KBC posted a net profit of €557 million in the first quarter of 2026, marking a 2% increase from the same period in 2025 but falling short of analysts’ expectations.
The profit per share remained steady at €1.32, unchanged from the first quarter of 2025.
Operations in Belgium accounted for over half of the quarterly profit, generating €317 million, a 12.8% rise compared to a year earlier.
The Czech Republic also performed well, contributing €223 million, up 7.7% year-on-year. In contrast, the “international markets” division saw a decline, reporting €99 million in profit—a drop of 26.7% from the previous year.
The bancassurer’s revenue reached €3.22 billion, a yearly increase of 11%. This growth was driven by higher net interest income, up 18% or 15% excluding the impact of recent acquisitions, as well as gains in insurance and commission-based income.
Customer credit volumes experienced organic growth of 2% quarter-on-quarter and 7% on an annual basis.
Customer deposits, excluding volatile and low-margin short-term deposits held by foreign subsidiaries, remained stable compared to the previous quarter and grew by 3% year-on-year.
The first quarter typically includes the bulk of annual banking and insurance taxes, which amounted to €549 million, up €10 million from last year.
Excluding taxes, operating expenses stood at €1.21 billion, down 1% from the previous quarter but up 10% compared to a year earlier.
KBC reported a slight increase in loan impairment charges. Additionally, citing geopolitical turbulence, the group increased its reserve for geopolitical and macroeconomic uncertainty by €75 million, bringing the total reserve to €175 million.
