IBOS member KBC has today, 9 August 2018, reported a net profit of €692 million for Q2 2018.
In Q2 2018, the commercial bancassurance franchises in KBC’s core markets and core activities performed well. Loans increased by 3% quarter-on-quarter and by 5% year-on-year, with an increase in all divisions. Additionally deposits – excluding debt securities – increased by 3% quarter-on-quarter and 6% year-on-year, again with an increase in all divisions.
Net interest income remained relatively stable (-1%) quarter-on-quarter, but improved by 2% year-on-year (on a comparable basis). Net interest income benefited from lower financing costs, higher repo rates in the Czech Republic, an increase in lending volume and the positive effect on an annual basis of the consolidation of UBB / Interlease in Bulgaria, but were impacted by, among other things, the pressure on credit margins and the low reinvestment rates.
Q2 2018 benefited from a reversal of write-downs on loans of €21 million, mainly thanks to Ireland. As a result, KBC’s annual credit costs were very favourable at -0.10% (a negative figure indicates a positive impact on the result), compared to -0.06% for the 2017 financial year. Without Ireland, the credit cost ratio would be 0.00%, In comparison with 0.09% for the financial year 2017.
KBC’s liquidity position remained solid, and so did the bank’s capital base, with a common equity ratio of 15.8%.
Read the full press release via KBC here.