Kbc Group N.v. · EURONEXT:KBC
Kbc — FY2024 Earnings Presentation
40 slides from Kbc's earnings presentation, February 2025
Slide 1: KBC Group Press presentation 4Q / FY 2024
1 KBC Group Press presentation 4Q / FY 2024 Johan Thijs, KBC Group CEO Bartel Puelinckx, KBC Group CFO More information: www.kbc.com KBC Group - Investor Relations Office: IR4U@kbc.be
Slide 2: Highlights
Highlights • Commercial bank-insurance franchises performed excellently Net result of 1,116m EUR over 4Q24 2 • As policy rates are on their way down, KBC Group is well-positioned being an integrated bank-insurer with tailored AM business Net result in m EUR • Customer loans and customer deposits inc
Slide 3: Dividend / capital deployment
Dividend / capital deployment 3 For FY24: • A total gross dividend of 4.85 EUR per share will be proposed to the AGM for the accounting year 2024, of which • 0.70 EUR per share already paid in May 2024, reflecting the surplus capital above the 15% fully loaded CET1 threshold per end 2023 • 4.15 EUR
Slide 4: Excellent contribution from all business units
Excellent contribution from all business units 4 Net result per business unit in m EUR BU BE BU CZ BU IM 598 519 474 487 244 238 224 205 197 178 76 175 179 146 80 67 243 85 Bulgaria 102 63 121 94 110 50 65 Hungary 34 27 26 Slovakia 18 16 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q
Slide 5: Strategic focus | Sia Partners ranked KBC Mobile the N°1 mobile banking app worldwide
Strategic focus | Sia Partners ranked KBC Mobile the N°1 mobile banking app worldwide 5 Unique integrated bank- Successful digital-first Firmly embedded insurance+ model approach through KATE sustainability strategy • We offer an integrated response to our • Our digital interaction with clients form
Slide 6: Strategic focus | The reference
Strategic focus | The reference 6 Profitability With a Return on Equity of 14% in FY24 KBC is one of the most profitable EU financial institutions Solvency With a fully loaded CET1 ratio of 15.0% at end FY24 KBC is amongst the better capitalised EU banks At KBC it is our ambition to be the reference
Slide 7: Higher net interest income, resulting in higher than guided FY24 NII
Higher net interest income, resulting in higher than guided FY24 NII 7 Net interest income Net interest margin* in m EUR in %, calculated excluding dealing room, ALM FX swaps & repos 1,394 1,433 1,360 106 106 Insurance 98 Banking 1.99% 2.08% 2.08% 1,261 1,288 1,326 (incl. Holding) 4Q23 3Q24 4Q24 4Q2
Slide 8: Inflow of core customer money
Inflow of core customer money 8 Customer money dynamic over 4Q24 Customer money dynamic over FY24 in bn EUR in bn EUR +5.4bn EUR +19.8bn EUR +2.8bn EUR +5.0bn EUR -2.5bn EUR +0.4bn EUR +1.2bn EUR 0.0bn EUR +5.7bn EUR +4.7bn EUR +4.0bn EUR -0.4bn EUR +2.2bn EUR -0.9bn EUR +3.9bn EUR -1.6bn EUR 30SEP2
Slide 9: Sharply higher net fee and commission income, record-high net inflows in direct client money
Sharply higher net fee and commission income, Record-high net inflows in direct client money in FY24 9 Net fee & commission income Assets under management in m EUR in bn EUR 700 276 641 269 600 11 244 11 Other Investment 12 61 62 advice 304 Banking services 55 276 265 74 77 Fund-of-Funds 68 Group as
Slide 10: Non-life sales up y-o-y, life sales down q-o-q and up y-o-y
Non-life sales up y-o-y, life sales down q-o-q and up y-o-y 10 Non-life sales Life sales in m EUR in m EUR 791 49 730 685 67 Hybrid products 603 36 549 591 336 297 Guaranteed- 4Q23 3Q24 4Q24 401 Interest products • Up by 8% y-o-y (+9% y-o-y excluding FX effect), with growth in all countries and all
Slide 11: FIFV & IFIE result down and net other income below the normal run rate
FIFV & IFIE result down and net other income below the normal run rate 11 FIFV & IFIE Net other income in m EUR in m EUR 4Q23 3Q24 4Q24 Dealing room 78 64 66 MVA/CVA/FVA -41 -24 -6 60 IFIE – mainly interest -59 -63 -66 45 accretion 27 M2M ALM derivatives and -18 -19 -68 other 4Q23 3Q24 4Q24 FIFV & I
Slide 12: Costs excluding bank & insurance taxes increased q-o-q, perfectly within guidance
Costs excluding bank & insurance taxes increased q-o-q, perfectly within guidance 12 Operating expenses (including costs directly attributable to Cost/income ratio insurance) When excluding bank and insurance taxes in m EUR 1,257 1,205 1,183 FY23 FY24 36 55 Bank & 47 insurance taxes 43% 43% Operatin
Slide 13: Overview of bank & insurance taxes
Overview of bank & insurance taxes* 13 KBC Group KBC Group Belgium BU in m EUR in m EUR 623m EUR BU BE 12.2% of 285m EUR 571 FY24 opex** 347 10.2% of 518 FY24 opex** 317 Resolution Fund* Resolution Fund 571 347 317 contribution 518 contribution Common bank & Common bank & 51 55 6 0 8 0 29 36 2 47 in
Slide 14: Lower net loan loss impairment charges & excellent credit cost ratio
Lower net loan loss impairment charges & excellent credit cost ratio Higher other impairments 14 Other impairments Asset impairment ECL for geopolitical and macroeconomic uncertainties Credit cost ratio in m EUR; negative sign is a release in bps 10 Impairments on financial assets at AC and FVOCI 17
Slide 15: Strong capital position with substantial buffer
Strong capital position with substantial buffer 15 CET1 ratio in % 17.6 Fully loaded B3 common equity ratio 17.1 amounted to 15.0% at the end of FY24 based 16.3 16.0 15.8 15.5 15.4 on the Danish Compromise 15.2 15.0 The recognition in P&L (+0.3bn EUR) of the 10.88% Overall Capital deferred tax asset
Slide 16: Leverage ratio, Solvency II ratio and liquidity ratios
Leverage ratio, Solvency II ratio and liquidity ratios 16 Leverage ratio | KBC Group Liquidity ratios | KBC Group Solvency II ratio | KBC Group fully loaded, Basel 3 in % in % Leverage LCR NSFR Solvency II ratio ratio 5.5% FY24 158% FY24 139% FY24 200% FY24 5.7% FY23 159% FY23 136% FY23 206% FY23 Q-
Slide 17: Wrap-up
Wrap-up 17 Excellent financial Outstanding solvency Kate convinces Franchise is growing performance and liquidity customers net result loan customer CET1 ratio 5.3 million 1,116m volumes deposits 4Q24 15.0% users 3415m 3.5% buffer in contact +5% +6% vs MDA with Kate y-o-y y-o-y FY24 NSFR AM net retu
Slide 18: Looking forward I FY25 financial guidance
Looking forward I FY25 financial guidance 18 Our bank-insurance+ model is firing on all cylinders Note: all growth figures are based on reported 2024 figures 2025 Total income at least +5.5% y-o-y Net interest income* at least 5.7bn EUR Organic loan volume growth approx. +4% Jaws at least +3% Insura
Slide 19: Looking forward I FY27 financial guidance
Looking forward I FY27 financial guidance 19 Our bank-insurance+ model is firing on all cylinders Note: all growth figures are based on reported 2024 figures 2027 Total income CAGR24-27 at least +6% Net interest income* CAGR24-27 at least +5% Jaws at least +3% Insurance revenues (before reinsurance)
Slide 20: Indicative view on transitional RWA evolution under Basel IV
Indicative view on transitional RWA evolution under Basel IV (as provided with 3Q24 results) 20 • Moving towards the Basel IV era and applying a static balance sheet (1H24) and all other parameters ceteris paribus, without mitigating actions, KBC projects • at 1JAN25, a first-time application impact
Slide 21: Wrap-up: digital-first, data-driven and AI-led integrated bank-insurer with tailored AM
Wrap-up: digital-first, data-driven and AI-led integrated bank-insurer with tailored AM Well-positioned in a decreasing (policy) rate environment 21 Well-diversified, both geographically and from a business point of view • geographically … • Mature markets (BE, CZ) combined with growth markets (SK,
Slide 22: Strategy | KBC's non-financial targets (2023-2026)
Strategy | KBC’s non-financial targets (2023-2026) 22 Customer ranking Bank-insurance (BI) clients Digital sales BI clients Digital sales banking products* TARGET in % TARGET in % TARGET Top-3 Top-3 Top-2 * 83% 65% 2023 2024 2026 76% 76% 52% 55% • KBC is 3rd in customer NPS (Net Promoter Score) rank
Slide 23: Company profile | KBC Group in a nutshell
Company profile | KBC Group in a nutshell 23 Dividend policy & capital distribution Shareholder structure (will be updated with 1Q25 results) (as at end 2024) • We aim to be amongst the better capitalised financial institutions in MRBB Other core Europe. As a consequence, the Board of Directors deci
Slide 24: Kate | Four flavours, one Kate
Kate | Four flavours, one Kate 24 Kate4MassRetail Kate4Business Kate Group Platform Kate4Employees Kate is a personal virtual Kate will also engage with our We do not build Kate for every Kate will also have an impact on assistant that engages with our self-employed, micro-SME, SME country individua
Slide 25: Kate | A data-driven organisation with Kate at the core
Kate | A data-driven organisation with Kate at the core 25 Kate is more than an interface towards customers. It also refers to the AI-enhanced software at our center: the Kate brain. The Kate brain will be the driving force behind data-driven decision making, product design and development, marketin
Slide 26: KBC's ESG ratings and indices are ahead of the curve
KBC’s ESG ratings and indices are ahead of the curve 26 Agency ESG rating end-of-year 2024 Position versus industry average D- A • Leader in addressing climate change • CDP’s A list A • Financial average service B- Severe Risk High Risk Medium Risk Low Risk Negligible Risk • 3rd percentile of 262 di
Slide 27: Indirect environmental impact: our progress in brief
Indirect environmental impact: our progress in brief 27 INDIRECT environmental footprint (FY 2023) Loan portfolio (selection of sectors) reduction compared to 2021 baseline, otherwise indicated Mortgages and commercial Operational lease Agriculture • We refer to our Collective Commitment to Climate
Slide 28: Sustainability highlights
Sustainability highlights 28 Commitment to environmental action Sustainable business Social responsibility and governance 51bn EUR Responsible Investing Social bond Second progress report published on Issued a second social bond for the 2030 and 2050 climate targets funds in FY24 or 44% of total ass
Slide 29: Direct environmental impact: our progress in brief
Direct environmental impact: our progress in brief 29 DIRECT environmental footprint (FY 2023) More details in our 2023 Sustainability Report • Since 2015, we have been calculating the GHG emissions arising from our own operations at group level, in accordance with the GHG Protocol Corporate Account
Slide 30: FY24 | Highlights
FY24 | Highlights 30 Net result in m EUR Net result roughly stabilised at a high level (3,415m EUR in 2024 versus 3,402m EUR in 2023) 0% Excluding FX effect, net result increased by 2% y-o-y, mainly as a result of the following: • Revenues rose by 1% y-o-y excluding FX effect as higher net interest
Slide 31: FY24 | Higher net interest income (better than guided) and NIM
FY24 | Higher net interest income (better than guided) and NIM 31 Net interest income Net interest margin in m EUR in % 5,473 5,574 392 417 Insurance NII +2% +0.04% 2.05% 2.09% 5,081 5,157 Banking NII (incl. Holding) FY23 FY24 • Increased by 4 bps y-o-y for the reasons mentioned under Net FY23 FY24
Slide 32: FY24 | Higher net fee and commission income and higher AUM
FY24 | Higher net fee and commission income and higher AUM | Record-high net inflows in direct client money 32 Net fee & commission income Assets under management in m EUR in bn EUR 2,578 276 2,349 49 Other 244 Investment 45 62 +10% advice 1,108 Banking services 55 +13% 1,057 77 Fund-of-Funds 68 Gro
Slide 33: FY24 | Non-life sales significantly up y-o-y
FY24 | Non-life sales significantly up y-o-y 33 Non-life sales Combined ratio (Non-life) in m EUR in % +8% 2,547 87% 90% 2,351 FY23 FY24 2023 2024 • Up by 8% y-o-y (+10% y-o-y excluding FX effect), with growth in all • Non-life combined ratio for FY24 amounted to an excellent 90% (87% in FY23) count
Slide 34: FY24 | Life insurance sales significantly up y-o-y
FY24 | Life insurance sales significantly up y-o-y 34 Life sales Life Value of New Business (VNB*) in m EUR 2,906 in m EUR 197 Hybrid products 8.8% 7.3% VNB/PVNBP** 2,328 131 +25% 1,219 Guaranteed interest products +2% 979 294 299 1,490 Unit-linked products 1,218 FY23 FY24 FY23 FY24 • Life sales up
Slide 35: FY24 | Sharply lower FIFV result and lower net other income
FY24 | Sharply lower FIFV result and lower net other income 35 FIFV & IFIE Net other income in m EUR in m EUR 9 Dealing room 288 294 Dealing room MVA/CVA/FVA -15 -24 MVA/CVA/FVA IFIE – mainly 656 -217 -249 IFIE - mainly interest accretion interest accretion M2M ALM der. and -47 Other 181 -189 M2M AL
Slide 36: FY24 | Costs in line with guidance
FY24 | Costs in line with guidance 36 Operating expenses (including costs directly attributable to Bank and insurance taxes insurance) in m EUR in m EUR FY24 FY23 5,125 5,097 BE BU 285 361 687 623 Bank & insurance tax CZ BU 40 60 +1% Hungary 245 238 Slovakia 34 4 Bulgaria 21 20 4,438 4,474 Operating
Slide 37: FY24 | Net loan loss impairment charges & excellent credit cost ratio
FY24 | Net loan loss impairment charges & excellent credit cost ratio 37 Asset impairment Credit cost ratio in m EUR; negative sign is a release in bps 60 *In FY20, an ECL buffer of 44 bps was added re Covid risks, fully released in FY21. 248 In FY21, a new ECL buffer of 429m EUR was 215 added for g
Slide 38: We put our clients centre stage as they keep counting on us
38 We put our clients centre stage as they keep counting on us to help them realise and protect their dreams. We do this proactively and work together to support the society and create sustainable growth. We are genuinely grateful for the confidence they put in us. I would like to explicitly thank o
Slide 39: Glossary
Glossary 39 B3 / B4 Basel III / Basel IV Combined ratio (non-life Short-term non-life insurance contracts: [claims and claim related costs net of reinsurance + costs other than claims and commissions] / [earned expected insurance) premiums received, net of reinsurance] Common equity ratio [common eq
Slide 40: Disclaimer
Disclaimer 40 • This presentation is provided for information purposes only. It does not constitute an offer to sell or the solicitation to buy any security issued by the KBC Group. • KBC believes that this presentation is reliable, although some information is condensed and therefore incomplete. KB