Core Insights - KBC Group reported a strong net profit of 1,018 million euros in Q2 2025, marking an increase from 546 million euros in Q1 2025 and 925 million euros in Q2 2024, driven by higher net interest income and improved trading income [1] - The net profit for the first half of 2025 reached 1,564 million euros, reflecting a 9% increase compared to the same period in 2024 [4] Financial Performance - Basic earnings per share rose to 2.50 euros in Q2 2025 from 1.32 euros in Q1 2025 and 2.25 euros in Q2 2024 [1] - The breakdown of net results by business unit showed Belgium contributing 607 million euros, the Czech Republic 240 million euros, and International Markets 237 million euros in Q2 2025 [1] Loan and Deposit Growth - The loan portfolio expanded by 2% quarter-on-quarter and 7% year-on-year, while customer deposits (excluding volatile short-term deposits) also increased by 2% quarter-on-quarter and 7% year-on-year [2] Operating Expenses and Credit Quality - Operating expenses decreased significantly from the previous quarter due to the recording of bank and insurance taxes, while excluding these taxes, expenses rose by 2% quarter-on-quarter [3] - Loan loss impairment charges increased, but the credit cost ratio for the first half of 2025 remained favorable at 15 basis points, below the through-the-cycle value of 25-30 basis points [3] Solvency and Liquidity - KBC Group maintained a strong solvency position with a fully loaded common equity ratio under Basel IV of 14.6% as of June 2025, alongside a liquidity coverage ratio (LCR) of 157% and a net stable funding ratio (NSFR) of 135% [5] Dividend and Guidance - The company announced an interim dividend of 1 euro per share to be paid in November 2025 and raised its guidance for net interest income for the full year 2025 to at least 5.85 billion euros, up from 5.7 billion euros [5] Digital Innovation - KBC Group continues to lead in digital innovation, with 5.7 million customers using its digital assistant, Kate, which autonomously resolves 70% of customer queries, equivalent to the workload of over 300 full-time employees [6] Strategic Ambition - The company aims to be the reference bank-insurer in its home markets, focusing on a customer-centric business model and the trust placed in it by stakeholders [7]
KBC Group: Second-quarter result of 1 018 million euros
Globenewswireยท2025-08-07 05:00