KBC Group: Stable Net Profit of €557M in Q1
KBC Group recorded a net profit of €557 million in the first quarter of 2026, down 44% from the previous quarter but nearly stable compared to the same period last year. This decline mainly reflects the usual burden of banking and insurance taxes concentrated in the first quarter, while core business remains dynamic: 7% annual growth in loans, stable deposits, and very solid liquidity. The Belgian bancassurer continues its strategic deployment with the integration of Czech and Slovak acquisitions and the expansion of its digital ecosystem driven by its AI assistant Kate.
Annual Net Result Stable Despite Q1 Charges
The net result for the first quarter reached €557 million, close to the level of €546 million recorded in Q1 2025 (2% growth). The 44% decline from the previous quarter (€1,003 million in Q4 2025) is expected and reflects the concentrated accounting of the majority of annual banking and insurance taxes in the first quarter, a recurring seasonal phenomenon. Earnings per share stood at €1.32, down from the analytical consensus which anticipated €1.36, a difference of 2.9%. By division, Belgium generated €317 million in net profit (compared to €674 million in Q4 2025), the Czech Republic €223 million (compared to €231 in Q4 2025), and international markets €99 million (compared to €205 in Q4 2025). The group center posted a charge of €82 million.
Expanding Credits, Stable Deposits, Strengthened Geopolitical Reserves
KBC's core business shows positive dynamics. The credit portfolio grew by 7% year-on-year and 2% quarterly. Customer deposits (excluding volatile low-margin deposits in foreign subsidiaries) remained stable over the quarter and grew by 3% over the year. In terms of risk management, value reductions on credits slightly increased compared to the previous quarter. Facing geopolitical turbulence, KBC has increased its reserve (ECL and management overlay) by €75 million for geopolitical and macroeconomic uncertainties, bringing this reserve to a total of €175 million. Liquidity ratios remain very solid: LCR ratio of 159% and NSFR ratio of 135%.
Integrated Acquisitions and Digital Expansion Around Kate
KBC has finalized the acquisition of 365.bank in Slovakia and Business Lease in the Czech Republic and Slovakia. These two operations contributed €13 million to the Q1 2026 profit but reduced the common equity Basel IV ratio by 0.5 percentage points, bringing it to 14.4% at the end of March 2026. Digitally, the AI assistant Kate now serves 6.1 million customers, up 11% in a year, handling over 70% of requests autonomously in strategic markets. The MyMobility ecosystem has attracted 340,000 customers in Belgium and the Czech Republic, while MyHome has 40,000 in Belgium. A final dividend of €4.1 per share will be paid on May 20, 2026, bringing the total 2025 dividend to €5.1 (a payout ratio of 60% of the 2025 net profit).
