KBC Groep NV reported an increase in second-quarter net profit as the Belgian bank benefitted from solid lending activity, stronger fee income and resilient insurance operations.
Quarterly results
Net profit attributable to shareholders for the three months ended June 30 rose to €1.15 billion, compared with €1.02 billion a year earlier. Total income climbed 13% year on year to €3.43 billion, reflecting gains across several revenue lines.
Net interest income was a notable driver, increasing 20% from the prior year to €1.81 billion. The rise in net interest income was supported by commercial loan growth, income from inflation-linked bonds and higher commercial transformation income.
Customer lending expanded organically by 7% year on year, while customer deposits grew organically by 4% over the same period. Fee and commission income also improved as assets under management reached a record €328 billion, up 17% from a year earlier, underpinned by positive net inflows and higher market valuations. Trading income and seasonal dividend income also contributed to the rise in total income.
Insurance and credit costs
Insurance operations remained resilient. The non-life combined ratio improved to 85% from 87% a year earlier. Credit costs stayed low: loan-loss impairment charges declined to €66 million from €116 million in the prior-year quarter.
Updated guidance and capital allocation
Reflecting the stronger first-half performance, KBC upgraded its 2026 outlook. The bank now expects total income to increase by about 11%, up from its previous guidance of at least 9.9%. It also lifted its net interest income target to around €7.05 billion from a prior baseline of at least €6.73 billion.
KBC raised its target for organic loan growth to at least 6% from about 5%, and increased its insurance revenue growth forecast to about 9% from at least 7.5%.
The lender declared an interim dividend of €1 per share, payable in November. KBC's fully loaded common equity tier 1 capital ratio stood at 14.4% at the end of June.
What the results show
The quarterly figures underscore broad-based revenue strength: net interest income, fee and commission income, trading income and seasonal dividends all contributed to higher total income, while insurance metrics and low credit costs provided additional support. Management's decision to raise 2026 guidance signals confidence in the trajectory of income lines and loan growth based on first-half performance.