KBC Group Q2 Earnings Rise; Backs Annual Income Outlook

KBC Group (KBCSF.PK), a Belgian insurance company, on Friday reported a rise in net result for the second-quarter, supported by higher net interest income, better insurance revenue, a higher level of net fee and commission income, and others. In addition, the company has reaffirmed its full-year 2023 total income guidance.

For the three-month period, the insurance provider recorded result after tax of 966 million euros or 2.29 euros per share, higher than 887 million euros or 2.10 euros per share, registered for the same period of 2022.

Result before tax stood at 1.202 billion euros as against last year’s 1.126 billion euros.

Net interest income moved up to 1.407 billion euros from 1.248 billion euros of previous year.

Insurance revenues before reinsurance were at 666 million euros, compared with 603 million euros of last year. Dividend income improved to 30 million euros from 21 million euros a year ago.

Trading and fair value income surged to 115 million euros from previous year’s 38 million euros.

Net fee and commission income stood at 584 million euros as against 542 million euros of last year.

The Group generated a total income of 2.775 billion euros, up from last year’s 2.522 billion euros.

The company said that it will pay an interim dividend of 1 euro per share in November as an advance on the total dividend for full year 2023.

Looking ahead, for full year 2023, the company still projects a total income of around 11.15 billion euros.

Citing higher costs on the minimum required reserves held with central banks, increased wholesale funding and subordinations costs, the Group has revised down its full year net interest income outlook to around 5.6 billion euros from its previous expectation of approximately 5.7 billion euros.

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