Press Release
Outside trading hours - Regulated information*


Brussels, 7 November 2024 (07.00 a.m. CET)



KBC Group: Third-quarter result of 868 million euros

KBC Group – overview (consolidated, IFRS) 3Q2024 2Q2024 3Q2023 9M2024 9M2023
Net result (in millions of EUR) 868 925 877 2 300 2 725
Basic earnings per share (in EUR) 2.14 2.25 2.07 5.58 6.44
Breakdown of the net result by business unit (in millions of EUR)
Belgium 598 519 517 1 359 1 392
Czech Republic 179 244 200 620 661
International Markets 205 224 200 576 498
Group Centre -114 -61 -41 -255 174
Parent shareholders’ equity per share (in EUR, end of period) 54.1 53.2 52.2 54.1 52.2



We recorded a net profit of 868 million euros in the third quarter of 2024. Compared to the result for the previous quarter, our total income
benefited from several factors, including higher net interest income (despite significantly lower income on inflation-linked bonds), increased
insurance revenues supported by commercial actions, and higher net fee and commission income driven by excellent business performance.
These items were offset by a decrease in trading & fair value income and the drop in dividend income following its seasonal peak in the second
quarter.

Our loan portfolio continued to expand, increasing by 1% quarter-on-quarter and by 5% year-on-year. Customer deposits – excluding volatile,
low-margin short-term deposits at KBC Bank’s foreign branches – were up 3% quarter-on-quarter and 5% year-on-year. As regards Belgium,
deposits grew by as much as 5% quarter-on-quarter and 8% year-on-year, owing to the successful recuperation of customer funds following
the maturity of the Belgian state note issued a year earlier. In fact, thanks to our proactive, multi-phased and multi-product customer offering,
the total inflow of core customer money after the state note matured amounted to 6.5 billion euros, outpacing last year’s 5.7-billion-euro outflow
to the state note by 0.8 billion euros.

Operational expenses were up in the quarter under review but remained perfectly within our full-year 2024 guidance. Insurance service
expenses were higher, partly as a result of the storms and floods in Central Europe, especially Storm Boris. To date, we are helping some
10 000 customers alleviate the impact of the floods caused by this storm. Next to that, we established a donation fund. Loan loss impairment
charges, excluding the reserve for geopolitical and macroeconomic uncertainties, were up on the level recorded in the previous quarter,
leading to a credit cost ratio of 16 basis points for the first nine months of 2024, substantially below the guidance. Including the reserve for
geopolitical and macroeconomic uncertainties, the credit cost ratio stood at 10 basis points for the first nine months of 2024. In the quarter
under review, we also booked a one-off 79-million-euros gain, under ‘share in results of associated companies & joint ventures’.

Our solvency position remained strong, with a fully loaded common equity ratio of 15.2% at the end of September 2024. Our liquidity position
remained very solid too, as illustrated by an LCR of 159% and NSFR of 142%. As already announced earlier, we will – in line with our general
dividend policy – pay an interim dividend of 1 euro per share on 14 November 2024 as an advance on the total dividend for financial year
2024.

The share of bank and insurance products sold digitally has continued to rise: based on a selection of core products, around 55% of our
banking and 29% of our insurance products were sold through a digital channel, up from 51% and 26% a year ago. And Kate, our personal
digital assistant, is making good progress too: to date, over 5 million customers have already used Kate, an increase of no less than 37% on
the year-earlier figure, while the proportion of cases resolved fully autonomously by Kate continues to improve and now stands at 67% in
Belgium and 69% in the Czech Republic. I’m also delighted to add that our successful digitalisation and innovation journey regularly receives
recognition from external parties. I am particularly proud that, just a few weeks ago, the independent international research agency Sia
Partners honoured us by naming KBC Mobile the best mobile banking app in the world.

Our ultimate aim is to be the reference bank-insurer in all our core markets. This ambition is fuelled by our customer-centric business model
and, most importantly, by the trust our customers, employees, shareholders, and other stakeholders place in us. We appreciate and are deeply
grateful for this continued trust.


Johan Thijs
Chief Executive Officer



1
Financial highlights in the third quarter of 2024
 Net interest income increased by 1% both quarter-on-quarter and year-on-year. The net
interest margin for the quarter under review amounted to 2.08%, down 1 basis point on the The cornerstones of our strategy
previous quarter and up 4 basis points on the year-earlier quarter. Customer loan volumes
were up 1% quarter-on-quarter and 5% year-on-year. Customer deposits – excluding
volatile, low-margin short-term deposits at KBC Bank’s foreign branches – were up 3%
quarter-on-quarter and 5% year-on-year. In Belgium, the total inflow of core customer
money (deposits, savings certificates, funds, insurance, bonds, etc.) after the state note
matured totalled 6.5 billion euros and hence outpaced last year’s 5.7-billion-euro outflow to
the state note by 0.8 billion euros.
• We place our customers at the centre of everything we do
• We look to offer our customers a unique bank-insurance
 The insurance service result (insurance revenues before reinsurance - insurance service experience
• We focus on our group’s long-term development and aim
expenses before reinsurance + net result from reinsurance contracts held) amounted to 81
to achieve sustainable and profitable growth
million euros (compared to 113 million euros and 138 million euros in the previous and year-
• We assume our role in society and local economies
earlier quarters, respectively) and breaks down into 45 million euros for non-life insurance
• We build upon the PEARL + values, while focussing on the
and 36 million euros for life insurance. Our non-life insurance result was evidently impacted joint development of solutions,
by Storm Boris in Central Europe. To date, we are helping some 10 000 customers alleviate initiatives and ideas within the group
the impact of the floods caused by this storm. We estimate the impact on the non-life result
(after reinsurance) to be 33 million euros pre-tax in the quarter under review. The non-life
insurance combined ratio for the first nine months of 2024 amounted to 89%, compared to
87% for full-year 2023. Non-life insurance sales increased by 8% year-on-year. Life
insurance sales were excellent and were up 28% and 80% on the levels recorded in the
previous and year-earlier quarters, respectively, due in both cases to higher sales of unit-
linked and guaranteed-interest insurance products, thanks, among other things, to inflows
from the maturing state note and a successful launch of structured emissions in Belgium.

 Net fee and commission income was up 3% and 9% on its level in the previous and year-
earlier quarters, respectively. In both cases, the increase came about thanks to the higher
level of fees for our asset management activities and our banking services. Assets under
management were up 3% quarter-on-quarter and 18% year-on-year.



 Trading & fair value income and insurance finance income and expense was down 46
million euros and 34 million euros on the figures for the previous and year-earlier quarters,
respectively. Net other income was slightly below its normal run rate. Dividend income
was down on the previous quarter’s level, as the second quarter traditionally includes the
bulk of dividend income for the full year.


 Operating expenses excluding bank and insurance taxes were up 6% and 3% on their
level in the previous and the year-earlier quarters, respectively. The cost/income ratio for
the first nine months of 2024 came to 47%, compared to 49% for full-year 2023. In that
calculation, certain non-operating items have been excluded and bank and insurance taxes
spread evenly throughout the year. Excluding all bank and insurance taxes, the cost/income
ratio for the first nine months of 2024 amounted to 43%, fully in line with the figure for full-
year 2023.

 The quarter under review included a 61-million-euro net loan loss impairment charge,
compared to 72 million euros in the previous quarter and 36 million euros in the year-earlier
quarter. The credit cost ratio for the first nine months of 2024 amounted to 0.10%, compared
to 0.00% for full-year 2023. Impairment on assets other than loans amounted to 7 million
euros in the quarter under review, compared to 13 million euros in the previous quarter and
27 million euros in the year-earlier quarter.



 The share in results of associated companies & joint ventures for the quarter under
review included a 79-million-euros one-off gain related to Isabel.

 Our liquidity position remained strong, with an LCR of 159% and NSFR of 142%. Our
capital base remained robust, with a fully loaded common equity ratio of 15.2%.




2
Overview of results and balance sheet
Consolidated income statement, IFRS,
KBC Group (simplified; in millions of EUR) 3Q2024 2Q2024 1Q2024 4Q2023 3Q2023 9M2024 9M2023
Net interest income 1 394 1 379 1 369 1 360 1 382 4 141 4 113
Insurance revenues before reinsurance
740 726 714 683 699 2 181 1 996
Non-life
631 613 598 584 587 1 842 1 696
Life
109 114 116 99 113 339 301
Dividend income 11 26 7 12 10 44 47
Net result from financial instruments at fair value
through P&L and Insurance finance income and
expense 1 -42 3 -55 -40 -8 -94 49
Net fee and commission income 641 623 614 600 588 1 878 1 749
Net other income 45 51 58 60 44 154 596
Total income 2 787 2 809 2 708 2 674 2 715 8 303 8 550
Operating expenses (excl. directly attributable from
insurance) -1 058 -950 -1 431 -1 085 -1 011 -3 440 -3 531
Total operating expenses without bank and insurance
taxes -1 135 -1 074 -1 063 -1 169 -1 101 -3 272 -3 269
Total bank and insurance taxes -47 -2 -518 -36 -29 -568 -651
Minus: operating expenses allocated to insurance
service expenses 124 126 150 120 119 401 389
Insurance service expenses before reinsurance -688 -590 -563 -567 -540 -1 840 -1 553
Of which Insurance commission paid -99 -92 -89 -94 -87 -280 -246
Non-Life -615 -514 -489 -509 -485 -1 618 -1 361
Life -72 -76 -73 -58 -55 -221 -192
Net result from reinsurance contracts held 28 -24 -18 -16 -22 -13 -74
Impairment -69 -85 -16 -170 -63 -170 -46
Of which: on financial assets at amortised cost and at fair
value through other comprehensive income2 -61 -72 -16 5 -36 -149 11
Share in results of associated companies & joint
ventures 78 2 0 0 0 80 -4
Result before tax 1 079 1 162 680 836 1 079 2 922 3 343
Income tax expense -211 -237 -175 -159 -203 -623 -619
Result after tax 868 925 506 677 877 2 299 2 725
attributable to minority interests 0 0 0 0 0 -1 -1
attributable to equity holders of the parent 868 925 506 677 877 2 300 2 725
Basic earnings per share (EUR) 2.14 2.25 1.18 1.59 2.07 5.58 6.44
Diluted earnings per share (EUR) 2.14 2.25 1.18 1.59 2.07 5.58 6.44
Key consolidated balance sheet figures, IFRS,
KBC Group (in millions of EUR) 30-09-2024 30-06-2024 31-03-2024 31-12-2023 30-09-2023
Total assets 353 261 361 945 359 477 346 921 358 453
Loans & advances to customers 188 623 187 502 183 722 183 613 181 821
Securities (equity and debt instruments) 75 929 73 941 73 561 73 696 72 765
Deposits from customers3 221 851 221 844 216 314 216 501 214 287
Insurance contract liabilities 17 012 16 521 16 602 16 784 15 920
Liabilities under investment contracts, insurance 15 193 14 780 14 319 13 461 12 655
Total equity 23 300 22 936 23 917 24 260 23 865
Selected ratios KBC Group (consolidated) 9M2024 FY2023
Return on equity4 14% 16%
Cost/income ratio, group
- excl. non-operating items and evenly spreading bank
and insurance taxes throughout the year 47% 49%
- excl. all bank and insurance taxes 43% 43%
Combined ratio, non-life insurance 89% 87%
Common equity ratio (CET1), Basel III, Danish Compromise.
- fully loaded 15.2% 15.2%
- transitional 14.5% 13.8%
5
Credit cost ratio 0.10% 0.00%
Impaired loans ratio 2.1% 2.1%
for loans more than 90 days past due 1.1% 1.0%
Net stable funding ratio (NSFR) 142% 136%
Liquidity coverage ratio (LCR) 159% 159%
1 As of 2024, we have combined ‘Net result from financial instruments at fair value through P&L’ (also referred to as ‘Trading & fair value income’) and ‘Insurance finance income and expense’ in one P&L line for the sake of simplification. The
figures for past periods have been retroactively restated.
2 Also referred to as ‘Loan loss impairment’.
3 Including customer savings certificates.
4 14% for the first nine months of 2024 and 15% for full-year 2023 when non-operating items are excluded and bank and insurance taxes evenly spread throughout the year.
5 A negative figure indicates a net impairment release (positively affecting results).




3
Analysis of the quarter (3Q2024)
Total income: 2 787 million euros
-1% quarter-on-quarter and +3% year-on-year

Net interest income amounted to 1 394 million euros in the quarter under review, up 1% both quarter-on-quarter and
year-on-year.
The 1% quarter-on-quarter increase was due to the higher commercial transformation result (thanks mainly to
continued increasing reinvestment yields), a higher level of interest income from lending activities (the positive impact
of loan volume growth was only partly offset by the negative impact of pressure on loan margins in some core markets)
and lower costs related to the minimum required reserves held with central banks. These items were offset in part by
lower interest income from inflation-linked bonds, a lower level of interest income from customer term deposits, and a
lower level of interest income from short-term cash management activities.
The 1% year-on-year increase was attributable primarily to an increase in the commercial transformation result, a
higher ALM result, the lower funding cost of participations and slightly higher level of income from lending activities.
These items were partly offset by lower interest income in Ireland (following the sale of the loan and deposit portfolios
and subsequent liquidation process), higher costs related to the minimum required reserves held with central banks,
lower interest income from customer term deposits, higher wholesale funding costs, the lower level of interest income
from short-term cash management activities, lower interest income from the dealing room, and a negative forex effect
(depreciation of the Czech koruna and Hungarian forint).
The net interest margin for the quarter under review amounted to 2.08%, down 1 basis point quarter-on-quarter and
up 4 basis points year-on-year. For guidance regarding expected net interest income in 2024 and the years to come,
please refer to the section entitled ‘Our guidance’.
Customer loan volume (189 billion euros) was up 1% quarter-on-quarter and 5% year-on-year. At first sight, customer
deposits (222 billion euros) were stable quarter-on-quarter and up 4% year-on-year. However, when excluding volatile,
low-margin short-term deposits at KBC Bank’s foreign branches (driven by short-term cash management
opportunities), customer deposits were up 3% quarter-on-quarter and 5% year-on-year. In Belgium, these figures
amounted to 5% and 8%, respectively, which came about largely because of the successful recuperation of customer
money following the maturity of the Belgian state note issued in September 2023. Thanks to our proactive, multi-phased
and multi-product offer, we managed to attract a total of some 6.5 billion euros in core customer money in Belgium
(deposits, savings certificates, funds, insurance, bonds, etc.), outpacing the 5.7-billion-euros outflow to the state note
in September 2023 by 0.8 billion euros. The growth figures above exclude the forex-related impact. Note: the actions
taken, amid fierce competition, to recover the outflow to the state note have an estimated direct negative impact on net
interest income of roughly -87 million euros (-26 million euros in 2024 and -61 million euros in 2025). This direct
negative impact is partly offset by various indirect positive impacts totalling approximately +20 million euros (in various
P/L lines).
The insurance service result (insurance revenues before reinsurance – insurance service expenses before
reinsurance + net result from reinsurance contracts held; the two latter items are not part of total income) amounted to
81 million euros and breaks down into 45 million euros for non-life insurance and 36 million euros for life insurance.
The non-life insurance service result decreased by 41% quarter-on-quarter and by 44% year-on-year, in both cases
essentially owing to a combination of significantly higher insurance service expenses that were impacted by storms
and floods (including Storm Boris in Central Europe – mainly the Czech Republic) and partly offset by higher insurance
revenues and a better reinsurance result (related in part to the aforementioned storms and floods). We estimate the
impact of the floods caused by Storm Boris (after reinsurance) to be 33 million euros pre-tax in the quarter under
review.
The life insurance service result was more or less stable quarter-on-quarter (lower insurance service expenses
offsetting lower insurance revenues) and down 38% year-on-year (higher level of insurance service expenses
combined with slightly lower insurance revenues).
The combined ratio of the non-life insurance activities amounted to an excellent 89% for the first nine months of 2024,
compared to 87% for full-year 2023. Non-life insurance sales came to 603 million euros and were up 8% year-on-year,
with growth in all countries and all classes. Sales of life insurance products amounted to an excellent 791 million euros
and were up 28% on the level recorded in the previous quarter (higher sales of guaranteed-interest products and, to a

4
lesser extent, unit-linked products too, thanks, among other things, to inflows from the maturing state note and a
successful launch of structured emissions in Belgium) and up 80% on the level recorded in the year-earlier quarter
(higher sales of unit-linked products and, to a lesser extent, guaranteed-interest products and hybrid products too).
Overall, the share of guaranteed-interest products and unit-linked products in our life insurance sales in the quarter
under review amounted to 42% and 51%, respectively, with hybrid products (mainly in the Czech Republic) accounting
for the remainder.
For guidance regarding expected insurance revenues and the combined ratio in 2024 and the years to come, please
refer to the section entitled ‘Our guidance’.
Net fee and commission income amounted to 641 million euros, up 3% and 9% on its level in the previous and year-
earlier quarters, respectively. The quarter-on-quarter increase was attributable to 3% growth in fee income from our
asset management activities (largely related to the increase in assets under management, see below) and 4% growth
in fees from our banking activities (thanks mainly to the – partly seasonal – increase in payment services fees). The
9% year-on-year increase in net fee and commission income was accounted for by 15% growth in fees for our asset
management services and, to a lesser extent, a 3% rise in banking fees, slightly offset by a negative forex effect.
At the end of September 2024, our total assets under management amounted to 269 billion euros, up 3% quarter-on-
quarter (+1 percentage point related to net inflows and +2 percentage points related to the quarter-on-quarter positive
market performance). Assets under management grew by 18% year-on-year, with net inflows accounting for +5
percentage points and the positive market performance for +14 percentage points.
Trading & fair value income and insurance finance income and expense amounted to -42 million euros, down 46
million euros quarter-on-quarter and 34 million euros year-on-year. The quarter-on-quarter decrease was attributable
to a number of factors, including negative market value adjustments (xVA). The year-on-year decrease was attributable
mainly to negative market value adjustments, partly offset by higher dealing room income.
The other remaining income items included dividend income of 11 million euros (down on the 26 million euros
recorded in the previous quarter, as the second quarter of the year traditionally includes the bulk of dividend income
for the year) and net other income of 45 million euros, slightly below its (50-million-euro) normal run rate.



Operating expenses without bank and insurance taxes: 1 135 million euros
+6% quarter-on-quarter and +3% year-on-year



Operating expenses without bank and insurance taxes amounted to 1 135 million euros in the third quarter of 2024, up
6% on their level in the previous quarter and 3% year-on-year, and remained perfectly within our full-year 2024
guidance. The 6% quarter-on-quarter increase was due in part to higher staff costs (mainly wage drift, partly offset by
lower FTEs), ICT expenses, facilities expenses and depreciation charges. Operating expenses without bank and
insurance taxes were up 3% on their year-earlier level, due primarily to higher staff costs (mainly inflation and wage
indexation, partly offset by lower FTEs), ICT expenses and professional fees, partly offset by lower costs related to
Ireland and a forex effect.

Bank and insurance taxes in the quarter under review amounted to 47 million euros, compared to 2 million euros in the
previous quarter and 29 million euros in the year-earlier quarter. The quarter-on-quarter increase was accounted for
mainly by increased national taxes (primarily in Hungary) and the fact that the previous quarter had included a partial
reversal of the contribution to the deposit guarantee fund in Belgium due to a lower calculation base than anticipated
by the government.

When certain non-operating items are excluded and bank and insurance taxes spread evenly throughout the year, the
cost/income ratio for the first nine months of 2024 amounted to 47%, compared to 49% for full-year 2023. When
excluding all bank and insurance taxes, the cost-income ratio improved to 43%, in line with the figure for full-year 2023.

For guidance regarding expected operating expenses and the cost/income ratio in 2024 and the years to come, please
refer to the section entitled ‘Our guidance’.




5
Loan loss impairment: 61-million-euro net charge
versus a 72-million-euro net charge in the previous quarter and a 36-million-euro net charge in the year-earlier quarter




In the quarter under review, we recorded a 61-million-euro net loan loss impairment charge, compared to a net
charge of 72 million euros in the previous quarter and 36 million euros in the year-earlier quarter. The net impairment
charge in the quarter under review included a charge of 132 million euros in respect of our loan book (of which 54
million euros related to lowering the backstop shortfall for old non-performing loans in Belgium) and a reversal of 71
million euros following the update of the reserve for geopolitical and macroeconomic uncertainties. As a
consequence, the outstanding reserve for geopolitical and macroeconomic uncertainties amounted to 168 million
euros at the end of September 2024.

As a consequence, the credit cost ratio amounted to 0.10% for the first nine months of 2024 (0.16% excluding the
changes in the reserve for geopolitical and macroeconomic uncertainties), compared to 0.00% for full-year 2023
(0.07% excluding the changes in the reserve for geopolitical and macroeconomic uncertainties). At the end of
September 2024, 2.1% of our total loan book was classified as impaired (‘Stage 3’), the same level as at year-end
2023. Impaired loans that are more than 90 days past due amounted to 1.1% of the loan book, compared to 1.0% as
at year-end 2023.

For guidance regarding the expected credit cost ratio in 2024 and the years to come, please refer to the section
entitled ‘Our guidance’.

Impairment charges on assets other than loans amounted to 7 million euros, compared to 13 million euros in the
previous quarter and 27 million euros in the year-earlier quarter. The quarter under review mainly included
impairment charges related to software.




Net result by business unit
Belgium 598 million euros; Czech Rep. 179 million euros; International Markets 205 million euros, Group Centre -114
million euros



Belgium: the net result (598 million euros) was up 15% on the result for the previous quarter. This was due primarily
to the combined effect of:
• slightly lower total income (due mainly to the drop in dividend income following the seasonal peak in the
previous quarter and slightly lower net interest income, partly offset by higher net fee and commission income,
insurance revenues and net other income);
• higher costs (higher staff, ICT and facilities costs, combined with the fact that the previous quarter had
benefited from a partial reversal of the contribution to the deposit guarantee fund);
• slightly higher insurance service expenses after reinsurance;
• much lower net impairment charges;
• a one-off 79-million-euros gain related to Isabel, booked under Share in results of associated companies &
joint ventures.


Czech Republic: the net result (179 million euros) was down 26% quarter-on-quarter (excluding forex effects). This
was essentially attributable to a combination of:
• higher total income (thanks mainly to increased net interest income, insurance revenues and net fee and
commission income);
• higher costs;
• much higher insurance service expenses after reinsurance (storm and flood-related impact);
• a net impairment charge, as opposed to a significant release in the previous quarter.




6
International Markets: the 205-million-euro net result breaks down as follows: 16 million euros in Slovakia, 110 million
euros in Hungary and 80 million euros in Bulgaria. For the business unit as a whole, the net result was down 8% on
the previous quarter’s result (down just 2% if bank and insurance taxes are excluded, see below), due mainly to a
combination of:
• stable total income (increase in net interest income, insurance revenues and net fee and commission income,
and a decrease in trading & fair value income and net other income);
• higher costs (including increased bank and insurance taxes, especially in Hungary);
• slightly lower insurance service expenses after reinsurance;
• higher net impairment charges.
Group Centre: the net result (-114 million euros) was 52 million euros lower than the figure recorded in the previous
quarter owing mainly to a combination of:
• more negative total income (due primarily to lower trading & fair value income);
• higher costs;
• higher insurance service expenses after reinsurance;
• a more or less unchanged level of impairment.
A full results table is provided in the ‘Additional information’ section of the quarterly report. A short analysis of the
results per business unit is provided in the analyst presentation (available at www.kbc.com).
Belgium Czech Republic International Markets
Selected ratios by business unit 9M2024 FY2023 9M2024 FY2023 9M2024 FY2023
Cost/income ratio
- excl. non-operating items and spreading bank and insurance taxes evenly
throughout the year 43% 46% 45% 47% 45% 45%
- excl. all bank and insurance taxes 41% 41% 43% 44% 37% 39%
Combined ratio, non-life insurance 87% 85% 87% 84% 97%2 97%2
Credit cost ratio1 0.20% 0.06% -0.07% -0.18% -0.10% -0.06%
Impaired loans ratio 2.1% 2.0% 1.4% 1.4% 1.7% 1.8%
1 A negative figure indicates a net impairment release (positively affecting results). See ‘Details of ratios and terms’ in the quarterly report.
2 Excluding windfall insurance taxes in Hungary, the combined ratio amounted to 92% for the first nine months of 2024 and 94% for full-year 2023.




Solvency and liquidity
Common equity ratio of 15.2%, NSFR of 142%, LCR of 159%


At the end of September 2024, total equity came to 23.3 billion euros and comprised 21.4 billion euros in parent
shareholders’ equity and 1.9 billion euros in additional tier-1 instruments.

Total equity was down 1.0 billion euros on its level at the end of 2023. This was due to the combined effect of:

• the inclusion of the profit for the first nine months of 2024 (+2.3 billion euros);
• the repurchase of own shares (-0.8 billion euros in 2024);
• the payment of the final dividend for 2023 and an extraordinary interim dividend (both in May 2024), as well
as an interim dividend (see below) for 2024 to be paid in November 2024 (-1.9 billion euros combined);
• almost stable revaluation reserves;
• a net decrease in outstanding additional tier-1 instruments (-0.4 billion euros);
• a number of smaller items.

We have provided details of these changes under ‘Consolidated statement of changes in equity’ in the ‘Consolidated
financial statements’ section of the quarterly report.

Note: in line with our general dividend policy, we will pay an interim dividend of 1 euro per share on 14 November 2024
as an advance on the total dividend for financial year 2024.

Our solvency position remained strong, as illustrated by a fully loaded common equity ratio (CET1) of 15.2% at 30
September 2024, unchanged on the 15.2% recorded at the end of 2023. The solvency ratio for KBC Insurance under
the Solvency II framework was 197% at the end of September 2024, compared to 206% at the end of 2023. We have
provided more details and additional information on solvency under ‘Solvency’ in the ‘Additional information’ section of
the quarterly report.

Our liquidity position remained excellent too, as reflected in an LCR ratio of 159% and an NSFR ratio of 142%,
compared to 159% and 136%, respectively, at the end of 2023, all well above the regulatory minima of 100%.

7
Analysis of the year-to-date period (9M2024)
Net result for 9M2024: 2 300 million euros
down 3% excluding the positive impact related to the sale of the Irish portfolio in the reference period

Highlights (compared to the first nine months of 2023, unless otherwise stated):

• Net interest income: up 1% to 4 141 million euros. This was attributable in part to the higher commercial
transformation result, the higher ALM result and increased interest income from customer term deposits, and partly
offset by the lower level of income from lending activities (as lower margins in some core markets more than offset
volume growth), lower net interest income in Ireland (owing to the past sale of the remaining Irish portfolios and
subsequent liquidation process), higher costs related to the minimum required reserves held with central banks,
the lower level of interest income from short-term cash management activities, lower interest income from the
dealing room, the higher funding cost of participations and higher wholesale funding costs, as well as a negative
forex effect. Excluding the forex effect, the volume of customer loans rose by 5%, while deposits (excluding volatile,
low-margin short-term deposits at KBC Bank’s foreign branches) were also up by 5% year-on-year. The net interest
margin in the first nine months of 2024 came to 2.09%, up 2 basis points year-on-year.
• Insurance service result (insurance revenues before reinsurance - insurance service expenses before
reinsurance + net result from reinsurance contracts held): down 11% to 328 million euros. The non-life combined
ratio for the first nine months of 2024 amounted to an excellent 89%, compared to 87% for full-year 2023. Non-life
insurance sales were up 9% to 1 956 million euros, with increases in all classes, while life insurance sales were up
32% to 2 176 million euros, thanks mainly to higher sales of unit-linked products and, to a lesser extent, higher
sales of interest guaranteed products and hybrid products.
• Net fee and commission income: up 7% to 1 878 million euros. This was attributable primarily to much higher
fees for asset management services and a slight increase in banking-related fees. At the end of September 2024,
total assets under management were up 18% year-on-year to 269 billion euros due to a combination of net inflows
(+5 percentage points) and the effect of a positive market performance in the period under review (+14 percentage
points).
• Trading & fair value income and insurance finance income and expense: down 144 million euros to -94 million
euros. This was due mainly to negative market value adjustments (xVA) and a lower result from derivatives used
for asset/liability management purposes, partly offset by higher dealing room income.
• All other income items combined: down 69% to 197 million euros. This came about mainly because of lower net
other income, as the first nine months of 2023 had included a 0.4-billion-euro gain on the sale of the loan and
deposit portfolios of KBC Bank Ireland (recorded under ‘Net other income’).
• Operating expenses without bank and insurance taxes: more or less stable at 3 272 million euros. This was
attributable in part to lower costs in Ireland and a forex effect, which were offset by the negative impact of higher
staff costs (indexation and wage drift, partly offset by lower FTEs) and ICT expenses, among other factors. Bank
and insurance taxes amounted to 568 million euros and were down 13%, thanks mainly to the lower contribution to
the single resolution fund, partly offset by higher national taxes. The cost/income ratio amounted to 47% when
certain non-operating items are excluded and bank and insurance taxes spread evenly throughout the year (49%
for full-year 2023). When bank and insurance taxes are fully excluded, the cost-income ratio for the period under
review amounted to 43%, in line with the figure for full-year 2023.
• Loan loss impairment: net charge of 149 million euros, as opposed to a net release of 11 million euros in the
reference period. The first nine months of 2024 included a net charge of 233 million euros for our loan book and a
net release of 84 million euros for the reserve for geopolitical and macroeconomic uncertainties. As a result, the
credit cost ratio amounted to 0.10%, compared to 0.00% for full-year 2023. Impairment charges on assets other
than loans amounted to 20 million euros, compared to 56 million euros in the reference period.
• The share in results of associated companies & joint ventures: up 84 million euros to 80 million euros, mainly
due to the booking of a one-off gain of 79-million-euro related to Isabel.
• The net result of 2 300 million euros for the first nine months of 2024 breaks down as follows: 1 359 million
euros for the Belgium Business Unit (down 33 million euros on its year-earlier level), 620 million euros for the Czech
Republic Business Unit (down 7 million excluding forex effects), 576 million euros for the International Markets
Business Unit (up 86 million euros excluding forex effects) and -255 million euros for the Group Centre (down 429
million euros, owing essentially to the 0.4-billion-euro gain realised on the sale of the loan and deposit portfolios of
KBC Bank Ireland in the reference period).




8
ESG developments, risk statement and
economic views
ESG developments

At KBC, we recognise the importance of transparently reporting on our sustainability efforts. Transparent disclosure is
the cornerstone of action, forms the basis for future decision-making and drives our progress towards achieving
sustainability goals. To this end, we continue to report on the progress we make in the area of sustainability. In the
third quarter of 2024, for example, we again publicly disclosed our environmental data in line with CDP. We also
disclosed the outcome of the 2024 S&P Global Corporate Sustainability Assessment, where we scored 66/100, placing
us in the top 8% of the 664 banks assessed*. Additionally, we are currently in full preparation for first-time reporting
under the Corporate Sustainability Reporting Directive (CSRD), which requires our company to report extensively on
sustainability matters in a standardised manner in our next annual report.

* Includes 351 banks that, on 14 October 2024, were still assessed based on the 2023 methodology.




Risk statement

As we are mainly active in banking, insurance and asset management, we are exposed to a number of typical risks for
these financial sectors such as – but not limited to – credit default risk, counterparty credit risk, concentration risk,
movements in interest rates, currency risk, market risk, liquidity and funding risk, insurance underwriting risk, changes
in regulations, operational risk, customer litigation, competition from other and new players, as well as the economy in
general. KBC closely monitors and manages each of these risks within a strict risk framework, but they may all have a
negative impact on asset values or could generate additional charges beyond anticipated levels.
At present, a number of factors are considered to constitute the main challenges for the financial sector. These stem
primarily from the mostly indirect, but lingering, impact of the war in Ukraine, including the delayed effects of the
increase in energy and commodity prices and the supply-side shortages it triggered. This led to a surge in inflation,
resulting in upward pressure on interest rates, lower growth prospects (or even fears of a recession) and some
concerns about the creditworthiness of counterparties in the economic sectors most exposed. Geopolitical risks remain
elevated, as evidenced by the escalating conflict in Gaza/Israel and the Middle East. A significant number of elections
in 2024 across the world, including in the US, are adding to the geopolitical uncertainty. All these risks affect global,
but especially, European economies, including KBC’s home markets. Regulatory and compliance risks (including in
relation to capital requirements, anti-money laundering regulations, GDPR and ESG/sustainability) also remain a
dominant theme for the sector, as does enhanced consumer protection. Digitalisation (with technology, including AI,
as a catalyst) presents both opportunities and threats to the business model of traditional financial institutions, while
climate and environmental-related risks are becoming increasingly prevalent (as recently evidenced by Storm Boris in
Central Europe). Cyber risk has become one of the main threats during the past few years, not just for the financial
sector, but for the economy as a whole. The war in Ukraine has triggered an increase in attacks worldwide. Finally, we
have seen governments across Europe taking additional measures to support their budgets (via increased tax
contributions from the financial sector) and their citizens and corporate sector (by, for instance, implementing interest
rate caps on loans or by pushing for higher rates on savings accounts).
We provide risk management data in our annual reports, quarterly reports and dedicated risk reports, all of which are
available at www.kbc.com.




9
Our view on economic growth

US growth in the third quarter amounted to 0.7%, the same as in the second quarter, driven primarily by private
consumption. Growth is expected to moderate again to about 0.3% in the fourth quarter of 2024, when the labour
market tightness is expected to ease further.
Euro area growth in the third quarter amounted to 0.4%, after 0.2% in the second quarter. The manufacturing sector
continues to exhibit a persistent weakness, while the expected service sector recovery has not (yet) materialised.
Growth is expected to continue at about its current pace, picking up in the second half of 2025 on the back of recovering
domestic consumption.
Quarter-on-quarter growth in Belgium amounted to 0.2% in the third quarter, after 0.3% in the second quarter. Relatively
strong domestic demand continued to outweigh the negative contribution to growth of net exports. For the remainder
of 2024, we expect growth to remain broadly in line with that of the euro area.
The Czech economy grew by 0.3% in the third quarter, after 0.4% in the second quarter. This was supported by private
consumption, against the background of a weak and delayed industrial recovery and the adverse economic impact of
the flooding there. Weak growth of the industrial sector also weighed heavily on third-quarter growth in Hungary (-
0.7%). Based on our latest estimates, third-quarter growth in Bulgaria and Slovakia was relatively strong, amounting
to 0.6% and 0.8%, respectively.
The main risk to our short-term outlook for European growth is the possible repercussion of the US elections in
November. Moreover, the conflict in the Middle East poses the risk of higher energy and commodity prices. Other risks
include the persistence of the current weakness of the global manufacturing sector. Specific European risk factors
include the government budget discussions in the EU for 2025, which may generate increased uncertainty and hence
adversely affect economic growth and temporarily raise risk premiums for vulnerable euro area member states.



Our view on interest rates and foreign exchange rates
Disinflation in the euro area and the US was broadly on track in the third quarter. In the euro area, inflation fell more
than expected in September to 1.7%, driven mainly by lower energy prices. However, inflation is expected to increase
again in the period ahead. After January 2025, inflation is expected to resume its downward trajectory towards the
ECB’s 2% target rate.
The ECB continued its easing cycle and cut its deposit rate in September and October by 25 basis points each time. It
is expected to cut this rate by another 25 basis points in December 2024. Further rate cuts are expected in 2025.
In September, the Fed also started its easing cycle by cutting its policy rate by 50 basis points. The size of this rate cut
was motivated by the weakness of labour market data at the time, which triggered a feeling of pessimism and fears of
a recession. These disappeared when labour market data proved to be more resilient than feared. The Fed is expected
to reduce its policy rate by 25 basis points two more times in 2024. Further rate cuts are expected in 2025.
Ten-year bond yields in the US and Germany gradually moved lower, before bottoming out in mid-September. The
main drivers were growth concerns relating mainly to the US labour market. When these concerns eased, bond yields
rebounded markedly to their current level of about 4.20% and 2.30% in the US and Germany, respectively. This caused
the US-German yield spread to sharply widen again. This yield spread was also the main driver of the US dollar-euro
exchange rate. The dollar gradually depreciated as the US-German yield spread narrowed. With the US-German
spread widening again from the second half of October, the US dollar started to regain ground.
The Czech National Bank reduced its policy rate in two steps of 25 basis points each in the third quarter. Two more
25-basis-point rate cuts are expected by the end of 2024 and probably one more in the first quarter of 2025. Since the
beginning of the third quarter, the Czech koruna has been relatively stable, underpinned primarily by global risk
sentiment, interest rate differentials with the major central banks and the exchange rate with the US dollar. The koruna
is expected to appreciate moderately in the coming quarters.
In the third quarter of 2024, the National Bank of Hungary cut its policy rate twice by 25 basis points each time.
Additional gradual cuts are expected by the end of 2024 and in 2025. On balance, the Hungarian forint has depreciated
against the euro and – driven by the structural positive inflation differential with the euro area – is expected to depreciate
further in 2025.


10
Our guidance

Guidance for full-year 2024 (as provided with the 2Q2024 results)

• Net interest income: approximately 5.5 billion euros, supported by organic loan volume growth of approximately
4%.
• Insurance revenues (before reinsurance): at least +6% year-on-year.
• Operating expenses and insurance commissions paid (excluding bank and insurance taxes): below +1.7% year-
on-year, which is substantially below inflation.
• Cost/income ratio (excluding bank and insurance taxes): below 45%.
• Combined ratio: below 91%.
• Credit cost ratio (excluding any changes in the reserve for geopolitical and macroeconomic uncertainties that was
still in place at year-end 2023): well below the through-the-cycle credit cost ratio of 25-30 basis points.




Medium to long-term guidance (as provided with the FY2023 results)

• CAGR net interest income (2023-2026): at least 1.8%.
• CAGR insurance revenues (before reinsurance) (2023-2026): at least 6%.
• CAGR operating expenses and insurance commissions paid (excluding bank and insurance taxes) (2023-2026):
below 1.7%, which is substantially below inflation.
• Cost/income ratio (excluding bank and insurance taxes): below 42% by the end of 2026.
• Combined ratio: below 91%.
• Credit cost ratio (excluding any changes in the reserve for geopolitical and macroeconomic uncertainties that was
still in place at year-end 2023): well below the through-the-cycle credit cost ratio of 25-30 basis points.




Basel IV (updated)

Moving towards the Basel IV era and applying a static balance sheet (1H2024) and all other parameters ceteris paribus,
without mitigating actions, KBC projects:
• at 1 January 2025, a first-time application impact of +1.0 billion euros in risk-weighted assets (+0.0 billion
euros previously);
• by 1 January 2033, a further impact of +7.5 billion euros in risk-weighted assets (+8.0 billion euros previously);
resulting in a fully loaded impact of +8.5 billion euros in risk-weighted assets (+8.0 billion euros previously).




Capital distribution policy (unchanged)

• Dividend policy for 2024: payout ratio (i.e. dividend + AT1 coupon) of at least 50% of consolidated profit for the
financial year, and interim dividend of 1 euro per share in November as an advance on the total dividend.
• Capital deployment policy for 2024: on top of the payout ratio of at least 50% of consolidated profit, when
announcing the full year results, the Board of Directors will, at its discretion, take a decision on the distribution of
the capital above 15.0% fully loaded common equity ratio (the so-called surplus capital). The distribution of this
surplus capital can be in the form of a cash dividend, a share buy-back or a combination of both.
• Given the introduction of Basel IV on 1 January 2025, the dividend policy and the surplus capital threshold will be
reviewed in the first half of 2025.




11
Upcoming events and references


Interim dividend of 1 euro: ex-coupon: 12 Nov. 2024, record: 13 Nov. 2024, payment: 14 Nov. 2024.
4Q2024 and FY2024 results: 13 Feb. 2025
Agenda
Annual report FY2024: 31 Mar. 2025
AGM: 30 Apr. 2025
Other events: www.kbc.com / Investor Relations / Financial calendar
More
information on Quarterly report: www.kbc.com / Investor Relations / Reports
3Q2024 Company presentation: www.kbc.com / Investor Relations / Presentations




For more information, please contact:
Investor Relations, KBC-group
E-mail: IR4U@kbc.be

Viviane Huybrecht, General Manager, Corporate Communication/Spokesperson, KBC Group
Tel +32 2 429 85 45 - E-Mail: pressofficekbc@kbc.be




* This news item contains information that is subject to the transparency regulations for listed companies.
KBC Group NV Press Office KBC press releases are available at
Havenlaan 2 – 1080 Brussels Tel. + 32 2 429 29 15 Ilse De Muyer www.kbc.com or can be obtained by
Viviane Huybrecht Tel. + 32 2 429 32 88 Pieter Kussé sending an e-mail to pressofficekbc@kbc.be
General Manager Tel. + 32 2 429 85 44 Sofie Spiessens
Corporate Communication /Spokesperson Tel. + 32 2 429 29 49 Tomas Meyers Follow us on www.twitter.com/kbc_group
Tel. + 32 2 429 85 45 pressofficekbc@kbc.be Stay up-to-date on all innovative solutions




12