KBC announced on Thursday a fourth-quarter net profit slightly below expectations, but the outlook unveiled by the Belgian financial group on the occasion convinced the market.

Its net profit fell to 677 million euros in the last quarter of the year, compared with 727 million euros a year earlier and a consensus target of 687 million.

With regard to its outlook, KBC says it is targeting net interest income of between 5.3 and 5.5 billion euros in 2024, underpinned by organic loan volume growth of around 3%.

The company has also updated its three-year financial forecasts, with an expected cost/income ratio (excluding banking and insurance taxes) of less than 42% and a combined ratio of no more than 91% by 2026.

It is also targeting an actuarial growth rate in net interest income of at least 1.8% over the 2023-2026 period, compared with the consensus of 1.6% hitherto.

Actuarial growth in insurance revenues (before reinsurance) is expected to be at least 6% over the period, again above the consensus of 5.7%.

With regard to its ongoing 1.3 billion euro share buyback program, KBC says it bought back some 0.6 billion euros at the end of January, with the program set to continue until July 31, 2024.

Following this publication, the KBC share (+5.3%) posted the strongest increase on the Brussels Bourse's BEL 20 and the second highest trading volume on the index.

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