Despite Profit Decline in 2024, Crelan Banking Group Is 'Very Satisfied'

2024 was a crucial year for Crelan. After the successful acquisition of AXA Bank in 2021, the merger between the two couches completed and integrated AXA Bank's clients into Crelan's IT systems. This strategic move has put Crelan, including Europabank, on the map as the fifth largest bank in Belgium, surpassing Argenta. Only the major banks BNP Paribas Fortis, KBC, ING and Belfius surpass Crelan in size.

A 'very complex' 2024

Crelan's management emphasizes their satisfaction with the results of this 'very complex' year 2024, despite a decline in revenues and profits. However, the dividend remained stable. The merger and migration were challenging projects, which included the harmonization of the HR policy and a revision of the compensation system for independent bank agents. CEO Philippe Voisin emphasized the complexity of the past year when announcing the annual figures.

'Solid results' despite challenges

Voisin noted that “an IT migration between two banks is a huge risk. But despite these challenges, we had a very good year and I am very pleased with our financial results, which are solid and better than expected.” Crelan, however, ended the year with revenues of 1,15 billion euros, down 10 percent compared to 2023. This was mainly due to lower interest income as a result of interest rate cuts by the European Central Bank. Crelan was able to partly offset this through higher commissions from the sale of investment products.

Profit below 200 million euros

A strong increase in revenues in 2023 made the 2024 results pale in comparison. Crelan ended the year with a net result of 192 million euros, 7 percent less than in 2023. This brought the profit below 200 million euros, a threshold that was exceeded for the first time in 2023 (with the exception of the high profit in 2021 due to the AXA deal).

Questions & Answers

What was the impact of the merger between Crelan and AXA Bank?

The merger between Crelan and AXA Bank in 2021 has created the fifth largest banking group in Belgium. Despite the challenges of migration and harmonization, management is satisfied with the 2024 results.

What were Crelan's financial results in 2024?

Despite a decline in revenues and profits, CEO Philippe Voisin describes the 2024 financial results as "solid" and better than expected. Crelan closed the year with a net profit of 192 million euros, 7 percent less than in 2023.

What are Crelan's future plans?

Crelan will continue to reduce the number of bank branches, with the plan to reduce it to 2027 to 450 by the end of 500. Despite this decrease, Crelan will remain strongly anchored locally, according to commercial director Joris Cnockaert.