BRUSSELS: KBC Group NV reported a net profit of 1.15 billion euros for the second quarter of 2026, boosted by higher net interest income, increased fee income, and lower loan impairment charges compared to the previous quarter.
The Belgian bancassurance group’s performance was driven by an 8% quarter-on-quarter increase in net interest income to 1.805 billion euros, primarily due to a higher commercial transformation result, increased income from lending activities, and significantly higher interest income from inflation-linked bonds, a statement said.
Net fee and commission income rose 4% quarter-on-quarter to 758 million euros, reflecting higher fees from asset management and banking activities. Total assets under management grew 10% to 328 billion euros, driven by positive market performance and net client inflows.
KBC’s insurance service result stood at 170 million euros in the second quarter, with the non-life combined ratio at an “excellent” 85% for the first half of 2026. The group’s loan portfolio grew organically by 3% during the quarter and 7% year-on-year.
“We recorded an excellent net profit of 1,152 million euros in the second quarter of 2026,” Chief Executive Officer Johan Thijs said. “Compared to the previous quarter, our total income benefited from higher levels of net interest income, insurance revenues, trading and fair value income, net fee and commission income and the seasonal peak in dividend income.”
Loan loss impairment charges fell significantly to 66 million euros from 164 million euros in the previous quarter. The company recorded impairment on software in Belgium and modification losses related to interest cap regulations in Hungary.
Operating expenses excluding bank and insurance taxes decreased slightly quarter-on-quarter after excluding foreign exchange effects. Bank and insurance taxes amounted to 64 million euros, significantly lower than the 549 million euros recorded in the first quarter, which traditionally carries the bulk of these annual levies.
KBC maintained a robust capital position with an unfloored fully loaded common equity ratio of 14.4% at the end of June. The company recently completed a second significant risk transfer transaction on a 1.25 billion-euro corporate loan portfolio, reducing risk-weighted assets by 0.7 billion euros and providing approximately 7 basis points of CET1 benefit.
Liquidity remained strong with an LCR of 158% and NSFR of 133%, well above regulatory minimums. In line with dividend policy, the group will pay an interim dividend of 1 euro per share on Nov. 6, 2026.
For the first half of 2026, net profit totaled 1.709 billion euros, up 9% from the year-earlier period. The company raised its full-year 2026 guidance, now expecting net interest income of approximately 7.05 billion euros, up from at least 6.725 billion euros previously. Total income is expected to grow approximately 11% year-on-year.
The Belgium business unit contributed 747 million euros to the quarterly result, while the Czech Republic unit generated 272 million euros and International Markets added 240 million euros. The Group Centre reported a loss of 106 million euros.
