KBC Europe's most profitable bank


The Belgian bank and insurance agency KBC is Europe's most profitable bank. KBC has a return on equity of 18 per cent, earning itself a place at the top of the list.

In short, a positive return on equity means that a bank is making a profit. The parameter indicates to what extent it is recouping its capital costs. Return on equity is the key parameter used by investors to measure a bank's profitability. KBC boasts a place at the top of the list with its return on equity of 18%. To be more specific this means that the bank made a net profit of 2.43 billion euros last year. This achievement puts the Belgian bank and insurance agency way ahead of its competitors. Indeed, ABN Amro came second with a return on equity of 11.8 per cent.

KBC mainly owes this number one position to its leadership on the domestic market and in the Czech Republic. It also has a lucrative equity management division. Equally, its equity management does not require you to put expensive capital aside, which is also an advantage.