(CercleFinance.com) – KBC announced on Thursday a fourth quarter net profit slightly lower than expected, but the outlook revealed by the Belgian financial group on the occasion convinced the market.
Its net profit fell to 677 million euros in the last quarter of the year, compared to 727 million euros a year earlier and a consensus which targeted 687 million.
Regarding its outlook, KBC says it is targeting net interest income of between 5.3 and 5.5 billion euros in 2024, supported by organic growth in loan volumes of around 3%.
The establishment also updated its three-year financial forecasts with an expense/income ratio (excluding banking and insurance taxes) expected to be below 42% and a combined ratio of 91% maximum by 2026.
It is also targeting a growth rate in actuarial rate of net interest income of at least 1.8% over the period 2023-2026, while the consensus previously anticipated 1.6%.
Actuarial rate growth in income from insurance activities (before reinsurance) should be at least 6% over the period, again above the consensus of 5.7%.
Regarding its ongoing €1.3 billion share buyback program, KBC says it bought back some €0.6 billion at the end of January, with the program expected to continue until until July 31, 2024.
Following this publication, the KBC share (+5.3%) recorded the strongest increase in the BEL 20 of the Brussels Stock Exchange and the second highest trading volume in the index.
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