KBC Group Reports a Net Profit of 3.568 Billion Euros in 2025, Up 18%
KBC Group concluded 2025 with a net profit of 3,568 million euros, marking an 18% increase year-over-year. The fourth quarter particularly contributed to this performance with a profit of 1,003 million euros.
Annual Financial Performance
The Belgian financial group recorded an annual net profit of 3,568 million euros in 2025, an increase of 18% compared to 2024, excluding exceptional items. Over the full year, total revenue grew by 9%, surpassing initial expectations. This growth was driven by several factors: an increase in net interest income, improvement in fair value and trading-related revenues, growth in insurance business revenues, and an increase in net commission income. The fourth quarter contributed to this momentum with a net profit of 1,003 million euros. This diversification of revenue sources illustrates the strength of the group's business model across its various activities. The credit portfolio continued to expand, with a quarterly growth of 1% and an annual increase of 7%. Customer deposits, excluding volatile short-term deposits from foreign subsidiaries, increased by 2% quarterly and 3% annually.
Financial Ratios and Dividends
The credit cost ratio stood at 13 basis points for the entirety of 2025, remaining significantly below forecasts. Operating expenses excluding bank and insurance taxes met expectations for the full year. The fully-loaded common equity ratio excluding the Basel IV floor reached 14.9% at the end of December 2025, demonstrating robust solvency. Liquidity remains very strong with an LCR ratio of 159% and an NSFR ratio of 138%. The group proposes a total gross dividend of 5.1 euros per share for 2025, including an advance payment of 1 euro made in November 2025 and a balance of 4.1 euros scheduled for May 2026. Including the additional Tier-1 coupon, the payout ratio reaches 60% of the net profit for 2025. The recent acquisitions of 365.bank in Slovakia and Business Lease in the Czech Republic and Slovakia are expected to have a combined impact of about 50 basis points on the capital position in the first quarter of 2026.
Medium-Term Financial Forecasts
KBC Group has updated its medium-term financial forecasts. By 2028, the group aims for a growth in total revenue exceeding non-bank and insurance operating expenses by at least 3.4 percentage points on average per year, leading to a cost/income ratio below 38%. The combined ratio in non-life insurance is expected to remain below 91%. The AI-powered digital assistant Kate has reached 6 million customers, up 13% year-over-year, with an autonomy rate of 82% in Belgium. The MyMobility ecosystem has attracted 73,000 customers in the first few months of launch. The group has received an A rating from the CDP for its climate communication for the fourth consecutive year and is listed in the S&P Global Sustainability Yearbook for the seventh consecutive year.
