KBC Group (KBC) Q4 2025 earnings summary

Executive summary

• Net profit for FY2025 was €3,568 million, up 4% year-over-year, with Q4 net profit at €1,003 million, driven by strong growth in net interest income, fee and commission income, and insurance revenues.

• Achieved a balanced income split: 50% net interest income, 50% non-net interest income, with significant growth in both, and a digital-first, AI-led approach recognized globally.

• Maintained robust solvency and liquidity, with CET1 ratio at 14.9%, LCR at 159%, and NSFR at 138%.

• Board proposes a total gross dividend of €5.10 per share for 2025, reflecting a 60% payout ratio.

• Strategic acquisitions of 365.bank in Slovakia and Business Lease in Czech Republic and Slovakia completed, impacting capital by -50bps in 1Q2026.

Financial highlights

• Total income for FY2025 grew 9% year-over-year, with Q4 income up 12% year-on-year and 5% quarter-on-quarter.

• Net interest income for FY2025 was €6,065 million, up 9% year-over-year; Q4 net interest income was €1,608 billion, up 5% sequentially and 12% year-over-year.

• Net fee and commission income for FY2025 rose 8% to €2,789 million; Q4 up 2% quarter-on-quarter and 4% year-on-year.

• Insurance business grew 9% year-over-year, with non-life combined ratio at 87% and life insurance sales up 23% year-over-year.

• Assets under management reached €300 billion, up 9% year-on-year.

Outlook and guidance

• FY2026 guidance: total income growth of at least 9.9% year-on-year, net interest income at least €6,725 million, insurance revenues up at least 7.5%, and operating expenses growth below 7.7%.

• Medium-term (2025–2028): total income CAGR at least 7.7%, net interest income CAGR at least 8.6%, cost/income ratio below 38% by 2028, combined ratio for non-life insurance below 91%.

• Cost/income ratio targeted at 40% for 2026.

• Credit cost ratio expected well below 25-30 basis points through 2028.

• Dividend payout ratio (including AT1 coupon) set between 50% and 65% of consolidated profit.