KBC lifts 2025 targets again as quarterly earnings beat expectations (updated)

KBC Groep NV

13/11/2025 07:24

Adds income growth target paragraph 2, Q3 NII and context in paragraphs 3-6, CEE contribution in paragraph 7

KBC raises 2025 forecasts for net interest and total income

Net interest income climbs 10% in Q3, exceeds market estimates

Central and Eastern Europe division contributes 48% of Q3 profit

Nov 13 (Reuters) - Belgian bank and insurance group KBC KBC.BR lifted its annual guidance for the second time in three months on Thursday, expecting to reach 5.95 billion euros ($6.94 billion) of net interest income instead of the previously guided 5.85 billion.

The lender also raised the forecast for total income growth from 7% to 7.5%, after it reported a better-than-expected profit of 1 billion euros for the third quarter, helped by higher insurance revenue and income from interest, fees and commissions.

Net interest income climbed 10% to 1.53 billion euros, exceeding the average estimate of 1.51 billion from analysts polled by KBC.

Interest rates in the euro zone have been trending down since 2024, with the European Central Bank cutting its key rate multiple times to stimulate economic growth. This easing cycle continued in 2025, impacting lending and borrowing dynamics across the region, although interest rates are expected to remain stable at 2% from here.

However, KBC had locked in long-term bonds early on in the rating cycle, sacrificing short-term gains in net interest income when rates were hiked in favour of a smoother landing on the way down, from which it benefits now.

Its presence in non-euro markets, notably the Czech Republic, also offers some shelter from the negative effects of lower ECB rates.

KBC's Central and Eastern Europe division, which includes a dominant market position in the Czech Republic and a 16% market share in Slovakia, made up 48% of the group's profit in the third quarter.

($1 = 0.8575 euros)

(Reporting by Jakob Van Calster in Gdansk, editing by Milla Nissi-Prussak)

((jakob.vancalster@thomsonreuters.com;))