KBC raises full-year income growth, net interest income outlook
KBC's Upgraded Financial Outlook and Quarterly Performance
Aug 6 (Reuters) - Belgian bank KBC on Thursday raised its full-year outlook for both total income growth and net interest income, forecasting total income growth of about 11% and net interest income of around €7.05 billion ($8.14 billion), up from at least 9.9% and at least €6.73 billion, respectively.
Second Quarter Results
The lender reported a second quarter net result of €1.15 billion, roughly in line with the €1.11 billion analysts expected on average in a company-compiled consensus.
Key Drivers of Profit
KBC, which holds around €400 billion in assets, said in its earnings report that profit was supported by higher levels of income from net interest, insurance revenues, trading and fair value income, and net fee and commission income.
Loan Volumes and Impairment Charges
It added that customer loan volumes rose quarter-on-quarter, while loan-book impairment charges declined. The addition to reserves for geopolitical and macroeconomic uncertainties was "significantly less" than in the previous quarter.
Context and Previous Performance
In May, the bank missed profit expectations after boosting provisions to cushion against risks stemming from the conflict in the Middle East.
Exchange Rate Information
($1 = 0.8660 euros)
Reporting Credits
(Reporting by Jakob Van Calster; Editing by Ronojoy Mazumdar)