KBC Group N.V.

Net interest income and insurance premiums form the majority of recurring income, with FY2026 NII guided at no less than €6.73 billion. Total income has grown consistently since FY2020, including through COVID provisioning, and deposit and lending relationships are sticky across KBC's retail and SME customer bases.

NII and non-NII (insurance, asset management, fees) each represented approximately 50% of FY2025 total income, a genuine diversification between banking and insurance that moderates NII cyclicality. All three businesses serve the same retail, SME, and corporate client pools across KBC's five core markets, limiting cross-cycle independence.

Belgium contributed approximately 60% of group income in FY2025, with the Czech Republic at 20% and other CEE markets (Slovakia, Hungary, Bulgaria) at roughly 20%. The exit from Ireland in April 2024 removed KBC's only Western European presence beyond Belgium, increasing home-market dependence.

The cost/income ratio improved from 47% in FY2024 to 46% in FY2025, with Kate's AI platform handling 73 million customer interactions at a 14% sales conversion rate in FY2025. KBC's bank-insurer structure provides modest operating leverage at the margin, but regulatory capital requirements constrain the scalability ceiling typical of asset-light businesses.

NII from deposit-funded lending is sticky and mission-critical, while non-life insurance premiums are recurring and annually renewed. KBC's FY2025 non-NII share of roughly 50% includes insurance and fee income with high multi-year retention. Neither segment is purely transactional, and both serve customers with sustained multi-year engagement across KBC's core markets.