KBC Group: First-quarter result of 557 million euros
11 Maggio 2021 - 7:00AM
KBC Group: First-quarter result of 557 million euros
Press Release
Outside trading hours - Regulated information*
Brussels, 11 May 2021 (07.00 a.m. CEST)
KBC Group: First-quarter result of 557 million
euros
Light is starting to appear at the end of the
tunnel thanks to the large-scale vaccination rollout that started
in the first quarter of 2021. However, the coronavirus pandemic is
still far from over and continues to cause human suffering and
unprecedented economic upheaval all over the world. From the start
of the crisis more than a year ago, 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
coronavirus, implementing various measures such as loan deferrals.
We have, for example, granted payment holidays for 13.1 billion
euros’ worth of loans under coronavirus-related moratoria
(according to the EBA definition). For 91% of that figure, the
moratoria have now expired, with 98% of loans resuming normal
payments. We have also granted almost 1 billion euros’ worth of
loans under public guarantee schemes introduced in response to the
pandemic.
Meanwhile, we continued to work tirelessly on
implementing our strategy, including the further optimisation of
our geographic presence. In the first quarter of 2021, we reached
an agreement for the acquisition of NN’s Bulgarian pension
insurance and life insurance businesses. This will allow us to
further increase our share of the life insurance market in Bulgaria
and to broaden our bank-insurance offering to customers with the
addition of high-end pension fund products, while also providing
additional cross-selling opportunities for banking and insurance
products in a one-stop shop approach. Closure of the deal is
subject to regulatory approval and is expected to be finalised in
the course of 2021. More recently, in the context of the
competitive market conditions in Ireland, we entered into a
Memorandum of Understanding with Bank of Ireland that could lead to
a transaction where Bank of Ireland commits to acquire
substantially all of KBC Bank Ireland's performing loan assets and
liabilities. In addition, we are examining our options for
divesting KBC Bank Ireland's portfolio of non-performing mortgage
loans. Successful completion of both transactions may ultimately
result in our withdrawal from the Irish market. While these
discussions are ongoing, KBC Bank Ireland remains committed to
offering its existing and new customers retail banking and
insurance services of the highest standard through its digital
channels and hubs. The transaction remains subject to customary due
diligence, further negotiation and agreement of final terms and
binding documentation, as well as obtaining all appropriate
internal and external regulatory approvals.
As regards our financial results, the year got
off to a strong start with a net profit of 557 million euros being
posted in the quarter under review. This is a very good performance
given that the bulk of bank taxes for the full year are recorded –
as always – upfront in the first quarter of the year. In the
quarter under review, nearly all income items increased, apart from
dividend income. Costs – excluding bank taxes – continued to be
strictly managed, resulting in a quarter-on-quarter decrease of 5%.
We were also able to reverse some of the loan loss impairment
charges taken previously, which had a positive impact on our net
result. Our solvency position remained very strong with a common
equity ratio of 17.6% on a fully loaded basis.
As announced earlier, we will pay out a gross
dividend of 0.44 euros per share on 19 May 2021 for financial year
2020. It is also the intention of our Board of Directors to
distribute an additional gross dividend of 2 euros per share in the
fourth quarter of 2021 for financial year 2020.The final decision
of the Board in this regard is subject to restrictions on dividends
being lifted by the ECB.
In closing, I would like to take this
opportunity to thank all stakeholders who have continued to put
their trust in us. I also wish to express my appreciation to all
our staff who have not only continued to serve our customers, but
have also ensured that our group has been able to operate solidly
and efficiently in these challenging times.
Johan Thijs
Chief Executive Officer
Full press release attached
- 1q2021-pb-en
- 1q2021-quarterly-report-en
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