KBC FY shows 52 pct growth in net profit, driven by central Europe UPDATE |
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Thu, 22 Feb 2007 08:01
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(Updates with CEO quote, further details)BRUSSELS (AFX) - Belgian financial services group KBC Group NV posted fourth-quarter and full-year net profits showing a 52 pct rise in full-year profit driven by central and eastern Europe, though fourth-quarter underlying profit declined year-on-year.Fourth-quarter net profit rose to 634 mln eur from 486 mln eur last year, comfortably in line with analysts' estimates of 514-682 mln eur.Over the same period, underlying profit dropped to 564 mln eur from 575 mln, again in line with forecasts of 534-621 mln eur.Over the full year, net profit rose to 3.430 bln eur from 2.548 bln, at the top end of estimates of 3.311-3.483.Earnings per share for the fourth quarter rose to 1.82 eur from 1.35. The company will propose a dividend of 3.31 eur per share at its AGM on April 26.The discrepancy between fourth-quarter net and underlying is due to several one-off items on KBC's balance sheet, including a divestment gain on the sale of the group's stake in Banksys for 60 mln eur, it said.Over the full year, profit growth in Central and Eastern Europe came to 30 pct, 'testifying to the region's role as a strong growth driver', said the group in a statement.The decline in fourth-quarter underlying profit was partly due to a 5 pct increase in costs compared to the same period last year, it said.Andre Bergen, the group's chief executive, said 'business volumes were robust, while cost and risk levels remained under control', though he added that 'a generally favourable environment' had helped.In terms of outlook, the group reiterated its ambition of increasing earnings per share by 12 pct annually and delivering an average return on equity of 18.5 pct in the 2007-2009 period.It also gave an update for the first quarter of 2007. Insurance will book a negative net impact of around 28 mln eur following the Kyrill Storm, though this will be more than offset by a capital gain of 200 mln eur on the sale of a non-strategic shareholding in peer Intesa Sanpaolo.Up to Feb 15, the group had bought back 1.6 mln of its own shares for 155 mln eur as part of the 2007 share buyback programmefrances.robinson@afxnews.comfr/harCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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KBC FY shows 52 pct growth in net profit, driven by central, eastern Europe 