KBC Group: Third-quarter result of 601 million euros
12 November 2021 - 7:00AM
KBC Group: Third-quarter result of 601 million euros
Press ReleaseOutside trading hours - Regulated
information*
Brussels, 12 November 2021 (07.00 a.m. CET)
KBC Group: Third-quarter result of 601 million
euros
Early in the third quarter, Belgium was
confronted with the devastating consequences of heavy flooding in a
number of provinces. We would once again like to express our
heartfelt sympathy to everyone directly affected, as well as our
deep appreciation to all the relief workers and volunteers who have
been working tirelessly on behalf of the victims. We fully support
the agreement reached following the talks held between Assuralia
(the federation of the Belgian insurance sector) and the
authorities, which provides greater security for all victims. Over
the past few months, we have been using all our knowledge and
expertise – via our broad network of insurance agents, experts and
repairers – to ensure that the claims of the customers affected are
settled quickly and properly. At the same time, the coronavirus
crisis is still high on the agenda. In many countries, the
large-scale rollout of vaccines is well under way or even in its
final stages. Social life is gradually resuming, but caution is
still paramount, as the virus is certainly not beaten yet. From the
start of this crisis, we have taken responsibility in safeguarding
the health of our staff and customers, while ensuring that services
continue to be provided. We have also worked closely with
government agencies to support all customers impacted by the
coronavirus, implementing various measures such as loan payment
holidays.
Over the past few months, we have signed a
number of transactions that either strengthened or adjusted our
geographic focus. At the end of July, for instance, we strengthened
our share of the Bulgarian market by acquiring NN’s Bulgarian
pension insurance and life insurance businesses. And at the end of
August, we reached an agreement to dispose of substantially all of
the non-performing mortgage loan portfolio of KBC Bank Ireland.
More recently, we also entered into a legally binding agreement
relating to the sale of substantially all of KBC Bank Ireland’s
performing loan assets and its deposit book to Bank of Ireland
Group. A small portfolio of non-performing mortgages will also be
sold as part of that transaction. The transaction remains subject
to regulatory – including Irish competition – approvals. The
immediate one-off P&L impact in the third quarter of these
Irish transactions amounted to -0.3 billion euros after tax, while
there will be a positive impact of approximately 0.2 billion euros
upon closure. The finalisation of both deals will ultimately lead
to KBC withdrawing from the Irish market and will have a positive
impact on our common equity ratio of approximately 0.9 percentage
points.
Profit amounted to 601 million euros in the
quarter under review, despite 319 million euros negative one-off
impact related to the pending sale transactions in Ireland. Total
income went up quarter-on-quarter, as higher net interest income,
net fee and commission income and net other income more than offset
the lower non-life insurance result (which had been negatively
impacted by the floods in Belgium) and the seasonally lower level
of dividend income. Excluding one-off and non-operating items
(including forex effects and bank taxes), costs remained virtually
stable quarter-on-quarter. Loan loss impairment contributed
positively to the result, as the reversal of previously recorded
impairment charges for the coronavirus crisis more than offset the
negative impact on impairment of the pending sale transactions in
Ireland. As announced earlier, we will pay an interim dividend of 3
euros per share on 17 November 2021, comprising 2 euros per share
for financial year 2020 and 1 euro per share as an advance on the
total dividend for financial year 2021.
Lastly, I would like to say a few words about
our mobile app. In September, KBC Mobile was crowned best mobile
banking app in the world by independent international research
agency, Sia Partners. This is a clear recognition of 10 years of
innovation, development and carefully listening to our customers.
The Digital First approach we launched a year ago is clearly paying
off and demonstrates the innovative strength we can harness as a
group, with the ultimate goal of making our customers’ lives
easier.
I would also like to take this opportunity to
explicitly thank our customers and all other stakeholders for the
trust they continue to put in us.
Johan ThijsChief Executive Officer
Full press release attached
- 3q2021-quarterly-report-en
- 3q2021-pb-en
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