By Marta Frackowiak
(Reuters) -Belgian bank KBC beat its third-quarter profit expectations on Thursday, helped by a rise in net interest income, and net fee and commission income.
The financial group’s net profit fell 1% from a year earlier to 868 million euros ($932.7 million) in the quarter ended Sept. 30. But it beat analysts’ average forecast of 803 million euros in a poll compiled by the company.
The lender, however, reported a decline in trading and fair value income as well as dividend income during the reported quarter. KBC said insurance service expenses were higher, partly due to the storms and floods in Central Europe, especially Storm Boris.
“To date, we are helping some 10,000 customers alleviate the impact of the floods caused by this storm,” CEO Johan Thijs said in a statement.
He said that though operational expenses increased in the quarter, they were within the company’s full-year guidance.
The lender’s CET1 ratio – a measure of capital strength for European banks that compares their core capital against risk-weighted assets – was 15.2% at September-end, which was in line with its estimates.
Net interest income – a key measure of earnings on loans minus deposit costs – came in at 1.39 billion euros, in line with the average forecast of 1.38 billion euros.
KBC confirmed its 2024 guidance, expecting an annual net interest income of 5.5 billion euros.
In line with its dividend policy, KBC said it will pay an interim dividend of 1 euro per share in November.
($1 = 0.9307 euros)
(Reporting by Marta Frąckowiak; Editing by Christopher Cushing, Eileen Soreng and Rashmi Aich)
