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UPDATE 1-Belgian, Czech volumes boost KBC profit
May 16, 2013 / 6:17 AM / 4 years ago

UPDATE 1-Belgian, Czech volumes boost KBC profit

* Adj net income 359 mln euros vs 324 mln expected

* Tier one ratio increased to 15.7 pct

* Irish loan loss provision rise from Q4 (Adds details on Ireland, other countries)

BRUSSELS, May 16 (Reuters) - Belgian financial group KBC reported better than expected quarterly profits on Thursday as increased deposits and loans in Belgium and the Czech Republic made up for losses in its other international operations.

The bank, which has paid back half of the 7 billion euros it received in state aid during the 2008-2009 crisis, reported higher profits in Belgium and the Czech Republic, its two core markets, despite a slight increase in impairment charges.

In its international units, which consist of businesses in Slovakia, Hungary, Bulgaria and Ireland, the picture was more varied, with only the Slovakia unit posting a small profit.

In Ireland, where the group had 15.8 billion euros ($20.3 billion) outstanding in mortgages and housing-related loans, loan loss provisions rose to 99 million euros, up from the 87 million euros recorded in the fourth quarter of 2012.

The group expects impairment charges in Ireland, which is still suffering from the fallout of a housing bubble, to be between 300 and 400 million euros over the whole of 2013.

Net income, adjusted for non-recurring items came in at 359 million euros ($461.75 million), above the 324 million expected in a Reuters poll of five analysts.

The group said its tier one ratio increased to 15.7 percent at the end of the first quarter, from 14.6 percent at the end of 2012. ($1 = 0.7775 euros) (Reporting by Robert-Jan Bartunek; editing by Philip Blenkinsop)

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