KBC Group (KBC) Q4 2025 earnings summary

Executive summary

• Net profit for FY2025 was €3,568 million, up 4% year-over-year, with strong growth in net interest income, fee and commission income, and insurance revenues, excluding one-off items from 2024.

• Total income for FY2025 increased 9% year-over-year, surpassing guidance, with record results in net interest income, asset management, and insurance.

• Digital transformation advanced, with AI-driven initiatives like Kate 2.0 increasing customer service autonomy to 82% and global recognition for digital leadership.

• Proposed a total gross dividend of €5.10 per share for 2025, with a 60% payout ratio, reflecting exceptional results and customer/employee satisfaction.

• Strategic acquisitions of 365.bank in Slovakia and Business Lease in Czech Republic and Slovakia were finalized, impacting capital by 50 bps.

Financial highlights

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

• Net fee and commission income for FY2025 was €2,789 million, up 8% year-over-year; assets under management reached €300 billion, with €6 billion net inflows in mutual funds.

• Insurance service result for 4Q2025 was €166 million, with non-life combined ratio at 87% for FY2025; life insurance sales up 23% year-over-year.

• Operating expenses (excluding bank and insurance taxes) rose 2.5% year-over-year; cost/income ratio (excluding all taxes) improved to 41%.

• Credit cost ratio for FY2025 was 0.13%; impaired loans ratio at 1.8% (KBC definition), both better than EU average.

Outlook and guidance

• FY2026 guidance: total income growth of at least 9.9% year-over-year, net interest income of 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%.

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

• Credit cost ratio expected well below 25-30 bps through 2028, barring major external shocks.