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Investor Presentaiton

KBC Higher net interest income NET INTEREST INCOME in m EUR 1,068 Insurance 98 1,094 1,112 102 97 1,200 1,177 101 100 1,248 112 1,297 104 1,416 112 Banking 970 (incl. Holding) 993 1,015 1,076 1,100 1,136 1,193 1,304 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 NET INTEREST MARGIN in %, calculated excl. the dealing room and the net positive impact of ALM FX swaps & repos Highlights 1.78% 1.79% 1.80% 1.85% 1.91% 2.10% 1.91% 1.90% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Profit & Loss Capital & Liquidity Looking forward BU & FY22 view 7 of 74 ■ Net interest income (1 416m EUR) • NII increased by 9% q-o-q and by 20% y-o-y, the latter due partly to the consolidation of Raiffeisenbank Bulgaria as of 3Q22 (+37m EUR NII in 4Q22) On a comparable basis, NII increased by 9% q-o-q and by 17% y-o-y, driven primarily by: o Increasing reinvestment yield in all core countries (except q-o-q in the Czech Republic) o Organic loan (y-o-y) and deposit (both q-o-q and y-o-y) volume growth o Increased income related to funding (increased term deposits at better margins) o Higher NII on insurance bond portfolio (due mainly to inflation-linked bonds) partly offset by: 。 The negative effect of lower loan margins in most markets o Lower netted positive impact of ALM FX swaps ■ Net interest margin (2.10%) Rose by 20 bps q-o-q and by 25 bps y-o-y for the reasons mentioned above and despite an increase in the interest-bearing assets (denominator), both q-o-q and y-o-y Organic volume trend Total loans** o/w retail mortgages Customer deposits* *** Volume 186bn Growth q-o-q* Growth y-o-y 0% +7% 82bn +1% 226bn +2% +4% +8% * Non-annualised ** Loans to customers, excluding reverse repos (and bonds), including Ireland (under IFRS 5) and Raiffeisenbank Bulgaria. Growth figures are excluding FX, consolidation adjustments and reclassifications. *** Customer deposits, excluding debt certificates and repos, including Ireland (under IFRS 5) and Raiffeisenbank BG. Excluding the volatility in the foreign branches of KBC Bank (included in BE BU), customer deposits rose by 1% q-o-q and 5% y-o-y Company profile KBC Strategy Sustainability Asset quality MREL & Funding
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