KBC Group (KBC) Q2 2025 earnings summary

Executive summary

• Net profit for Q2 2025 reached €1.018 billion, marking the third consecutive quarter above €1 billion and a 9% year-over-year increase, with strong performance across commercial bank-insurance franchises and robust growth in customer loans and deposits.

• Diversified income streams: 49% from net interest income, 51% from insurance and fee/commission products, supported by a digital-first strategy and global recognition.

• Digital assistant Kate contributed to cost savings and sales growth, handling 70% of customer queries autonomously and generating 414,000 extra sales in 12 months, with 5.7 million users, up 19% year-over-year.

• Return on equity at 15% YTD, cost-income ratio at 45%, and combined ratio at 85% for 1H25.

Financial highlights

• Net interest income for Q2 was €1.509 billion, up 6% quarter-on-quarter and 9% year-on-year; net interest margin at 2.08%.

• Loan growth reached 2.2% quarter-on-quarter and 7% year-on-year; customer deposits (excluding volatile deposits) also grew 2% quarter-on-quarter and 7% year-on-year.

• Core customer money inflow was €5 billion in Q2 and €7.4 billion year-to-date, with a shift from term deposits to current/saving accounts and mutual funds.

• Assets under management ended the quarter at €280 billion, with a €3 billion increase driven by sales and market performance.

• Operating expenses excluding taxes increased 2% quarter-on-quarter and 5% year-on-year, but remained below internal budget.

• Loan loss impairment charges rose to €116 million in Q2 2025, mainly due to increased reserves for geopolitical and macroeconomic uncertainties.

Outlook and guidance

• Net interest income guidance for 2025 raised from at least €5.7 billion to at least €5.85 billion; total income growth guidance raised to at least 7%.

• Loan growth guidance increased to at least 6.5% for 2025.

• Operating expenses (excluding taxes) expected to grow below 2.5% year-on-year.

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

• Interim dividend of €1 per share to be paid in November 2025.