Best bank: BNP Paribas Fortis
The Belgian government’s retail bond programme last year, which pressured lenders to raise deposits, was just one element of a relatively tough environment for banks in Belgium. The country also sits at the opposite end of the spectrum to southern Europe in terms of the proportion of loans on floating-rate deals, meaning local banks benefit less from higher eurozone interest rates.
Clearly, this has not helped Belgian banks. Despite this, BNP Paribas Fortis saw net profit rise by 9% to €3.1 billion, its best result since Fortis became part of BNP Paribas in 2009. The bank’s operating costs grew less than revenues and the cost-to-income ratio fell to 52.1%. Cost of risk was just 11 basis points.
In Belgium, total loans increased by 4.5% to €159 billion, three times faster than Belgium’s economic growth and its environmental, social and governance-related loans in Belgium grew by 11.3% in 2023.
But perhaps most encouraging are the signs of how BNP Paribas Fortis is developing and investing in its business.
For first-time buyers, for example, it launched a new 30-year mortgage product alongside a flexible home loan allowing customers to shorten the length of their loan, reducing the overall cost, if their budget can support this after a few years. It also entered a rent-to-buy partnership for energy-efficient homes with local real estate developer Matexi.
Other developments included a merger of the Krefima and Demetris credit providers into BNP Paribas Fortis Credit Brokers. The new brand offers home loans through a network of more than 600 brokers.
Early in 2023, after several years of preparation, it completed the integration of bpost bank into BNP Paribas Fortis. Around three million accounts were transferred and €12 billion in on and off balance-sheet transactions were reconciled. It also marked the start of a distribution partnership with bpost bank, with 2,270 bpost employees receiving 80,000 days of training sessions to familiarize them with BNP Paribas Fortis products.
The combined network now includes over-the-counter banking services in 656 post offices, advice in more than 300 BNP Paribas Fortis branches by appointment and 16 client houses combining corporate and private banking services. It also includes the Fintro bancassurance network and Nickel’s basic banking services, with more than 400 points of sale in place.
Best investment bank: BNP Paribas Fortis
As part of a firm that increasingly considers itself the preeminent corporate and institutional bank based in continental Europe, it is no surprise to see BNP Paribas Fortis at the top of Dealogic’s investment banking revenue ranking in Belgium. This is, after all, a country which the group considers a home market and where in some areas of the banking sector it has a larger market share than in France.
One of the bank’s most significant deals was advising on a €9.6 billion spinoff of Solvay’s specialized chemicals business. It also advised TPG on a €640 million takeover offer for Intervest Offices and Warehouses and advised Liberty Global on its €1 billion public delisting takeover offer for Telenet.
In equity capital markets, the firm was global coordinator on a €380 million rights issue by Aedifica and on a €300 million accelerated placement by Shurgard.
The firm’s leadership is obvious in debt capital markets, where it worked on numerous deals for the government, as well as for its commercial banking rival KBC, which it helped issue a €750 million additional tier-1 bond in August. Other deals included a liability management exercise for Elia, US private placements for Brussels Airport and Sibelga, three retail bonds and numerous loan deals including acquisition financings and green loans.
Best digital bank: KBC
KBC made progress in driving user growth, efficiency and engagement on its digital channels last year.
In mobile banking, the lender onboarded 25,000 customers to its app. This increase corresponded with a daily average of 3.3 million digital transactions and 1.3 million app logins.
The bank’s lead-driven sales growth strategy also proved to be successful, with lead-driven sales accounting for 34% of total sales, marking a 27% increase from the previous year. This growth underscored the effectiveness of KBC’s improved lead engine infrastructure in fostering both digital and human customer interactions.
The lender’s flagship virtual assistant, Kate, demonstrated significant improvement in efficiency over the review period. It operated with 63% autonomy by the end of the year – double the level in the previous year. With over 500,000 monthly sessions and 1.4 million users, Kate emerged as a preferred initial point of contact, engaging customers effectively and driving digital interactions.
The introduction of Kate Coin, a blockchain-based digital currency integrated into the bank’s mobile app, represented another avenue for driving engagement. By the end of 2023, more than 350,000 customers had accumulated nearly five million Kate Coins, which they can spend on KBC’s products and services.
Best bank for ESG: BNP Paribas Fortis
In an eventful year, BNP Paribas Fortis achieved significant growth in sustainable finance, while demonstrating leadership in promoting energy efficiency and sustainable mobility.
The bank recorded a 11.3% increase in environmental, social and governance-linked lending in 2023. Concurrently, BNPP Fortis’s sustainable off-balance sheet portfolio grew by 10.4%, surpassing its global investment portfolio growth of 9.8%. By the year end, 42.3% of the bank’s assets under management were invested in financial instruments carrying the Belgian Financial Sector Federation’s Towards Sustainability label. This figure reflected a market share of over 25% in Belgium’s responsible investments market.
The bank’s commitment to promoting energy efficiency was also evident. Mortgages for energy-efficient properties increased by 21% year on year, reaching €6 billion and constituting 9% of all mortgages granted. Additionally, 45% of renovation loans, amounting to €453 million, were directed towards energy-saving projects.
The bank continued to advocate for environmentally friendly transport options. It facilitated 1,588 agreements to finance soft modes of transport such as bicycles, electric bikes, electric scooters and hoverboards. Additionally, 33% of all new car loans issued by the bank were for low-emission vehicles, contributing to the bank’s total of €169 million in green car and bicycle loans by the year’s end.
