Writedowns to cost KBC Group €900m
KBC Group, Belgium's biggest financial services company by market value, said writedowns on structured investments would cut fourth-quarter earnings by €900m.
The markdowns follow Moody's Investors Service's downgrade of some collateralised debt obligations held by KBC "amid the deteriorating outlook for the global economy", the Brussels-based financial services company said yesterday in a statement.
KBC, which got a €3.5bn injection from the Belgian government, reported in November its first quarterly loss since its creation in a 1998 merger.
KBC rose 54 cents to €21.59 in Brussels trading, valuing the company at €7.6bn. The shares dropped 78pc in 2008.
A spokesperson declined to say whether the markdowns would result in a fourth-quarter loss. (Bloomberg)
- BANKING
