KBC Group: Strong first-half profit of 1.1 billion euros. Interim dividend of 1 euro to be paid in November.
(Thomson Reuters ONE) -
Press Release
Outside trading hours - Regulated information*
Brussels, 11 August 2016 (07.00 a.m. CEST)
KBC Group: Strong first-half profit of 1.1 billion euros. Interim dividend of
1 euro to be paid in November.
Against a background of persisting low interest rates, modest economic growth in
Belgium and firmer growth in Central Europe, KBC posted a strong net profit
figure of 721 million euros in the second quarter of 2016, up on the 392 million
euros recorded in the preceding quarter and above the 666 million euros returned
in the second quarter of 2015. As proof of our clients' trust in us, we again
increased our lending and deposit volumes in the second quarter. Our result was
driven by a good level of total income in our traditional business activities,
flat operating expenses (disregarding bank taxes) and what is still a very low
level of loan impairment charges. It was also boosted by the one-off positive
impact of our sale of Visa Europe shares. Added to the 392 million euros net
profit realised in the first quarter, this brings our result for the first six
months of the year to 1 113 million euros, compared to 1 176 million euros for
the same period in 2015. The results were complemented by strong fundamentals
relating to our solvency and liquidity positions. The Board of Directors
approved a new dividend policy for KBC Group. Starting this year, and barring
exceptional or unforeseen circumstances, KBC will pay each year an interim
dividend of 1 euro in November of the accounting year as well as a final
dividend after the Annual Shareholders' Meeting. The interim dividend will be an
advance payment on the total dividend. The current policy of paying a total
dividend (and additional tier-1 coupon) of at least 50% of the annual
consolidated profit is confirmed. The interim dividend of 1 euro per share for
the accounting year 2016 will be paid on 18 November 2016.
Financial highlights for the second quarter of 2016, compared with the previous
quarter:
* Both our banking and insurance franchises in our core markets and core
activities performed well.
* Our lending volume was up in Belgium (+1%), the Czech Republic (+2%),
Slovakia (+3%) and Bulgaria (+3%), while clients further increased their
deposits in all countries: Belgium (+5%), the Czech Republic (+3%), Slovakia
(+4%), Hungary (+4%), Bulgaria (+1%) and Ireland (+2%).
* Our net interest income was more or less unchanged quarter-on-quarter, with
the negative impact of low interest rates being offset by positive elements
such as growth in both current account and lending volumes, lower funding
costs and rate cuts on saving accounts. The group's net interest margin was
down slightly quarter-on-quarter, from 1.96% to 1.94% driven by lower
reinvestment yields and pressure on commercial margins.
* Premium income earned on our non-life insurance products was up 2%, but
claims rose to a greater extent (by 6%), due to the inclement weather and
floods in Belgium and the Czech Republic. Our non-life combined ratio ended
up at 95% year-to-date.
* Our total assets under management stood at 207 billion euros. This was
roughly the same level as in the first quarter, since the small net outflow
of assets was offset by a small price increase. Following the decrease in
the first quarter, our net fee and commission income went up again (by 4%),
due mainly to higher management fees on mutual funds and higher credit fees.
* The sale of our Visa Europe shareholding resulted in one-off additional
income of 99 million euros (pre-tax), or 84 million euros (after tax).
* At 904 million euros, costs fell by 24%, since the bulk of bank taxes were
booked in the first quarter of the year. Disregarding these taxes, costs
remained unchanged quarter-on-quarter. The cost/income ratio stood at 59%
year-to-date. After evenly spreading the bank taxes and excluding specific
items, the cost/income ratio came to 56%.
* The year-to-date cost of credit amounted to an excellent but unsustainably
low 0.07% of our loan portfolio. Lowered guidance for Irish loan impairment
charges towards 0-40 million euros for the full year.
* Our liquidity position remained solid, and our capital base - with a common
equity ratio of 14.9% (phased-in, Danish compromise) - remained well above
the regulators' target of 10.25% for 2016.
Full press release and 2Q2016 Quarterly Report attached.
2Q2016_Quarterly_Report_en:
http://hugin.info/133947/R/2034503/757666.pdf
2Q2016_Press release_20160811_en:
http://hugin.info/133947/R/2034503/757665.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: KBC Groep via GlobeNewswire
[HUG#2034503]
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Datum: 11.08.2016 - 07:00 Uhr
Sprache: Deutsch
News-ID 488477
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