KBC Group - overview (consolidated, IFRS) | 4Q2024 | 3Q2024 | 4Q2023 | FY2024 | FY2023 |
| Net result (in millions of EUR) | 1 116 | 868 | 677 | 3 415 | 3 402 |
| Basic earnings per share (in EUR) | 2.75 | 2.14 | 1.59 | 8.33 | 8.04 |
| Breakdown of the net result by business unit (in millions of EUR) | |||||
| Belgium | 487 | 598 | 474 | 1 846 | 1 866 |
| Czech Republic | 238 | 179 | 102 | 858 | 763 |
| International Markets | 175 | 205 | 178 | 751 | 676 |
| Group Centre | 215 | -114 | -77 | -40 | 97 |
| Parent shareholders' equity per share (in EUR, end of period) | 56.6 | 54.1 | 53.9 | 56.6 | 53.9 |
'We recorded a net profit of 1 116 million euros in the last quarter of 2024. Compared to the result of the previous quarter, our total income benefited from several factors, including higher net interest income, increased insurance revenues and sharply higher net fee and commission income driven by an excellent business performance. This clearly illustrates how our integrated customer offering strongly contributes to income growth and income diversification. These items were partly offset by a decrease in trading & fair value income and lower net other income.
Our loan portfolio continued to expand, increasing by 2% quarter-on-quarter and by 5% year-on-year. Customer deposits - excluding volatile, low-margin short-term deposits at KBC Bank's foreign branches - were up 2% quarter-on-quarter and 7% year-on-year, with the latter figure benefiting from the successful return of customer funds after the Belgian state note had matured in the previous quarter.
Operational expenses were up in the quarter under review but remained perfectly within our full-year 2024 guidance. Insurance service expenses were lower, as the previous quarter had been impacted by storms and floods in Central Europe (especially Storm Boris). Loan loss impairment charges, excluding the reserve for geopolitical and macroeconomic uncertainties, were down on the level recorded in the previous quarter, leading to a credit cost ratio of 16 basis points for full-year 2024, well below our guidance figure. Including the reserve for geopolitical and macroeconomic uncertainties, the credit cost ratio stood at 10 basis points for full-year 2024. We also recorded a one-off tax benefit of 318 million euros in the quarter under review, due to the forthcoming liquidation of Exicon (the remaining activities of KBC Bank Ireland).
Consequently, when adding up the four quarters of the year, our full-year net profit amounted to an excellent 3 415 million euros, slightly up year-on-year.
On the sustainability front, we are proud to be included for the third consecutive year in the CDP Climate A List. This recognition highlights KBC's leading role in climate-related disclosures and actions.
Our solvency position remained strong, with a fully loaded common equity ratio of 15.0% at the end of December 2024. Our liquidity position remained very solid too, as illustrated by an LCR of 158% and NSFR of 139%. Our Board of Directors has decided to propose a total gross dividend of 4.85 euros per share to the General Meeting of Shareholders for the accounting year 2024. That amount includes 0.70 euro per share already paid in May 2024, reflecting the surplus capital above the 15% fully loaded CET1 threshold per end 2023 and 4.15 euros per share, of which an interim dividend of 1 euro per share was already paid in November 2024 and the remaining 3.15 euros per share to be paid in May 2025. When including the proposed dividend of 4.15 euros per share and additional tier-1 coupon, the pay-out ratio would amount to approximately 51% of 2024 net profit.
Lastly, we have also updated our short-term financial guidance. For 2025, we are aiming to achieve an annual growth rate of at least 5.5% for total income and an annual growth rate of below 2.5% for operating expenses excluding bank and insurance taxes. Furthermore, we also want to achieve a combined ratio of maximum 91% in non-life insurance.
In closing, I would like to sincerely thank all our customers, employees, shareholders and all other stakeholders for their trust and support, and assure them that we remain committed to being the reference in bank-insurance, innovation and digitalisation in all our home markets.'
Johan Thijs
Chief Executive Officer
Attachments
- 4q2024-pb-en (https://ml-eu.globenewswire.com/Resource/Download/8dcdf2f4-d13b-485c-9542-9dd2f338e283)
- 4q2024-quarterly-report-en (https://ml-eu.globenewswire.com/Resource/Download/60b898b9-4c2b-431d-b1dd-ac4196b94192)
