KBC has today reported fourth quarter net income of €1 billion, narrowly beating the €973m analysts had expected in a consensus compiled by the company.
"Our total income benefited from several factors, including higher net interest income, an increase in trading & fair value income, increased insurance revenues and higher net fee and commission income," the Belgian bank and insurance group said in a press release today.
Quarterly net interest income (NII) - the spread between the interest earned on loans and interest paid to depositors - grew by 12% on the year, bringing KBC's full year total NII to €6.1 billion, ahead of its previous target of €5.95 billion.
The lender also set new medium and long-term targets. Total income for 2026 is projected to grow at least 9.9% year-on-year and net interest income is expected to be €6.73 billion or more.
By the end of 2028, the group aims to achieve a cost-to-income ratio below 38% and generate a total income of at least 7.7% higher.
KBC proposed a dividend of €5.1 per share for 2025, bringing its pay-out ratio to 60% of its yearly net profit, at the upper end of its guidance.
