The ratings reflect KBC’s solid franchise as a leading bancassurer in its home market of Belgium and in the Czech Republic.

Moreover, the group has been strengthening its positioning in banking in Hungary, Bulgaria and Slovakia, and is now considering potential additive acquisitions. In Ireland, KBC is presenting itself as a challenger bank with a digital-first strategy.

Asset quality continues to recover steadily, supported by improving macro conditions in Ireland and a recently announced legacy loan portfolio sale.

KBC’s profitability has improved to solid levels, driven by stronger earnings and a progressive decline in credit costs, and leading to sound solvency metrics. As the Group takes advantage of cross-selling opportunities, we would expect the insurance business to increasingly contribute to the positive results.

Download the updated issuer rating report.