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IBOS member KBC Group announces its strong Q4 2016 results of €685 million, leading to a full-year profit of €2.4 billion.

KBC turned in a strong performance by posting net profit of €685 million in Q4 2016, compared with €629 million in the preceding quarter and an exceptional €862 million in Q4 2015. For full year 2016, KBC’s net result amounted to €2,427 million, compared with €2,639 million for 2015.

Moreover, KBC’s lending and deposit volumes continued to grow in 2016, as did sales of both non-life and life insurance products. KBC’s already solid solvency and liquidity positions strengthened further.

Johan Thijs, CEO at KBC Group, commented:

“Once again KBC continues to perform very well, reflected in an overall increase in lending, deposits, sales of life and non-life insurance products and in assets under management in 2016.

The fourth quarter was characterised by an almost stable level of net interest income, increased net fee and commission income and significantly higher trading and fair value income.”

Financial highlights for the Q4 2016, compared to Q4 2015:

  • Both of KBC’s banking and insurance franchises in its core markets and core activities continued to perform well
  • Lending to KBC’s customers increased by 1%, with volumes going up in all countries except Ireland. Deposits from KBC’s customers went up by 6%
  • KBC’s average net interest margin stood at 1.90% in the fourth quarter, similar to the quarter-earlier level. For full year 2016, our net interest margin stood at 1.92%.
  • The premium income that KBC earned on our non-life insurance products increased by 2%, while claims fell by 4%
  • KBC’s net fee and commission income went up again, rising by 2% mainly on account of management fees and loan-related fees. Assets under management increased further, going up by 2% to 213 billion euros
  • Loan loss impairment stood at 54 million euros in the quarter under review, which brought the cost of credit to an excellent, but unsustainably low, 0.09% of our loan portfolio for full year 2016

Access the press release, via KBC Group’s website, here.