S&P has confirmed the rating in line with their update on KBC Group (“KBC”) from November 2023. They expect that KBC will achieve scale in its core business segments through both organic growth and bolt-on acquisitions. Furthermore, S&P expects that KBC Group will maintain a return-on-equity close to or above 15%, surpassing many of its larger European peers. This favorable performance is attributed to improved cost efficiency and diversified, recurring revenues. KBC’s digital agenda also plays a central role in their success.

The rating has been confirmed along S&P's expectation that KBC Group will display strong and resilient earnings as it leverages its efficient bank-insurance operating model, involving the sale of insurance and asset-management products to bank customers, which should help alleviate ongoing inflationary pressures.