter under review, our net interest income decreased, whereas
our trading and fair value result fared well. In the current
lower-for-longer interest rate environment, this quarterly result
has also been clearly benefiting from the diversification achieved
through KBC’s integrated bank-insurance model. This was reflected
in higher net fee and commission income and a good non-life result
(good premium growth and an excellent combined ratio of 85% for the
full year). Costs were tightly managed. On a full-year basis,
operating expenses excluding bank taxes fell by 4.2% compared to
last year, due chiefly to the announced cost savings triggered by
the pandemic. Adding the result for this quarter to the one for the
first nine months of the year brings our net profit for full-year
2020 to 1 440 million euros.
Our solvency position remained very strong with
a common equity ratio of 17.6%. In line with the ECB recommendation
of 15 December 2020 which limits dividend payments, we will propose
to the General Meeting of Shareholders in May of this year a
(gross) dividend of 0.44 euros per share for the accounting year
2020, payable in May 2021. Additionally, it is the intention of the
Board of Directors to distribute an extra gross dividend of 2 euros
per share over the accounting year 2020 in the fourth quarter of
2021. For the latter, the final decision of the Board of Directors
is subject to restrictions on dividends being lifted by the
ECB.
On top of that, our dividend policy as of 2021
entails a payout ratio of at least 50% of the consolidated profit
of the accounting year, of which an interim dividend of 1 euro per
share, payable in November. On top of the payout ratio of at least
50% of consolidated profit, all capital which exceeds the reference
capital position (a pre-Basel IV fully loaded common equity ratio
of 14.5%) plus the 1% management buffer will be considered for
distribution to the shareholders. Each year, the Board of Directors
will take this decision at its discretion when announcing the
full-year results.
Lastly, we have also updated our long-term
financial guidance. Between 2020 and 2023, we are aiming to achieve
a compound annual growth rate of approximately 2% for total income
and approximately 1% for operating expenses (excluding bank taxes).
Besides that, we also want to achieve a combined ratio below or
equal to 92% by 2023.
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 from their
homes and other remote locations.
Johan Thijs,Chief Executive Officer
Full press release attached
KBC Groep NV (EU:KBC)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
KBC Groep NV (EU:KBC)
Historical Stock Chart
Von Apr 2023 bis Apr 2024