KBC Group (KDB0) Q3 2026 Earnings Report

The call was predominantly positive. KBC reported a strong EUR 1.142 billion result, loan growth ahead of guidance, record asset-management inflows and fee income, solid insurance performance, strong capital and liquidity ratios, and confirmed its full-year guidance. The main challenges were deposit outflows and mix shifts, mortgage-margin pressure, lower banking fees, higher banking taxes, insurance claims from severe weather and fires, and uncertainty around Ethias and future Hungarian lending subsidies. Overall, the number and significance of the positive operating and financial developments outweighed the disclosed challenges.

KBC confirmed its full-year guidance of EUR 7.05 billion for net interest income, 6% loan growth and 3.4% cost growth, with the cost/income ratio at 39.7% and the jaws at least 50 basis points higher than guidance, or more than 100 basis points excluding the bonus; the credit cost ratio is 18 basis points including the overlay and was described as better than guidance. KBC expects EUR 730 million tax payments in total on a yearly basis, including a Bulgaria impact of between EUR 20 million to EUR 25 million, Hungary’s windfall tax at the same conditions as this year, and gradually decreasing banking taxes in Slovakia; Belgium is expected to add roughly EUR 70 million extra bank taxes in 2027. The payout ratio remains between 50% to 65%, while 2028 guidance is not updated and will be addressed on 11th February 2027; current estimates assume policy rates reaching 3% in the course of 2027, then going down to back again 2.75%, inflation of 2.3%, 2.4% in 2027 and 1.5% in 2028, and a 25 basis point parallel shift generating roughly EUR 60 million.