KBC: unsurprising results, but attractive forecasts

(CercleFinance.com) - On Thursday KBC announced Q4 net profit that is slightly below expectations, although the the Belgian financial group's outlook convinced the market.


Net profit fell to E677m in Q4, compared with E727m a year earlier and a consensus of E687m.

Regarding its outlook, KBC says it is targeting net interest income of E5.3bn to E5.5bn in 2024, underpinned by organic loan volume growth of around 3%.

The company has also updated its three-year financial forecasts, with an expected cost/income ratio (excluding banking and insurance taxes) of less than 42% and a combined ratio of no more than 91% by 2026.

It is also targeting an actuarial growth rate in net interest income of at least 1.8% over 2023-2026, compared with the consensus of 1.6%.

Actuarial growth in insurance revenues (before reinsurance) is expected to be at least 6% over the period, again above the consensus of 5.7%.

Concerning its ongoing E1.3bn share buyback program, KBC says that it bought back E0.6bn at end-January, with the program set to continue until 31 July 2024.

Following this publication, the KBC share (+5.3%) posted the strongest increase on the Brussels Bourse's BEL 20, with the second highest trading volumes in the index.


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