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'We recorded a net profit of 557 million euros in the first quarter of 2026. Compared to the previous quarter, our total income benefited from strong net interest income, higher insurance revenues, slightly higher net fee and commission income despite the geopolitical turmoil and increased net other income, while trading & fair value income and dividend income were down. Our loan portfolio continued to expand, growing organically by 2% quarter-on-quarter and by as much as 7% year-on-year. Customer deposits – excluding volatile, low-margin short-term deposits at KBC Bank’s foreign branches – were stable quarter-on-quarter and up 3% year-on-year. As usual, the first quarter of the year included the bulk of the bank and insurance taxes for the entire year. Operating expenses excluding bank and insurance taxes were down slightly on the previous quarter, due in part to seasonal effects, while insurance service expenses after reinsurance were slightly up. Loan loss impairment charges for our lending book were slightly up on the level recorded in the previous quarter, and due to the geopolitical turmoil we increased the reserve (ECL and management overlay) for geopolitical and macroeconomic uncertainties by 75 million euros, resulting in a total reserve of 175 million euros. 

The past few months have also seen us make considerable progress in implementing our strategy. We finalised the acquisitions of 365.bank in Slovakia and Business Lease in the Czech Republic and Slovakia. These acquisitions contributed 13 million euros to profit in the first quarter of 2026. They had an impact of -0.5 percentage points on our capital position, bringing our unfloored fully loaded common equity ratio under Basel IV to a strong 14.4% at the end of March 2026. Our liquidity position remained very solid too, as illustrated by an LCR of 159% and an NSFR of 135%. As approved by the General Meeting of Shareholders on 7 May 2026, we will pay a final dividend of 4.1 euros per share on 20 May 2026, bringing the total dividend for full-year 2025 to 5.1 euros per share and the pay-out ratio to 60% of 2025 net profit.

We aim to lead the way in digital innovation and in this regard are delighted that Kate, our AI-powered personal digital assistant, has now reached 6.1 million customers, up 11% on the year-earlier figure, with over 70% of customer queries in our core markets being solved autonomously. In Belgium and the Czech Republic, the ‘MyMobility’ ecosphere has already onboarded close to 340 000 customers to date. Customers retrieve useful information, guidance and support for their mobility questions. Simulations and advice are partially Kate-driven. During this digital interaction, customers share their plans and needs, which serves as useful leads for KBC to reach out and set up a dialogue, either through Kate or one of our employees or insurance agents. The same goes for the MyHome ecosphere of KBC Mobile, which already onboarded close to 40 000 customers to date in Belgium. Furthermore, responding to the growing demand for secure crypto investment solutions, we made it possible for private investors to purchase and sell crypto assets on Bolero, KBC’s online investment platform, in a secure and regulated environment – a first in Belgium. And even more recently, KBC Asset Management entered Europe’s rapidly growing Exchange Traded Fund (ETF) market with the launch of a unique CZK-hedged ETF for our Czech investors. This milestone supports KBC’s broader strategy to provide innovative investment solutions that are convenient, valuable and reliable for a wide range of customers.

Our goal remains to be the reference bank‑insurer across all our core markets. We work towards achieving this ambition through a customer‑centric approach and a firm commitment to digital innovation, but most importantly based on the confidence our customers, employees, shareholders and other stakeholders place in us. That trust is deeply valued and something I am sincerely grateful for.’    

Johan Thijs, Chief Executive Officer