Press Release
Outside trading hours - Regulated information*


Brussels, 7 August 2025 (07.00 a.m. CEST)



KBC Group: Second-quarter result of 1 018 million euros

KBC Group – overview (consolidated, IFRS) 2Q2025 1Q2025 2Q2024 1H2025 1H2024
Net result (in millions of EUR) 1 018 546 925 1 564 1 431
Basic earnings per share (in EUR) 2.50 1.32 2.25 3.82 3.44
Breakdown of the net result by business unit
(in millions of EUR)
Belgium 607 281 519 888 761
Czech Republic 240 207 244 447 441
International Markets 237 135 224 372 370
Group Centre -65 -77 -61 -143 -141
Parent shareholders’ equity per share
(in EUR, end of period) 58.9 58.8 53.2 58.9 53.2




‘We recorded an excellent net profit of 1 018 million euros in the second quarter of 2025. Compared to the result for the
previous quarter, our total income benefited from several factors, including the sharp increase in net interest income,
higher insurance income, better trading and fair value income and the seasonal peak in dividend income, while net fee
and commission income – though still at a high level – was down somewhat quarter-on-quarter.
Our loan portfolio continued to expand, increasing by 2% quarter-on-quarter and by 7% year-on-year. Customer deposits
– excluding volatile, low-margin short-term deposits at KBC Bank’s foreign branches – were also up 2% quarter-on-
quarter and 7% year-on-year.

Operating expenses were down significantly on their level in the previous quarter, due to the fact that the bulk of bank
and insurance taxes for the full year were recorded – as usual – in the first quarter. Disregarding bank and insurance
taxes, operating expenses were up by 2% quarter-on-quarter. Insurance service expenses after reinsurance were down,
whereas loan loss impairment charges increased, though the credit cost ratio for the first six months of 2025 remained
at a favourable level of 15 basis points, well below the through-the-cycle value of 25-30 basis points.
Consequently, when adding up the results for the first and second quarters of the year, our net profit for the first half of
2025 amounted to 1 564 million euros, up 9% on the year-earlier figure.

Our solvency position remained strong, with an unfloored fully loaded common equity ratio under Basel IV of 14.6% at
the end of June 2025. Our liquidity position remained very solid too, as illustrated by an LCR of 157% and an NSFR of
135%. In line with our dividend policy, we will pay out an interim dividend of 1 euro per share in November 2025 as an
advance on the total dividend for financial year 2025. Furthermore, we also decided to increase our guidance for net
interest income for full-year 2025 to at least 5.85 billion euros, up from our initial guidance of 5.7 billion euros, as well as
our guidance for 2025 total income growth to at least 7%, up from our initial guidance of 5.5%.

We continue to lead the way in digital innovation, with Kate playing a pivotal role in delivering smarter, faster, and more
personal, safe and trusted services to our customers. Today, 5.7 million customers use Kate, that’s 19% more than one
year ago. Operationally, Kate now autonomously resolves 7 out of 10 customer queries across our core markets. That’s
equivalent to the workload of over 300 full-time employees, allowing our teams to focus on more complex and valuable
customer conversations.

Our ambition remains clear: to be the reference bank-insurer in all our home markets. We pursue that goal not only
through a strong, customer-focused business model, but above all thanks to the trust placed in us by our customers,
employees, shareholders and other stakeholders. That trust means a lot to us – and I want to thank you sincerely for it.’




Johan Thijs
Chief Executive Office




1
Financial highlights in 2Q2025

 Net interest income increased by 6% quarter-on-quarter and by 9% year-on-year. The net
interest margin for the quarter under review amounted to 2.08%, up 2 basis points on the The cornerstones of our strategy
previous quarter and down 2 basis points year-on-year. Customer loan volumes increased
by 2% quarter-on-quarter and by 7% year-on-year. Customer deposits, excluding volatile,
low-margin short-ter deposits at K an ’s orei n ran hes, also ent up y %
quarter-on-quarter and 7% year-on-year.


 The insurance service result (insurance revenues before reinsurance - insurance service
expenses before reinsurance + net result from reinsurance contracts held) amounted to 166 • We place our customers at the centre of everything we do
million euros (up on the 142 million euros and 113 million euros recorded in the previous • We look to offer our customers a unique bank-insurance
and year-earlier quarters, respectively) and breaks down into 113 million euros for non-life experience
insurance and 53 million euros for life insurance. The non-life insurance combined ratio for • We o us on our roup’s lon -term development and aim
to achieve sustainable and profitable growth
the first half of 2025 came to an excellent 85%, compared to 90% for full-year 2024. Sales
• We assume our role in society and local economies
of non-life insurance products increased by 8% year-on-year, while life insurance sales
• We build upon the PEARL + values, while focussing on the
were down 35% on the very high level recorded in the previous quarter and up 6% on their joint development of solutions,
level in the year-earlier quarter. initiatives and ideas within the group

 Net fee and commission income was down 3% on its high level in the previous quarter, rea do n o result
due mainly to lower fees from asset management activities caused by a lower average in illions o

asset base and some seasonality, combined with lower fees for banking services. Net fee
and commission income was still up 7% year-on-year, thanks to higher fees for both asset
management and banking services.



 Trading & fair value income and insurance finance income and expense was up 11
million euros but down 37 million euros on the figures for the previous and year-earlier
quarters, respectively. Net other income was above its normal run rate due mainly to
higher-than-average gains on the sale of real estate. Dividend income was up on the
pre ious quarter’s le el, sin e the ul o di idend in o e is traditionally re ei ed in the
second quarter. et et ee nsu ther peratin nsu et result pair ther n o e et
interest o is ran e in o e e penses ran e ro ent ta es result
in o e sion re enues e l ser i e reinsuran e
in o e dire tly e penses
attri

 Operating expenses excluding bank and insurance taxes were up 2% quarter-on- ro ins


quarter and 5% year-on-year. Bank and insurance taxes were down significantly on the
previous quarter as the first quarter of the year traditionally includes the bulk of bank and
insurance taxes for the full year. The cost/income ratio for the first six months of 2025 came ontri ution o the usiness units
to 45%, compared to 47% for full-year 2024. In that calculation, certain non-operating items
have been excluded and bank and insurance taxes spread evenly throughout the year.
to roup result
in illions o
When excluding all bank and insurance taxes, the cost/income ratio for the first six months
of 2025 amounted to 41%, compared to 43% for full-year 2024.


 Loan loss impairment charges increased to 116 million euros, compared to 38 million
euros in the previous quarter and 72 million euros in the year-earlier quarter. The quarter-
on-quarter increase was due entirely to the change in the reserve for geopolitical and
macroeconomic uncertainties (up 40 million euros in the quarter under review, as opposed
to a release of 45 million euros in the previous quarter). The credit cost ratio for the first six
months of 2025 amounted to 0.15%, compared to 0.10% for full-year 2024. Impairment on
assets other than loans amounted to 8 million euros, compared to virtually zero in the
previous quarter and 13 million euros in the second quarter of 2024.
el iu e h epu li nternational roup entre
ar ets


 Our liquidity position remained strong, with an LCR of 157% and NSFR of 135%. Our
capital base remained robust, with an unfloored fully loaded common equity ratio of
14.6%*.

* For the fully loaded common equity ratio as of 2025, KBC focuses on the so-called unfloored fully loaded common equity ratio, which takes into account the
total risk-weighted asset impact of Basel IV, excluding the output floor impact.




2
Overview of results and balance sheet
Consolidated income statement, IFRS,
KBC Group (simplified; in millions of EUR) 2Q2025 1Q2025 4Q2024 3Q2024 2Q2024 1H2025 1H2024
Net interest income 1 509 1 421 1 433 1 394 1 379 2 930 2 748
Insurance revenues before reinsurance
788 773 764 740 726 1 561 1 441
Non-life
667 648 640 631 613 1 316 1 211

Life
121 125 124 109 114 246 230

Dividend income 33 9 13 11 26 42 33
Net result from financial instruments at fair value
through P&L and Insurance finance income and -34 -45 -74 -42 3 -79 -52
expense
Net fee and commission income 667 690 700 641 623 1 357 1 237
Net other income 77 67 27 45 51 143 109
Total income 3 041 2 915 2 863 2 787 2 809 5 955 5 516
Operating expenses (excl. directly attributable from
-1 020 -1 498 -1 126 -1 058 -950 -2 518 -2 381
insurance)
Total operating expenses excluding bank and insurance
-1 125 -1 106 -1 201 -1 135 -1 074 - 2 232 -2 137
taxes
Total bank and insurance taxes -27 -539 -55 -47 -2 -566 -521
Minus: operating expenses allocated to insurance
132 148 131 124 126 280 276
service expenses
Insurance service expenses before reinsurance -608 -622 -635 -688 -590 -1 230 -1 152
Of which Insurance commission paid -105 -102 -103 -99 -92 -206 -181
Non-Life -541 -543 -561 -615 -514 -1 084 -1 003
Life -67 -79 -74 -72 -76 -146 -149

Net result from reinsurance contracts held -15 -9 -4 28 -24 -24 -41
Impairment -124 -38 -78 -69 -85 -162 -101
Of which: on financial assets at amortised cost and at fair
-116 -38 -50 -61 -72 -155 -88
value through other comprehensive income1
Share in results of associated companies & joint 1 0 -1 78 2 2 2
ventures
Result before tax 1 275 747 1 020 1 079 1 162 2 022 1 842
Income tax expense -257 -202 96 -211 -237 -458 -412
Result after tax 1 018 546 1 115 868 925 1 564 1 431
attributable to minority interests 0 0 0 0 0 0 0
attributable to equity holders of the parent 1 018 546 1 116 868 925 1 564 1 431
Basic earnings per share (EUR) 2.50 1.32 2.75 2.14 2.25 3.82 3.44
Diluted earnings per share (EUR) 2.50 1.32 2.75 2.14 2.25 3.82 3.44
Key consolidated balance sheet figures, IFRS,
KBC Group (in millions of EUR) 30-06-2025 31-03-2025 31-12-2024 30-09-2024 30-06-2024
Total assets 390 669 380 313 373 048 353 261 361 945
Loans & advances to customers 202 031 197 326 192 067 188 623 187 502
Securities (equity and debt instruments) 85 490 84 419 80 339 75 929 73 941
Deposits from customers 236 626 231 022 228 747 221 851 221 844
Insurance contract liabilities 17 022 16 912 17 111 17 012 16 521
Liabilities under investment contracts, insurance 15 757 15 631 15 671 15 193 14 780
Total equity 26 229 25 191 24 311 23 300 22 936
Selected ratios for KBC Group (consolidated) 1H2025 FY2024
Return on equity2 13% 15%
Cost/income ratio, group
- excl. non-operating items and evenly spreading bank
and insurance taxes throughout the year
45% 47%
- excl. all bank and insurance taxes 41% 43%
Combined ratio, non-life insurance 85% 90%
Common equity ratio (CET1), fully loaded 14.6% 15.0%
3
(Basel IV as of 2025, Danish Compromise, unfloored )
Credit cost ratio4 0.15% 0.10%
Impaired loans ratio 1.8% 2.0%
for loans more than 90 days past due 1.0% 1.0%
Net stable funding ratio (NSFR) 135% 139%
Liquidity coverage ratio (LCR) 157% 158%




1 Also re erred to as ‘Loan loss i pair ent’
2 15% for the first half of 2025 (and 14% for full-year 2024), when non-operating items are excluded and bank and insurance taxes spread evenly throughout the year.
3 For the fully loaded common equity ratio as of 2025, KBC focuses on the so-called unfloored fully loaded common equity ratio, which takes into account the total risk-weighted asset impact of
Basel IV, excluding the output floor impact.
4 A negative figure indicates a net impairment release (positively affecting results).

3
Analysis of the quarter (2Q2025)
Total income: 3 041 million euros
+4% quarter-on-quarter and +8% year-on-year

Net interest income amounted to 1 509 million euros, up 6% quarter-on-quarter and 9% year-on-year.
The quarter-on-quarter increase was due to factors such as the positive impact of a higher commercial
transformation result, the higher level of income from lending activities (strong loan volume growth, partly offset by
the negative impact of pressure on loan margins in some core markets), higher net interest income from inflation-
linked bonds, increased interest income from dealing room activities, a greater number of days in the period under
review, and lower subordinated funding costs. These items were partially offset by a lower level of interest income
from customer term deposits (owing to a shift from term deposits to savings accounts) and from short-term cash
management activities.
The year-on-year increase was due to a combination of a significantly higher commercial transformation result, a
higher level of income from lending activities and increased interest income from dealing room activities. These
items were partly offset by a lower level of interest income from customer term deposits, lower net interest income
from inflation-linked bonds and a lower level of interest income from short-term cash management activities.
The net interest margin for the quarter under review amounted to 2.08%, up 2 basis points quarter-on-quarter but
down 2 basis points year-on-year (due to the reasons mentioned above combined with an increase of the interest-
bearing asset base). Customer loan volume amounted to 202 billion euros and was up 2% quarter-on-quarter and
7% year-on-year, with increases in every core country. Customer deposits amounted to 237 billion euros, up 2%
quarter-on-quarter and 6% year-on-year. When excluding volatile, low-margin short-ter deposits at K an ’s
foreign branches (driven by short-term cash management opportunities), customer deposits were up 2% quarter-
on-quarter and 7% year-on-year. The growth figures above exclude the forex-related impact.
For guidance regarding expected net interest income in 2025 and the years to come, please refer to the section
entitled ‘ ur uidan e’

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 166 million euros and breaks down into 113 million euros for non-life insurance and 53 million euros for life
insurance.
The non-life insurance service result went up by 17% quarter-on-quarter, owing primarily to higher insurance
revenues and marginally lower insurance service expenses, partly offset by a worse reinsurance result. It was up
49% year-on-year thanks to much higher insurance revenues and a better reinsurance result, only partially offset
by higher insurance service expenses. The life insurance service result was up 17% quarter-on-quarter, essentially
due to lower insurance service expenses. It was up 42% year-on-year, thanks to a combination of higher insurance
revenues and lower insurance service expenses.
The combined ratio of the non-life insurance activities amounted to an excellent 85% in the first half of 2025,
compared to 90% for full-year 2024. At 671 million euros, non-life insurance sales were up 8% year-on-year, with
growth in all countries and all main classes. At 655 million euros, sales of life insurance products were down 35%
on the level recorded in the previous quarter (which had included very high sales of unit-linked insurance products,
attributable to the successful launch of structured issues in Belgium in the first quarter of 2025) and up 6% on the
level recorded in the year-earlier quarter (with higher sales of interest-guaranteed and hybrid products more than
offsetting the drop in unit-linked insurance sales). Overall, the share of guaranteed-interest products and unit-linked
products in our life insurance sales in the quarter under review amounted to 46% and 43%, respectively, with hybrid
products (mainly in Belgium and the Czech Republic) accounting for the remainder.
For guidance regarding expected insurance revenues and the combined ratio in 2025 and the years to come,
please re er to the se tion entitled ‘ ur uidan e’
Net fee and commission income amounted to 667 million euros, down 3% quarter-on-quarter but up 7% year-
on-year. The decrease on the high level in the previous quarter was mainly accounted for by fees related to asset
management activities (due in part to the effect of a lower average asset base and seasonally lower entry fees,
and despite good net inflows in the quarter under review) and, to a lesser extent, by fees related to banking activities

4
(following a strong first quarter). The year-on-year increase in net fee and commission income was attributable to
higher fees for asset management activities (mainly increased management fees) and banking services (primarily
payments and securities).

At the end of June 2025, our total assets under management amounted to 280 billion euros, up 3% quarter-on-
quarter thanks to a positive market performance in the quarter (+2 percentage points) combined with the positive
impact of net inflows (+1 percentage point). Assets under management grew by 7% year-on-year, with net inflows
accounting for 4 percentage points and the positive market performance during the year for 3 percentage points.
Trading & fair value income and insurance finance income and expense amounted to -34 million euros, up 11
million euros quarter-on-quarter but down 37 million euros year-on-year. The quarter-on-quarter increase was due
to the positi e han e in ‘ ar et alue o deri ati es used or asset/lia ility ana e ent purposes and other’,
partially offset by a lower dealing room result, whereas the year-on-year decrease was due mainly to the negative
han e in the ‘ ar et alue o deri ati es used or asset/lia ility ana e ent purposes and other’
The other remaining income items included dividend income of 33 million euros (up significantly on the previous
quarter since the bulk of dividend income is traditionally received in the second quarter) and net other income of
77 million euros (higher than its 50-million-euro normal run rate, as it included higher-than-average gains on the
sale of real estate).



Operating expenses excluding bank and insurance taxes: 1 125 million euros
+2% quarter-on-quarter and +5% year-on-year



Operating expenses excluding bank and insurance taxes amounted to 1 125 million euros in the second quarter of
2025, up 2% on their level in the previous quarter and up 5% year-on-year*. The quarter-on-quarter increase was
due mainly to higher staff costs, higher ICT costs and seasonally higher marketing expenses. The year-on-year
increase was primarily accounted for by higher staff costs, ICT costs and depreciation expenses.

Bank and insurance taxes in the quarter under review amounted to 27 million euros, down significantly on the 539
million euros recorded in the previous quarter, as the bulk of the bank and insurance taxes for the full year is
traditionally recorded in the first quarter of the year. Year-on-year, bank and insurance taxes were up 24 million
euros, owing mainly to the partial reversal of the contribution to the deposit guarantee fund in Belgium in the second
quarter of 2024.

When certain non-operating items are excluded and bank and insurance taxes spread evenly throughout the year,
the cost/income ratio for the first six months of 2025 amounted to 45%, compared to 47% for full-year 2024. When
excluding all bank and insurance taxes, the cost-income ratio amounted to 41%, compared to 43% for full-year
2024.

For guidance regarding expected operating expenses in 2025 and the years to come, please refer to the section
entitled ‘ ur uidan e’

* Note that operating expenses excluding bank and insurance taxes were low in the first half of 2024, hence we feel comfortable with our full year
2025 guidance of growth for operating expenses excluding bank and insurance taxes of below 2.5% year-on-year.




5
Loan loss impairment: 116-million-euro net charge
versus a 38-million-euro net charge in the previous quarter and a 72-million-euro net charge in the year-earlier quarter




In the quarter under review, we recorded a 116-million-euro net loan loss impairment charge, compared to a net
charge of 38 million euros in the previous quarter and 72 million euros in the year-earlier quarter. Of the net
impairment charge in the quarter under review, 76 million euros related to the loan book (compared to 83 million
euros, of which 41 million euros related to lowering the backstop shortfall for old non-performing loans in Belgium,
in the previous quarter) and 40 million euros to an update of the reserve for geopolitical and macroeconomic
uncertainties due to a management overlay (compared to a release of 45 million euros in the previous quarter). As
a consequence, the outstanding reserve for geopolitical and macroeconomic uncertainties amounted to 112 million
euros at the end of June 2025.

The resulting credit cost ratio amounted to 0.15% for the first six months of 2025 (likewise 0.15% excluding the
changes in the reserve for geopolitical and macroeconomic uncertainties), compared to 0.10% for full-year 2024
(0.16% excluding the changes in the reserve for geopolitical and macroeconomic uncertainties). At the end of June
, % o our total loan oo as lassi ied as i paired ‘Sta e ’ , o pared to % at year-end 2024.
Impaired loans that are more than 90 days past due amounted to 1.0% of the loan book, the same as at year-end
2024.

For guidance regarding the expected credit cost ratio in 2025 and the years to come, please refer to the section
entitled ‘ ur uidan e’

Impairment charges on assets other than loans amounted to 8 million euros in the quarter under review, compared
to virtually zero in the previous quarter and 13 million euros in the year-earlier quarter. The figure for the quarter
under review mainly includes the impairment charges related to modification losses on the extended interest rate
cap regulation in Hungary and impairment charges on software.




Net result by business unit
Belgium 607 million euros; Czech Rep. 240 million euros; International Markets 237 million euros; Group Centre -65 million euros




Belgium: at first sight, the net result (607 million euros) was more than double the result for the previous quarter.
However, when excluding bank and insurance taxes (the bulk of which for the full year is recorded in the first quarter
and hence distorts the quarter-on-quarter comparison), the net result increased slightly by 1% quarter-on-quarter,
due to the combined effect of:
• higher total income (accounted for mainly by increased net interest income, net other income and the seasonal
peak in dividend income, partially offset by lower trading & fair value income and net fee and commission
income);
• a more or less stable level of costs;
• lower insurance service expenses after reinsurance;
• higher impairment charges.


Czech Republic: at first sight, the net result (240 million euros) was up 16% on the result for the previous quarter.
However, when excluding bank and insurance taxes, the net result was up 4% quarter-on-quarter, due to the
combined effect of:

• higher total income (due primarily to higher net interest income, insurance revenues and trading & fair value
income, partially offset by lower net fee and commission income);
• a slightly higher level of costs;
• higher insurance service expenses after reinsurance;
• slightly lower impairment charges.


6
International Markets: the 237-million-euro net result breaks down as follows: 25 million euros in Slovakia, 122
million euros in Hungary and 90 million euros in Bulgaria. For the business unit as a whole, the net result was, at
irst lan e, up % on the pre ious quarter’s result Ho e er, hen e ludin an and insuran e ta es, the net
result fell slightly by 3% quarter-on-quarter, due to the combined effect of:

• higher total income (increases in all income items);
• higher costs;
• lower insurance service expenses after reinsurance;
• higher impairment charges.

Group Centre: the net result (-65 million euros) was 12 million euros higher than the figure recorded in the previous
quarter, due in part to higher trading & fair value income, partially offset by higher costs.

A ull results ta le is pro ided in the ‘Additional in or ation’ se tion o the quarterly report A short analysis o 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 1H2025 FY2024 1H2025 FY2024 1H2025 FY2024
Cost/income ratio
- excl. non-operating items and evenly spreading bank and insurance
taxes throughout the year 43% 44% 42% 45% 45% 46%
- excl. all bank and insurance taxes 39% 41% 41% 43% 37% 38%
Combined ratio, non-life insurance 86% 88% 83% 86% 89%2 96%2
Credit cost ratio1 0.14% 0.19% 0.12% -0.09% 0.19% -0.08%
Impaired loans ratio 1.9% 2.0% 1.3% 1.3% 1.5% 1.6%

1 A ne ati e i ure indi ates a net i pair ent release positi ely a e tin results See ‘Details o ratios and ter s’ in the quarterly report.
2 Excluding windfall insurance taxes in Hungary, the combined ratio amounted to 93% for full-year 2024 and 85% for the first six months of 2025.




Solvency and liquidity
Common equity ratio of 14.6%, NSFR of 135%, LCR of 157%


At the end of June 2025, total equity came to 26.2 billion euros and comprised 23.3 billion euros in parent
shareholders’ equity and illion euros in additional tier-1 instruments. Total equity was up 1.9 billion euros on
its level at the end of 2024. This was due to the combined effect of:

• the inclusion of the profit for the first six months of 2025 (+1.6 billion euros);
• the payment of the final dividend for 2024 in May 2025 (-1.2 billion euros);
• higher revaluation reserves (+0.6 billion euros);
• higher additional tier-1 instruments (+1.0 billion euros, owing to a new issue in May 2025);
• a number of smaller items.

We ha e pro ided details o these han es under ‘ onsolidated state ent o han es in equity’ in the
‘ onsolidated inan ial state ents’ se tion o the quarterly report

In the first six months of 2025, risk-weighted assets rose by 6.3 billion euros to 126.2 billion euros, driven primarily
by the application of Basel IV and volume growth.

Our solvency position remained strong, as illustrated by an unfloored fully loaded common equity ratio (CET1) of
14.6% under

Basel IV at 30 June 2025, compared to 15.0% under Basel III at the end of December 2024 (corresponding to14.6%
under Basel IV). The solvency ratio for KBC Insurance under the Solvency II framework was 213% at the end of
June 2025, compared to 200% at the end o We ha e pro ided ore details on sol en y under ‘Sol en y’
in the ‘Additional in or ation’ se tion o the quarterly report We esti ate that the a quisition o an in
Slovakia, which was announced in the previous quarter, will have an impact of -50 basis points on our unfloored
fully loaded common equity ratio when completed (expected before the end of 2025).


7
The di idend poli y and apital deploy ent poli y are e plained in the ‘ ur uidan e’ se tion o this report n line
with that policy, we will pay an interim dividend of 1 euro per share in November 2025 as an advance on the total
dividend for financial year 2025.

Our liquidity position also remained excellent, as reflected in an LCR ratio of 157% and an NSFR ratio of 135%,
compared to 158% and 139%, respectively, at the end of 2024, well above the regulatory minima of 100%.


Analysis of the year-to-date period (1H2025)
Net result for 1H2025: 1 564 million euros
up 9% year-on-year


Highlights (compared to the first six months of 2024, unless otherwise stated):

• Net interest income: up 7% to 2 930 million euros. This was attributable in part to the much higher commercial
transformation result and increased level of interest income from lending activities, lower costs related to the
minimum required reserves held with central banks, lower subordinated funding cost as well as the higher level
of interest income from dealing room activities, partly offset by lower interest income related to ALM, short-term
cash management activities and customer term deposit funding. Excluding forex effects, the volume of
customer loans rose by 7% while customer deposits increased by 6% year-on-year (+7% when excluding KBC
an ’s orei n ran hes The net interest ar in in the irst si onths o a e to %, do n asis
points year-on-year.
• Insurance service result (insurance revenues before reinsurance - insurance service expenses before
reinsurance + net result from reinsurance contracts held): up 24% to 307 million euros. The non-life combined
ratio for the first six months of 2025 amounted to 85%, compared to 90% for full-year 2024. Non-life insurance
sales were up 8% to 1 462 million euros, with increases in all main classes, while life insurance sales were up
20% to 1 668 million euros, thanks to higher sales of unit-linked, interest-guaranteed and hybrid products.
• Net fee and commission income: up 10% to 1 357 million euros. This was attributable to higher fees for asset
management services and for banking services (mainly payment services, network income and securities
services). At the end of June 2025, total assets under management were up 7% to 280 billion euros due to a
combination of net inflows (+4 percentage points) and the effect of a positive year-on-year market performance
(+3 percentage points).
• Trading & fair value income and insurance finance income and expense: down 27 million euros to -79
million euros. This was due in part to lower dealing room income.
• All other income items combined: up 31% to 186 million euros, thanks mainly to higher net other income.
• Operating expenses excluding bank and insurance taxes: up 4% to 2 232 million euros. This increase on
what was a relatively low level in the reference period was attributable to higher staff costs, higher ICT costs
and higher depreciation expenses. Bank and insurance taxes amounted to 566 million euros, up 9% year-on-
year. The cost/income ratio for the first six months of 2025 amounted to 45% when certain non-operating items
are excluded and bank and insurance taxes spread evenly throughout the year (47% for full-year 2024). When
bank and insurance taxes are fully excluded, the cost-income ratio for the period under review amounted to
41% (43% for full-year 2024).
• Loan loss impairment: net charge of 155 million euros, compared to a net charge of 88 million euros in the
reference period. The first six months of 2025 included a net charge of 159 million euros for the loan book and
a small net release of 5 million euros in the reserve for geopolitical and macroeconomic uncertainties (compared
to a net charge of 101 million euros and a net release of 13 million euros, respectively, in the reference period).
As a result, the credit cost ratio amounted to 0.15%, compared to 0.10% for full-year 2024. Impairment charges
on assets other than loans amounted to 8 million euros, compared to 13 million euros in the reference period.
• The 1 564-million-euro net result for the first six months of 2025 breaks down as follows: 888 million euros
for the Belgium Business Unit (up 126 million euros on its year-earlier level), 447 million euros for the Czech
Republic Business Unit (up 6 million euros), 372 million euros for the International Markets Business Unit (up
1 million euros) and -143 million euros for the Group Centre (down 1 million euros).




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ESG developments, risk statement and
economic views
ESG developments

KBC continues to stride forward in its sustainability journey, together with its customers, employees and other
stakeholders. We share sustainability information in a transparent and consistent manner. Since this year, we have
done so in a dedicated Sustainability Statement in our Annual Report, as well as in our voluntary Sustainability
Report. Both publications are available at www.kbc.com.

We have received broad recognition for our transparent sustainability communication in the form of several
sustainability-related awards and ESG ratings. For example, we have been included in the S&P Global Yearbook
and remain a FTSE4Good Index Series constituent. Furthermore, K&H in Hungary, UBB in Bulgaria and KBC Bank
in Belgium all recently received the Euromoney Award for Best Bank for ESG in their respective countries.

These a no led e ents re le t the roup’s ontinued o it ent to inte ratin en iron ental, so ial, and
governance principles across its operations and strategy. They also highlight our strong performance in
sustainability and reaffirm our position as a leader in responsible business practices.

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 geopolitical risks which have increased significantly over the past few years (including the war
in Ukraine, conflicts in the Middle East and trade wars as a consequence of US tariff policies). These risks result
or may result in shocks for the global economic system (e.g., GDP and inflation) and the financial markets (including
interest rates). European economies, including K ’s ho e ar ets, are a e ted too, reatin an un ertain
business environment, including for financial institutions. Regulatory and compliance risks (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. 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 and
geopolitical tensions in general have 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.




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Our view on economic growth

US economic activity rose by 0.7% (non-annualised) in the second quarter of 2025, compared to negative growth
of -0.1% in the first quarter of 2025. The rebound was largely attributable to resilient consumer demand and net
exports. As a result of recent US economic policy – specifically with respect to import tariffs – growth in the US is
expected to slow down again and to stagnate in the third quarter, before moderately recovering.

Euro area growth in the second quarter amounted to 0.1%, after 0.6% had been recorded in the first quarter of
2025. Notwithstanding the US-EU tariff agreement of 27 July, uncertainty surrounding 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 on the back of expected defence spending and infrastructure
investments.

Quarter-on-quarter growth in Belgium was 0.2% in the second quarter, markedly weaker than in the previous
quarter. Relatively strong domestic demand still remains the most important contributor to economic growth. For
the next few quarters, we expect growth to remain broadly in line with that of the euro area.

The Czech economy grew by 0.2% in the second quarter, down from the 0.7% recorded in the first quarter of 2025,
due to a weak industrial recovery. Hungarian economic activity rebounded by 0.4% in the second quarter after a
decline of 0.1% in the first quarter. In Bulgaria and Slovakia, second-quarter real GDP growth was relatively resilient
at 0.5% and 0.3%, respectively.

The main risk to our short-term outlook for European growth is a further escalation of the ongoing global trade
conflict. Of particular concern is the continued threat of new US policy actions (even after the US-EU tariff
agreement) and EU countermeasures to this and to the potential trade diversion of Chinese export goods away
from the US market towards the EU.




Our view on interest rates and foreign exchange rates
In the euro area, inflation hit 2.0% in July, with core inflation remaining steady at 2.3%. Disinflationary pressures
exerted by lower energy prices, the negative demand shock caused by US trade tariffs and the strength of the euro
are likely to persist in the coming months. In the US, both headline and core inflation picked up in June, increasing
to 2.7% and 2.9%, respectively. US inflation is likely to increase further in the course of 2025, as a consequence
of the import tariffs imposed by the government there.


The ECB continued its easing cycle and cut its deposit rate in January, March, April and June 2025 to its current
level of 2.0%. We expect the ECB to cut rates one more time in September, followed by a period of unchanged
policy rates.


The Fed kept its easing cycle on pause in the first half of the year amidst economic uncertainty, especially about
the inflationary and growth impact of higher import tariffs. If its assessment of the impact of US economic policies
allows, the Fed will resume its cautious easing path in the second half of 2025.


There has been a disconnect between 10-year bond yields in the US and Germany since the start of the year. This
has been driven by several events. Firstly, a huge fiscal spending plan was passed in the German parliament
covering defence spending and infrastructure investment, followed by the announcement of increased defence
spending at EU level. This pushed up the 10-year German bond yield and caused the US-German 10-year spread
to narrow to about 140 basis points. Next, the announcement of so-called reciprocal tariffs by the US on 2 April,
which triggered fears of higher inflation and less and/or later monetary policy easing by the Fed, led to a sharp rise
in US 10-year bond yields. Later, the rise also gradually started to reflect a more general risk aversion towards US
assets, which was also fuelled by fears about central bank independence. The higher general risk aversion towards
the US has been reflected in the sizeable depreciation of the US dollar since April.


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The Czech National Bank (CNB) cut its policy rate by 25 basis points in both February and May 2025, which brought
it to its current level of 3.50%. Only one additional interest rate cut in the last quarter of 2025 is expected as elevated
momentum in service inflation remains a source of concern for the CNB. We expect the Czech koruna to gradually
appreciate against the euro towards the end of 2025.


The Hungarian central bank has kept its policy rate unchanged at 6.5% since late 2024. With the CPI hovering
around – but still above – the 3% target, the National Bank of Hungary will be careful not to lower its policy rate too
quickly. We expect just one 25-basis-point cut this year, followed by two rate cuts in 2026 (by 75 basis points in
total), which would take the base rate to 5.50%. The forint has strengthened since the beginning of the year, albeit
with bumps along the way, such as when reciprocal tariffs were announced on 2 April. We expect the currency to
moderately depreciate from its current levels by the end of 2025.




Our guidance

Guidance for full-year 2025 ( updated)

• Total income: at least +7% year-on-year (up from 5.5%)
• Net interest income: at least 5.85 billion euros (up from 5.7 billion euros), supported by organic loan volume
growth of at least 6.5% (up from approx. 4%)
• Insurance revenues (before reinsurance): at least +7% year-on-year (unchanged)
• Operating expenses (excluding bank and insurance taxes): below +2.5% year-on-year (below full-year 2024 growth
excl. Ireland of +2.7%) (unchanged)
• Combined ratio: below 91% (unchanged)
• Credit cost ratio: well below the through-the-cycle credit cost ratio of 25-30 basis points (unchanged)




Medium to long-term guidance (as provided with the full-year 2024 results)

• CAGR total income (2024-2027): at least +6%
• CAGR net interest income (2024-2027): at least +5%
• CAGR insurance revenues (before reinsurance) (2024-2027): at least +7%
• CAGR operating expenses (excluding bank and insurance taxes) (2024-2027): below +3%
• Combined ratio: below 91%
• Credit cost ratio: well below the through-the-cycle credit cost ratio of 25-30 basis points




Dividend and capital deployment policy (as provided with the 1Q2025 results)
• Dividend policy:
o Payout ratio (including AT1 coupon) between 50% and 65% of consolidated profit of the accounting year;
o Interim dividend of 1 euro per share in November of each accounting year as an advance on the total
dividend.

• Capital deployment policy:
o We aim to remain amongst the better capitalised financial institutions in Europe;
o Each year (when announcing the full-year results), the Board of Directors will take a decision, at its
discretion, on the capital deployment. The focus will predominantly be on further organic growth and M&A;
o We see a 13% unfloored fully loaded common equity ratio as the minimum;
o We will fill up the AT1 and Tier 2 buckets within P2R and will start using SRTs (Significant Risk Transfers)
as a part of a risk-weighted assets optimisation programme.

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Upcoming events and references


Interim dividend of 1 euro: ex-coupon: 5 Nov.2025, record: 6 Nov.2025, payment 7 Nov.2025
Agenda 3Q2025 results: 13 November 2025
4Q2025/FY2025 results: 12 February 2026
Other events: www.kbc.com / Investor Relations / Financial calendar

More
information
on the Quarterly report: www.kbc.com / Investor Relations / Reports
quarter under Company presentation: www.kbc.com / Investor Relations / Presentations
review




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


Katleen Dewaele, General Manager, Corporate Communication/Spokesperson, KBC Group

Tel +32 475 78 08 66- 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
Katleen Dewaele Tel. + 32 2 429 32 88 Pieter Kussé sending an e-mail to
General Manager Tel. + 32 2 429 85 44 Sofie Spiessens pressofficekbc@kbc.be
Corporate Communication /Spokesperson Tel. + 32 2 429 29 49 Tomas Meyers
Tel. +32 475 78 08 66 pressofficekbc@kbc.be Follow us on https://x.com/kbc_group




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