KBC Group: First-quarter result of 546 million euros
KBC Group – overview (consolidated, IFRS)
1Q2025
4Q2024
1Q2024
Net result (in millions of EUR)
546
1 116
506
Basic earnings per share (in EUR)
1.32
2.75
1.18
Breakdown of the net result by business unit (in millions of EUR)
Belgium
281
487
243
Czech Republic
207
238
197
International Markets
135
175
146
Group Centre
-77
215
-80
Parent shareholders' equity per share (in EUR, end of period)
58.8
56.6
54.9'We recorded a net profit of 546 million euros in the first quarter of 2025. Compared to the result of the previous quarter, our total income benefited from several factors, including increased insurance revenues, trading and fair value income and net other income, while net interest income and net fee and commission income were slightly down as a result of seasonality and some positive year-end effects in the fourth quarter of 2024. Our loan portfolio continued to expand, increasing by 2% quarter-on-quarter and by 7% year-on-year. Customer deposits – excluding volatile, low-margin short-term deposits at KBC Bank's foreign branches – were stable quarter-on-quarter (with a shift from term deposits to savings accounts) and up 7% year-on-year.Operating expenses were up, since the bulk of the bank and insurance taxes for the full year are recorded – as usual – in the first quarter. Disregarding bank and insurance taxes, operating expenses fell by 8% quarter-on-quarter. Insurance service expenses also fell, as did loan loss impairment charges, resulting in a very favourable credit cost ratio of just 8 basis points for the quarter under review (16 basis points excluding the changes in the reserve for geopolitical and macroeconomic uncertainties).Our solvency position remained strong, with an unfloored fully loaded common equity ratio under Basel IV of 14.5% at the end of March 2025. Our liquidity position remained very solid too, as illustrated by an LCR of 157% and NSFR of 140%.
On 8 May 2025, we paid a final dividend of 3.15 euros per share, bringing the total dividend for full-year 2024 to 4.85 euros per share. We also updated our dividend and capital deployment policy. As from 2025, we will pay a dividend of between 50% and 65% of our consolidated result, 1 euro of which will be paid in November as an interim dividend. We aim to remain amongst the better capitalised financial institutions in Europe. Each year, when announcing the full-year results, our Board will take a decision – at its discretion - on capital deployment. The focus will predominantly be on further organic growth alongside mergers and acquisitions. We see a 13% unfloored fully loaded common equity ratio as the minimum.
Furthermore, KBC reached an agreement to acquire 98.45% of 365.bank in Slovakia based on a total value for 365.bank of 761 million euros. This investment will allow us to further strengthen our position in the Slovak market while closing the gap with the top three players in the banking sector. 365.bank is a retail-focused bank with subsidiaries in asset management and consumer finance and is very complementary to the business of KBC's existing Slovak subsidiary ČSOB, leading to significant cost, revenue (cross-selling) and funding synergies. KBC will particularly strengthen its reach in retail banking as well as benefit from access to the unique client base and distribution network of 365.bank and its exclusive partnership with Slovak Post. Closure of the deal is subject to regulatory approval and will reduce our unfloored fully loaded common equity ratio by approximately 50 basis points upon closing, which is expected by the end of this year.
Recent weeks have been characterised by unprecedented macro-economic (trade) uncertainty as a result of the US policy on trade tariffs and its repercussions on the financial markets. Nevertheless, we confirm our short-term and long-term financial guidance. Last but not least, I would like to express my sincerest gratitude towards our customers, employees, shareholders and all other stakeholders for their continued trust in our group.
JohanThijsChief Executive Office
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The Company also utilizes gross margin (defined as revenue less cost of goods sold, excluding amortization). The Company's method of calculating EBITA and gross margin may differ from the methods used by other companies and, accordingly, may not be comparable to measures used by other companies. Andrew Peller Limited common shares trade on the Toronto Stock Exchange (symbols ADW.A and ADW.B). FORWARD-LOOKING INFORMATION Certain statements in this news release may contain 'forward-looking statements' within the meaning of applicable securities laws including the 'safe harbour provisions' of the Securities Act (Ontario) with respect to APL and its subsidiaries. Such statements include, but are not limited to, statements about the growth of the business; its launch of new premium wines and craft beverage alcohol products; sales trends in foreign markets; its supply of domestically grown grapes; and current economic conditions. These statements are subject to certain risks, assumptions, and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. The words 'believe', 'plan', 'intend', 'estimate', 'expect', or 'anticipate', and similar expressions, as well as future or conditional verbs such as 'will', 'should', 'would', 'could', and similar verbs often identify forward-looking statements. We have based these forward-looking statements on our current views with respect to future events and financial performance. With respect to forward-looking statements contained in this news release, the Company has made assumptions and applied certain factors regarding, among other things: future grape, glass bottle, and wine and spirit prices; its ability to obtain grapes, imported wine, glass, and other raw materials; fluctuations in foreign currency exchange rates; its ability to market products successfully to its anticipated customers; the trade balance within the domestic Canadian and international wine markets; market trends; reliance on key personnel; protection of its intellectual property rights; the economic environment; the regulatory requirements regarding producing, marketing, advertising, and labelling of its products; the regulation of liquor distribution and retailing in Ontario; the application of federal and provincial environmental laws; and the impact of increasing competition. These forward-looking statements are also subject to the risks and uncertainties discussed in this news release, in the 'Risks and Uncertainties' section and elsewhere in the Company's MD&A and other risks detailed from time to time in the publicly filed disclosure documents of Andrew Peller Limited which are available at . Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and assumptions which could cause actual results to differ materially from those conclusions, forecasts, or projections anticipated in these forward-looking statements. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. The Company's forward-looking statements are made only as of the date of this news release, and except as required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new information, future events or circumstances or otherwise. For more information, please contact: Craig Armitage and Jennifer Smith ir@ Source: Andrew Peller Limited
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- Business Insider
Microsoft is prepping an AI Copilot for the Pentagon
Microsoft is preparing a version of its Copilot AI tool for the Pentagon. "For DoD environments, Microsoft 365 Copilot is expected to become available no earlier than summer 2025," the company stated in a recent blog written for government customers. "Work is ongoing to ensure the offering meets the necessary security and compliance standards." Copilot is Microsoft's main generative AI offering. The company has developed several Copilot tools, which tap into AI models to automate various tasks and support human employees. The Copilot for Microsoft's 365 service works across productivity software such as PowerPoint slides, Excel spreadsheets, and Word documents. Microsoft has invested heavily to build these new offerings, but it's still trying to figure out the best way to make money from them. If the Pentagon signs up for a Copilot service, that would be a major win for the tech giant. In a recent meeting, Microsoft Chief Commercial Officer Judson Althoff told employees that a customer with more than 1 million Microsoft 365 licenses will be adding Copilot, according to people who attended. Althoff did not disclose the customer and Microsoft declined to comment, but there are likely only a few customers with workforces big enough to justify adding more than 1 million Copilot seats. The Defense Department is one such customer. It is one of the largest employers in the US, with a military workforce of about 2.1 million service members and about 770,000 civilian employees, according to a 2023 report by the Government Accountability Office. The Pentagon did not respond to a request for comment. Microsoft has publicly stated plans to add Copilot to versions of its Microsoft 365 suite of applications for high-security government customers this year. Microsoft's website currently states that Microsoft 365 Copilot is not available via "GCC-High," its high security cloud platform for US government personnel. However, in a March 31 update, the company said it plans to add Copilot to these environments as soon as this summer. "For organizations in GCC High, Microsoft 365 Copilot remains in development to meet security and compliance requirements," the company explained. "We are planning on a general availability (GA) release this calendar year."
