BRUSSELS (Thomson Financial) - KBC NV posted first-quarter results which
showed a sharper-than-expected fall in net profit, with the group suspending its
share buy-back programme, though performance is already improving in the second
quarter, the Belgian financial services group said.
Underlying profit fell to 573 million euros from 781 million a year ago,
missing analyst forecasts of 593-704 million euros.
Net profit came in at 554 million euros, down from 997 million a year
earlier; however the group did book an exceptional net profit last year due to
the disposal of shares of Intesa San Paolo.
CEO Andre Bergen said in a statement: "It was not the ideal start to the
year. As investment yields fell across asset classes and volatility remained
high, merchant banking and asset management performances suffered."
However, he added that performance improved toward the end of the first
quarter, and "the second quarter up to now has shown a strong performance".
The group took an after-tax writedown of 93 million euros on its structured
credit portfolio.
"In the quarter under review, no further accrual of provisions was deemed
necessary to cover the exposure to monoline insurers," it added.
The group also suspended its share buy-back programme. Up to May 13, 2008,
2.2 billion euros worth have been bought back since January 2006.
The capital position and the potential reactivation of share repurchases
will be periodically evaluated, KBC added.
frances.robinson@thomsonreuters.com
fr/ak
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