KBC: posts modest loss as coronavirus crisis bites

(CercleFinance.com) - Belgian banking and insurance group KBC booked a small net loss of 5 million euros for the first quarter of 2020, citing the impact of the coronavirus outbreak.


The loss was mainly caused by a significant decline in the net result from financial instruments at fair value, which fell from a positive 99 million euros in the previous year to a negative 385 million euros in the past quarter, the group said.

KBC pointed out that the Covid-19 crisis has caused stock markets to tumble, credit spreads to widen and long-term interest rates to fall, amongst other effects.

Its volumes, however, resisted well, as loans increased by 6% on a comparable basis in the quarter, with deposits up 5% and non-life insurance premiums up 7%.

Costs were also kept well under control, falling 6% sequentially.

The shares fell by over 6% after these results, however. They have fallen by 34% year-to-date, but have actually outperformed a 42% drop in the STOXX Europe 600 Banks index.

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