Kbc Group N.v. · EURONEXT:KBC
Kbc — Q2 2025 Earnings Presentation
31 slides from Kbc's earnings presentation, 2025
Slide 1: KBC Group Press presentation 2Q 2025
1 KBC Group Press presentation 2Q 2025 Johan Thijs, KBC Group CEO Bartel Puelinckx, KBC Group CFO www.kbc.com More information: www.kbc.com [email protected] [email protected] KBC Group - Investor Relations Office: [email protected]
Slide 2: Highlights: Net result of 1,018m EUR over 2Q25
Highlights Net result of 1,018m EUR over 2Q25 • Commercial bank-insurance franchises performed excellently 2 • Customer loans and customer deposits increased q-o-q in almost all our core countries (on a comparable basis). Core customer money Net result in m EUR inflow of 5.0bn EUR in 2Q25 with a shi
Slide 3: Excellent contribution from all business units
Excellent contribution from all business units 3 Net result per business unit in m EUR BU BE BU CZ BU IM 598 607 519 487 237 244 240 224 238 205 207 90 Bulgaria 197 76 175 179 281 146 80 135 243 85 63 66 121 122 Hungary 110 50 65 35 34 27 26 34 25 Slovakia 16 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 1Q24 2Q24
Slide 4: Strategic focus
Strategic focus | Sia Partners ranked KBC Mobile the N°1 mobile banking app worldwide 4 Unique integrated bank- Successful digital-first Firmly embedded insurance+ model approach through KATE sustainability strategy • We offer an integrated response to our • Our digital interaction with clients form
Slide 5: Strategic focus: The reference
Strategic focus | The reference 5 Profitability With a Return on Equity of 15% in 1H25 KBC is one of the most profitable EU financial institutions Solvency With an unfloored fully loaded CET1 ratio of 14.6% at end 1H25 KBC is amongst the better capitalised EU banks At KBC it is our ambition to be th
Slide 6: Excellent net interest income, leading to increased FY25 guidance
Excellent net interest income, leading to increased FY25 guidance 6 Net interest income Net interest margin* in m EUR in %, calculated excluding dealing room, ALM FX swaps & repos 1,509 1,379 1,421 121 Insurance 110 102 Banking 2.10% 2.05% 2.08% 1,269 1,319 1,388 (incl. Holding) 2Q24 1Q25 2Q25 2Q24
Slide 7: Inflow of core customer money
Inflow of core customer money 7 Customer money dynamic over 2Q25 Customer money dynamic over 1H25 in bn EUR in bn EUR +5.0bn EUR +7.4bn EUR -2.1bn EUR +2.7bn EUR +1.5bn EUR -3.9bn EUR +3.5bn EUR +5.4bn EUR 0.0bn EUR 0.0bn EUR +2.8bn EUR +2.4bn EUR +1.2bn EUR +0.5bn EUR +1.6bn EUR +2.8bn EUR 31MAR25
Slide 8: Good net fee and commission income, higher net inflows in direct client money
Good net fee and commission income, Higher net inflows in direct client money y-o-y 8 Net fee & commission income Assets under management in m EUR in bn EUR 690 667 280 262 273 623 12 13 Other Investment 12 62 63 61 advice 299 291 Banking services 267 76 77 Fund-of-Funds 73 Group assets & 20 21 22 P
Slide 9: Non-life sales up y-o-y, life sales down q-o-q and up y-o-y
Non-life sales up y-o-y, life sales down q-o-q and up y-o-y 9 Non-life sales Life sales in m EUR in m EUR 1,013 64 792 623 671 333 655 620 71 Hybrid products 2Q24 1Q25 2Q25 47 Guaranteed- • Up by 8% y-o-y, with growth in all countries and all main classes, due to a 222 299 Interest combination of vo
Slide 10: FIFV & IFIE result up q-o-q and net other income above run rate
FIFV & IFIE result up q-o-q and net other income above the normal run rate 10 FIFV & IFIE Net other income in m EUR in m EUR 2Q24 1Q25 2Q25 Dealing room 62 77 60 MVA/CVA/FVA 1 -1 0 77 IFIE mainly 67 interest -60 -67 -67 51 accretion M2M ALM derivatives and 0 -55 -27 other 2Q24 1Q25 2Q25 FIFV & IFIE
Slide 11: Costs excluding bank & insurance taxes increased q-o-q
Costs excluding bank & insurance taxes increased q-o-q 11 Operating expenses (including costs directly attributable to Cost/income ratio insurance) When excluding bank and insurance taxes in m EUR 1,646 FY24 1H25 539 43% 41% 1,152 1,076 Bank & 27 2 insurance taxes Operating 1,074 1,106 1,125 expense
Slide 12: Overview of bank & insurance taxes
Overview of bank & insurance taxes* 12 KBC Group KBC Group Belgium BU in m EUR in m EUR 566m EUR BU BE Pro rata 13.1% 356m EUR 539 Pro rata 12.4% 356 518 of 1H25 opex** 317 17 of 1H25 opex** 0 Resolution Fund* 27 Resolution Fund 0 contribution contribution Common bank & Common bank & 356 491 523 317
Slide 13: Higher net loan loss impairment charges & excellent credit cost ratio
Higher net loan loss impairment charges & excellent credit cost ratio 13 Other impairments Asset impairment ECL for geopolitical and macroeconomic uncertainties Credit cost ratio in m EUR; negative sign is a release in bps Impairments on financial assets at AC and FVOCI 124 15 8 85 38 40 10 13 0 14
Slide 14: Strong capital position with substantial buffer
Strong capital position with substantial buffer 14 CET1 ratio Unfloored fully loaded B4 common equity ratio in % increased from 14.5% to 14.6% at the end of 2Q25 based on the Danish Compromise 15.5 15.4 15.2 15.0 14.6 14.5 Going forward, • the quarterly upstreaming of BGAAP insurance profit to KBC G
Slide 15: Leverage ratio, Solvency II ratio and liquidity ratios
Leverage ratio, Solvency II ratio and liquidity ratios 15 Leverage ratio | KBC Group Liquidity ratios | KBC Group Solvency II ratio | KBC Group fully loaded in % in % Leverage LCR NSFR Solvency II ratio ratio 5.6% 1H25 157% 1H25 135% 1H25 213% 1H25 5.5% FY24 158% FY24 139% FY24 200% FY24 Q-o-q highe
Slide 16: Wrap-up
Wrap-up 16 Excellent financial Outstanding solvency Kate convinces Franchise is growing performance and liquidity customers net result loan customer CET1 ratio 5.7 million 1,018m users volumes deposits 2Q25 14.6% 3415m 3.8% buffer in contact +7% +6% vs MDA with Kate y-o-y y-o-y FY24 NSFR 414k AM net
Slide 17: Looking forward I Economic outlook
Looking forward I Economic outlook 17 • Notwithstanding the US-EU tariff agreement of 27 July, uncertainty around economic policy and trade relations are likely to keep economic growth in the euro area subdued in the next few quarters. Meanwhile, the medium-term growth outlook has improved somewhat
Slide 18: Looking forward I FY25 financial guidance
Looking forward I FY25 financial guidance 18 FY25 NII guidance increased from at least Our bank-insurance+ model is firing on all cylinders 5.7bn EUR to at least 5.85bn EUR, Organic loan volume growth increased Note: all growth figures are based on reported 2024 figures from +4% to at least +6.5% y-
Slide 19: Looking forward I FY27 financial guidance
Looking forward I FY27 financial guidance (as provided with FY24 results) 19 Our bank-insurance+ model is firing on all cylinders Note: all growth figures are based on reported 2024 figures 2027 Total income CAGR24-27 at least +6% Net interest income* CAGR24-27 at least +5% Jaws at least +3% Insuran
Slide 20: Wrap-up: digital-first, data-driven and AI-led integrated bank-insurer
Wrap-up: digital-first, data-driven and AI-led integrated bank-insurer with tailored AM Well-positioned in a decreasing (policy) rate environment 20 Well-diversified, both geographically and from a business point of view • • Mature markets (BE, CZ) combined with growth markets (SK, HU, BG) • Robust
Slide 21: Strategy | financial targets (2023-2026)
Strategy | -financial targets (2023-2026) 21 Customer ranking Bank-insurance (BI) clients Digital sales BI clients Digital sales banking products* TARGET in % TARGET in % TARGET Top-3 Top-3 Top-2 * 83% 65% 2023 2024 2026 76% 76% 76% 52% 55% 55% • KBC is 3rd in customer NPS (Net Promoter Score) ranki
Slide 22: Company profile | KBC Group in a nutshell
Company profile | KBC Group in a nutshell 22 Dividend policy & capital distribution Shareholder structure (as at end 2Q25) The Board of Directors decided: MRBB Other core Treasury shares Cera 12.4% 6.8% • the dividend policy as from 2025: 5.0% • A payout ratio (including AT1 coupon) between 50%-65%
Slide 23: Kate | Four flavours, one Kate
Kate | Four flavours, one Kate 23 Kate4Retail & mSME Kate4Business Kate Group Platform Kate4Commercial Employees Kate is a personal virtual Kate also engages with our SME We do not build Kate for every Kate also has an impact on our assistant that engages with our and corporate clients and country i
Slide 24: Kate | A data-driven organisation with Kate at the core
Kate | A data-driven organisation with Kate at the core 24 Kate is more than an interface towards customers. It also refers to the AI-enhanced software at our center: the Kate brain. The Kate brain will be the driving force behind data-driven decision making, product design and development, marketin
Slide 25: ESG rating end of July 2025
25 Agency ESG rating end of July 2025 Position versus industry D- A • Leader in addressing climate change • A Severe Risk High Risk Medium Risk Low Risk Negligible Risk • 3rd percentile of 254 diversified banks assessed [Last Full Update Nov 29, 2024] 10.9 0 100 • Top 8% • 92nd percentile of 601 ban
Slide 26: Indirect environmental impact: our progress in brief
Indirect environmental impact: our progress in brief 26 INDIRECT environmental footprint (FY 2024) Loan portfolio (selection of sectors) Carbon-intensity reduction compared to 2021 baseline, otherwise indicated Operational lease Renewable energy • We refer to our Collective Commitment to Climate Ele
Slide 27: Sustainability highlights (FY2024)
Sustainability highlights (FY2024) 27 Commitment to the environment Sustainable business Social responsibility Two new thematic White Papers CSRD Reporting 7.4 billion euros in social sectors This year, we developed two new internal We published our first Sustainability In 2024, we financed 6.17 bil
Slide 28: Own environmental impact: our progress in brief
Own environmental impact: our progress in brief 28 Own environmental footprint (FY 2024) More details in our 2024 Sustainability Report • Since 2015, we have been calculating the GHG emissions arising from our own operations at group level, in accordance with the GHG Protocol Corporate Accounting an
Slide 29: Thank you message from CEO
29 We put our clients centre stage as they keep counting on us to help them realise and protect their dreams. We do this proactively and work together to support the society and create sustainable growth. We are genuinely grateful for the confidence they put in us. I would like to explicitly thank o
Slide 30: Glossary
Glossary 30 B3 / B4 Basel III / Basel IV Combined ratio (non-life Short-term non-life insurance contracts: [claims and claim related costs net of reinsurance + costs other than claims and commissions] / [earned expected insurance) premiums received, net of reinsurance] Common equity ratio [common eq
Slide 31: Disclaimer
Disclaimer 31 • This presentation is provided for information purposes only. It does not constitute an offer to sell or the solicitation to buy any security issued by the KBC Group. • KBC believes that this presentation is reliable, although some information is condensed and therefore incomplete. KB