KBC ended the three months to March 2010 with a net profit of 442 million euros, compared with a net profit of 304 million euros in the previous quarter. In the corresponding first quarter of 2009, when the financial crisis was at its height, a significant loss of 3.6 billion euros was posted. On an underlying basis, i.e. excluding non-operational items, net profit amounted to 543 million euros in the quarter under review.
Financial highlights for 1Q 2010:
- Continued sound deposit and credit spreads.
- Gradual recovery of fee & commission income confirmed.
- Strong dealing room activities, in line with market performance.
- Insurance premium inflows continued their steady pace.
- Operational expenses remained very well under control.
- Substantially lower loan loss impairments quarter-on-quarter.
- 1.5 billion euros' worth of excess regulatory capital accumulated beyond the 10% tier-1 solvency target.
Jan Vanhevel, Group CEO: "Against the backdrop of a modest European economic recovery, KBC continued to focus on its core markets. In the first quarter, the progress started last year continued without major disruption. Our quarterly profit was up on the previous quarter due to stable business development combined with generally lower loan loss provisioning. The core earnings trends remained solid. In addition, we are making good progress on our flagship projects to refocus the business portfolio."
KBC BankDate: 13.05.2010