KBC Group: Fourth-quarter result of 1 003 million euros

Core Viewpoint - KBC Group reported a strong financial performance in 2025, with a net profit of 3,568 million euros, reflecting an 18% increase compared to the previous year, driven by diversified income sources and a growing loan portfolio [1] Financial Performance - The net result for Q4 2025 was 1,003 million euros, slightly up from 1,002 million euros in Q3 2025 but down from 1,116 million euros in Q4 2024 [1] - Basic earnings per share for FY 2025 were 8.70 euros, compared to 8.33 euros in FY 2024 [1] - Total income for FY 2025 rose by 9%, exceeding guidance, with a loan portfolio growth of 1% quarter-on-quarter and 7% year-on-year [1] - Customer deposits increased by 2% quarter-on-quarter and 3% year-on-year, excluding low-margin short-term deposits [1] Solvency and Liquidity - The fully loaded common equity ratio under Basel IV was 14.9% at the end of December 2025, indicating a strong solvency position [2] - The liquidity coverage ratio (LCR) was 159% and the net stable funding ratio (NSFR) was 138%, reflecting a solid liquidity position [2] Dividend Proposal - The Board of Directors proposed a total gross dividend of 5.1 euros per share for 2025, which includes an interim dividend of 1 euro already paid and a remaining 4.1 euros to be paid in May 2026, resulting in a pay-out ratio of 60% of 2025 net profit [3] Strategic Developments - KBC Group made significant progress in its strategy, finalizing the acquisition of 365.bank in Slovakia and Business Lease in the Czech Republic and Slovakia, which will impact capital position positively [4] Digital Innovation - The AI-powered personal digital assistant, Kate, reached 6 million customers, a 13% increase year-on-year, with an autonomy rate of 82% in Belgium [5] - The ecosphere 'MyMobility' launched with 73,000 clients signed up in the initial months [5] Financial Guidance - Updated financial guidance aims for total income to outgrow operating expenses by at least 3.4 percentage points annually by 2028, targeting a cost/income ratio below 38% and a combined ratio below 91% in non-life insurance [6] Sustainability Recognition - KBC Group was included in the CDP Climate A List for the fourth consecutive year and in the S&P Global Sustainability Yearbook for the seventh consecutive year, highlighting its leadership in sustainability [7]