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IBOS member KBC Group announces Q4 2017 financial results

IBOS member KBC Group has today, 22 February 2018, announced its Q4 2017 earnings of €399 million, bringing the profit for the entire financial year to an excellent €2.6 billion.

KBC Group’s net result amounted to €610 million for Q4 2017, with the Group’s core activities performing exceptionally well again. The costs remained under control, and the quality of the assets remained good as evidenced by a reversal of provisions for write-downs on loans.

Johan Thijs, KBC Group CEO, commented:

“Together with the 630 million euros for the first quarter, the exceptionally strong 855 million euros for the second quarter and the 691 million euros for the third quarter, this brings our net result for the entire financial year 2017 to an excellent 2 575 million euros, an increase of 6% compared to 2016.

“Our success is based on the fact that we continue to enjoy the trust of our customers. I would like to expressly thank our customers for that trust and ensure that we are more focused than ever on becoming the benchmark in bancassurance in all our core countries. Over the coming years we will build on the momentum of previous years, thanks to successful bancassurance model that puts the customer at the centre, supported by our very solid liquidity position, our strong capital base and our 42 000 employees worldwide. ”

Below are KBC Group’s financial highlights for Q4 2017:

  • KBC’s banking and insurance divisions in its core markets continued to perform strongly, and the recently acquired Bulgarian companies (UBB and Interlease) contributed €13m to the net result.
  • Lending to the Bank’s clients increased by 1% compared to Q3 2017 and by 5% year-on-year, with an increase in all divisions. KBC’s customers’ deposits increased by 2% quarter-on-quarter and 8% year-on-year, with growth in all divisions.
  • For the full financial year of 2017, the technical income from KBC’s non-life insurance activities ended 12% higher than last year, resulting in a very strong combined non-life insurance ratio of 88% for 2017. Sales of KBC’s life insurance products increased by 45% quarter-on-quarter, and 13% compared to Q4 2016.
  • KBC’s net fee and commission income remained strong with an increase of 14% year-on-year, mainly due to its asset management activities, higher securities-related commission income and the inclusion of UBB and Interlease in the figures. Net fee and commission income increased by 5%, compared to the seasonally lower figure for Q3 2017.
  • KBC’s cost-income ratio for the financial year 2017 ended at an exceptional 54% (55% in 2016). The Bank’s operating expenses (excluding bank tax) illustrate a seasonal increase in the Q4 2017 of 9% quarter-on-quarter and have increased by 5% year-on-year.
  • KBC’s liquidity position, along with its capital base, remained strong at a common equity ratio of 16.3% (fully loaded, Danish compromise method).

Read the full press release via KBC here