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.

• The integrated bank-insurer model, digital-first strategy, and AI-led approach, including the launch of Kate 2.0, enhanced customer interaction and operational efficiency, with 5.8 million users.

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

• Total income for the quarter was €3,041 million, stable sequentially and up 9% year-over-year.

Financial highlights

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

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

• Fee and commission income rose 6% quarter-on-quarter and 10% year-over-year, with asset management services up 7% and banking services up 5%.

• Non-life insurance up 8% quarter-on-quarter and 8% year-over-year; life insurance up 29% quarter-on-quarter and 7% year-over-year; insurance service result at €142 million.

• Operating expenses (excluding taxes) rose 2% quarter-on-quarter and 1% year-over-year, remaining within guidance; cost/income ratio for 9M2025 was 45% (41% excluding all taxes).

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

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

• Interim dividend of €1 per share paid in November 2025.

Outlook and guidance

• Full-year 2025 guidance raised: net interest income at least €5.95 billion, total income growth at least 7.5%, and cost growth capped at 2.5%.

• Insurance revenues expected to grow at least 7% year-over-year; 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%.

• Organic loan volume growth guidance increased to approximately 7–7.5% year-over-year, especially in Central Europe.

• No further ECB rate cuts expected in 2025 or 2026; positive economic outlook for Western and Central Europe.