KBC Lifts Provisions to Pandemic High on Geopolitical Hit

KBC Group NV lifted loan-loss provisions to the highest level since 2020 and held its guidance as geopolitical turmoil makes souring loans an increasing concern for lenders.

Brussels-based KBC took an impairment charge of €164 million ($193 million) in the first quarter, €30 million more than expected and the highest since the Covid pandemic wreaked havoc on markets. The figure included a €75 million increase of the reserve for geopolitical and macroeconomic uncertainty, KBC said.