Belgium-based KBC Bank N.V. has reported a net profit of EUR520 million for the first quarter of 2013, compared with a net profit of EUR380 million in the year ago quarter.
After excluding the impact of the legacy business (CDOs, divestments) and the valuation of own credit risk, adjusted net profit came to EUR359 million, compared with EUR501 million in the corresponding quarter of 2012, the bank said in a statement.
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In the first quarter, the bank’s Belgium Business Unit generated a net result of EUR385 million, above the average figure of EUR340 million for the four preceding quarters.
In the quarter under review, the bank’s Czech Republic Business Unit generated a net result of EUR132 million, slightly down on the average figure of EUR145 million for the four preceding quarters.
The International Markets Business Unit recorded a net result of -EUR87 million, down on the average of -EUR65 million for the four preceding quarters.
The bank’s liquidity position remained strong, with the LCR and NSFR being well above 100%.
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By GlobalDataThe bank said that its capital position has strengthened further to a tier-1 ratio of 15.4%, or 15.7% on a pro-forma basis, when the effects of the sale of Absolut Bank and KBC Banka are included. The bank’s common equity ratio under Basel III at the end of the quarter stood at 12 %.
The bank added that it intend to accelerate repayment of EUR1.17 billion of state aid to the Flemish Regional Government and to pay the accompanying premium of EUR583 million in the first half of 2013.
KBC CEO Johan Thijs said: `KBC has started 2013 by posting a high level of profit in the first quarter. We recorded a good EUR520 million in net profit against what was a challenging economic background. At group level and excluding deconsolidated entities, we achieved a higher net interest margin, which had a positive impact on interest income, recorded strong fee and commission income, posted solid gains on financial instruments, as well as on available-for-sale assets, and recorded an excellent combined ratio and cost/income ratio."
