KBC Group (KBC) Q4 2024 earnings summary

Executive summary

• Q4 2024 net profit reached €1,116 million, up 29% year-over-year, driven by strong banking and insurance results and a €318 million tax benefit from the exit from Ireland/Exicon liquidation.

• Full-year 2024 net profit was €3,415 million, stable year-over-year, with strong performance across all core markets and business lines.

• Return on equity for FY24 was 14-15%, positioning the group among the most profitable EU financial institutions.

• Digital transformation, notably the AI-driven Kate platform, and sustainability leadership recognized by top ESG ratings and CDP Climate A List.

Financial highlights

• Net interest income for Q4 2024 was €1,433 million, up 3% quarter-on-quarter and 5% year-over-year; full-year net interest income rose 2% to €5,574 million, exceeding guidance.

• Net fee and commission income hit a record €700 million in Q4, up 17% year-over-year; full-year fee income was €2,578 million, up 10% year-over-year.

• Insurance sales up 8% year-over-year (9% FX-adjusted), with non-life combined ratio at 89.7-90% (88% underlying/excluding storm impact).

• Operating expenses (excluding taxes) rose 6% quarter-on-quarter and 3% year-over-year; cost/income ratio for FY2024 at 47% (43% excluding all taxes).

• Loan growth at 5% year-over-year, with customer money up €5.4 billion in Q4 and €20 billion for the year.

• Credit cost ratio for FY2024 at 0.10% (10 bps), with impairments well below guidance.

• Fully loaded Basel III CET1 ratio at 15.0%, leverage ratio at 5.5%, NSFR at 139%, LCR at 158%, and insurance solvency at 200%.

Outlook and guidance

• 2025 guidance: total income growth of at least 5.5%, net interest income of at least €5.7 billion, loan growth of ~4%, insurance income growth of at least 7%, and cost growth capped below 2.5%.

• Medium-term (2024-2027): CAGR of at least 6% for total income, 5% for net interest income, and 7% for insurance revenues; operating expenses CAGR below 3%.

• Combined ratio in non-life insurance expected below 91%; credit cost ratio well below 25-30 bps through 2027.

• Guidance assumes conservative deposit mix shifts, with term deposit growth slowing and current/savings accounts regaining share.