The KBC group has decided to distribute €1.3 billion of surplus capital via a share buyback programme, it announced on Thursday along with its financial results.
The share buyback will start as soon as possible and close by August 2024.
"In line with our general dividend policy, we will also pay an interim dividend of €1 per share in November 2023, as an interim payment on the total dividend for the 2023 financial year," the bancassurer said.
The Group also posted a net profit of €996 million in the second quarter of 2023, up from €887 million in the same quarter of the previous year – not far off the €1 billion mark. Net interest income rose by 13% year-on-year to €1.4 billion, while income from insurance activities came to €666 million (up 10%).
"Compared with the previous quarter, our result benefited from higher net interest income, better results in insurance services, a higher level of net commission income and fair value and trading-related income, as well as the traditional seasonal rise in dividend income," commented CEO Johan Thijs.
"Other net income declined, however, as the previous quarter included a significant one-off gain related to the sale of our Irish portfolio in February."
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KBC noted that the significant fall in costs was entirely due to the fact that the bulk of banking and insurance taxes for the full year were booked in the previous quarter.
"We also recorded a small net impairment charge, compared with a net reversal in the previous quarter," added the CEO. Taking the six months as a whole, the increase in profit compared with the first half of 2022 represents growth of 38% (€1.848 billion).
In Belgium, the bancassurer announced a net profit of €576 million in the second quarter of 2023, compared with €652 million for the same period in 2022.
"In the second quarter of 2023, economic growth in Belgium came out at 0.2% quarter-on-quarter, still underpinned by the acceleration in private consumption. For the rest of 2023, we expect quarterly growth to be in line with the growth momentum in the eurozone," the Group added.
In the wake of these results, KBC shares were down by more than 4% on the Brussels stock exchange at 10:00 on Thursday morning.
