KBC fourth quarter profit narrowly beats consensus (updated)

KBC Groep NV

12/02/2026 06:29

NII grows 12% year-on-year to 1.61 billion euros

KBC sets new medium and long-term financial targets

Proposed dividend of 5.1 euros per share for 2025

Adds table, adds share move in para 3, adds NII context para 4, 10, adds insurance division in para 11

By Jakob Van Calster

Feb 10 (Reuters) - KBC KBC.BR reported a 10% reduction in fourth quarter net income to 1 billion euros ($1.19 billion), narrowly beating the 973 million euros analysts had expected in a consensus compiled by the company.

The same period a year ago benefited from a one-off tax benefit as the bank exited Ireland.

Shares in KBC traded up around 2.5% in early morning Brussels trading.

Belgium's largest bank continued to benefit from its strategy to lock in long-term bonds early in the rate-hiking cycle, sacrificing short‑term reinvestment gains as rates rose in exchange for a smoother landing once the ECB reversed course.

"Our total income benefited from several factors, including higher net interest income, an increase in trading & fair value income, increased insurance revenues and higher net fee and commission income," it said in a statement on Thursday.

The lender also set new medium and long-term targets. Total income for 2026 is projected to grow at least 9.9% year-on-year and net interest income is expected to be 6.73 billion euros or more.

By the end of 2028, the group aims to achieve a cost-to-income ratio below 38% and generate a total income of at least 7.7% higher.

Quarterly net interest income (NII) - the spread between the interest earned on loans and interest paid to depositors - grew by 12% on the year, bringing KBC's full year total NII to 6.1 billion euros, ahead of its previous target of 5.95 billion.

The strong NII growth comes as Dutch peers ABN Amro ABNd.AS and ING INGA.AS saw flat to moderate gains in the metric and move to cut costs and raise fees to offset slowing NII, which had surged after European Central Bank (ECB) rate hikes drove a stellar 2025.

The combined ratio of its non-life insurance division, which accounts for 22% of revenue, improved to 87% from 90% in 2024. A value below 100% indicates an insurance business is turning a profit.

KBC proposed a dividend of 5.1 euros per share for 2025, bringing its pay-out ratio to 60% of its yearly net profit, at the upper end of its guidance.

($1 = 0.8431 euros)

Profit beat as NII boosts income https://www.reuters.com/graphics/KBCGROEP-RESULTS/lgpdqdrzdvo/chart.png

 (Reporting by Jakob Van Calster; Editing by Matt Scuffham)

 ((jakob.vancalster@thomsonreuters.com))