Belgian bank KBC first-quarter profit beats estimates

KBC Groep NV

15/05/2025 06:46

Corrects dividend range to 50% to 65% in the third paragraph

May 15 (Reuters) - Belgian bank KBC Group KBC.BR reported a 8% rise in first-quarter net profit that came above market expectations on Thursday, driven by solid revenue from net interest, fee and commissions, and its insurance business.

Its profit reached 546 million euros ($611.30 million) in the quarter, beating analysts' average estimate of 529 million euros in a poll compiled by the lender.

The bank updated its dividend and capital deployment policy, stating that it plans to pay a dividend corresponding to 50% to 65% of its consolidated earnings, with an interim dividend of one euro per share to be paid this November.

"The focus will predominantly be on further organic growth alongside mergers and acquisitions. We see a 13% unfloored fully loaded common equity ratio as the minimum", Johan Thijs, CEO of KBC said in a statement, referring to the outlook for capital deployment.

At end of the quarter the ratio came at 14.5%.

The bank has also announced a signing agreement to buy Slovak lender 365.bank for 761 million euros.

($1 = 0.8932 euros)

 (Reporting by Jakob Van Calster and Mateusz Rabiega in Gdansk; Editing by Mrigank Dhaniwala)

 ((mateusz.rabiega@thomsonreuters.com))