Kbc Group N.v. · EURONEXT:KBC
Kbc — Debt Investor Presentation (2025)
49 slides from Kbc's debt investor presentation, 2025
Slide 1: KBC Group Debt presentation 1Q 2025
1 KBC Group Debt presentation 1Q 2025 More information: www.kbc.com KBC Group - Investor Relations Office: IR4U@kbc.be
Slide 2: KBC Group passport | Well-defined core markets
KBC Group passport | Well-defined core markets 2 BELGIUM BU debt to INTERNATIONAL MARKETS BU GDP ratio GDP growth 104% SK HU BG in %, KBC Economics 61% of assets 4% of assets 4% of assets 5% of assets 4.0m clients 0.8m clients 1.7m clients 2.2m clients 427 branches 1.0% 97 branches 193 branches 176
Slide 3: What differentiates us from peers
What differentiates us from peers 3 Unique integrated Successful digital-first Firmly embedded Core shareholder bank-insurance+ model approach through KATE sustainability strategy structure • We offer an integrated response • Our Digital interaction with clients • As a company that aims to support •
Slide 4: KBC Group's legal structure and issuer of debt instruments
KBC Group’s legal structure and issuer of debt instruments 4 KBC Group NV AT 1 Tier 2 MREL Senior 100% 100% 100% 100% KBC Bank KBC Insurance KBC Global Services N.V. DISCAI* Covered bond No public issuance KBC IFIMA** Retail and Wholesale EMTN * DISCAI (Discovering AI) is a separate fully owne
Slide 5: Last credit ratings
Last credit ratings 5 Moody’s S&P Fitch Senior Unsecured A3 A- A Latest update: Tier II Baa1 BBB BBB+ S&P decided on 29 November 2024 to revise the outlook to positive. Group Additional Tier I Baa3 BB+ BBB- The positive outlook reflects S&P views that KBC Group's strong franchise, robust risk manage
Slide 6: KBC's ESG ratings and indices are ahead of the curve
KBC’s ESG ratings and indices are ahead of the curve 6 Agency ESG rating end of April 2025 Position versus industry D- A • Leader in addressing climate change • CDP’s A list A Severe Risk High Risk Medium Risk Low Risk Negligible Risk • 3rd percentile of 254 diversified banks assessed [Last Full Upd
Slide 7: Business profile | Our financial footprint
Business profile | Our financial footprint 7 High profitability Solid capital position combined CET 1 ratio (fully loaded, Danish compromise) C/I ratio* ratio net result in % 43% FY24 90% FY24 3,415m FY24 16.3% 17.1% 17.6% 3,402m FY23 16.0% 15.5% 15.3% 43% FY23 15.2% 15.0% 87% FY23 * Cost/Income rat
Slide 8: Strategy | KBC's non-financial targets (2023-2026)
Strategy | KBC’s non-financial targets (2023-2026) 8 Customer ranking Bank-insurance (BI) clients Digital sales BI clients Digital sales banking products* TARGET in % in % TARGET 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) ranki
Slide 9: Sustainability highlights
Sustainability highlights 9 Commitment to the environment Sustainable business Social responsibility Two new thematic White Papers CSRD Reporting 7.4 billion euros in social sectors This year, we developed two new internal We published our first Sustainability In 2024, we financed 6.17 billion euros
Slide 10: Highlights: Net result of 546m EUR over 1Q25
Highlights Net result of 546m EUR over 1Q25 10 • Commercial bank-insurance franchises performed excellently Net result • Customer loans increased q-o-q in almost all our core countries (on a in m EUR comparable basis). Core customer money inflow of 2.4bn EUR in 1Q25 1,116 with a shift from term depo
Slide 11: Updated dividend policy and capital deployment policy
Updated dividend policy and capital deployment policy (Basel 4 as of 1 January 2025) 11 The Board of Directors decided: • the dividend policy as from 2025: • A payout ratio (including AT1 coupon) between 50%-65% of consolidated profit of the accounting year. • An interim dividend of 1 EUR per share
Slide 12: KBC will acquire 365.bank in Slovakia
KBC will acquire 365.bank in Slovakia 12 KBC has agreed to acquire (in cash) 98.45% of 365.bank in Slovakia, based on a total value for 365.bank of 761m EUR Indisputable strategic rationale Strong financial rationale • Enhancing the footprint in Slovakia by strengthening the • EPS accretive from yea
Slide 13: Good net interest income, in line with guidance
Good net interest income, in line with guidance 13 Net interest income Net interest margin* in m EUR in %, calculated excluding dealing room, ALM FX swaps & repos 1,379 1,394 1,433 1,421 1,369 110 106 106 102 Insurance 95 Banking 2.08% 2.10% 2.08% 2.08% 2.05% 1,274 1,269 1,288 1,326 1,319 (incl. Hol
Slide 14: Inflow of core customer money
Inflow of core customer money 14 Customer money dynamic over 1Q25 in bn EUR +2.4bn EUR -1.8bn EUR +2.0bn EUR +2.6bn EUR 0.0bn EUR -0.4bn EUR +0.7bn EUR +1.1bn EUR 31DEC24 foreign branches FX impact current accounts savings accounts term deposits savings certificates mutual funds 31MAR25 • 1Q25 saw a
Slide 15: Good net fee and commission income, record-high net inflows
Good net fee and commission income, Record-high net inflows in direct client money in the first quarter 15 Net fee & commission income Assets under management in m EUR in bn EUR 700 690 276 273 641 258 262 269 614 623 11 13 11 Other Investment 15 12 61 62 62 59 61 advice 304 298 Banking services 261
Slide 16: Non-life sales up y-o-y, strong life sales
Non-life sales up y-o-y, strong life sales (significantly up q-o-q and y-o-y) 16 Non-life sales Life sales in m EUR in m EUR 1,013 64 Hybrid products 792 791 Guaranteed- 730 765 623 603 591 49 730 333 Interest 33 67 products 620 1Q24 2Q24 3Q24 4Q24 1Q25 261 47 336 • Up by 8% y-o-y (+9% y-o-y excludi
Slide 17: FIFV & IFIE result up q-o-q and net other income above run rate
FIFV & IFIE result up q-o-q and net other income above the normal run rate 17 FIFV & IFIE Net other income in m EUR in m EUR 1Q24 2Q24 3Q24 4Q24 1Q25 Dealing room 102 62 64 66 77 MVA/CVA/FVA 5 1 -24 -6 -1 67 IFIE – mainly 58 interest -60 -60 -63 -66 -67 51 45 accretion 27 M2M ALM derivatives and -10
Slide 18: Costs excluding bank & insurance taxes decreased q-o-q
Costs excluding bank & insurance taxes decreased q-o-q 18 Operating expenses (including costs directly attributable to Bank and insurance tax spread 2025 (preliminary) insurance) in m EUR in m EUR Total Upfront Spread out over the year 1,646 1Q25 1Q25 1Q25 2Q25e 3Q25e 4Q25e 1,582 BE BU 356 356 0 0 0
Slide 19: Lower net loan loss impairment charges & excellent credit cost ratio
Lower net loan loss impairment charges & excellent credit cost ratio 19 Other impairments Asset impairment ECL for geopolitical and macroeconomic uncertainties 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 Impairments on financial ass
Slide 20: Loan loss experience at KBC
Loan loss experience at KBC 20 Credit cost ratio* in %; Credit cost ratio: amount of losses incurred on troubled loans as a % of total average outstanding loan portfolio AVERAGE 1Q25 FY24 FY23 FY22 FY21 FY20 FY19 FY18 ‘99 –’24 Belgium BU 0.07% 0.19% 0.06% 0.03% -0.26% 0.57% 0.22% 0.09% n/a Czech Rep
Slide 21: Diversified loan portfolio
Diversified loan portfolio 21 Total loan portfolio outstanding Total loan portfolio outstanding | by segment as % of total Group loan portfolio outstanding* Total loan portfolio outstanding Corporate 215bn EUR* 37.7% 40.6% Retail Group level Total loan portfolio outstanding | by sector 21.8% as % of
Slide 22: Loan portfolio breakdown by IFRS 9 ECL stage
Loan portfolio breakdown by IFRS 9 ECL stage 22 Total loan portfolio outstanding | by IFRS9 ECL Stage* Stage 3 ratio | Belgium BU as % of total Group loan portfolio outstanding in % 19.9% 2.3% 2.2% 1.9% 2.0% 2.0% 1.9% 17.9% 13.6% 11.5% 7.8% FY20 FY21 FY22 FY23 FY24 1Q25 7.5% Stage 2 3.3% 2.9% 2.1% 2
Slide 23: Cover ratios
Cover ratios 23 Cover ratio | by IFRS9 ECL Stage* Stage 3 cover ratio | Belgium BU in % in % 45.6% 42.6% 42.4% 43.9% 39.6% 38.3% 47.1% 47.1% 47.4% 47.9% 44.7% 44.7% Stage 3 FY20 FY21 FY22 FY23 FY24 1Q25 Stage 3 cover ratio | Czech Republic BU 4.8% in % 2.2% 1.7% 1.4% 2.1% 1.8% 48.7% 49.4% Stage 2 44
Slide 24: Indicative view on transitional RWA evolution under Basel IV
Indicative view on transitional RWA evolution under Basel IV 24 • Moving towards the Basel IV era and applying a static balance sheet and all other parameters ceteris paribus, without mitigating actions, KBC • reports at 1JAN25, a first-time application impact of +0.9bn EUR (0.1bn EUR lower than +1.
Slide 25: From fully loaded Basel 3 CET1 ratio to unfloored Basel 4 CET1 ratio
From fully loaded Basel 3 CET1 ratio in 4Q24 to unfloored* fully loaded Basel 4 CET1 ratio in 1Q25 25 Fully loaded B3 common equity ratio amounted Q-o-q variance of CET1 capital to 15.0% at the end of FY24 based on the in bn EUR Danish Compromise -0.3 +0.4 Fully loaded CET 1 ratio of 15.0% under B3
Slide 26: Strong capital position with substantial buffer to MDA
Strong capital position with substantial buffer to MDA 26 Capital requirements and distance to Maximum Distributable Amount (MDA) restrictions as at 31 March 2025 (fully loaded, B4) in % Regulatory requirement 18.1 KBC Group 2.1 Tier 2* Unfloored fully loaded B4 common equity ratio amounted to 16.0
Slide 27: Leverage ratio, Solvency II ratio and liquidity ratios
Leverage ratio, Solvency II ratio and liquidity ratios 27 Leverage ratio | KBC Group Liquidity ratios | KBC Group Solvency II ratio | KBC Group fully loaded in % in % Leverage LCR NSFR Solvency II ratio ratio 5.4% 1Q25 157% 1Q25 140% 1Q25 210% 1Q25 5.5% FY24 158% FY24 139% FY24 200% FY24 Q-o-q lower
Slide 28: KBC Group consolidated balance sheet
KBC Group consolidated balance sheet 28 380bn EUR Total balance sheet Deposits from customers 3M 2025 3M 2025 Total assets Total liabilities and equity by core countries as % of total deposits from customers 46 6% Bulgaria 82 5 4% 4% Hungary 33 Slovakia 6 22% 17 41 Czech Republic 79 25 231 64% Belgi
Slide 29: Strong customer funding base
Strong customer funding base 29 • KBC Bank continues to have a strong retail/mid-cap deposit base in its core markets – resulting in a stable funding mix with a significant portion of the funding attracted from core customer segments and markets • Stable % in customer funding compared to balance she
Slide 30: Upcoming mid-term funding maturities
Upcoming mid-term funding maturities 30 Total outstanding | 1Q25 Recent deals in % KBC Bank has 6 solid sources of long-term funding: (i) Retail term deposits, (ii) • In January 2025, KBC Group issued a Senior HoldCo benchmark for an amount Retail EMTN, (iii) Public benchmark transactions, (iv) Cove
Slide 31: Above resolution requirements in terms of MREL
Above resolution requirements in terms of MREL 31 MREL targets MREL actuals • The resolution plan for KBC is based on a Single Point of Entry • The MREL ratio in % of RWA increased from 30.7% in 4Q24 to 31.4% in 1Q25, (SPE) approach at KBC Group level, with bail-in as the driven mainly by higher ava
Slide 32: ESG | Own environmental impact: our progress in brief
ESG I Own environmental impact: our progress in brief 32 Own environmental footprint (FY 2024) More details in our 2024 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 33: Indirect environmental impact: our progress in brief
Indirect environmental impact: our progress in brief 33 INDIRECT environmental footprint (FY 2024) Loan portfolio (selection of sectors) Carbon-intensity reduction compared to 2021 baseline, otherwise indicated Operational lease Renewable energy • We refer to our Collective Commitment to Climate Ele
Slide 34: KBC Green Bond framework and issuances
KBC Green Bond framework and issuances 34 Aligned with best practices and market Verification developments • One year after issuance and until maturity, a limited assurance report • The KBC Green Bond Framework is in line with the on the allocation of the Green Bond proceeds to Eligible Assets to be
Slide 35: KBC Social Bond framework and issuances
KBC Social Bond framework and issuances 35 Aligned with best practices and market Clear Social Bond governance developments Social Bond Eligible Assets include financing in Belgium in the Use following categories: • By adding the social aspect to its funding mix, KBC Bank of • Access to Essential Se
Slide 36: Covered bond programme | Overview
Covered bond programme | Overview 36 The covered bond programme is considered as an important funding tool for the treasury department. KBC’s intentions are to be a frequent benchmark issuer if markets and funding plan permit. Issuer KBC Bank NV Minimum 105% of covered bond outstanding is covered ex
Slide 37: Covered bond programme | Belgian legal framework
Covered bond programme | Belgian legal framework 37 Belgian legal framework • Direct covered bond issuance from a bank’s balance sheet National Bank of • Dual recourse, including recourse to a special estate with cover assets included in a register Belgium • The special estate is not affected by a b
Slide 38: Covered bond programme | Strong legal protection mechanisms
Covered bond programme | Strong legal protection mechanisms 38 Several legal protection mechanisms are in place: 1 Collateral type The value of one asset category must be at least 85% of the nominal amount of covered bonds KBC Bank exclusively selects residential mortgage loans and commits that th
Slide 39: Looking forward | Economic outlook
Looking forward I Economic outlook 39 • The macro-economic environment became increasingly volatile at the end of 1Q25, a.o. driven by: o US tariff policies on the one hand o European fiscal spending (‘Re-Arm Europe’ and huge German infrastructure investments) on the other hand Therefore, economic p
Slide 40: Looking forward | FY25 financial guidance
Looking forward I FY25 financial guidance (as provided with FY24 results) 40 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 appr
Slide 41: Looking forward | FY27 financial guidance
Looking forward I FY27 financial guidance (as provided with FY24 results) 41 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% Insuran
Slide 42: Annex 1 | Summary of the different business units' performance
Annex 1 | Summary of the different business units’ performance 42 Czech Slovakia Hungary Bulgaria Group KBC Belgium 1Q 2025 Republic Centre Group BU BU BU International Markets BU Net result (YTD, in euros) 546m 281m 207m 34m 35m 66m -77m ROAC (YTD) 15% 12% 35% 16% 17% 24% Allocated capital (in %) 6
Slide 43: Annex 3 | Outstanding benchmarks as at end of April 2025
Annex 3 | Outstanding benchmarks as at end of April 2025 Additional tier I securities 43 Issuer Currency Isin Code Issued (in mio) Coupon Re-off spread Settlement date Call date Maturity Trigger Level Announcements KBC Group EUR BE0002592708 364 4.250% M/S+359.4bps 24/04/2018 24/10/2025 Perpetual Te
Slide 44: Annex 4 | KBC's covered bond programme characteristics
Annex 4 | KBC’s covered bond programme characteristics 44 Portfolio data as of 31 March 2025 Interest rate type Geographical allocation in EUR in % in % Total Outstanding Principal Balance 20 057 757 495 Fixed 88.81% Brussels Total value of the assets for the over-collateralisation 1 y / 1y 3.74% Ho
Slide 45: Annex 4 | Key cover pool characteristics
Annex 4 | Key cover pool characteristics 45 Final maturity date Seasoning (in months) in bn EUR in bn EUR Weighted average 17.9bn Weighted average seasoning remaining maturity 3.1bn 3.1bn 3.2bn 2.9bn 67 months 190 months 2.4bn 1.7bn 1.3bn 1.1bn 0.6bn 0.6bn 1.9bn 0.2bn 2023 - 2027 2028 - 2032 > 2032
Slide 46: Annex 5 | Belgian real estate market – House price dynamics
Annex 5 | Belgian real estate market – House price dynamics 46 Year-on-year house price dynamics in Belgium picked The overvaluation of Belgian real estate has up again, after a cooling which has been milder than nearly been eliminated that in the EU27 as a whole KBC Group passport Business profile
Slide 47: Glossary
Glossary B3 / B4 Basel III / Basel IV 47 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 48: Contacts / questions
Contacts / questions 48 Contacts More information direct: +32 2 429 35 73 Kurt De Baenst mobile +32 472 500 427 Investor Relations General Manager • Company website KBC kurt.debaenst@kbc.be direct: +32 2 429 08 12 • Quarterly Report Martijn Schelstraete Quarterly Reports mobile +32 474 213 535 • Tab
Slide 49: Disclaimer
Disclaimer 49 • 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