KBC Group (KBC) investor relations material

Executive summary

• Net profit for 2Q2026 reached €1,152 million, up from €557 million in 1Q2026 and €1,018 million in 2Q2025, driven by higher net interest income, insurance revenues, trading and fair value income, and net fee and commission income.

• All core countries contributed to strong growth in customer loans and deposits, with a core customer money inflow of €6 billion in the quarter.

• Digital transformation, especially the AI-driven Kate platform, continues to drive efficiency and customer engagement, now serving 6.2 million users and triggering 488,000 sales in the quarter.

• First half 2026 net profit totaled €1,709 million, a 9% increase year-over-year, with recent acquisitions contributing €29 million.

Financial highlights

• Net interest income increased by 8% quarter-on-quarter and 20% year-on-year (17% organically), reaching €1.805 billion, with a net interest margin of 2.23%.

• Net fee and commission income rose 4% quarter-on-quarter and 14% year-on-year, hitting a record €758 million; assets under management grew 10% quarter-on-quarter and 17% year-on-year to €328 billion.

• Non-life insurance sales increased 10% year-on-year; combined ratio at 85%. Life insurance net sales up 24% year-on-year for the quarter.

• Operating expenses (excluding taxes) were €1,209 million, down 1% quarter-on-quarter and up 6% year-on-year; cost/income ratio improved to 39.8%-40%.

• Loan loss impairment charges were €66 million, with a credit cost ratio of 0.11% (excluding overlays and acquisitions); impaired loans ratio stable at 1.8%.

Outlook and guidance

• 2026 guidance for net interest income raised to approximately €7.05 billion; total income growth guidance increased to approximately +11.0% year-on-year.

• Organic loan volume growth expected at least +6% year-on-year; insurance revenues expected to grow approximately +9% year-on-year.

• Operating expenses (excluding taxes) guided at approximately +3.4% year-on-year growth; cost/income ratio targeted at approximately 40%.

• Combined ratio for non-life insurance expected below 91%; credit cost ratio well below 25-30 basis points.

• No update to 2028 targets until the annual budget exercise is completed; 2028 guidance targets CAGR25-28 of at least +7.7% for total income.