CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

KBC Group (KBC) stock down on lower earnings

By Jenni Reid

13:55, 12 November 2021

KBC Group logo on a laptop
KBC Group reported lower post-tax profit in the third quarter – Photo: Shutterstock

Belgian bank-insurer KBC Group saw its share price dip on Friday as profits fell, despite a slight rise in income over the previous quarter.

Total income rose from €1.85bn in the second quarter to €1.88bn in the third, but was down from €1.87bn in the third quarter of 2020. 

However, overall profit after tax was €601m, down from €793m the previous quarter and €697m in the same period the previous year. Basic earnings per share were €1.41, down from €1.64 a year ago.

KBC’s share price was down 3.51% at 15:20 CEST to €82.74.

Irish exit

The company said income rises helped offset a lower non-life insurance result, which was hit by recent severe flooding in Belgium. 

Operating expenses increased by 5% quarter on quarter and 11% year on year, which the company said was due to a combination of forex effects, bank taxes, changes in the scope of consolidation and one-off items such as its withdrawal from the Irish market. 

At the end of August, the company reached an agreement to dispose of substantially all the non-performing mortgage loan portfolio of KBC Bank Ireland.


16,080.90 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


0.68 Price
-0.210% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


44,009.05 Price
-1.460% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


2,004.85 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.50

In October, KBC announced plans to sell its performing loan assets and deposits in Ireland to Bank of Ireland for a total consideration of roughly €5bn.

It has said it is leaving the market due to the “challenging operational context for European banks”, which has seen many banks struggle with profitability amid high competition and persistently low interest rates. 

Third-quarter results showed its Belgian business contributed ​​€603m and the Czech Republic contributed €209m, while international markets lost €158m.


The company affirmed an interim dividend of €3 per share to be paid on 17 November, with €2 per share for the financial year 2020 and €1 per share as an advance on the total dividend for financial year 2021.

It maintained full-year net interest income guidance at €4.4bn and said operating expenses would be around 2% higher. 

It adjusted its credit cost ratio forecast to around -10 basis points and reaffirmed the impact of Basel 4 – an upcoming series of standards reforms for banks – at €8bn.

Read more: Bank of Ireland to buy KBC’s Irish loan book in €5bn deal

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading