KBC Group (KBC) Q3 2025 earnings summary

Executive summary

• Net profit for Q3 2025 reached €1.002 billion, up 15% year-over-year, with balanced contributions from all group entities and a 50/50 split between net interest and non-net interest income.

• Strong performance across net interest income, fee business, and insurance, with all segments contributing positively and growth in customer loans and deposits.

• Digital assistant Kate saw increased adoption, with 5.8 million users and the launch of Kate 2.0, enhancing customer interaction and operational efficiency.

• Return on equity at 15% YTD, cost-income ratio (excl. taxes) at 41%, and combined ratio at 87% for 9M25.

• Year-to-date net profit for 9M2025 was €2,566 million, a 12% increase from the prior year.

Financial highlights

• Net interest income grew 1% quarter-on-quarter and 10% year-over-year; net interest margin at 2.05%, with banking side up 2% despite lower income from inflation-linked bonds.

• Loan growth was 1.6%-2% in the quarter and 8% year-over-year, with year-to-date growth at 6.3% (7.3% including FX effects).

• Fee and commission income up 6% quarter-on-quarter and 10% year-over-year, with asset management services up 7% and banking services up 5%.

• Assets under management reached €292 billion, up €12 billion in the quarter and 8% year-over-year.

• Non-life insurance up 8% quarter-on-quarter and year-over-year; life insurance up 29% quarter-on-quarter and 7% year-over-year.

• Cost-to-income ratio improved to 41% from 43% in 2024, with jaws at 5%.

• Credit cost ratio at 0.12% for 9M25, NPL ratio at 1.8%, both well below European averages.

• CET1 ratio at 14.9%, insurance solvency at 216%, leverage ratio at 5.8%, LCR at 158%, NSFR at 134%.

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

Outlook and guidance

• Full-year 2025 guidance raised: net interest income at least €5.95 billion, total income growth at least 7.5%, and cost growth capped at 2.5%.

• Expectation of continued strong loan growth, especially in Central Europe, with guidance of approximately 7%-7.5% for the year.

• Combined ratio expected below 91%; credit cost ratio well below through-the-cycle guidance of 25-30bps.

• 2027 guidance: total income CAGR of at least 6%, NII CAGR at least 5%, insurance revenues CAGR at least 7%.

• No further ECB rate cuts expected in 2025 or 2026; positive economic outlook for Western and Central Europe.