KBC Group (KBC) Q3 2025 earnings summary

Executive summary

• Net profit for 3Q2025 reached €1,002 million, up 15% year-over-year and stable sequentially, with year-to-date net profit at €2,566 million, a 12% increase from the prior year.

• Growth was driven by higher net interest income, insurance revenues, and fee income, with balanced contributions from all group entities and a 50/50 split between net interest and non-net interest income.

• Return on equity at 15% YTD, cost/income ratio (excluding taxes) at 41%, and combined ratio at 87% for 9M2025.

• Digital transformation advanced with the launch of Kate 2.0, an AI-powered assistant, and KBC Mobile recognized as the world's best banking app.

• Interim dividend of €1 per share paid in November 2025, with strategic acquisitions in Slovakia and Czech Republic and inaugural SRT transaction freeing up capital.

Financial highlights

• Net interest income grew 1% quarter-on-quarter and 10% year-over-year to €1,527 million; net interest margin at 2.05%.

• Loan portfolio expanded 2% quarter-on-quarter and 8% year-over-year; customer deposits stable sequentially and up 3% year-over-year.

• Net fee and commission income up 6% quarter-on-quarter and 10% year-over-year, supported by asset management and banking fees.

• Insurance service result at €142 million, up from €81 million a year ago; non-life combined ratio at 87%.

• Operating expenses (excluding taxes) rose 2% quarter-on-quarter and 1% year-over-year, remaining within guidance; cost/income ratio at 45% (41% excluding all taxes).

• Credit cost ratio at 0.12% for 9M2025; impaired loans ratio at 1.8%.

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

Outlook and guidance

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

• Insurance revenues expected to grow at least 7% year-over-year; operating expenses (excluding taxes) to remain below 2.5% growth.

• Combined ratio targeted below 91%; credit cost ratio to remain well below 25–30 basis points.

• Medium-term guidance (2024–2027): total income CAGR at least 6%, net interest income CAGR at least 5%, insurance revenues CAGR at least 7%.

• Loan growth guidance increased to approximately 7% for the year.