KBC: Net profit of €1,142 million in the third quarter, up €140 million year on year
On 12 November 2026, KBC published a net profit of €1,142 million for the third quarter. This is up €140 million year on year and down slightly by €10 million compared with the second quarter. Over the first nine months, net profit reached €2,851 million, an increase of 11%.
Belgium accounts for most of the increase over nine months, while the International Markets division, almost flat on a cumulative basis, accelerated in the third quarter alone. On the balance sheet, organic loan growth had already exceeded, by the end of September, the target the group had set for the whole of 2026.
Belgium drives the increase in profit over nine months
Over the first nine months, Belgium's contribution to net profit rose by €301 million, to €1,778 million. This increase exceeds that of the group as a whole (€285 million). In the third quarter, Belgium earned €714 million, or €125 million more than a year earlier.
This development is accompanied by a deterioration in the Group Centre, whose loss widened by €81 million over nine months, to €292 million, and by €36 million over the quarter, to €104 million.
The Czech Republic's progress is more modest: its contribution increased by €55 million over nine months, to €746 million, and by €8 million in the third quarter, to €252 million.
Basic earnings per share follow the same trend. They stood at €2.80 in the third quarter, up €0.36 year on year, and at €6.95 over nine months, up €0.69.
International Markets accelerates, while Belgium and the Czech Republic decline over the quarter
The International Markets division posted a contribution that was almost stable over nine months, up €10 million to €619 million. In the third quarter alone, however, it reached €280 million, or €43 million more than a year earlier and €40 million more than in the second quarter.
This acceleration partly offsets the quarterly decline of the other two divisions. From one quarter to the next, Belgium's contribution fell by €33 million and that of the Czech Republic by €20 million, which explains the slight decline in the group's profit compared with the second quarter.
According to management, insurance revenue, net fee and commission income, trading and fair value income, and net interest margin (excluding significantly lower income on inflation-linked bonds) increased over the quarter. Other net income and dividends, on the other hand, declined, the latter after their seasonal peak in the second quarter.
Excluding banking and insurance taxes, operating expenses rose by 3% over the quarter. On a cumulative basis and on a comparable scope (excluding currency effects, recent acquisitions and the exceptional bonus paid to employees), they remain in line with the annual target, according to the group. Total impairments remained broadly stable.
Loans up 7% year on year, CET1 ratio at 14.6%
The loan portfolio grew organically by 2% over the quarter and by 7% over the year. Customer deposits (excluding short-term deposits at the foreign branches of KBC Bank) fell by 1% over the quarter.
The group attributes this decline to seasonality, to issues of government bonds aimed at retail clients and to transfers towards asset management. Over one year, these deposits increased by 3%.
Excluding the provision for geopolitical and macroeconomic uncertainties and excluding the acquisition of 365.bank, the cost of risk improved compared with the end of 2025, standing at 12 basis points over nine months.
The fully loaded CET1 capital ratio under Basel IV reached 14.6% at the end of September. At the end of October, the group had indicated that the ECB maintained its CET1 requirement at 10.94%.
The LCR and NSFR liquidity ratios stood at 157% and 131%, respectively. Book value per share rose from €60.8 to €66.1 over one year, and an interim dividend of €1 was paid in respect of 2026.
On the digital front, the virtual assistant Kate, used by 6.4 million clients, now handles more than 75% of questions autonomously.
Profit growth continues to be driven mainly by Belgium, while the loan portfolio is growing and the Group Centre is increasing its loss. The group has scheduled an event dedicated to its digital transformation for 11 February 2027, when it presents its annual results, which is expected to lead to new financial and non-financial targets.
