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IBOS member KBC Group announces an exceptionally strong result of €855m in the second quarter, in a report released on 10 August 2017.

The quarter under review included robust total income and significant loan loss impairment releases. This brought KBC’s net result for H1 2017 to €1,485m, one-third higher than the €1,113m recorded in H1 2016. Moreover, KBC’s lending and deposit volumes continued to grow in Q2 2017, and the bank’s solvency and liquidity position remained strong.

Johan Thijs, KBC Group CEO, commented:

“We have continued where we left off in the first quarter, delivering another excellent performance in the second quarter on the back of robust revenues – including resilient net interest income, solid net fee and commission income and high trading and fair value results – and the release of loan loss provisions, especially in Ireland. This resulted in an exceptionally strong €855m of net profit being posted in the quarter under review. Combined with the €630m recorded in the first quarter, this brings our net result for the first half of 2017 to €1,485m, a 33% increase on the figure for the comparable period of 2016.

“Ultimately, our goal is to ensure that our clients, shareholders and other stakeholders benefit from our activities, something which all our employees are committed to working towards. In closing, I’d like to take this opportunity again to thank all the stakeholders who have put their trust in us to help them achieve their goals and dreams.”

In the second quarter, KBC finalised the acquisition of United Bulgarian Bank and Interlease, which has enabled the bank to take a quantum leap in Bulgaria, one of KBC’s six core countries. KBC is now a strong market player, and will be able to make a significant impact on the banking, insurance, asset management and leasing businesses.

On 21 June 2017, KBC released its ‘Digital First’ strategy in Dublin, Ireland. The bank’s core strategy remains focused on providing bank-insurance products and services to retail, SME and mid-cap clients in KBC’s core countries: Belgium, Bulgaria, the Czech Republic, Hungary, Ireland and Slovakia.

Below are the financial highlights for the second quarter 2017:

  • Both of KBC’s banking and insurance franchises in its core markets and core activities continue to perform strongly.
  • On a comparable basis, lending to and deposits received from KBC’s clients continued to increase in all business units.
  • Lending and deposits each went up by 2% quarter-on-quarter, and by a respective 4% and 8% year-on-year.
  • Net interest income – KBC’s main source of income – was slightly higher (+0.3%) than in the previous quarter.
  • Year-on-year, the premium income KBC earned on its non-life insurance products increased by 6%, while claims fell by 9%. Consequently, KBC’s non-life combined ratio for H1 2017 ended up at an exceptional 84%.
  • KBC’s net fee and commission income remained strong: it went up 19% year-on-year.
  • KBC’s other income items combined rose 15% quarter-on-quarter and 4% year-on-year, thanks primarily to high trading and fair value income.
  • KBC’s liquidity position remained strong, as did the bank’s capital base, with a common equity ratio of 15.7%.

Access the full Q2 2017 report, via KBC, here.