KBC Group's Q4 performance slightly exceeded expectations, with mid-term guidance above market consensus

LootboxPhobia · 2026-02-12T15:18:55+00:00

KBC Group's Q4 2025 financial report shows an adjusted pre-tax profit of €1.4 billion, exceeding expectations, mainly driven by strong net interest income. Although the per-share dividend was below expectations, the future performance guidance has been upgraded, with net interest income and insurance income expected to grow in 2026 and 2028.

LootboxPhobia

2026-02-12 15:18:55

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Investing.com – KBC Group reported its Q4 2025 earnings on Thursday, slightly ahead of expectations, with adjusted pre-tax profit exceeding market consensus forecasts by 5%.

The Belgian banking and insurance group posted an adjusted pre-tax profit of €1.4 billion, surpassing analyst estimates by 5% and exceeding UBS estimates by 7%. Revenue reached €3.2 billion, 2% above expectations, mainly driven by stronger-than-expected net interest income, which was 3% higher than forecasts.

Operating expenses were 1% higher than expected, partly due to one-time variable compensation payments. The €100 million impairment loss was in line with expectations but included non-credit impairments that analysts believe should not be considered normal.

Despite the company paying a dividend of €4.1 per share (6% below expectations), its capital position remains 10 basis points below forecasts.

KBC Group provided guidance for 2026 and 2028. For 2026, the company expects net interest income to reach €6.73 billion (market consensus €6.61 billion), insurance income of €3.44 billion (consensus €3.43 billion), and expenses of €4.95 billion (consensus €4.79 billion).

This represents an upward revision of about 1% compared to market consensus, although some cost increases may be related to recent acquisitions.

The mid-term guidance for 2028 shows more significant upside potential.

KBC expects net interest income to grow to €7.77 billion at a compound annual growth rate (CAGR) of 8.6% (consensus €7.34 billion), insurance income to reach €3.98 billion at a CAGR of 7.5% (consensus €3.91 billion), total revenue to increase to €15.24 billion at a CAGR of 7.7% (consensus €14.85 billion), and expenses to rise to €5.22 billion at a CAGR of 4.3% (consensus €5.09 billion).

This indicates an increase of 4-5% above current market consensus.

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