KBC Group: First-quarter result of 546 million euros

Financial Performance - KBC Group reported a net profit of 546 million euros in Q1 2025, an increase from 506 million euros in Q1 2024 but a decrease from 1,116 million euros in Q4 2024 [1] - Basic earnings per share were 1.32 euros, up from 1.18 euros in Q1 2024 but down from 2.75 euros in Q4 2024 [1] - The net result breakdown by business unit showed Belgium contributing 281 million euros, the Czech Republic 207 million euros, International Markets 135 million euros, and a loss of 77 million euros from the Group Centre [1] Loan and Deposit Growth - The loan portfolio expanded by 2% quarter-on-quarter and 7% year-on-year [2] - Customer deposits, excluding volatile short-term deposits, remained stable quarter-on-quarter and increased by 7% year-on-year [2] Operating Expenses and Credit Costs - Operating expenses increased due to the recording of bank and insurance taxes, but fell by 8% quarter-on-quarter when excluding these taxes [3] - Insurance service expenses and loan loss impairment charges decreased, resulting in a favorable credit cost ratio of 8 basis points for the quarter [3] Solvency and Liquidity - KBC maintained a strong solvency position with a fully loaded common equity ratio under Basel IV of 14.5% at the end of March 2025 [4] - The liquidity position was solid, with a Liquidity Coverage Ratio (LCR) of 157% and a Net Stable Funding Ratio (NSFR) of 140% [4] Dividend and Capital Deployment - A final dividend of 3.15 euros per share was paid on May 8, 2025, totaling 4.85 euros per share for the full year 2024 [5] - Starting in 2025, the company will pay a dividend of 50% to 65% of its consolidated result, with a focus on organic growth and potential mergers and acquisitions [5] Acquisition Strategy - KBC agreed to acquire 98.45% of 365.bank in Slovakia for a total value of 761 million euros, aiming to strengthen its position in the Slovak market [6] - The acquisition is expected to create significant cost, revenue, and funding synergies, particularly in retail banking [6] Market Conditions - Recent weeks have seen unprecedented macro-economic uncertainty due to US trade policies, but KBC confirmed its short-term and long-term financial guidance [7]