The following is a summary of the KBC Group NV (KBCSY) Q4 2023 Earnings Call Transcript:
Financial Performance:
KBC Group achieved a Q4 profit of €677 million, which includes impairments on goodwill and voluntary software impairments. Without these, the profit would have been €812 million.
The company reported a full-year net interest income of €5.5 billion, beating its own guidance.
The return on equity is over 15%, and the cost-income ratio was 43% excluding bank taxes.
KBC proposes a gross dividend of €4.15 per share, supplementing the interim dividend with €3 per share.
The company faced high costs due to inflation but expects it to come down considerably.
Business Progress:
Record high sales were noted in asset management and insurance, reinforcing KBC's stature as more than just a net interest income bank.
Digital assistant Kate is used actively by 4.2 million customers, enhancing efficiency and sales.
Sustainability is a priority for KBC, securing top global rankings among diversified banks by Sustainalytics and an A rating from CDP.
The income displayed near-even split between net interest income (50.8%), and asset management and insurance (49.2%).
For 2024, KBC plans a net interest income range of €5.3 billion to €5.5 billion, loan growth of 3%, and insurance revenues growth of at least 6%.
The company expects to see economic growth, particularly in Central Europe. New non-financial targets have been set for 2026, including increased straight-through processing.
KBC maintains a conservative approach to the business, which includes strategic decisions on fees, asset management, and other banking service fees.
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