KBC Group (KBC) Q4 2025 earnings summary

Executive summary

• Net profit for FY2025 was €3,568 million, up 4% year-over-year, with all business lines exceeding guidance and strong digital innovation, including the AI-driven Kate app.

• Achieved a balanced income split: 50% net interest income, 50% non-net interest income, with significant growth in both.

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

• Proposed total gross dividend of €5.1 per share for 2025, reflecting a 60% payout ratio.

• Strategic acquisitions of 365.bank and Business Lease in Czech Republic and Slovakia completed, impacting capital ratios by 50 basis points.

Financial highlights

• Total income grew 9% year-over-year, with net interest income for FY2025 at €6,065 million and net interest margin at 2.11%.

• Fee and commission income rose 4% year-over-year, assets under management reached €300 billion, and insurance business grew 9% year-to-date.

• Operating expenses (excluding taxes) rose 2.5% year-over-year; cost/income ratio (excl. taxes) at 41%.

• Credit cost ratio at 0.13%, with impaired loans ratio at 1.8%.

• Return on equity for FY2025 at 15%; return on tangible equity at 16%.

Outlook and guidance

• FY2026 guidance: total income to grow at least 6.8% year-over-year, net interest income at least €6,725 million, and insurance revenues to rise at least 7.5%.

• Cost/income ratio targeted below 38% by 2028, with 2026 guided at 40%.

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

• Medium-term (2025-2028) guidance: total income CAGR at least 7.7%, net interest income CAGR at least 8.6%.

• Operating expenses (excl. taxes) expected to grow +3.4% year-over-year in FY26.