K
K
K
B
B
B
B
CC
C
C
C
C
C
G
G
G
G
G
G
G
G
G
r
r
r
r
r
r
r
r
o
o
o
o
u
p

Belgium
Czech
Republic
Hungary
Slovakia
Bulgaria
Clients: estimates; loans and advances: loans and advances to customers
excluding reverse repos; deposits: deposits from customers excluding
debt securities and repos. Loans and advances and deposits for Belgium:
includes the limited network of KBC Bank branches abroad. Employees expressed in numbers.
4.0 million clients
14 600 employees
429 bank branches
124 billion EUR
in loans and
advances
146 billion EUR
in deposits
0.8 million clients
3 300 employees
98 bank branches
12 billion EUR
in loans and
advances
9 billion EUR
in deposits
4.3 million clients
11 400 employees
198 bank branches
38 billion EUR
in loans and
advances
51 billion EUR
in deposits
1.6 million clients
3 900 employees
193 bank branches
7 billion EUR
in loans and
advances
10 billion EUR
in deposits
2.2 million clients
6 300 employees
176 bank branches
11 billion EUR
in loans and
advances
14 billion EUR
in deposits
KBC group in 2024
3,4
billion EUR
in net profit
Solid capital
and liquidity
ratios
5.3 million clients
have already
used Kate, and
the number of
cases resolved
autonomously
by Kate
continues to rise
First
sustainability
report under
CSRD included
in this
annual report
Challenging
geopolitical
and economic
conditions
Successful
conclusion of
1.3-billion-euro
share buyback
programme
Recognition
from several
external entities
for our
digitalisation
and
sustainability
strategy
10th anniversary
of
Start it @KBC
10 years of
supporting
numerous
start-ups
Advancing
our strategy
with Save Time
and
Earn Money
(S.T.E.M.):
the Ecosphere
1 440
2 614
2 818
3 415
3 402
Net result
(in millions of EUR)
2024*2023*2022*20212020
* IFRS 17 came into force in 2023, resulting in
retroactive restatement of the 2022 figures;
the figures for the preceding years are therefore
not fully comparable.
1 846
858
751
-40
Breakdown of net result by business unit
(2024, in millions of EUR)
Group
Centre
International
Markets
Business
Unit
Czech
Republic
Business
Unit
Belgium
Business
Unit
Our area of operation
We are an integrated bank-insurance group, catering mainly for retail,
private banking, SME and mid-cap clients.
Our core markets are
Belgium, the Czech Republic, Slovakia, Hungary and Bulgaria.
We are
present to a limited extent in several other countries.
Our goal and ambition
Through our activities, we want to help our clients to both realise and
protect their dreams and projects.
It is our ambition to be the reference for bank-insurance in all our core
markets.
Our clients, staff and network as at 31-12-2024
Clients approximately 13 million
Staff
approximately 40 000
Bank branches 1 106
Insurance network 283 agencies in Belgium, various distribution
channels in Central and Eastern Europe
Our ratings as at 31-12-2024
Long-term debt ratings Fitch Moody’s S&P’s
KBC Bank NV A+ A1 A+
KBC Insurance NV – – A
KBC Group NV A A3 A-
Sustainability ratings
(selection) CDP Sustainalytics S&P Global
KBC Group A 10.9 67/100
KBC group passport

1Annual Report KBC Group 2024
Key figures 2024 2023 2022
Consolidated balance sheet (in millions of EUR)
Total assets
373 048 346 921 354 545
Loans and advances to customers
192 067 183 613 178 053
Securities
80 338 73 696 67 160
Deposits from customers
228 747 216 501 224 511
Insurance contract liabilities and liabilities under investment contracts, insurance
32 782 30 245 28 184
Total equity
24 311 24 260 21 819
Consolidated income statement (in millions of EUR)
Total income
11 167 11 224 10 035
Total operating expenses (including bank and insurance tax)
-5 097 -5 125 -4 805
Impairment
-248 -215 -282
Net result, group share
3 415 3 402 2 818
Belgium 1 846 1 866 1 876
Czech Republic 858 763 653
International Markets 751 676 428
Group Centre -40 97 -139
Sustainability and gender diversity
Proportion of renewable energy in loans to the energy sector (%)
67% 62% 63%
Volume of responsible investment funds (in billions of EUR)
51 41 32
Gender diversity in the workforce (percentage of women)
57% 57% 57%
Gender diversity in the Board of Directors (percentage of women)
31% 31% 38%
KBC share
Number of shares outstanding, end of period (in millions)
417.5 417.3 417.2
Average share price for the financial year (in EUR)
67.5 61.8 58.9
Share price at year-end (in EUR)
74.5 58.7 60.1
Gross dividend per share (in EUR)
*
4.85 4.15 4.0
Basic earnings per share (in EUR)
8.33 8.04 6.64
Equity market capitalisation, end of period (in billions of EUR)
31.1 24.5 25.1
Financial ratios
Return on equity
15% 16% 13%
Cost/income ratio (excl. bank and insurance tax)
43% 43% 45%
Combined ratio, non-life insurance
90% 87% 87%
Credit cost ratio
0.10% 0.00% 0.08%
Common equity ratio (Danish compromise method, fully loaded)
15.0% 15.2% 15.3%
For definitions and comments, see the analyses and ‘Glossary of financial ratios and terms’ in this report.
* The dividend for 2024 is subject to the approval of the General Meeting of Shareholders.
Our key performance indicators (KPIs) for the future
Client NPS score
Target: top 2 at group level by
year-end 2026
Digital sales
Target: share of digital sales
≥ 65% for bank products and
≥ 35% for insurance products
by 2026
Straight-through processing
Target: share of straight-
through processing (STP) ≥ 68%
by 2026
Bank-insurance clients
Target: 83% of active
clients by year-end 2026
Stable bank-insurance
clients
Target: 29% of active clients
by year-end 2026
Responsible Investment funds
(RI)
Target: share of RI funds ≥ 45% of
Assets under Distribution by
2025 and 55% by 2030
Renewable energy loans
Target: share of renewable
energy sources in the
energy-sector loan portfolio
≥ 75% by 2030
Greenhouse gas intensity
Target: decrease in the
greenhouse gas intensity of
various sectors in the loan
portfolio by 2030 and 2050
Greenhouse gas intensity
Decrease in the
greenhouse gas intensity
of the shares and
corporate bonds held in
portfolio by KBC Insurance
by 2025 and 2030
Own CO2e emissions
Target: -80% between 2015
and 2030 and achievement
of net climate neutrality for
our own footprint from year-
end 2021 by offsetting the
difference
Total income
Target: CAGR for 2024-2027:
≥ 6% (with a CAGR of net interest
income of ≥ 5% and a CAGR of
insurance revenues of ≥ 7%)
Credit cost ratio
Target: well below the
through-the-cycle cost of
credit of 25-30 basis points
Operating expenses excluding
bank and insurance tax
Target: CAGR for 2024-2027:
< 3%
Combined ratio
Target: < 91%
Dividend payout and
surplus capital
The dividend policy and
capital allocation policy will
be updated upon
publication of the first
quarter 2025 results
KPI definitions and scores are provided in the ‘Our strategy’ section, as are the key capital and liquidity ratios. Only a selection of targets related to our ESG
ambitions are presented here.
Strategic ESG Financial

2 Annual Report KBC Group 2024
Table of
Contents
Report of the Board of Directors
5 Statement by the Chairman of the Board of
Directors and the Chief Executive Officer
7 Our business model
24 Our strategy
42 Our financial report
48 Our business units
62 How do we manage our risks?
97 How do we manage our capital?
104 Corporate governance statement
132 Sustainability statement
Consolidated financial statements
243 Consolidated income statement
244 Consolidated statement of comprehensive
income
246 Consolidated balance sheet
247 Consolidated statement of changes in
equity
249 Consolidated cashflow statement
251 1.0 Notes on the accounting policies
251 Note 1.1: Statement of compliance
252 Note 1.2: Summary of material accounting
policies
273 Note 1.3: Critical estimates and significant
judgements
274 Note 1.4: Climate-related information
275 2.0 Notes on segment reporting
275 Note 2.1: Segment reporting based on the
management structure
276 Note 2.2: Results by segment
278 Note 2.3: Balance-sheet information by
segment
279 3.0 Notes to the income statement
279 Note 3.1: Net interest income
280 Note 3.2: Dividend income
280 Note 3.3: Net result from financial
instruments at fair value through profit or
loss and Insurance finance income and
expense (for insurance contracts issued)
282 Note 3.4: Net fee and commission income
282 Note 3.5: Net other income
283 Note 3.6: Insurance results
287 Note 3.7: Operating expenses
287 Note 3.8: Personnel
288 Note 3.9: Impairment (income statement)
291 Note 3.10: Share in results of associated
companies and joint ventures
292 Note 3.11: Income tax expense
294 Note 3.12: Earnings per share
295 4.0 Notes on the financial assets and
liabilities on the balance sheet
295 Note 4.1: Financial assets and liabilities,
breakdown by portfolio and product
298 Note 4.2: Financial assets and liabilities,
breakdown by portfolio and quality
301 Note 4.3: Maximum credit exposure and
offsetting
303 Note 4.4: Fair value of financial assets and
liabilities – general
305 Note 4.5: Financial assets and liabilities
measured at fair value – fair value hierarchy
308 Note 4.6: Financial assets and liabilities
measured at fair value – transfers between
levels 1 and 2
308 Note 4.7: Financial assets and liabilities
measured at fair value – focus on level 3
309 Note 4.8: Derivatives

3Annual Report KBC Group 2024
Statutory annual report: we have incorporated the content of the annual report required by law
into the ‘Report of the Board of Directors’, which also contains non-compulsory information. We
have combined the reports for the company and consolidated financial statements. Other
reports and the websites we refer to do not form part of our annual report.
Company name: ‘KBC’, ‘we’, ‘the group’ or ‘the KBC group’ refer to the consolidated entity, i.e. KBC
Group NV plus all the group companies included in the scope of consolidation. ‘KBC Group NV’
refers solely to the parent company.
Glossary: a list of the most important financial ratios and terms used (including the alternative
performance measures) can be found at the end of this report.
Translation and versions:: The Annual Report is available in Dutch and English ESEF (European
Single Electronic Format) versions and in Dutch, English and French PDF versions. The Dutch ESEF
version is the original version; the other language translations are unofficial versions. We have
made every reasonable effort to avoid discrepancies between the different language and format
versions. However, should such discrepancies exist, the Dutch ESEF version will take precedence.
CSRD: this is the first report to provide sustainability information in line with the new Corporate
Sustainability Reporting Directive, which contains new EU rules that enhance and update social
and environmental reporting, including business conduct. This information can be found in the
‘Sustainability statement’ section. We specifically note that, when we use terminology such as
‘green’ and ‘sustainable’ elsewhere in this annual report, these terms do not suggest in any way
that what is described is already (fully) aligned with the EU Taxonomy.
Disclaimer: The expectations, forecasts and statements regarding future developments that are
contained in the annual report are based on the assumptions and assessments we made when
drawing up this report at the start of March 2025. By their nature, forward-looking statements
involve uncertainty. Various factors could cause actual results and developments to differ
(considerably) from the initial statements.
313 5.0 Notes on other balance sheet items
313 Note 5.1: Other assets
313 Note 5.2: Tax assets and tax liabilities
314 Note 5.3: Investments in associated
companies and joint ventures
315 Note 5.4: Property and equipment and
investment property
316 Note 5.5: Goodwill and other intangible
assets
318 Note 5.6: Insurance – balance sheet
329 Note 5.7: Provisions for risks and charges
331 Note 5.8: Other liabilities
332 Note 5.9: Retirement benefit obligations
335 Note 5.10: Parent shareholders’ equity and
additional tier-1 instruments
336 6.0 Other notes
336 Note 6.1: Off-balance-sheet commitments
and financial guarantees given and
received
337 Note 6.2: Leasing
338 Note 6.3: Related-party transactions
339 Note 6.4: Statutory auditor’s remuneration
340 Note 6.5: Subsidiaries, joint ventures and
associated companies
342 Note 6.6: Main changes in the scope of
consolidation
342 Note 6.7: Risk management and capital
adequacy
343 Note 6.8: Post-balance-sheet events
344 Note 6.9: General information on the
company
345 Statutory auditor’s report
Additional information
355 Abridged company annual accounts
359 Glossary of financial ratios and terms
362 EU taxonomy – detailed tables
414 Management certification
414 Contact details and calendar

Report of the
Board of Directors

5Annual Report KBC Group 2024
Kate is becoming an increasingly important part of our
digital strategy
Johan Thijs: “We have always been at the forefront of new
digital developments, which we combine with the power of
human interaction. One of the most visible examples of our
digital approach is our personal digital assistant Kate, who is
constantly enhanced to provide maximum convenience for
our clients. We are pleased to say that Kate is a huge
success. At year-end 2024, no fewer than 5.3 million clients
had already used Kate, again marking a considerable
increase from the year-earlier figure of 4.2 million clients. The
number of cases resolved fully autonomously by Kate also
continues to grow: at year-end 2024, this stood at roughly
69% in Belgium and 71% in the Czech Republic, compared to
63% and 66%, respectively, at year-end 2023.
By combining Kate and a few other concepts and building
blocks previously launched, such as Digital First and Kate
Coins, and incorporating them in ecosystems, we are able to
offer our clients a new type of service, supporting them –
through our distribution channels – every step of the way in
their search for solutions to housing, mobility, healthcare and
other issues, using our own financial products and services
as well as those of our partners and suppliers. This enables
our clients to save and earn money in and beyond the
traditional banking and insurance environment. We
summarise this next step in our digital strategy as ‘S.T.E.M.,
the Ecosphere’, with S.T.E.M. standing for ‘Save Time and Earn
Money’.
Koenraad Debackere: “We also receive external recognition
for our continued successful efforts towards innovation and
providing our clients with maximum convenience based on
our strategy. We are particularly proud that independent
international consulting firm SIA Partners named KBC Mobile
the world’s best banking app in 2024. Moreover, SIA Partners
also awarded Bolero a top position in 2024 as one of the very
best investment apps available today, and Euromoney
named several banks of our group Best Digital Bank in their
respective countries.
Sustainability is integral to our business model and strategy
Johan Thijs: “We believe that, as a bank-insurer, we are
uniquely positioned to contribute to a sustainable and
resilient future and to truly make a change in the daily lives of
all our clients. We support our clients on their journey towards
greater sustainability, we have defined concrete climate
indicators for carbon-intensive sectors in our loan portfolio,
which we monitor closely, and we joined various international
initiatives related to climate change, the environment and
sustainability. We also successfully issued a new green bond
with a maturity of eight years for an amount of 750 million
euros, marking the first issue under our updated Green Bond
Framework. The proceeds are used towards energy-efficient
buildings, renewable energy transactions and
environmentally friendly transport.
Koenraad Debackere: “Our sustainability efforts are also
appreciated by external parties, as is reflected in our
excellent sustainability ratings, including our CDP score A
and our inclusion on the Financial Times’ list of Climate
Leaders.
This is the first year in which we also disclose sustainability
information as required by the Corporate Sustainability
Reporting Directive, or CSRD for short, which contains new EU
rules on mainly social and environmental reporting that
should help investors and stakeholders assess companies’
sustainability performance and impact. Information about
how KBC continues its sustainability efforts can also be
found on our website, www.kbc.com, and in our Sustainability
Report.
Focus as a success factor
Koenraad Debackere: “Our core business remains bank-
insurance in a clear selection of five core markets. Having
sold our Irish portfolios in 2023, our focus is now on Belgium,
the Czech Republic, Slovakia, Hungary and Bulgaria. We
view our presence in these countries as a long-term
commitment that involves building sustainable relationships
with our local clients. The goal is to know and understand
those clients better, pick up signals effectively and respond
to them proactively, offer tailored products and services, and
focus on the sustainable development of the different
communities in which we operate. We want to consolidate
our presence there by means of organic growth and/or
attractive acquisitions while taking into account strict
strategic and financial criteria.
Over the past few years, we achieved this in Bulgaria in
particular, where we acquired NN’s Bulgarian pension and
life insurance business and especially Raiffeisenbank
Bulgaria, allowing us to significantly strengthen our position
in this important home market. As a result, in 2024 we focused
mainly on the continued operational integration of the new
Bulgarian operations, in addition to the further settlement of
our exit from Ireland.”
Statement by the Chairman of the Board of
Directors and the Chief Executive Officer
This annual report presents an overview of last year’s achievements and initiatives,
highlighting the key financial and non-financial results and strategic developments as
well as the steps we have taken to further optimise the service we provide to our clients.
We also share our vision for the future and set out how we are preparing for the
challenges and opportunities that lie ahead.

6 Annual Report KBC Group 2024
Once again a strong performance in challenging conditions
Johan Thijs: “In 2024, we posted an excellent net result of 3.4
billion euros. Our income benefited from factors including
higher net interest income, higher insurance revenues
(although offset by higher claims due to adverse weather
conditions, such as storm Boris) and particularly strong net
fee and commission income, whereas our trading and fair
value income and other income dropped. Our lending went
up by 5% and our customer deposits, excluding the volatile
deposits at KBC Bank’s branches abroad, grew by no less
than 7%, supported by the successful initiatives to secure
money released after the one-year Belgian State Note
matured. Although our impairment charges were somewhat
higher, our credit cost ratio remained far below the long-term
average. Our costs, excluding bank and insurance tax, rose
slightly but remained perfectly in line with our guidance.
Finally, just like last year, our results also benefited from
one-off items relating to the sale of our Irish portfolios.
Our group’s liquidity position remained particularly strong, as
reflected in our long-term and short-term liquidity ratios, i.e.
an NSFR of 139% and an LCR of 158%, and we maintained our
very robust capital position, which resulted in a fully loaded
common equity ratio of 15.0% at year-end 2024.
We propose to the General Meeting of Shareholders a gross
total dividend of 4.85 euros per share entitled to dividend,
comprising an interim dividend of 1 euro and an exceptional
dividend of 0.70 euros, both of which were paid in 2024, and
a final dividend of 3.15 euros, payable in May 2025.
Last but not least, at the end of July 2024 we successfully
completed the share buyback programme launched in
August 2023. We repurchased around 21 million treasury
shares in total under this programme, involving a total
amount of 1.3 billion euros.”
The economic environment in 2024 and beyond
Koenraad Debackere: “2024 was a year of distinct growth
divergence around the globe. The most robust growth
dynamics were seen in the US, supported by private
consumption and government spending. By contrast, weak
euro area growth suffered from cautious consumers and few
budgetary incentives with a European industrial policy yet to
take more shape. Its latest stimulus programme
notwithstanding, China was unable to overcome the
structural problem of overcapacity and deflationary trends.
The disinflationary trend in the US and the euro area
remained intact in 2024, despite persistent core inflation
driven by services prices. Against that background, both the
ECB and the Fed initiated the easing cycle for their key rates
in 2024.
The prospect of trade disputes and geopolitical tensions
impacts the growth and inflation expectations for 2025. The
Fed is likely to respond more vigorously to inflation and
implement a more moderate easing process, whereas the
ECB is expected to assign more weight to the downward
impact on growth than to potentially slightly higher inflation.
The laborious budget drafting process in a number of euro
area Member States is a point of concern for 2025, as it may
give rise to higher risk premiums on their public debt.
Our strong performance in these challenging conditions is
obviously testament to our solid foundations and future-
oriented strategy but, most of all, it reflects the trust you, our
dear client, employee, shareholder or other stakeholder,
have placed in us and for which we thank you sincerely.”
Johan Thijs Koenraad Debackere
Chief Executive Officer Chairman of the
Board of Directors
Johan Thijs Koenraad Debackere

7Annual Report KBC Group 2024
How do we create sustainable value?
Our value creation Our model Our environment Our capitals
As a banker, we see to it that our clients are able to save and
invest in a well-informed manner and that we actively offer
them sustainable investment products. In this way, every
client can grow their assets in keeping with their personal
wishes and risk profile, and call on our expertise to assist
them. We use the deposits our clients entrust to us to provide
loans to individuals, businesses and public authorities, thus
keeping the economy turning. We also hold a portfolio of
investments, which means we invest in the economy
indirectly too. At the same time, we fund specific sectors and
projects, such as the social profit sector and infrastructure
projects that have a major impact on the domestic economy.
As an insurer, we enable our clients to operate free of worry
and to limit their risks. We work hard every day to provide the
best insurance cover at a fair price and we invest in a
high-quality claims-handling service. What’s more, we use
our knowledge of the causes of accidents to develop
accident prevention campaigns and we have a long-
standing tradition of working with organisations involved in
road safety, welfare and victim assistance.
We also offer our clients a variety of other services that are
important to them in their everyday lives, including
payments, cash management, trade finance, leasing,
corporate finance, and money and capital market products.
In this way too, we contribute to the economic system.
In terms of climate, we as a bank-insurer have a direct
influence on climate change through our own energy
consumption. More important, however, is our indirect
influence, through lending, holding an investment portfolio,
providing investments to clients and insuring counterparties
who can have a direct impact on the climate. We ourselves
also feel the impact of climate change. Examples include
higher levels of claims under the insurance we provide
relating to consequences of extreme weather conditions and
the impact on our loans or investments when relevant
counterparties suffer the negative consequences of climate
change or the transition to a lower-carbon society. We
carefully consider these factors, not only to reduce or
prevent adverse consequences, but also to contribute
actively by launching sustainable products and services. We
closely track our performance in this regard, to which end we
apply specific targets. For several years now, we have been
expanding the scope of our Sustainable Finance Programme
to include other environmental aspects, such as biodiversity
and circularity.
What’s more, as a major player in each of our core countries,
we form part of the local economic and social fabric. We
make an important contribution to employment in all our
core markets and, as such, recognise that we have a
significant impact on the lives of our staff. We encourage
responsible behaviour on the part of our employees and
offer them a fair reward for their work, thereby contributing to
the welfare of the countries in which we operate.
Our business model
In all these activities, we seek to take account of the impact
on society and the environment, which we translate into
concrete targets. At the same time, we have made a
conscious choice to enhance our positive impact on society
– where possible – by focusing on areas where we can make
a difference as a bank-insurer. The areas in question include
financial literacy, environmental awareness, entrepreneurship
and the issue of longevity and health. In our business
operations, we also prioritise areas such as cyber risk,
anti-corruption measures, climate change and other
environmental aspects.
We strive to make our clients’ financial lives
easier in a proactive manner, in which we go
beyond pure banking and insurance products
alone. The ultimate intention is to support them
every step of the way in their search for
solutions to housing, mobility, energy and
other issues.

8 Annual Report KBC Group 2024
sustaina
ble
e
profitable growth
bank-insurance
+
client centricity
role in society
How do we create value?
Raw materials Activities
Financial
capital
Total equity of 24 billion
euros
271 billion euros in deposits
and debt securities
Employees
and brand
Approximately 40 000
employees; company values:
loyalty, knowledge,
motivation and responsible
behaviour
Strong brands in all core
countries, trusted partner,
digital assistant Kate,
capacity to innovate
Infrastructure
Various electronic
distribution platforms, apps,
AI and underlying ICT
systems
1106 bank branches,
various distribution channels
for insurance
Clients and other
stakeholders
13 million clients in 5 core
countries
Suppliers, government,
regulators, investors and
shareholders, business
partners and other
stakeholders
Environment
and society
Direct use of electricity,
gas, water, paper, etc.
More important
indirect
environmental and social
impact through lending,
investment portfolio, funds,
insurance, etc.
Goal and ambition
To offer proactive and data-driven solutions
to meet our clients’ needs.
To be the reference for bank-insurance in all
our core markets
Core activities
Lending
Deposits
Insurance
Investments
Asset management
Payments
Other financial and non-financial services
Most relevant SDGs for the group
(more details are provided in our ‘Sustainability statement’)

9Annual Report KBC Group 2024
Results (selection, 2024)
Goals and term
(results: see ‘Our strategy’)
• Net profit of 3.4 billion euros
• Solid capital and liquidity ratios
• Cost/income ratio of 43% and combined ratio
of
90%
• 5% growth in loans and advances to customers
• 13% growth in assets under management
• 7% growth in customer deposits
• Growth in net interest income,
insurance revenues and total
income (2027)
• Growth in operating expenses
excluding bank and insurance tax
(2027)
• Combined ratio (2027)
• Credit cost ratio (through-the-
cycle)
• 2.7 billion euros in remuneration paid to our staff
• Firmly embedded PEARL+ business culture
• Around 194 000 registered training days
• Staff turnover: 13.5%
• Diversity: 26% women in top management (top
300)
• Annual employee engagement
surveys
• Innovative digital, AI and data-driven approach
• Success of digital assistant Kate: the proportion of
cases resolved E2E by Kate stood at approximately
70% in Belgium and the Czech Republic.
• Focus on simplification and straight-through
processes
•
Share of digital sales (2026)
• Straight-through processing score
(2026)
• 14.2 billion euros in interest paid to clients and
counterparties
• Stakeholder interaction process by country
• Aggregate 1.2 billion euros paid in income taxes
and bank and insurance taxes
• Successful completion of a 1.3-billion-euro share
buyback programme
in 2023-2024
• Dividend payout ratio and surplus
capital payout
• Client NPS score (2026)
• Share of bank-insurance clients
(2026)
• Focus on environmental awareness initiatives, the
issue of longevity and healthcare, financial literacy
initiatives and promoting entrepreneurship
•
51 billion euros in responsible investment funds
• Various environmental and sustainability targets
• Responsible investment funds
(2025 and 2030)
• Reduction in own CO
2
emissions
(2030)
• Share of renewable energy loans
(2030)
• Greenhouse gas intensity targets,
for various sectors (2030 and 2050)

10 Annual Report KBC Group 2024
Our value creation Our model Our environment Our capitals
What makes us who we are?
We sum up our business culture in the acronym ‘PEARL+’,
which stands for Performance, Empowerment, Accountability,
Responsiveness and Local Embeddedness. The ‘+’ sign in
PEARL+ symbolises our focus on the joint development and
smart copying of solutions, initiatives and ideas so that they
are easy to utilise and deploy throughout the group,
enabling us to work more efficiently, respond more quickly to
change and make full use of local skills and talents group-
wide. We encourage all our employees to behave in a way
that is responsive, respectful and results-driven. An
explanation of what we mean is given in the diagram.
PEARL+ is a mindset, a working culture, shared by all our staff.
We have appointed a dedicated PEARL manager to make
sure that all our employees are thoroughly imbued with these
values. The PEARL manager reports to our CEO. To embed
this culture across the entire group and to ensure its success,
we adopt not only a top-down but also a bottom-up
approach to its implementation. This includes appointing
hundreds of PEARL ambassadors in the workplace, who give
concrete shape to PEARL and help other colleagues to apply
it.

11Annual Report KBC Group 2024
Results-driven
We do what we promise, we meet our
objectives, we deliver quality, and we
do so on time and in a cost-effective
manner.
Local
Embeddedness
We view the diversity
of our teams and of our
clients in the different
core markets as a
strength
and we stay close
to our clients.
Responsive
We anticipate and respond to
suggestions and questions
spontaneously and positively.
Respectful
We treat people as our equals, we
are transparent, we trust them and
appreciate them for what they do
and who they are.
Performance
We strive for excellent results
and do what we promise to do.
Empowerment
We offer every
employee the chance to
develop
their creativity and
talent.
Accountability
We meet our personal responsibility
towards our clients, colleagues,
shareholders and society.
Responsiveness
We anticipate and respond proactively
to the questions, suggestions,
contributions and efforts of our clients,
colleagues and management.
We focus on jointly developing
solutions, initiatives and ideas
within the group.

12 Annual Report KBC Group 2024
1 2 3
What differentiates us from our peers?
Our strengths and challenges
Our integrated
bank-insurance model
We offer an integrated response to
our clients’ banking and insurance
needs. Our organisation is similarly
integrated, with most services
operating at group level and the
group also managed in an
integrated style. Our integrated
model offers our clients the benefit
of a comprehensive, one-stop,
relevant and personalised financial
service that allows them to choose
from a wider, complementary and
optimised range of products and
services, which go beyond pure
bank-insurance. For ourselves, it
offers benefits in terms of income
and risk diversification, additional
sales potential through intensive
cooperation between the bank and
insurance distribution channels,
significant cost-savings and
synergies, and heightened
interaction opportunities with and a
more complete understanding of
our clients.
Our digital
approach
Digital interaction with clients forms the
basis of our business model in our
strategy, not only in terms of sales and
advice, but also in process and product
development. In addition to a digital
product range, therefore, we also offer
our clients digital advice and develop
all processes and products as if they
had to be sold digitally. Artificial
intelligence and data analysis will play
an important part in digital sales and
advice. Kate, our personal digital
assistant, will feature prominently in this
regard. Our experts naturally remain
available at our branches and call
centres to answer complex questions or
provide advice at key life moments. The
very success of our digital strategy
allows us to free up more time to
improve the advice we provide to
clients.
Our strong geographical focus
and local responsiveness
We focus on our core markets of
Belgium, the Czech Republic,
Slovakia, Hungary and Bulgaria. This
selection of countries allows us to
operate in a mix of mature and
growth markets, taking advantage in
the latter of the catch-up potential
for financial services. We have a
limited presence elsewhere in the
world, including to support the
activities of our corporate clients in
our core markets. We want to build
sustainable relationships with our
local clients in our core countries. The
goal is to know and understand our
local clients better, pick up signals
effectively and respond to them
proactively, offer tailored products
and services, and focus on the
sustainable development of the
different communities in which we
operate. Where relevant, we facilitate
collaboration among our core
countries to avoid duplicating our
efforts and to offer our clients the
best solutions.
Strengths
Unique bank-insurance
model and innovative,
data-driven digital
strategy, which enables
us to respond
immediately to our
clients’ needs
Strong
commercial
banking and
insurance
franchises in all
our business
units
Successful
track record of
underlying
business results
Solid
capital
position and
strong
liquidity
Firmly
embedded in the
local economies
of our core
countries
Strong focus on
sustainability, ambitious
climate targets that we
also use to guide our
clients towards a more
sustainable future

13Annual Report KBC Group 2024
4 5
Our approach
to sustainability
As a financial institution, we have a major
direct and indirect impact on society. As a
company that aims to support the transition
to a more sustainable and climate-proof
society, we have made sustainability integral
to our overall business strategy and
integrated it into our day-to-day business
operations and the products and services we
provide. Our sustainability strategy, which is
geared towards the local economy and
society, consists of financial resilience and
three cornerstones: encouraging responsible
behaviour on the part of all our employees,
increasing our positive impact on society and
limiting any adverse social impact we might
have.
Our shareholder
structure
A special feature of our shareholder structure
is the core shareholder syndicate consisting
of Cera, KBC Ancora, MRBB and the other
core shareholders, which together held
roughly 42% of our shares at the end of 2024.
These shareholders act in concert, thereby
ensuring shareholder stability in our group.
Challenges
A macroeconomic
environment
characterised by
geopolitical
challenges
Impact of climate
change on our and our
clients’ operations, and
the use of opportunities
related to the transition
to a greener economy
Stricter
regulation in
areas like
client
protection,
solvency, the
environment,
data, AI, etc.
Changing
client
behaviour,
competition
(e.g. integrated
financial
solutions from
non-financial
players)
New
technologies
and
cybercrime

14 Annual Report KBC Group 2024
We have structured our group around three business units,
which focus on local activities and contribute to sustainable
earnings and growth. The units are Belgium, the Czech
Republic and International Markets. A more detailed
description is provided in the ‘Our business units’ section.
The Board of Directors is responsible for defining our group’s
strategy, general policy and risk appetite. It is supported by
several specialised committees: the Audit Committee, the
Risk & Compliance Committee, the Nomination Committee
and the Remuneration Committee. These committees are
dealt with in the ‘Corporate governance statement’. The
most important matters discussed by the Board in 2024 and
our remuneration policy for senior management can also be
found in that section.
Our Executive Committee provides the operational
management of the group within the confines of the general
strategy approved by the board. Besides the CEO, the
Executive Committee includes the Chief Financial Officer
(CFO), the Chief Risk Officer (CRO) and the Chief Innovation
Officer (CIO) of the group, as well as the CEOs of the three
business units.
Assets
(year-end 2024)
66%13%
20%
0%
Clients
(year-end 2024)
31%
36%
33%
Income
(year-end 2024)
60%
22%
21%
-2%
Net profit
(year-end 2024)
54%
22%
25%
-1%
‘Other’ in the charts: a proportion of our employees work in other countries or in group functions; we also allocate part of our capital and
earnings to the Group Centre.
KBC Group
Corporate staff
Innovation and digital
transformation
Belgium Business Unit
(bank-insurance
in Belgium)
Czech Republic Business Unit
(bank-insurance
in the Czech Republic)
International Markets Business Unit
(bank-insurance in Slovakia,
Hungary and Bulgaria)
CFO services
CRO services
Belgium Business Unit Czech Republic Business Unit International Markets Business Unit Other

15Annual Report KBC Group 2024
In what environment do we operate?
Our value creation Our model Our environment Our capitals
2024 was a year of distinct growth divergence in the global
economy, with real GDP growing by 2.8% in the US, by 0.7% in
the euro area and by 5.0% in China. The substantial US
growth dynamics were primarily driven by private
consumption, underpinned by a robust labour market, and
by government spending. In many ways, the growth
composition in the euro area was the mirror image of the US
economy. Domestic demand remained weak due to the high
consumer savings ratio and the lack of incentives included in
the fiscal policy. Meanwhile, China still suffered from the
structural problem of overcapacity in 2024 and the
associated deflationary trends.
The disinflationary trend in the US and the euro area
continued in 2024, with US and euro area inflation amounting
to 3.0% and 2.4%, respectively, although underlying core
inflation (excluding food and energy prices) persisted due to
services price inflation. The prospect of large-scale trade
disputes in 2025 is weighing on the underlying disinflation
path, as US import duties will have an inflationary effect on
US price levels. The extent of the inflationary boost to the
European economy will depend on the European policy
response.
Against the background of declining inflationary pressure in
2024, both the Fed and the ECB started easing their key rates
in 2024. The ECB commenced its easing cycle in June by
lowering its deposit rate from 4% to 3.75%. More steps – of 25
basis points each – followed in September, October and
December, leading to a year-end deposit rate of 3%. In
January 2025, the ECB cut its deposit rate by another 25
basis points to 2.75%. The interest rate easing is likely to
continue in 2025. In the second half of 2024, the ECB also
started its net phase-out of the PEPP portfolio, and the ECB
fully discontinued its reinvestments in 2025.
The Fed initiated its easing cycle a few months after the ECB,
first lowering its key rate by 50 basis points in September and
then further easing interest rates twice, in November and
December, each time by 25 basis points. As a result, the key
rate stood at 4.375% at year-end 2024. We expect the Fed to
also introduce further easing measures in 2025, but they are
likely to tread cautiously due to the inflationary impetus
given by the more restrictive US trade policy expected in
2025.
In 2024, the divergence between the US and the euro area in
terms of both economic growth dynamics and monetary
policy prompted a rising long-term interest rate differential
between the US and Germany on balance. The considerable
increase in the interest rate differential that started in the
run-up to the US elections firmly strengthened the dollar
against the euro.
A key risk for 2025 is the escalation of trade disputes and
geopolitical tensions. The laborious process of drafting the
2025 budget in a number of euro area Member States is also
a major point of concern for 2025, as it carries a risk of higher
risk premiums on their public debt.

16 Annual Report KBC Group 2024
What are our main challenges?
Shifting client behaviour
and competition
We face strong competition (from traditional players, online
banks, fintechs, bigtechs, and so on), technological changes
and shifting client behaviour. All this is influencing clients’
expectations in terms of speed, digital interaction, proactivity
and personalisation. The development of AI, and generative
AI in particular, also fuels expectations and competition in the
field of AI-driven assistants.
How are we addressing them?
• The creative input and diversity in terms of training and
background of our employees is exceptionally important
when it comes to equipping ourselves to deal with
competition and technological change.
• We can draw on an immense volume of data, which –
subject to clients’ consent –enables us to understand more
clearly what clients want. Our integrated model enables us
to gain better insights and to offer our clients more
comprehensive solutions than pure banks or insurers can.
Meanwhile, we are closer to our clients than bigtech
companies are, for instance.
• We have a process in place to ensure that the business
side receives approval efficiently for new product and
service launches. The process also includes a thorough
examination of the potential risks. We regularly review all
our existing products, so that they can be adapted to take
account of evolving client needs or changing
circumstances.
• Research and development have been performed at a
variety of group companies as part of a programme to
develop new and innovative digital solutions in a more
data-driven financial organisation (see ‘Our business
units’).
• In order to monitor our clients’ satisfaction and our market
position, we apply a structured approach to data
collection and analysis. We actively monitor trends and
analyse the market. We also consistently send out client
surveys to keep track of their satisfaction with our products
and services and the level of our service.
• Where possible, applications are copied across the group’s
different core markets. We are also open to partnerships
with fintech firms and sector peers.
• In addition to innovation and digitalisation, we are working
hard to simplify and automate products and processes
(straight-through processing). Our digital assistant Kate is a
great example of one of our solutions aimed at ensuring
maximum convenience for our clients.
Climate change, global health risks and
geopolitical and economic challenges
Our financial performance is obviously impacted by the
global economy, as well as by the financial markets and the
demographic trends. The coronavirus pandemic and the
recent extreme weather conditions demonstrated that
climate change and public health risks, too, can have a
significant impact. And geopolitical developments, such as
the war in Ukraine, can also have major implications for the
economy and hence our results.
How are we addressing them?
• We ensure in our long-term planning/scenario that our
capital and liquidity positions are capable of withstanding
a negative scenario.
• We calculate the impact of changes in key parameters and
estimate the impact of material events as effectively as
possible.
• If it turns out that the models are not capturing the
increased credit risk resulting from specific events, we will
set aside additional reserves based on management’s
assessment.
• Where necessary (in response to the coronavirus crisis, for
example), we take the measures needed to secure business
accessibility and continuity.
• We have translated our environmental and climate change
strategy into specific targets and have committed
ourselves to several relevant international initiatives. We
provide a detailed report on sustainability.
• We constantly adjust our product and service offering by,
for instance, responding to demand for sustainable
products. We also want to be a partner for our clients in
their transformation to a more sustainable future.
• We aim to diversify our income sources to include more fee
business, for example, alongside interest income.

17Annual Report KBC Group 2024
Regulation
The following trends and regulations will have a significant impact
in the years ahead:
• Sustainability: EU measures to mobilise financial resources for
sustainable growth including by means of tailored reporting (CSRD
and Article 8 of the Taxonomy Regulation) and by means of
obligations regarding due diligence and preparing and
implementing a transition plan for climate change mitigation (CS3D);
• Digitality: EU initiatives related to the impact of new
technologies on the financial services sector (Digital
Operational Resilience Act, Cyber Resilience Act, AMLD (virtual
currencies), Markets in Crypto-Assets Regulation, proposals for
regulations concerning Financial Data Access, the digital euro
and the European Digital Identity);
• Artificial intelligence: the EU intends to regulate the sale,
development and application of AI systems at the European
level by means of a risk-based approach;
• Prudential supervision: transposition of Basel IV into the Capital
Requirements Regulation (CRR3) and Capital Requirements
Directive (CRD6); revision of Solvency II; further developments
related to the reform of the Crisis Management & Deposit
Insurance Framework; further developments related to the draft
Directive on recovery and resolution planning for insurance
undertakings;
• Payment transactions: a Regulation for instant credit transfers
in euro, revision of the legal framework for payment services
(PSR) and a proposal for a Directive (PSD3) applicable to
payment and electronic money institutions that focuses on
prudential aspects;
• Financial markets and products: reform of the European Market
Infrastructure Regulation, proposal for a Directive on distance
marketing of financial services; EU Green Bonds Standards
Regulation; developments related to the EU Listing Act, which
amends, for example, the Prospectus Regulation and the
Market Abuse Regulation; further expansion of the Capital
Markets Union.
How are we addressing them?
• We are making thorough preparations for the new regulations:
details of the new regulations are kept in a database and
specialised teams keep close track of the trends and rules, and
propose the necessary responses in terms of the group’s
capital planning, for instance.
• We participate in working groups at sector organisations,
where we analyse draft texts.
• A special team focuses on contacts with government and
regulators.
• We produce memorandums and provide training courses for
the business side.
• We study the impact of regulations on client behaviour and,
where appropriate, adjust our products and processes to take
account of shifts in that behaviour; we likewise study the
impact on transformation and innovation projects.
Cyber risks
and data protection
Following trends in the digital landscape, cyberattacks pose
a constant threat in a rapidly digitalising world.
Developments based on artificial intelligence increase the
number of potential cyberattacks and introduce new ways of
launching cyberattacks. Our focus at KBC is on ensuring both
our clients and our entities optimum protection against
cybercrime.
How are we addressing them?
• We raise our employees’ awareness of cyber risks by
providing training in areas like phishing, smishing (‘SMS
phishing’) and vishing (‘voice phishing’), and cyber fraud in
general. We use simulation tests to check whether
employees respond appropriately to various scenarios.
• We work to achieve highly secure and reliable ICT systems
and data protection procedures.
• We are making every effort to collect threat intelligence
and apply several tools that allow us to anticipate and
respond to different cyber threats such as DDoS attacks
and ransomware as quickly and accurately as possible.
• Our group-wide Competence Centre for Information Risk
Management & Business Continuity tracks all risks relating
to data protection, cybercrime and operational ICT. The
team informs and assists local entities, tests KBC’s defence
mechanisms and provides training.
• We are members of the Belgian Cyber Security Coalition –
a knowledge and consultative platform consisting of
around 50 public and private-sector enterprises and
academics.
• We also have our entities’ cyber risks and defence
mechanisms evaluated by internal and external security
experts.

18 Annual Report KBC Group 2024
Market conditions in our core markets in 2024
Belgium Czech Republic Slovakia Hungary Bulgaria
Market environment in 2024
1
Change in GDP (real) 1.0% 1.0% 2.1% 0.6% 2.2%
Inflation (average annual increase
in consumer prices)
4.3% 2.7% 3.2% 3.7% 2.6%
Unemployment rate
(% of the labour force at year-end;
Eurostat definition)
5.8% 2.6% 5.3% 4.3% 3.8%
Government budget balance
(% of GDP)
-4.4% -2.8% -5.8% -4.8% -2.9%
Public debt (% of GDP) 104.1% 43.3% 58.2% 73.8% 24.3%
Forecast growth in real GDP in years ahead
2025 0.7% 2.1% 1.9% 2.3% 2.1%
2026 0.9% 2.3% 2.5% 3.9% 2.4%
KBC’s position in each core country
2
Main brands KBC, CBC,
KBC Brussels
ČSOB ČSOB K&H UBB, DZI
Network 429 bank
branches
198 bank
branches
98 bank
branches
193 bank
branches
176 bank
branches
283 insurance
agencies
Insurance sold
through various
channels
Insurance sold
through various
channels
Insurance sold
through various
channels
Insurance sold
through various
channels
Online channels Online channels Online channels Online channels Online channels
Recent acquisitions or disposals
3
(≥ 2022)
––––Acquisition of
Raiffeisenbank
Bulgaria (2022)
Clients (millions, estimate) 4.0 4.3 0.8 1.6 2.2
Loans and advances to customers
(in billions of EUR)
124 38 12 7 11
Deposits from customers (excl. debt
securities) (in billions of EUR)
146 51 9 10 14
Market share (estimate)
- banking products
- investment funds
- life insurance
- non-life insurance
21%
27%
13%
9%
20%
24%
9%
9%
12%
8%
4%
5%
11%
11%
4%
7%
19%
14%
25%
13%
Contribution to net profit in 2024
(in millions of EUR)
1 846 858 101 345 304
More information
See ‘Our business units’ Belgium
Business Unit
Czech Republic
Business Unit
International
Markets
Business Unit
International
Markets
Business Unit
International
Markets
Business Unit
1 Data based on estimates from early March 2025 and hence different from year-end 2024 data in Note 3.9 in the ‘Consolidated financial statements’ section.
2 Market shares and client numbers: based on own estimates. For bank products: average market share for loans and deposits. The number of bank branches excludes self-service
branches and the 12 KBC Bank branches established in the rest of Europe, the US and Southeast Asia. The market shares are based on the latest available data (usually from
the end of September 2024).
3 See Note 6.6 of the ‘Consolidated financial statements’ section for more details.

19Annual Report KBC Group 2024
Our employees, capital, network and relationships
Our value creation Our model Our environment Our capitals
This is the first year in which we report on our
employees in line with the Corporate Sustainability
Reporting Directive, or CSRD for short, which contains
new EU rules that enhance and update social and
environmental reporting by large and listed
companies. As required, we disclose the information in
a separate ‘Sustainability statement’ section
elsewhere in this annual report.
In order to avoid repeating issues already addressed in
the ‘Sustainability statement’ section, in this section
we focus on our values in relation to our employees,
how we give them the opportunity to expand their skills
and competences – which are essential in
implementing our strategy – and how management
can contribute to this. Finally, we will also discuss the
results of employee surveys and awards. We also refer
to our Sustainability Report at www.kbc.com for more
details and additional information about our
employees.
Our values group-wide are the same and are founded on our
PEARL+ business culture. The ‘E’ in PEARL+ stands for
‘Empowerment’, referring to our commitment to give every
employee the space they need to develop their talent and
creativity and to deploy it towards accomplishing our
business strategy. The ‘+’ in PEARL+ stands for co-creation
across national borders and ‘smart copying’ between us. In
this way, we can benefit even more from the wealth and
diversity in our group.
Through the group-wide ‘Team Blue’
initiatives, we actively promote our PEARL+
culture and unite employees from different
countries, to make them proud of their
team and their company and enable them
to draw on each other’s experience. These
initiatives include the Team Blue
Challenges, the Group Diversity Days and
the Group Inspiration Days.
In the autumn of 2024, we launched the latest Team Blue
Challenge, called ‘Team Blue loves your dreams’. We put our
goal of ‘making clients’ dreams come true and protecting
them every day’ into practice by rolling up our sleeves for
social non-profit organisations that could use some help with
their projects, thereby strengthening the bond between
employees while giving back to society.
The world is changing at an accelerating pace, as are our
client’s expectations. KBC aims to be nothing less than the
benchmark in this new world. A rapidly evolving environment
calls for dynamic and creative employees who are able to
respond quickly to their surroundings and the new world of
work. By assigning the right person with the right skills to the
right job at the right time, we make sure that employees
continue to develop and grow in lockstep with KBC. To this
end, we are committed to a learning culture, in which
learning forms an integral part of our everyday activities and
is based on skills. All employees have a personal skills profile
that helps them focus on the skills that are needed to
improve the performance of their duties and increase their
Our employees

20 Annual Report KBC Group 2024
contribution to KBC’s strategy. To achieve all this in a smart
way, we use an AI-driven learning and talent platform that
goes by the name of StiPPLE. It offers learning content that is
tailored not only to the relevant skills but also the
appropriate skill level. Through progression reviews held with
the manager, StiPPLE helps them focus on the right
performance and development targets. StiPPLE
simultaneously serves as an integrated marketplace for
internal job openings that matches available jobs with
qualified internal candidates. Employees can also gain
insight into the jobs that best match their profile and the
skills they can still develop to achieve their further career
ambitions. We are also supported by MyKate, every
employee’s personal, digital assistant who, based on the
right prompts at the right time, supports employees in their
KBC journey by recommending learning opportunities and
initiating actions that improve their performance and benefit
their career. Lastly, we also introduced career counselling for
employees to help them gain a better understanding of their
personal talents and interests, as well as their career options
within KBC.
Good managers are key when it comes to bringing out the
best in our employees and implementing the KBC strategy
successfully. We therefore invest in the training and
education of all our managers, guided by the PEARL+ values
as our compass. We provide junior managers with intensive
training and offer optional digital and classroom training to
experienced managers who wish to learn more about crucial
skills and competences. We also provide intensive coaching
and training to groups of managers who take on a leading
role in specific transformations. In Belgium, we continue to
organise ‘SAMEN Werkt!’ (‘Working TOGETHER Works!’)
sessions to promote teamwork, in which we inspire and
motivate formal and informal leaders through company-wide
challenges. To enable them to pursue a common vision,
senior managers from across the group take part in the ‘KBC
University’, an ambitious development programme. We are
also actively working on a separate policy for top talent
management, in which we identify future senior managers
and fast-track them to face tomorrow’s challenges.
We keep close track of our employees’ opinions by means of
group-wide employee surveys. We conducted two surveys in
2024, with a global response rate of 84% in the second half of
the year. In Belgium, the survey response rate was 81% in
March and 82% in October. In the survey conducted in the
second half of the year, 74% of our employees group-wide
reported feeling engaged with KBC (Belgium 82%, Czech
Republic 74%, Slovakia 75%, Hungary 61%, Bulgaria 63%).
Employee engagement is defined as pride in working for the
company, motivation to be in the current role, and a sense of
connection with KBC. In 2024, it was precisely this sense of
connection that rose to 82% in Belgium and to 73% at group
level, as employees are proud of the stability of KBC as a
company and of its innovative approach. Apart from
engagement, the surveys also gauge the support for and
impact of the KBC strategy among our employees, as well as
other aspects of PEARL+, such as a sense of autonomy and
empowerment. The outcome of the survey reveals, for
example, that 80% of our employees throughout the group
recognise how their job helps to put the KBC strategy into
practice.
The surveys have also resulted in a number of measures,
including initiatives to support managers in their coaching
roles. Managers can access their results and choose to
implement specific measures as necessary.
All our efforts translate into externally validated HR awards
for the entire group. In early 2025, several group entities were
again certified as Top Employers 2025: KBC (for the fifth time
in a row) and CBC (for the fourth time in a row) in Belgium,
K&H in Hungary (for the third time in a row) and our shared
service centres in the Czech Republic and Bulgaria (both for
the third time in a row) received this recognition.
More detailed information about the number of persons
employed and the composition of the workforce is provided
in our ‘Sustainability statement’ (section 3.1.2).
Employees
(at year-end 2024)
36%
16%
29%
8%
Belgium
Czech Republic
Slovakia
Hungary
Bulgaria
Other
10%
1%

21Annual Report KBC Group 2024
Our capital
Our activities are only possible if we have a solid capital
base. At year-end 2024, our total equity came to 24.3 billion
euros and our capital was represented by 417 544 151 shares.
Our shares are held by a large number of shareholders in a
number of countries. A group of shareholders consisting of
MRBB, Cera, KBC Ancora and the Other core shareholders
constitute our core shareholders.
Dividend policy and share buyback programme: see ‘We aim
to achieve our ambitions within a stringent risk management
framework’.
Dividend for 2024: see ‘Consolidated statement of changes
in equity’ in the ‘Consolidated financial statements’ section.
1 jan
2024
31 dec
2024
1 jul
2024
DJ EURO
STOXX Banks
KBC Group NV
KBC share price over one year
(31 December 2023 = 100%, end-of-week prices)
70
75
80
85
90
95
100
105
110
115
120
125
130
KBC share 2024 2023
Number of shares outstanding at year-end (in millions) 417.5 417.3
Share price for the financial year*
Highest price (in EUR) 74.5 71.8
Lowest price (in EUR) 56.6 51.0
Average price (in EUR) 67.5 61.8
Closing price (in EUR) 74.5 58.7
Difference between closing price at financial year-end and previous financial year-end 27% -2%
Equity market capitalisation at year-end (in billions of EUR) 31.1 24.5
Average daily volume traded on Euronext Brussels (source: Eikon)
In millions of shares 0.5 0.6
In millions of EUR 35 39
Equity per share (in EUR) 56.6 53.9
Number of sell-side analysts tracking KBC (the list is available at www.kbc.com) 22 22
Sell-side analysts’ recommendation for the KBC share (at year-end)
Buy/Outperform
55% 27%
Hold/Neutral
36% 59%
Sell/Underperform
9% 14%
* Based on closing prices and rounded to one decimal place.

22 Annual Report KBC Group 2024
Shareholder structure of KBC Group NV
1
(31 December 2024)
Number of
shares at
the time of
disclosure
Percentage
of the current
number of
shares
KBC Ancora 77 516 380 18.6%
Cera
16 555 143 4.0%
MRBB
51 905 219 12.4%
Other core shareholders
28 247 408 6.8%
Subtotal for core shareholders
174 224 150 41.7%
Shares repurchased under the share buyback programme launched in August 2023 and terminated at
the end of July 2024
2
20 980 823 5.0%
Free float
3
222 339 178 53.2%
Institutional shareholders in Belgium –3%
Institutional shareholders in other continental European countries – 12%
Institutional shareholders in the UK & Ireland –9%
Institutional shareholders in North America –16%
Institutional shareholders in the other countries – 2%
Other (retail shareholders, unidentified, etc.) –12%
Total
417 544 151 100.0%
1 Based on the most recent notifications made under the transparency rules or (if they are more recent) on disclosures made under the Act on public takeover bids or other publicly
available information.
2 The voting rights attached to these shares are suspended. For information on the 2023-2024 share buyback programme, see Note 5.10 in the ‘Consolidated financial statements’
section.
3 Rough breakdown by country/region, based on KBC’s own estimates for 30 September 2024.
A major part of our activities involves transforming deposits
and other forms of funding into loans. For that reason,
funding through deposits and debt securities is an important
raw material for our group. We have therefore developed a
strong retail/mid-cap deposit base in our core markets. We
also regularly issue debt instruments, including via KBC IFIMA,
KBC Bank and KBC Group NV itself.
Our network and our relationships
Alongside staff and capital, our network and relationships
are especially important to our activities. An overview of our
network can be found under ‘Market conditions in our core
markets in 2024’.
Our social and relationship capital comprises all relationships
with our clients, shareholders, government, regulators and
other stakeholders, enabling us to remain socially relevant
and to operate as a socially responsible business. This theme
is dealt with in depth under ‘Our role in society’ in the ‘Our
strategy’ section and in our Sustainability Statement.

23Annual Report KBC Group 2024
Ratings on 31 December 2024
Financial ratings for KBC group, KBC Bank and KBC Insurance
1
Long-term debt
rating
Outlook Short-term debt
rating
Fitch
KBC Bank NV A+
Stable F1
KBC Group NV
A Stable F1
Moody’s
KBC Bank NV
2
A1 Stable P-1
KBC Group NV
3
A3 Stable P-2
Standard & Poor's
4
KBC Bank NV
A+ Positive A-1
KBC Insurance NV
A Positive –
KBC Group NV
A- Positive A-2
Sustainability ratings, KBC group (selection) Score
CDP A
Sustainalytics ESG Risk Rating 10.9
S&P Global ESG Score 67/100
1 Please refer to the respective credit rating agencies for definitions of the different ratings and the most recent ratings. As far as financial ratings go, KBC Insurance is concerned
with the financial strength rating, which indicates the likelihood of policyholders’ claims being met, whereas the ratings given for KBC Bank and KBC Group indicate the
likelihood of their financial obligations being met.
2 Long-term deposit rating of Aa3.
3 Long-term debt rating raised from Baa1 to A3 in July 2024.
4 Outlook changed from stable to positive in November 2024.
Key intangible resources
The legislation requires that the annual report contains
information about the key intangible resources and how the
business model of the company fundamentally depends on
such resources and how such resources are a source of value
creation for the company.
We refer to the ‘How do we create value?’ diagram in this
section for a general overview of our value creation. Key
intangible resources in our business model include the values,
loyalty, knowledge, motivation and responsible behaviour of
our employees, our corporate culture, our capacity to
innovate (including in relation to software, AI, etc.) and our
relationships with various stakeholders (our clients in
particular, but also our suppliers, investors, etc.).
We have incorporated that information into several sections
of this annual report. The most relevant sections are:
• ‘What makes us who we are?’ (PEARL+), ‘What are our main
challenges?’ (changing client behaviour and competition)
and ‘Our employees, capital, network and relationships’ in
the ‘Our business model’ section
• ‘The client is at the centre of our business culture’ and ‘Our
role in society’ in the ‘Our strategy’ section
• ‘Main features of the internal control and risk management
systems’ in the ‘Corporate governance statement’ section
• The ‘Sustainability statement’ section, especially sections
1.3.2, 1.3.3.2, 3.1, 3.2 and 4.1

24 Annual Report KBC Group 2024
Our strategy
s
us
t
a
i
nabl
e
profitable growth
bank-insurance+
client centricity
role in society
Our strategy rests on the following principles:
• We place our clients at the centre of everything we do.
• We look to offer our clients a unique bank-insurance experience.
• We focus on our group’s long-term development and aim to achieve sustainable and
profitable growth.
• We assume our role in society and local economies.
• We implement our strategy within a strict risk, capital and liquidity management
framework.
As part of our PEARL+ business culture, we focus on jointly developing solutions,
initiatives and ideas within the group.
More information on PEARL+ is provided in the ‘Our business model’ section.

25Annual Report KBC Group 2024
The client is at the centre of our business culture
Main challenges
• Making client experience central and focusing on
operational efficiency
• Offering proactive client-friendly solutions,
powered by Artificial Intelligence and qualitative
data
• Paying special attention to data protection and
privacy and to transparent client communication
• Retaining client relationships while integrated
financial services are emerging (with non-financial
players offering financial products)
Access to financial services and solid financial advice for all
sections of society contributes to economic development
and forms the basis for financial and social integration.
As a bank-insurer, we are committed to financial literacy and
by means of solid and transparent advice we aim to help our
clients make the right decisions.
We take initiatives to promote financial literacy. For example,
by introducing the option to receive financial and economic
news through KBC Mobile we contribute to awareness-
raising and financial education.
We also expect our employees to communicate with our
clients in an accessible, clear, understandable and
transparent manner.
For a few years now, we have
been designing products,
services and processes from a
‘digital-first’ perspective. This
implies that they were modified
before being digitalised to
make them simpler, more
user-friendly and scalable and
that they allow a fast and
appropriate response to our
clients’ questions and
expectations. For clients who
so desire, we will use the
available data in an intelligent
and appropriate manner.
This is why we are transitioning from an omnichannel
distribution model towards a digital-first distribution model.
The human factor remains important in both models and our
staff and branches are at the disposal of our clients. In a
digital-first distribution model, digital interaction with clients
will form the initial basis. We therefore aim over time to
provide all relevant commercial solutions via mobile
applications. In addition to a digital product range, we will
offer our clients digital advice and develop all processes and
products as if they were sold digitally.
Kate – our personal digital assistant – plays an important
role in digital sales and advisory, so that personalised and
relevant solutions can be offered proactively. Clients can
personally ask Kate questions regarding their basic financial
transactions. They also receive regular discrete and
proactive proposals at appropriate times in their mobile app
to ensure maximum convenience. If the client accepts a
proposal, the solution will be offered and processed
completely digitally.
PEARL+: jointly developing solutions, initiatives and ideas within the group.
Within a stringent risk, capital and liquidity management framework

26 Annual Report KBC Group 2024
To guarantee our clients maximum ease of use and to be
able to offer a growing number of possibilities via Kate, we
also changed our internal processes, the way we supply our
products and services, and how we organise ourselves
internally. At the same time, this requires a further change in
mentality and in-service training for our staff. For instance,
Kate automates certain administrative acts and answers
questions, enabling employees to address other issues,
saving valuable time which our employees can use to
connect with clients and speak with them about anything
that might be on their minds.
A few years ago, we launched our own banktech, Discai,
which globally markets our trailblazing artificial intelligence
applications that have been developed in-house. The first
application focused on the fight against the growing
problem of money laundering, which is becoming more and
more complex.
Discai responds to this market demand by entering into
strategic collaborations with specialist partners such as
Harmoney. These partnerships enable us to offer powerful
end-to-end solutions that combine AI-based warning
systems with advanced case and process management
platforms, allowing us to help financial institutions effectively
and efficiently combat financial crime.
Digitality in practice 2024 2023
Share of banking products sold through digital channels (see the targets for more information) 55% 52%
Share of insurance products sold through digital channels (see the targets for more information) 29% 26%
Growth in mobile app users +9% +13%
Number of clients who have already used Kate 5.3 million 4.2 million
The proportion of cases resolved fully autonomously by Kate (E2E) (Belgium/Czech Republic) 69% / 71% 63% / 66%
Employees in the branch network and contact centres
continue to function as a beacon of trust for our clients. Our
employees also support and encourage the use of digital
processes and monitor this use, supported by artificial
intelligence, data and data analysis.
After KBC Mobile was named the best digital banking app in Belgium for the third time in a row and even
entered the global top 3 of independent international consulting firm SIA Partners, KBC Mobile took no less
than first place globally in 2024.
Moreover, concluding that Bolero is one of the very best investment apps, SIA Partners awarded it a top
position in 2024. As a result, Bolero came out best in the Belgian-Dutch market and took fifth place worldwide.

27Annual Report KBC Group 2024
Since the start of 2023, KBC clients have been able to
acquire Kate Coins when purchasing certain products or
services from us, such as a home loan, home insurance or
saving spare change, and when purchasing products from
specific commercial partners. They can then use those Kate
Coins to save money by exchanging them for additional
benefits. For instance, KBC clients can exchange Kate Coins
when purchasing an investment plan, a prepaid card,
personal accident insurance or family insurance, and enjoy a
cashback. KBC clients can also spend their Kate Coins at a
number of commercial partners. The partners themselves
determine the conditions and timing of their offer. In KBC
Mobile, clients can check out partners where they can earn
money, and in their Kate Coin Wallet they can see how many
Kate Coins they have earned and spent with KBC and the
various partners.
Last year, we took the next step by introducing ‘S.T.E.M., the
Ecosphere’, with S.T.E.M. standing for Save Time and Earn
Money. By combining a number of concepts and building
blocks previously launched, such as Digital First, Kate and
Kate Coins, and incorporating them in ecosystems, we are
able to offer our clients a new type of service, supporting
them – through our distribution channels – every step of the
way in their search for solutions to housing, mobility,
healthcare and other issues, using our own products and
services as well as those of our partners and suppliers. This
enables our clients to save and earn money in and beyond
the traditional banking and insurance environment.
Digitalisation also comes with the obligation to use the
available data in a responsible manner. We therefore make
sure we process data in accordance with the GDPR and all
privacy rules, and that processes are in place to ensure this
for each new service we launch. In doing so, we take into
account the key data protection principles of purpose
limitation (i.e. not using data for any purpose other than that
for which it was collected), data minimisation (i.e. not
collecting more data than is required for the intended
purpose) and transparency (i.e. being transparent regarding
the data collected and used). The latter is related to our
privacy policy, which is published by each entity of our group
through the appropriate channels in order to ensure that all
individuals whose personal data is processed are properly
informed. We make every effort to secure and protect data
against unwanted or unauthorised access, loss or damage,
to not retain any personal data once it is no longer required
for the purpose for which it was collected, and to keep all
personal data accurate and up to date.
We have documented all the rights of the data subjects and
protect this from any infringements on fundamental human
rights resulting from our access to data. Because privacy and
data protection are not only objective concepts, defined by
law, they are highly subjective ones too. We therefore want
to let our clients decide how we use their data and how Kate
can use this data. In the process, we aim to communicate in
a transparent way and offer our clients a clear privacy
overview, in which they can adjust their choices at any
moment.
Since putting the interests of our clients at the heart of
everything we do is the cornerstone of our strategy, we keep
a close eye on their situation. We continuously survey our
clients and organise regular debates with client panels. A
specific dialogue is likewise maintained with NGOs, and a
stakeholder debate also organised on a regular basis. We
closely monitor our reputation and communicate this
analysis to all the departments and individuals concerned,
so they can take appropriate action.

28 Annual Report KBC Group 2024
The main targets and results for client satisfaction and digital sales are set out below.
KPI Description Target and result
Client NPS
score
A ranking is drawn up based on Net
Promoter Scores for each core country. The
rankings are aggregated at group level
based on the number of retail clients.
Target: top 2 ranking in
2026
2024 result: top 3
2026 target20242023
Top 3
Top 2
Top 3
NPS ranking for client satisfaction
Digital sales
Digital sales as a percentage of total sales,
based on weighted average of a selection
of core products.
Target: ≥ 65% for banking
and ≥ 35% for insurance
in 2026
2024 result:
55% for banking
29% for insurance
2026 target20242023
52%
65%
55%
Digital sales – banking
2026 target20242023
26%
35%
29%
Digital sales – insurance
Straight-
through
processing
(STP)
The STP ratio measures how many services
that can be offered digitally are processed
without human intervention from the
moment of the interaction with the client to
final agreement by KBC. The STP score is
based on analysis of all retail processes.
Target: STP ratio ≥ 68% in
2026
2024 result: 62%
2026 target20242023
58%
68%
62%
STP-score
(straight-through processing)

29Annual Report KBC Group 2024
We offer our clients a unique bank-insurance experience
Main challenges
• Ensuring seamless collaboration between data,
communication and sales channels
• Operating as a single business and pursuing a
digital-first, lead-driven and AI-led approach as a
bank-insurer
• Bank-insurance+: expanding the offering to
include financial and non-financial one-stop-shop
solutions
• Driving up commercial synergies and the number of
bank-insurance clients
As a bank-insurer, we put our clients at the heart of what we
do by offering them an integrated range of products and
services.
Our integrated model offers the client the benefit of a
comprehensive, relevant and personalised one-stop service
that allows them to choose from a wider, complementary
and optimised range of products and services.
It offers the group benefits in terms of income and risk
diversification, additional sales potential through intensive
cooperation between the bank and insurance distribution
channels, significant cost-savings, synergies and heightened
interaction opportunities with and a more complete
understanding of our clients.
As stated earlier, we do everything we can to integrate our
channels (bank branches and insurance agencies, contact
centres, self-service terminals, the website, our home
banking application and mobile apps). Because we are both
a bank and an insurer, we can commit ourselves completely
to this integrated approach and seamless service.
We have developed a unique bank-insurance cooperation
concept within our group, a model that goes much further
than a bank that sells insurance products. It is all about
complete back-office and support-service integration, which
delivers operational and commercial optimisation for both
the client and for KBC itself. The way we work means, for
instance, that we only need one communications
department, one marketing department, one risk control
department, and so on. It is only the underlying product
factories that operate independently, as these are specific
professions.
In addition to operating as a single business, we pursue a
digital-first, lead-driven and AI-led organisation. This means
fully integrated front and back-end applications designed
according to the ‘digital first’ principle. We are firmly
committed to becoming data and AI-led in all our core
countries, at their own pace. Kate (see previous section) is
the key element within a data-led organisation of this kind.
Our experts naturally remain available at our branches and
call centres to answer complex questions or provide advice
at key life moments.
We offer not only our own bank and insurance products and
services through our mobile apps, but also non-financial
products and services. For ‘bank-insurance+’, these solutions
are designed to help our clients save money (e.g., suggesting
that they switch to a cheaper energy supplier), earn money
(e.g., discounts using Kate Coins in Belgium), making
everyday payments easier (e.g., paying automatically for
parking) or supporting business activities. We work with third
parties to provide these solutions. S.T.E.M., the Ecosphere
takes this to the next level. We will not only offer non-
financial products and services, but we will integrate them
into the full client journey to ensure that we can offer our
clients a new and more comprehensive one-stop-shop value
proposition.
PEARL+: jointly developing solutions, initiatives and ideas within the group.
Within a stringent risk, capital and liquidity management framework

30 Annual Report KBC Group 2024
Our bank-insurance model is already enabling us to achieve
various commercial synergies. In Belgium, for instance, just
over eight out of ten clients who agreed home loans with
KBC Bank in 2024 also took out mortgage protection cover
with KBC Insurance, while more than nine out of ten
purchased home insurance. At ČSOB in the Czech Republic,
five to six out of ten clients who took out home loans in 2024
also purchased home insurance from the group. To give
another example, across the group at year-end 2024, about
76% of active clients held at least one of the group’s banking
products and one of its insurance products, while roughly
23% even held at least two banking and two insurance
products (3-3 in Belgium). The number of bank-insurance
clients of this type grew by 3% (1-1) and 1% (2-2 and 3-3 in
Belgium) in 2024 respectively.
We use a number of Key Performance Indicators (KPIs) to
track the success of our bank-insurance performance, the
most important of which are listed in the following table.
KPI Description Target and result
Share of
bank-
insurance
clients
Share of bank-insurance clients (with at
least 1 bank and 1 insurance product from
the group) within total number of active
bank clients*
Target: ≥ 83% bank-
insurance clients
in 2026
2024 result: 76%
2026 target20242023
76%
83%
76%
Bank-insurance clients
Share of
stable
bank-
insurance
clients
Share of stable bank-insurance clients
(with at least 2 bank and 2 insurance
products from the group [3-3 for Belgium])
within total number of active bank clients*
Target: ≥ 29% stable
bank-insurance clients
insurance clients in 2026
2024 result: 23%
2026 target20242023
23%
29%
23%
Stable bank-insurance clients
* An active bank client is defined as one holding at least a current account into which income is regularly paid (salary, pension, money transfers, etc.).

31Annual Report KBC Group 2024
We focus on sustainable and profitable growth
Main challenges
• Developing long-term relationships with our clients
• Further optimising presence in core countries and
integrating businesses acquired
• Diversifying income base
• Establishing relevant partnerships and
collaborations, including with a view to expanding
ecosystems
Developing long-term relationships with our clients is crucial
if we are to secure our long-term future. We do not pursue
high short-term returns that come with excessive risks but
rather focus on sustainable and profitable growth in the long
run.
Sustainable and long-term thinking also means
concentrating on the local economies of our core markets of
Belgium, the Czech Republic, Slovakia, Hungary and
Bulgaria. We view our presence in these countries as a
long-term commitment and want to consolidate our
presence there by means of organic growth or attractive
acquisitions, in line with clear and strict criteria.
Arising merger and acquisition opportunities beyond our core
markets may be assessed (for approval of the Board of
Directors) obviously taking into account very strict strategic,
financial, operational and risk criteria.
Recent examples of acquisitions: more details are provided
in the ‘Our business units’ section and in Note 6.6 of the
‘Consolidated financial statements’.
PEARL+: jointly developing solutions, initiatives and ideas within the group.
Within a stringent risk, capital and liquidity management framework

32 Annual Report KBC Group 2024
Breakdown of total income
(2024)
50%
26%
Net interest income
Insurance revenues
Net fee and commission income
Other
23%
1%
2024 growth, by business unit
Loans and advances
to customers*
Deposits from
customers*
Sales of
life insurance
Sales of non-life
insurance
Belgium +4% +10% +30% +7%
Czech Republic +7% +2% +9% +12%
International Markets +9% +5% +1% +15%
Total +5% +7% +25% +10%
* Excluding foreign-exchange effects. For deposits, excluding deposits at KBC Bank’s foreign branches, which are driven by short-term cash management opportunities.
We want to be in a position to deliver all our products and
services in a top class manner. In the case of our core
activities, we will retain production in-house. But for
peripheral activities, we will mostly look to outsourcing or
partnerships with (or in some cases acquisition of) specialists,
including start-ups.
In Belgium, for instance, we collaborate with a start-up that
makes renovation estimates of buildings for our clients and
that refers clients to the allowances and grants available to
them. This is plainly not a core business of ours, but – besides
advancing the level of client satisfaction and ensuring
maximum convenience for our clients – it does help us to
gain an understanding of our clients in order to improve our
core business.
If we have access to the details of these transactions – and
subject to clients’ consent – we can generate added value
for our clients by proposing better solutions based on
analysis, thereby saving them money or making their lives
easier.
As a diversified income base fosters sustainable and
profitable growth, we want to generate more revenue from
the fee business (commissions) and insurance activities,
alongside our interest income.
Stringent risk management in everything we do is an
absolute precondition in terms of guaranteeing
sustainability. For more information on this, see ‘We aim to
achieve our ambitions within a stringent risk management
framework’.
We monitor our long-term performance and our focus on the
real economy and sustainability via a number of Key
Performance Indicators (KPIs). The most important KPIs that
applied in 2024 are listed in the following table. The last row
includes the updated KPIs applicable as from 2025.

33Annual Report KBC Group 2024
KPI Description Target and result
CAGR of net
interest
income
Compound annual growth rate (CAGR) of
net interest income
Target: CAGR for 2023-
2026 ≥ 1.8%
2023-2024 result: +1.8%
Target CAGR
for 2023-2026
2023-2024
growth
CAGR of net interest income
1.8% 1.8%
CAGR of
insurance
revenues
Compound annual growth rate (CAGR) of
insurance revenues before reinsurance
Target: CAGR for
2023-2026 ≥ 6%
2023-2024 result: +10%
Target CAGR
for 2023-2026
2023-2024
growth
CAGR of insurance revenues
10%
6%
CAGR of
operating
expenses
Compound annual growth rate (CAGR) of
operating expenses, including insurance
commissions paid but excluding bank and
insurance tax
Target: CAGR for
2023-2026 < 1.7%
2023-2024 result: +1.6%
Target CAGR
for 2023-2026
2023-2024
growth
CAGR of operating expenses
(incl. insurance commissions paid,
excl. bank and insurance tax)
1.6%
1.7%
Cost/income
ratio (excl.
bank and
insurance
tax)
See the ‘Glossary of financial ratios and
terms’ at the back of this report
Target: < 42% by 2026
2024 result: 43%
2026 target20242023
43% 43%
42%
Cost/income ratio
(excl. bank and insurance tax)
Combined
ratio
See the ‘Glossary of financial ratios and
terms’ at the back of this report.
Target: < 91%
2024 result: 90%
(88% excluding storm
Boris)
Targ et20242023
87%
90%
91%
Combined ratio
(non-life insurance)
Credit cost
ratio
See the ‘Glossary of financial ratios and
terms’ at the back of this report.
Target: well below the
‘through-the-cycle’ cost
of credit of 25-30 basis
points (excluding
changes in the reserve
for geopolitical and
macroeconomic
uncertainties)
2024 result: 0.10% (0.16%
excluding the reserve for
geopolitical and
macroeconomic
uncertainties)
Targ et
(through-the-cycle)
2024
2023
Credit cost ratio
(banking, in basis points)
0
10
25-30
Updated KPIs as from 2025:
• Total income: the CAGR for 2024-2027 is ≥ 6.0%
(with a CAGR 2024-2027 of net interest income of ≥ 5% and a CAGR 2024-2027 of insurance revenues of ≥ 7%)
• Operating expenses excluding bank and insurance tax: the CAGR for 2024-2027 is < 3.0%
• Combined ratio: < 91%
• Credit cost ratio: well below the through-the-cycle cost of credit of 25-30 basis points

34 Annual Report KBC Group 2024
Our role in society
Main challenges
• Integrating sustainability in key processes and
business activities
• Setting targets to reduce the impact of our
activities and implementing actions to reach those
targets
• Managing the risks that climate change poses to
us and the companies we finance or insure or in
which we invest
• Taking into account other environmental
considerations when determining our strategy
(biodiversity, circularity)
• Complying with new and amended sustainability
legislation and collecting necessary and
sufficiently detailed climate-related data on our
portfolios
• Focus on responsible behaviour at all levels of our
business
This is the first year in which we provide detailed
sustainability information in line with the Corporate
Sustainability Reporting Directive, or CSRD for short.
We disclose the information in a separate
‘Sustainability statement’ section in this annual report.
In this section, we avoid repeating issues that are
addressed in the ‘Sustainability statement’ section.
That is why this section mainly focuses on our
sustainability strategy.
Our sustainability strategy has been created to help us fulfil
our role in society and to create value for all our
stakeholders.
The essence of the strategy is found in financial resilience
and a strict risk management system that allows us to do
business in a sustainable way. Our sustainability strategy is
also underpinned by three important pillars: maximising the
positive impact of our products and services on society and
the environment, minimising or preventing potential negative
impacts, and promoting responsible behaviour among all our
employees.
We also publish a separate Sustainability Report (available
at www.kbc.com). To avoid repetition, you will find references
to sustainability topics that are addressed in the
‘Sustainability statement’ section and in our Sustainability
Report below.
In 2024, KBC was again included in the list of
Climate Leaders compiled by the Financial
Times. Just ten Belgian companies hold the
title of Climate Leader 2024, and KBC is the
only Belgian financial institution featured in
the list.
PEARL+: jointly developing solutions, initiatives and ideas within the group.
Within a stringent risk, capital and liquidity management framework

35Annual Report KBC Group 2024
Sustainability information
‘Sustainability statement’ section in this annual report, main topics
• Our sustainability governance
• Our sustainability strategy, including SDGs and business model
• Our double materiality assessment
• EU Taxonomy information
• Where relevant, the strategy, impact, risk and opportunity management, metrics, and our targets related to:
- Climate change, water and marine resources, and biodiversity and ecosystems
- Own workforce, and consumers and end-users
- Business conduct
Sustainability Report (www.kbc.com), main topics
• 2024 in a nutshell
• Our sustainability strategy
• Our employees
• Our responsibility (business ethics, information security and cyber risk, privacy and data protection, etc.)
• Sustainable business operations
• Facts and figures
• Methodological background (Principles for Responsible Banking and Principles for Sustainable Insurance)
• Principles for Responsible Banking
• Principles for Sustainable Insurance
Since 2019, we have also mapped our material topics with
the Sustainability Accounting Standards Board (SASB)
standards. We aim to publish a separate SASB disclosure at
www.kbc.com for 2024.
Aiming to encourage responsible
behaviour on the part of all our
employees
Our stakeholders’ trust depends entirely on responsible
behaviour on the part of every employee. We therefore
expect all our employees to behave responsibly, which
means this theme comes high on our agenda every year.
The basis of responsible behaviour is integrity, which requires
honesty, fairness, transparency and confidentiality, as well as
a healthy awareness of risk. Integrity and ethical values are
also reflected in our ‘Code of Conduct for KBC Group
Employees’.
Given the difficulty of defining responsible behaviour, rather
than drawing up guidelines for such behaviour we set out the
underlying principles. These are presented in the ‘Compass
for Responsible Behaviour’ section.
Responsible behaviour is especially relevant for a bank-
insurer when it comes to appropriate advice and sales. We
pay particular attention, therefore, to training (including
testing) and awareness. We developed an online training
course to clarify the importance of responsible behaviour
and provide a framework to help our employees take difficult
decisions when faced with dilemmas. The online training
course has also been incorporated into the onboarding
programme for new staff. In 2023, a new initiative in the form
of a mandatory webinar was launched to raise awareness of

36 Annual Report KBC Group 2024
responsible behaviour, which had been completed by nearly
all our employees at the end of June 2024. An internal
website, accessible to all employees, also went live in late
2024. On this website, employees can read which responsible
behaviour is expected of them and why, and conveniently
search all material available on this topic.
We communicate transparently on our rules and policy
guidelines, which can be found at www.kbc.com and in our
‘Sustainability statement’ elsewhere in this report.
Aiming to enhance our positive impact
on society
We want to enhance our positive impact on society to which
end we are focusing on four areas in which we, as a bank-
insurer, can create added value: financial literacy,
entrepreneurship, environmental awareness and longevity
and/or health.
Specific examples of initiatives in every area are provided in
the ‘Our business units’ section.
Environmental awareness
We reduce our own and indirect ecological footprint
through a diverse range of initiatives and objectives.
We develop products and services that can make a
positive contribution to the environment.
Financial literacy
We help clients make the right choices through sound and
transparent advice, and clear communication.
We improve general public knowledge of financial
concepts and products.
For instance, we aim to promote financial literacy among
young people to enhance their knowledge of more
complex financial products such as home loans.
Entrepreneurship
We contribute to economic growth by supporting
innovative ideas and projects.
Longevity and health
We focus on longevity in Belgium and the Czech Republic,
adapting our range of products and services to the fact
that people live longer. We focus on health in Bulgaria,
Slovakia and Hungary, developing products, services and
projects geared towards improving health, healthcare and
quality of life.
Limiting any negative impact we might
have on society
We apply strict sustainability rules to our business activities
in respect of human rights, the environment, business ethics
and sensitive or controversial social themes. In the light of
constantly changing societal expectations and concerns, we
review our sustainability policies at least every two years.
A complete list and details of our sustainability policies can
be found in our Sustainability Report and our Sustainability
Framework at www.kbc.com.

37Annual Report KBC Group 2024
The ‘Sustainability statement’ section provides more
in-depth information about several sustainability policies,
including on the following topics:
• Environment
• Energy
• Investments
• Biodiversity
• Mining
• Code of conduct for employees
• Whistleblowers
• Remuneration
• Diversity and inclusion
• Human rights
• Integrity
• Ethics and fraud
• Tax
• Anti-corruption and anti-bribery
• Anti-money laundering
• Dealing Code
• Suppliers
• Data protection
Selection of objectives related to sustainability/climate and the environment
Below, we provide a purely illustrative selection of sustainability and environmental objectives. A complete list, including the
methodological background, can be found in the ‘Sustainability statement’ section (including information on reviews by the
assurance providers) and in our Sustainability Report.
KPI Description Target and result
Credit portfolio (target selection)
Renewable energy
loans
[Amount of loans to
businesses in the
renewable energy
sectors] / [total
energy-sector loan
portfolio]
Target: 75% in 2030
2024 result: 67%
2030
target
20242023
62%
67%
75%
Renewable energy loans
(as % of total lending
to the energy sector)
Greenhouse gas
intensity of loans to
certain sectors (some
examples)
Electricity
Percentage difference
[kg of CO
2
e / MWh] in
the relevant period
Target: -39% by 2030
(and -77% by 2050) from
2021
2024 result: -56% from
2021
2050
target
2030
target
20242023
38%
56%
77%
Reduction of greenhouse gas intensity
Loans to electricity producers
(based on kg of CO2e/Mwh, versus 2021)
39%
Mortgage loans and
commercial
residential real estate
Percentage difference
[kg of CO
2
e / sq m] in
the relevant period
Target: -43% by 2030
(and -85% by 2050) from
2021
2024 result: -10% from
2021
2050
target
2030
target
20242023
8%
43%
85%
Reduction of greenhouse gas intensity
Mortgage loans and loans provided for
commercial residential real estate
(based on kg of CO2e/sq m, versus 2021)
10%
Operational car
leasing: passenger
cars
Percentage difference
[grams of CO
2
/ km] in
the relevant period
Target: -81% by 2030
(and -100% by 2050)
from 2021
2024 result: -42% from
2021
2050
target
2030
target
20242023
22%
42%
100%
2%
81%
84%
Reduction of greenhouse gas intensity
Operational car leasing (passenger cars)
(based on grams of CO2/km, versus 2021)

38 Annual Report KBC Group 2024
KPI Description Target and result
Assets under management and the insurer’s own investments (target selection)
Responsible
Investment funds (RI)
[Volume of RI funds] /
[Assets under
Distribution (AUD, or
‘direct client money’)]
Target: 45% of AUD by
2025 and 55% by 2030
2024 result: 44% of AUD
2030
target
2025
target
20242023
41%
44%
55%
Responsible Investment funds
(in % of total AUD)
45%
Greenhouse gas
intensity of KBC
Insurance’s own
investments in shares
and corporate bonds
Percentage difference
[tonnes of CO2e /
turnover in millions of
USD] in the relevant
period
Target: decrease in
greenhouse gas
intensity of companies
in the relevant portfolio
by 25% by 2025 and 40%
by 2030 from 2019
2024 result: -75% from
2019
2030
target
2025
target
20242023
66%
25%
40%
Reduction of greenhouse gas intensity
Companies in the equity and corporate bond portfolio
of KBC Insurance
(based on tonnes of CO
2
e/revenues in millions of dollars, versus 2019)
75%
Own emissions
Own CO2e emissions
Reduction in own
greenhouse-gas
emissions; compared
to 2015
Target: 80% reduction
between 2015 and 2030
and achievement of net
climate neutrality for our
own footprint from
year-end 2021 by
offsetting the difference
2015-2024 result: -68%
(and net climate neutrality by
offsetting our remaining direct
emissions through the purchase
of carbon credits of high-
quality climate projects).
2030 target20242023
68%
80%
Reduction in own greenhouse gas emissions
(% relative to 2015)
68%

39Annual Report KBC Group 2024
Risk management is an integral part of our strategy and our
decision-making process.
• We perform risk scans to identify all key risks.
• We define our risk appetite in a clear manner.
• We translate that into strict limit tracking per activity and
business unit.
• We monitor the risk profile of existing and new products via
a product approval process.
• We challenge the results of the periodic planning process
via stress tests.
• We have installed independent chief risk officers in all
relevant parts of our organisation.
We aim to achieve our ambitions within a stringent risk management
framework
Although the activities of a large financial group are exposed
to risks that only become apparent in retrospect, we can
currently identify a number of major challenges for our group.
These are set out under ‘In what environment do we
operate?’ in the ‘Our business model’ section.
As a bank-insurer, we are also exposed to the typical risks for
the sector, which are listed in the following table.
A
description of each type of risk can be found in the ‘How do
we manage our risks?’ section.
PEARL+: jointly developing solutions, initiatives and ideas within the group.
Within a stringent risk, capital and liquidity management framework

40 Annual Report KBC Group 2024
Sector-specific risks How are we addressing them?
Credit risk • Existence of a robust management framework
• Recording impairment charges, taking risk-mitigating measures, optimising
the overall credit risk profile, reporting, stress testing, etc.
• Limit systems to manage concentration risk in the loan portfolio, etc.
Market risk in non-trading activities
•
Existence of a robust management framework
• Basis Point Value (BPV), sensitivity of net interest income, sensitivity per risk
type, stress tests, limit tracking for crucial indicators, etc.
Market risk in trading activities
•
Existence of a robust management framework
• Historical VaR method, BPV and basis risk limits, ‘greeks’ and scenario limits
for products with options, stress tests, etc.
Liquidity risk
•
Existence of a robust management framework
• Drawing up and testing emergency plans for managing a liquidity crisis
• Liquidity stress tests, management of funding structure, etc.
Technical insurance risks
•
Existence of a robust management framework
• Underwriting, pricing, claims reserving, reinsurance and claims handling
policies, etc.
Non-financial risk (operational risk,
compliance risk, reputational risk, business
risk, strategic risk)
•
Existence of a robust management framework
• Group key controls, risk scans, Key Risk Indicators (KRIs), etc.
• Risk scans and monitoring of risk signals
• Strict acceptance policy, stress tests, monitoring, etc.
Climate-related and other ESG risks
•
These risks have been integrated into the existing risk management
frameworks (see above).
In addition to the comprehensive monitoring of risk indicators
(see the ‘How do we manage our risks?’ section), we monitor
our solvency and liquidity performance using a number of
ratios, the most important of which are listed in the following
table.
Dividend policy and capital allocation
policy
• Dividend policy for 2024: a payout ratio (i.e. dividend + AT1
coupon) of at least 50% of consolidated profit for the
financial year, and an interim dividend of 1 euro per share
in November of every financial year as an advance on the
total dividend.
• Capital allocation policy up to and including 2024: in
addition to the payout ratio of at least 50% of the
consolidated profit, the Board of Directors will decide
(when announcing the annual results) at its own discretion
on the payment of the capital exceeding a 15.0% fully
loaded common equity ratio (known as surplus capital).
• The dividend policy and the capital allocation policy will
be updated upon publication of the first quarter 2025
results.
• For information on the 2023-2024 share buyback
programme, see Note 5.10 in the ‘Consolidated financial
statements’ section.

41Annual Report KBC Group 2024
Regulatory
and own
ratios Description Target and result
Common
equity ratio
[common equity tier-1
capital] / [total weighted
risks]. The calculation is
fully-loaded and according
to the Danish compromise
method.
Overall capital requirement: 10.88%
Every year, the Board of Directors
decides on the payment made to
the shareholders of the capital
exceeding a 15% fully loaded
common equity ratio (surplus
capital). The capital allocation
policy will be updated in the first
half of 2025.
2024 result: 15.0%
for calculating
surplus capital
OCR20242023
15,2%
15,0%
15,0%
Common equity ratio
(fully loaded, Danish compromise method)
10,88%
MREL ratio
[own funds and eligible
liabilities] / [Total risk-
weighted assets (RWA)] and
[own funds and eligible
liabilities] / [Leverage ratio
exposure amount (LRE)]
Regulatory minimum: 28.48% of
RWA (2024) and 7.42% of LRE (2024)
2024 result: 30.7% of RWA
and 10.2% of LRE
2024
regulatory minimum
20242023
30.7%
28.48%
MREL ratio (as % of RWA)
30.7%
2024
regulatory minimum
20242023
10.4%
7.42%
MREL ratio (as % of LRE)
10.2%
Net stable
funding ratio
(NSFR)
[available amount of stable
funding] / [required amount
of stable funding]
Regulatory minimum: 100%
2024 result: 139%
Regulatory minimum20242023
139%
100%
136%
NSFR
Liquidity
coverage ratio
(LCR)
[stock of high-quality liquid
assets] / [total net cash
outflows over the next 30
calendar days]
Regulatory minimum: 100%
2024 result: 158%
Regulatory minimum20242023
158%
100%
159%
LCR
Detailed information can be found in the ‘How do we manage our risks?’ and ‘How do we manage our capital?’ sections.

42 Annual Report KBC Group 2024
Our financial report (consolidated)
Bartel Puelinckx, the group’s new Chief Financial Officer
since September 2024, summarises the results as follows:
“With a consolidated net profit of 3.4 billion euros, we have
posted a solid result for 2024, which is mainly attributable to
growth in our net interest income, strong insurance revenues,
very high net fee and commission income and a positive
one-off item related to the exit from Ireland. Our lending
showed good growth and our customer deposits also grew
substantially, partly as a result of the targeted campaigns we
launched following the release of the money invested in the
one-year Belgian State Note. The sale of both non-life and
life insurance improved significantly and our assets under
management reached a record high. The cost increase was
limited and our credit cost ratio remained well below the
predetermined through-the-cycle maximum. Finally, our
solvency and liquidity remained particularly solid, as reflected
in our common equity ratio, NSFR ratio and LCR ratio, all of
which remained significantly above the legal minimum levels.”
Consolidated income statement, KBC group (simplified, in millions of EUR) 2024 2023
Net interest income 5574 5473
Insurance revenues before reinsurance
2 945 2 679
Non-life
2 482 2 280
Life
463 399
Dividend income 57 59
Net result from financial instruments at fair value through profit or loss and Insurance finance income
and expense
1
-168 9
Net fee and commission income 2 578 2 349
Net other income 181 656
Total income 11 167 11 224
Operating expenses (excl. directly attributable to insurance contracts) -4 565 -4 616
Total operating expenses excluding bank and insurance tax
-4 474 -4 438
Bank and insurance tax
-623 -687
Less: operating expenses attributed to insurance service expenses
532 509
Insurance service expenses before reinsurance -2 475 -2 120
Non-life
-2 179 -1 870
Life
-296 -251
Net result from reinsurance contracts held -17 -90
Impairment -248 -215
on financial assets at amortised cost and at fair value through other comprehensive income
2
-199 16
Share in results of associated companies and joint ventures 80 -4
Result before tax 3 941 4 179
Income tax expense -527 -778
Result after tax 3 414 3 401
Result after tax, attributable to minority interests -1 -1
Result after tax, group share 3 415 3 402
Return on equity
3
15% 16%
Result after tax on average total assets 0.9% 1.0%
Cost/income ratio, group (excl. bank and insurance tax) 43% 43%
Combined ratio, non-life insurance 90% 87%
Credit cost ratio, banking 0.10% 0.00%
1 As from 2024, the ‘Net result from financial instruments at fair value through profit or loss’ (also known as ‘Trading and fair value income’) and ‘Insurance finance income and
expense’ items have been merged for the sake of simplification. The reference figures were restated accordingly.
2 Also referred to as ‘Loan loss impairment’
3 Excluding one-off and non-operational items: 14% in 2024 and 15% in 2023.

43Annual Report KBC Group 2024
Key consolidated balance sheet, solvency and liquidity figures, KBC group (in millions of EUR) 2024 2023
Total assets 373 048 346 921
Loans and advances to customers
192 067 183 613
Securities (equity and debt instruments) 80 338 73 696
Deposits from customers
228 747 216 501
Insurance contract liabilities and liabilities under investment contracts, insurance 32 782 30 245
Total equity 24 311 24 260
Common equity ratio (Basel III, Danish compromise method, fully loaded) 15.0% 15.2%
Liquidity coverage ratio (LCR) 158% 159%
Net stable funding ratio (NSFR) 139% 136%
Achievement of net result for 2024
(in millions of EUR)
69
3 415
5 574
2 945
-2 475
-4 565
-17 -248
80
2 578
Net
result
Income
tax
expense
Other
Impair-
ment
Reinsu-
rance
Insu-
rance
service
expen-
ses
Opera-
ting
expen-
ses
Other
income
Insu-
rance
reve-
nues
Net
fee and
commis-
sion
income
Net
inte-
rest
in-
come
1 2
3 3 3
4 5 6 77
Income
Reallocation
Net result
-527
Our financial result
Net interest income
1
Our net interest income amounted to 5 574 million euros in
2024, up 2% on the year-earlier figure (3% excluding the
foreign-exchange effect). This was mainly attributable to a
combination of a higher commercial transformation and ALM
result, a more or less stable result from lending activities (with
the positive impact of volume growth being offset by the
negative impact of margin pressure in a few core markets)
and the negative impact of a number of items, such as
higher costs related to the minimum required reserves held
with central banks, lower interest income from the dealing
room, higher wholesale funding costs, lower interest income
from short-term cash management activities, slightly lower
interest income from time deposits, lower net interest income
as a result of the sale of the remaining portfolios in Ireland
and lower interest income from inflation-linked bonds.
Our loans and advances to customers amounted to 192
billion euros and rose by 5%, increasing by 4% at the Belgium
Business Unit, 7% at the Czech Republic Business Unit and 9%
at the International Markets Business Unit (with growth in
each of the three countries). Our total deposit volume
(deposits from customers, excluding debt securities) stood at
229 billion euros and rose by 7% (excluding deposits in KBC
Bank branches abroad, which are driven by short-term cash
• Where relevant for the information on results, we state the
growth figure as well as a growth figure adjusted for
foreign-exchange effects (depreciation of the Czech
koruna and the Hungarian forint; see ‘Main exchange rates
used’ in Note 1.2 of the ‘Consolidated financial statements’
section). Figures on assets and liabilities (loans, deposits,
etc.) and sales (non-life insurance and life insurance) have
been systematically adjusted for foreign-exchange
effects.

44 Annual Report KBC Group 2024
management opportunities). Deposit growth amounted to
2% at the Czech Republic Business Unit, 5% at the
International Markets Business Unit and 10% at the Belgium
Business Unit. The growth at the Belgium Business Unit was
partly due to successful initiatives following the release of
money on the maturity date of the one-year Belgian State
Note in early September 2024. Thanks to our proactive,
multi-phased and multi-product offer to clients, the total
inflow of client money (deposits, savings certificates, funds,
insurance, bonds, etc.) after the maturity date of the state
note amounted to roughly 6.5 billion euros, exceeding the
5.7-billion-euro outflow to the state note a year earlier by 0.8
billion euros.
The net interest margin for our banking activities came to
2.09% compared to 2.05% in 2023. It amounted to 1.94% at the
Belgium Business Unit, 2.42% at the Czech Republic Business
Unit and 3.25% at the International Markets Business Unit.
Net fee and commission income
2
Our net fee and commission income came to 2 578 million
euros in 2024, a growth of 10% on the year-earlier figure (11%
excluding the foreign-exchange effect). This was mainly the
result of higher fees for our asset management services
(management fees in particular, mostly related to the
increase in assets under management; see below) and, to a
lesser extent, higher fees for our banking services. The latter
was primarily due to higher payment transaction fees,
network income and securities-related fees.
At the end of 2024, our total assets under management
came to approximately 276 billion euros, 13% more than a
year earlier, due to higher asset prices (+10 percentage
points), combined with net inflow (+9 percentage points).
Most of these assets at year-end 2024 were managed at the
Belgium Business Unit (245 billion euros) and the Czech
Republic Business Unit (19 billion euros).
Insurance service result
3
The insurance service result (insurance revenues before
reinsurance – insurance service expenses before reinsurance
+ net result from reinsurance contracts held; the latter two
items are not part of total income) amounted to 453 million
euros, of which 290 million euros for non-life insurance and
163 million euros for life insurance.
The non-life insurance result dropped by 10% (9% excluding
the foreign-exchange effect), mainly due to a combination
of substantially higher insurance service expenses that were
impacted by storms and floods (including storm Boris in
Central Europe), which were only partly offset by higher
insurance revenues and an improved reinsurance result
(partly related to the above-mentioned storms and floods).
The life insurance result was up 12% (9% excluding the foreign-
exchange effect), with higher insurance revenues more than
offsetting the increased insurance service expenses.
Sales of non-life insurance stood at 2 547 million euros and
rose by 10%, with growth in all countries and main classes of
insurance due to a combination of volume and rate
increases. The combined ratio for non-life insurance came to
90% (88% excluding storm Boris), compared to 87% in 2023.
Sales of life insurance products amounted to 2 906 million
euros, a 25% increase compared to 2023 as a result of higher
sales of both unit-linked and non-unit-linked products, partly
thanks to the inflow from the matured state note and a
successful launch of structured emissions in Belgium. The
share of non-unit-linked and unit-linked products in our total
sales of life insurance in 2024 stood at 42% and 51%,
respectively, with the rest consisting of hybrid products,
mainly in the Czech Republic.
Other income
4
Other income came to an aggregate 69 million euros, as
opposed to 723 million euros a year earlier. In 2024, this
included:
• -168 million euros in ‘trading and fair value income and
insurance finance income and expense’, down on the
year-earlier figure by 177 million euros, largely due to the
negative change in the market value of derivatives used for
asset/liability management purposes;
• dividend income of 57 million euros, in line with the amount
of 59 million euros a year earlier;
• net other income of 181 million euros, a 475-million-euro
decrease on the year-earlier level, which mainly benefited
from the positive impact of the finalisation of the sale of
the Irish portfolios in February 2023 (+408 million euros; see
Note 6.6 in the ‘Consolidated financial statements’ section
for more information). A positive impact from that sale was
also seen in 2024, which is recognised under ‘Income tax
expense’ (see below).
Operating expenses
5
Our operating expenses, excluding the expenses that are
directly attributable to insurance contracts, amounted to
4 565 million euros. Including expenses directly attributable
to insurance contracts, but excluding bank and insurance
tax, they stood at 4 474 million euros in 2024, 1% higher than in
2023 (2% excluding the foreign-exchange effect), which was
mainly attributable to higher staff expenses (mostly
indexation and wage drift, despite the positive impact of
lower FTE staff numbers) and higher ICT costs, partly offset
by lower expenses related to Ireland and lower facility
expenses.
Bank and insurance tax amounted to 623 million euros, a 9%
drop that was primarily due to the lower contribution to the
resolution fund but that was partly offset by higher national
levies in various countries.
The cost/income ratio excluding bank and insurance tax
came to 43% in 2024, the same figure as in 2023. The cost/
income ratio including bank and insurance tax but excluding
the exceptional and/or non-operational items (see the

45Annual Report KBC Group 2024
‘Glossary of financial ratios and terms’ at the end of this
report for more information) amounted to 47%, compared to
49% in 2023.
Impairment
6
Our total impairment (on both loans and other assets) came
to 248 million euros in 2024.
There was a net increase of loan loss impairment totalling 199
million euros, compared to a net reversal of 16 million euros a
year earlier. The 2024 figure includes an increase in
impairment on the loan portfolio of 333 million euros, partly
offset by a reversal of part of the reserve for geopolitical and
macroeconomic uncertainties (134 million euros; see Note 3.9
in the ‘Consolidated financial statements’ section). As a
result, at year-end 2024 an amount of 117 million euros was
left in the reserve for geopolitical and macroeconomic
uncertainties. For the group as a whole, the credit cost ratio
amounted to 0.10% for 2024 (0.16% excluding the change in
the reserve for geopolitical and macroeconomic
uncertainties), as opposed to 0.00% for 2023 (0.07% excluding
the changes in the reserve for geopolitical and
macroeconomic uncertainties).
The proportion of (stage 3) impaired loans (see the ‘Glossary
of financial ratios and terms’ for a definition) in our loan
portfolio was 2.0% at year-end 2024, compared to 2.1% in
2023. The proportion of impaired loans more than 90 days
past due came to 1.0%, the same figure as in 2023.
Other impairment charges came to 49 million euros in 2024,
compared to a year-earlier figure of 231 million euros. In 2024,
these mainly involved software and the extension of the
interest rate cap in Hungary. In 2023, this included
impairment in connection with goodwill on a ČSOB subsidiary
in the Czech Republic, the extension of the interest rate cap
in Hungary, software, and property and equipment in Ireland
as a result of the sale transaction.
Other items
7
In 2024, the ‘Share in results of associated companies and
joint ventures’ (80 million euros) benefited from a one-off
gain of 79 million euros (see Note 3.10 in the ‘Consolidated
financial statements’ section).
Our income tax expense came to 527 million euros in 2024,
compared to a year-earlier figure of 778 million euros. The
2024 figure includes a positive one-off impact of 318 million
euros as a result of the imminent liquidation of Exicon (the
remaining activities of KBC Bank Ireland).

46 Annual Report KBC Group 2024
Our balance sheet Securities
2
We also hold a portfolio of securities at the bank and at the
insurer (where it serves primarily as an investment in the life
insurance context), which totalled 80 billion euros at
year-end 2024, roughly 9% up on the year-earlier figure. The
securities portfolio comprised 3% shares and 97% bonds. At
year-end 2024, 82% of these bonds consisted of government
paper, the most important being Czech, Belgian, French,
Slovak and Hungarian. A list of these bonds is provided in the
‘How do we manage our risks?’ section.
Other assets and other liabilities
3
Other important items on the assets side of the balance
sheet were loans and advances to credit institutions and
investment firms (2.4 billion euros, down 11% on the year-
earlier figure, reverse repos (21.1 billion euros, down 16% on the
year-earlier figure), derivatives (positive mark-to-market
valuation of 4.9 billion euros, down 1% on the year-earlier
figure), investment-linked life insurance contracts (16.6 billion
euros, up 16% year-on-year due mainly), and cash, cash
balances with central banks and other demand deposits
with credit institutions (46.8 billion euros, up 36% on the
year-earlier figure, partly owing to the increase in repos on
the liabilities side of the balance sheet).
Other significant items on the liabilities side of the balance
sheet were insurance contract liabilities and liabilities under
the insurer’s investment contracts (an aggregate 32.8 billion
euros, up 9% year-on-year), repos (21.1 billion euros, 15.9 billion
euros more than the year-earlier figure, mainly due to higher
demand in the market along with more attractive margins),
derivatives (negative mark-to-market valuation of 5.0 billion
euros, down 15% on the year-earlier level due to foreign
exchange contracts) and deposits from credit institutions
and investment firms (12.9 billion euros, down 14% year-on-
year, partly due to the repayment of the remaining TLTRO III
balance).
Equity
4
On 31 December 2024, our total equity came to 24.3 billion
euros. This figure included 22.4 billion euros in parent
shareholders’ equity and 1.9 billion euros in additional tier-1
instruments. Total equity rose by 0.1 billion euros compared to
the end of 2023. The increase was due to the combined
effect of the recognition of the profit for the financial year
(+3.4 billion euros), the repurchase of treasury shares
(-0.8 billion euros in 2024), the payment of the final dividend
for 2023 and an extraordinary interim dividend (both in May
2024), as well as an interim dividend for 2024 that was paid in
November 2024 (an aggregate -1.9 billion euros), slightly
lower revaluation reserves (-0.2 billion euros), a net decrease
in additional tier-1 instruments outstanding (-0.4 billion euros)
and a number of smaller items. For more details, see
Loans and deposits
1
Our core banking business is to attract deposits and use
them to provide loans. This explains the importance of the
figure for loans and advances to customers on the assets
side of our balance sheet (192 billion euros at year-end 2024).
Loans and advances to customers grew by 5%, with 4%
growth at the Belgium Business Unit, 7% at the Czech
Republic Business Unit, and 9% at the International Markets
Business Unit (with growth in all countries). The main lending
products at group level were again term loans (91 billion
euros; +6%) and mortgage loans (78 billion euros; +4%).
On the liabilities side, our customer deposits grew by 7% to
229 billion euros (growth rate excluding the deposits at KBC
Bank’s foreign branches). This figure included a 10% increase
at the Belgium Business Unit (supported by the successful
initiatives following the release of money on the maturity
date of the one-year Belgian State Note in early September
2024), 2% growth at the Czech Republic Business Unit and 5%
growth at the International Markets Business Unit. The main
deposit products at group level were again demand
deposits (110 billion euros, +3%), savings accounts (74 billion
euros, +6%) and time deposits (43 billion euros, +14%). Debt
securities issued accounted for 42 billion euros, 1% less than
the previous year. More information on this matter can be
found in Note 4.1 of the ‘Consolidated financial statements’
section.
Balance sheet components (year-end 2024)
Liabilities
and equity
Assets
Loans and advances to customers (excluding reverse repos)
Securities
Other assets
Deposits from customers and debt securities (excl. repos)
Insurance contract liabilities and liabilities under
investment contracts
Other liabilities
Equity
27%
373 billion euros
7%
9%
12%
73%
22%
51%
1
2
3
1
3
3
4

47Annual Report KBC Group 2024
‘Consolidated statement of changes in equity’ in the
‘Consolidated financial statements’ section.
On 31 December 2024, our common equity ratio (Basel III,
under the Danish compromise method) stood at 15.0% (fully
loaded), compared to 15.2% in 2023. Detailed calculations of
our solvency indicators are given in the ‘How do we manage
our capital?’ section. The group’s liquidity position remained
excellent, as reflected in an LCR ratio of 158% and an NSFR
ratio of 139%, well above the minimum requirement of 100%.
Additional information
• The overall impact on the net result of fluctuations in the exchange rates of the main non-euro currencies was – on balance –
limited to -56 million euros (due to the depreciation of the Czech koruna and the Hungarian forint against the euro).
• Information on financial instruments, hedge accounting and the use thereof is provided in the ‘Consolidated financial
statements’ section (Notes 1.2, 3.3, and 4.1–4.8 among others) and in the ‘How do we manage our risks?’ section.
• For information on the treasury share buyback programme, see Note 5.10 in the ‘Consolidated financial statements’ section.
• For information on significant post-balance-sheet events, see Note 6.8 of the ‘Consolidated financial statements’.
• For a review of the result for each business unit, see ‘Our business units’.
• Guidance for 2025: see the quarterly report for the fourth quarter of 2024 (at www.kbc.com).

48 Annual Report KBC Group 2024
Belgium
Czech
Republic
Hungary
Slovakia
Bulgaria
Belgium Business Unit
KBC Bank NV and KBC Insurance NV, and their
Belgian subsidiaries, which include CBC Banque,
KBC Asset Management, KBC Lease Group and KBC
Securities.
Czech Republic Business Unit
The ČSOB group (under the ČSOB Bank, ČSOB
Postal Savings Bank, ČSOB Hypoteční banka, ČSOB
Stavební spořitelna and Patria Finance brands) and
the insurer ČSOB Pojišťovna.
International Markets Business Unit
ČSOB Bank and ČSOB Poist’ovňa in Slovakia,
K&H Bank and K&H Insurance in Hungary, United
Bulgarian Bank and DZI Insurance in Bulgaria.
Assets
(year-end 2024)
66%13%
20%
0%
Clients
(year-end 2024)
31%
36%
33%
Income
(year-end 2024)
60%
22%
21%
-2%
Net profit
(year-end 2024)
54%
22%
25%
-1%
Our business units
Belgium Business Unit Czech Republic Business Unit International Markets Business Unit Other

49Annual Report KBC Group 2024
Belgium
Macroeconomic context
Belgian economic growth slowed to 1.0% in 2024. Real GDP
growth was underpinned by domestic demand, while net
exports and, in particular, changes in stocks weighed on
growth. As was the case in many other European countries,
2024 was another tough year for the industry. Activity in the
industry contracted by 1% in real terms on average, whereas
in services and construction activity was up 1.3% and 1.0%,
respectively. The persistently poor performance of
households’ housing investments kept the residential
construction subsector in a deadlock in 2024. In the housing
market the more moderate price dynamics continued, with
house prices still recording an average increase of 3.1% for
the full year.
Net job creation came to a halt in the course of the year. The
unemployment rate remained fairly stable between 5.5% and
6.0%. The job vacancy rate declined, but still indicated tight
labour supply. The withdrawal of energy support measures
drove Belgian inflation – measured according to the
Harmonised Index of Consumer Prices – upwards to 4.3% on
average. Core inflation (excluding energy and non-
processed food), however, fell back to 3.8% on average.
Public finances deteriorated further on account of higher,
largely ageing-related, spending. The ten-year rate of
Belgian linear bonds (OLO’s) rose to 3.2% in June 2024, fell
back to 2.6% in early December and ended the year at 3.0%.
The yield spread with the corresponding German Bund had
fallen back to around 50 basis points in the spring of 2024,
but climbed back up to around 60 basis points in the second
half of the year.
Figures for forecast GDP growth in 2025 and 2026 can be
found under ‘Market conditions in our core markets’.
• ‘Best Banking Group in Belgium’ (International Banker)
• ‘Best Private Bank in Belgium’ (Euromoney)
• ‘Best Digital Bank’ (Spaargids.be)
• ‘Top Employer’ (KBC and CBC) (Top Employers
Institute)
• ‘Best Digital Bank in Belgium’ (Euromoney).
• ‘Best Private Banker of Belgium’ (Professional Wealth
Management and The Banker).
• KBC Asset Management: ‘Most Innovative Asset
Management Company Belgium 2024’ (World
Economic Magazine) and ‘Sustainable Asset
Management Company of the Year 2024 – Belgium’
(Wealth & Finance International)

50 Annual Report KBC Group 2024
Specific objectives 2024 developments
In line with our strategy, we continue to invest
in our digital systems, with the emphasis on
solutions aimed at making our clients’ lives
easier. One of our main focus points is the
further development of Kate, our digital
assistant. Kate has been consulted by over
2.1 million clients since her launch. What’s more, the number
of cases resolved fully autonomously by Kate also continues
to grow: this stood at roughly 69% at year-end 2024,
compared to 63% at year-end 2023. More information about
Kate can be found in ‘The client is at the centre of our
business culture’.
We offer both financial and non-financial applications online.
One of our latest developments in banking is a feature that
allows KBC clients to pay for purchases in a single scan with
their meal vouchers and bank account linked to Payconiq in
KBC Mobile. This improves the payment experience for
consumers and retailers alike. The new feature is gradually
being rolled out to more retailers. KBC has already integrated
the Wero application in KBC Mobile. Similar to Payconiq in
Belgium, this will gradually enable person-to-person
transfers within Europe without needing to know the account
number (a mobile phone number or an e-mail address will
suffice). KBC Mobile now also allows you to search past
transactions up to 10 years back, add a widget of your
favourite services to your login screen, set your device to
discrete mode, and find information about the sustainability
of your investments.
We also keep expanding our range of non-financial
applications, focusing on areas including mobility (public
transport tickets, parking apps, ride-sharing, etc.), housing
and energy (finding and selling homes with Immoscoop,
requesting certificates and inspections through ‘De
Immowinkel’, working out the cost of a home renovation with
Setle, etc.), leisure (receiving financial and economic news),
and so on. There were close to 2 million mobile users at
year-end 2024 – a further 7% increase year-on-year. And we
are obviously incredibly proud that independent
international consulting firm Sia Partners named KBC Mobile
the best banking app in the world in 2024.
Our experts naturally remain available at our bank branches
and insurance agencies, as well as at KBC Live, to answer
complex questions or provide advice at key life moments. We
are able to offer this service thanks to the success of our
digital strategy, which allows us to free up more time to
improve the advice we provide to our clients. That is why we
are committed to improving the availability of our experts
and are also continuously exploring ways to further optimise
our accessibility. Take the ‘KBC Belmobiel’ – which involves
the provision of services at home in Flanders – for example:
mobility-challenged and less digitally adept retail customers
who have difficulty visiting a branch and banking on a
desktop or mobile device can receive a home visit from an
experienced KBC staff member. The visit can only take place
• We put the client at the heart of all the products and
services we develop and at the centre of everything we
do. Our focus here is on a ‘digital first’ approach with a
human touch, and investing in the seamless integration of
our various distribution channels. We are working on the
further digitalisation of our banking, insurance and asset
management services and exploiting new technologies
and data to provide our clients with more personalised
and proactive solutions when appropriate.
• Our digital assistant ‘Kate’ features prominently in this
regard. Kate allows us to help our clients save time and
earn money, in which Kate Coins play a vital role.
• To support these activities, we are also fully engaged in
introducing end-to-end straight-through processing into
all our commercial processes, making full use of all
technological capabilities such as (generative) artificial
intelligence. This is how we increase our efficiency, which
allows us to invest in a strong network (bank branches,
insurance agencies, KBC Live) boasting more expertise.
• We work tirelessly on the ongoing optimisation of our
bank-insurance model in Belgium.
• We aim for further growth of bank-insurance at CBC in
specific market segments and expansion of our
accessibility in Wallonia, again with a strong focus on
‘Digital first with a human touch’.
• We collaborate with partners through ‘ecosystems’ that
enable us to offer our clients comprehensive solutions – on
every step of their journey. We are also integrating a range
of partners into our own mobile app and making our
products and services available in the distribution
channels of third parties.
• We express our commitment to Belgian society by leading
the way in the sustainability revolution. We are making our
banking, insurance and asset management products more
sustainable to create financial leverage in achieving
global climate targets. We aim to be more than a provider
of pure bank-insurance services – as a partner in the
climate transition, we are working with other partners on
developing housing and mobility solutions. We also
continue to focus on financial literacy, entrepreneurship
and population ageing.

51Annual Report KBC Group 2024
when requested and is by appointment only. This service
enables KBC to ensure extensive local presence, including in
areas without any KBC Bank branches.
Overall, the Belgium Business Unit’s loan
portfolio rose by 4%. Our deposits
(excluding the more volatile deposits in our
network of KBC Bank branches abroad)
were up 10%, due in part to the successful
recovery of core customer money after the
Belgian state note issued last year had reached maturity.
The total inflow of core customer money (deposits, savings
certificates, funds, insurance, bonds, etc.) after the Belgian
state note’s maturity date amounted to approximately 6.5
billion euros, exceeding last year’s 5.7-billion-euro outflow to
the state note by 0.8 billion euros. Assets under management
(funds, asset management, etc.) rose by 13% in 2024 due to
both net inflow and the increase in asset prices in 2024. Sales
of non-life insurance went up 7% in 2024, with growth in
virtually all insurance classes, and sales of life insurance even
rose by 30%, owing to both non-unit-linked and unit-linked
products.
Our bank-insurance model is delivering
numerous commercial synergies. In 2024,
for instance, more than nine out of ten
clients who agreed home loans with KBC
Bank also purchased home insurance with
KBC Insurance, and just over eight out of ten clients took out
mortgage protection cover. There was a further increase of
2% in the number of clients who hold at least one KBC
banking product and one KBC insurance product (i.e.
bank-insurance clients) in 2024, while the number of clients
with at least three banking and three insurance products
from KBC (i.e. stable bank-insurance clients) even went up by
4%. At year-end 2024, bank-insurance clients accounted for
77% of the business unit’s active clients (clients with a current
account into which their income is regularly paid); stable
bank-insurance clients made up 30% of active clients.
We took a variety of initiatives to stimulate
entrepreneurship in recent years. One of our
most important initiatives, Start it @KBC,
turned 10 in September 2024. Over the past
ten years, Start it @KBC has supported over
1 600 start-ups. In Start it @KBC’s early years,
the mission and operations of some 40% of our start-ups
were focused on sustainability; this has since doubled to
around 80%. The number of women founders also saw a
strong increase during that period, rising from 22% to 39%.
As regards environmental awareness, we remain committed
to reducing our own footprint, but we also aim to actively
assist our clients in their transition. We encourage them
through incentives, for instance in the form of adjusted
mortgage rates based on their home’s EPC rating, either in
the home’s current state or after renovations and within a
certain time frame. We also provide our clients with
information and support regarding sustainable construction
and renovation. For example, we collaborate with partners
who can provide our clients with bespoke energy advice, and
we advise our clients on grant schemes.
In 2024, we successfully issued a new green bond for an
amount of 750 million euros, marking the first issue under our
updated Green Bond Framework. The proceeds are used
towards energy-efficient buildings, renewable energy
transactions and environmentally friendly transport. Over 100
different investors participated in this issue, which enables
KBC to continue to actively support the financing of
environmentally sustainable economic activities.
We also remain committed to enhancing financial skills and
knowledge among young people as well as educating them
on poor financial choices and how to avoid getting into
financial difficulty. Our Get-a-Teacher teaching pack offers
free lessons to secondary schools, colleges and universities
and helps young people navigate the world of finance. We
are also placing particular focus on improving young adults’
skills and knowledge regarding home loans.
In 2024, we also committed ourselves to supporting The
Warmest Week, whose theme was ‘Loneliness’. We all crave
connection and the warmth and comfort of connecting with
others. A lack of connection can soon take a toll on our
well-being, leading to feelings of loneliness and isolation.
Bringing people together is a simple cure for loneliness. That
is why we are fully committed to The Warmest Week –
standing together against loneliness.

52 Annual Report KBC Group 2024
2024 result
Net result
1 846 million euros
(-1%)
Net interest income
3 305 million euros (+2%)
Insurance service result
293 million euros (+1%)
Net fee and commission income
1 684 million euros (+10%)
Operating expenses (incl. bank
and insurance tax)
2 799 million euros (-1%)
Impairment on loans
246 million euros increase
(82-million-euro increase)
Cost/income ratio
(excl. bank and insurance tax)
41% (41%)
Combined ratio
88% (85%)
Credit cost ratio
0.19% (0.06%)
Impaired loans ratio
2.0% (2.0%)
Figures for 2024 (the figures in brackets are for, or indicate the difference compared to, 2023). Insurance service result = insurance revenues before reinsurance - insurance
service expenses before reinsurance + net result from reinsurance contracts held. A detailed breakdown of the income statement for each business unit and each country can
be found in ‘Note 2.2: Results by segment’ in the ‘Consolidated financial statements’ section.
• 2% growth in net interest income. The business unit’s loans and advances to customers increased by 4% and customer
deposits (excluding the more volatile deposits in our network of KBC Bank branches abroad) went up by 10%. The net
interest margin for 2024 came to 1.94%, roughly stable year-on-year.
• 1% higher insurance service result, with the increase in insurance revenues being largely offset by the higher insurance
service expenses.
• 10% growth in net fee and commission income, due mainly to higher management fees for asset management services.
• 181-million-euro drop in all other income items combined, primarily due to lower trading and fair value income.
• 1% decrease in costs, with the negative impact of, among other things, slightly higher staff expenses being offset by a
decrease in bank and insurance tax.
• 165-million-euro higher impairment on loans, due mainly to higher impairment on individual loans, offset to a small extent
by a slightly higher reversal of the reserve for geopolitical and macroeconomic uncertainties (see Note 3.9 in the
‘Consolidated financial statements’ section).
• 79-million-euro one-off gain relating to a participation, recognised under ‘Share in results of associated companies and
joint ventures’.

53Annual Report KBC Group 2024
Czech Republic
Macroeconomic context
In 2024, the Czech economy started to recover from the
negative effects of the energy crisis and increased by 1.0%.
This recovery was driven by private consumption and public
spending, while weak foreign demand hampered growth.
The average annual inflation based on the Harmonised Index
of Consumer Prices (according to the Eurostat definition) fell
from 12.1% in 2023 to 2.7% in 2024, due to lower inflation from
food, energy and non-energy goods, whereas services price
inflation remained at a high level.
While the unemployment rate remained virtually unchanged
in 2024 (2.6% in December 2024), the labour market cooled
somewhat. Industry surveys indicate fewer labour shortage
problems and the number of vacancies has continued to fall.
Despite the negative impact of the floods in the autumn, the
budget deficit hovered around the limit of 3% (2.8%) of GDP in
2024. The Czech National Bank responded to the significant
decline in inflation by lowering its key rate further, from 6.75%
to 4.0%, in 2024. Another rate cut followed in February 2025,
bringing it down to 3.75%. The relatively swift easing cycle
and higher global economic risks put downward pressure on
the Czech koruna. As a result, the koruna weakened against
the euro for the second consecutive year and ended 2024
above 25 korunas per euro.
Figures for forecast GDP growth in 2025 and 2026 can be
found under ‘Market conditions in our core markets’.
Specific objectives
• To retain our reference position in banking and insurance
services by offering our retail, SME and mid-cap clients a
hassle-free, no-frills client experience, both through our
digital channels and in person.
• To further increase the active client base and further
strengthen our market position, especially in insurance,
investment services and home loans.
• To cultivate and nurture strong relationships with our
clients by offering them ‘beyond banking’ products and
services.
• To continue the further digitalisation and to introduce new
and innovative products and services, including open
bank-insurance solutions aimed at boosting the financial
well-being of our clients.
• To use data and AI to proactively offer personalised
solutions, including via Kate, our personalised digital
assistant.
• To concentrate on rolling out straight-through processing
and further simplifying our products, our head office, and
our distribution model, in order to enable us to operate
even more cost-effectively.
• To further strengthen our corporate culture, with a strong
focus on results, our clients, our ability to adapt and on
cooperation.
• To become the reference in advisory services in terms of
climate change and sustainable lending and investments.
To also express our social engagement by focusing on
themes including financial literacy, entrepreneurship,
cybersecurity and population ageing.
• ‘Best Bank in the Czech Republic’ (Global Finance)
• ‘Best Private Bank in the Czech Republic’ (Euromoney)
• ‘Best Bank in the Czech Republic’ (Euromoney)
• ‘Best Bank for ESG in the Czech Republic’ (Euromoney)
• ‘Best Digital Bank in the Czech Republic’ (Euromoney)
• ‘Bank of the Year in the Czech Republic’ (The Banker)
• ‘Best Private Bank in the Czech Republic’ (The Banker)
• 1st place in the category ‘Bank without Barriers’
(Mastercard)
• ČSOB Pojišt'ovna: 1st place in the ‘Mobile Application of
the Year’ category (Mastercard)

54 Annual Report KBC Group 2024
As in previous years, we again recorded
substantial growth in lending in 2024, as our
loans and advances to customers went up
by 7%. Our customer deposits went up by
2%. Sales of non-life insurance increased by
12% in 2024 (with growth in virtually all
insurance classes) and sales of life insurance went up by 9%
(mainly hybrid products). We adjusted these growth figures
for foreign-exchange effects. Assets under management
grew by 11% due to net inflow and an increase in asset prices.
Our bank-insurance model is delivering
numerous commercial synergies. For
example, around five to six out of ten ČSOB
group clients who took out home loans with
the bank in 2024 also purchased home
insurance from the group. The number of clients who hold at
least one banking product and one insurance product from
the group (i.e. bank-insurance clients) made up 83% of the
business unit’s active clients (clients with a current account
into which their income is regularly paid) at year-end 2024,
while the number of clients with at least two banking and
two insurance products from the group (i.e. stable bank-
insurance clients) made up 17% of active clients.
We once again took a number of initiatives in
terms of our social engagement, focusing on
environmental awareness, financial literacy,
entrepreneurship and population ageing.
Following the flood disaster (see above), ČSOB
immediately launched a public fundraising
campaign for charities. ČSOB doubled public donations,
bringing the total amount in support for the areas affected
to 40 million CZK. In addition, ČSOB donated 5 million CZK
through a special grant under its ‘ČSOB Helps the Regions’
programme.
As a leader in ESG, ČSOB aims to enable its SME clients to
meet the changing expectations in society as well as the
changing EU ESG requirements even better and more
efficiently. This was one of the drivers behind the joint venture
entered into between KBC and Czech start-up Digital &
Legal s.r.o. (‘Green0meter’) to advise Czech SMEs on their
journey to becoming more sustainable.
Regarding the initiatives to stimulate entrepreneurship,
Start it @ČSOB continues to be the most important initiative.
A great example of this is YoungLink, an app that uses
network analysis to identify and understand classroom social
dynamics, enabling early detection of bullying and other
risky behaviours. Identifying relationships among students
gives school psychologists, teachers and parents insight into
the social environment of the classroom and the individual’s
resilience to negative behaviour. Financial literacy also
remains one of our main focus areas. Financial education in
schools has been an important topic for us since 2016. ČSOB
employees visit schools and give young people tips on how
2024 developments
In the Czech Republic, too, the focus was on
investing in the further expansion of our
digital systems, with the aim of developing
solutions intended to make our clients’ lives
easier and helping them save time and earn
money. In the past few years we also
gradually added even more services to our smartphone
apps, focusing in particular on Kate, our personalised digital
assistant. Kate has been consulted by over 1.5 million clients
since her launch. What’s more, the number of cases resolved
fully autonomously by Kate also continues to grow: this stood
at roughly 71% at year-end 2024, compared to 66% at
year-end 2023. And in mid-2024, we also launched Kate
Coins in the Czech Republic. More information about Kate
can be found in ‘The client is at the centre of our business
culture’.
A great deal of attention is also devoted to the expansion
and further improvement of our other mobile banking
applications. For example, clients can now also use the
Smart Banking app to take out a new insurance policy
providing extended warranty and purchase protection, get
an overview of their shopping cards, read articles and news
items, connect to their Patria wallet, and so on. There were
nearly 1.5 million mobile users at year-end 2024 – 12% more
than in 2023.
In 2024, ČSOB also introduced the electronic signature for
signing mortgage contracts at all branches. The electronic
signature ensures a better client experience, promotes
sustainability by reducing paper usage, and significantly
cuts down processing time. This innovation was awarded
Computerworld magazine’s ‘IT Product of the year 2024’.
ČSOB also rewards clients who choose it as their primary
bank for their financial needs, for example by providing them
with benefits in the form of a bonus rate on savings accounts
and certain investments, a mortgage rate discount, a bonus
on a new building saving scheme and a new pension saving
scheme, and discounts on various types of insurance. Kate
plays an active role in this process.
On the insurance front, we note the success of our cyber risk
insurance: since its launch in 2020, we have already sold over
340 000 of these insurance policies. Simultaneously, ČSOB is
investing heavily in cybersecurity training.
The Czech Republic was hit by storm Boris in September
2024, causing severe disruption including heavy flooding in
the southern and eastern parts of the country. This affected
close to 9 000 of our group’s clients. Our insurer ČSOB
Pojišťovna immediately sent technicians to the affected
areas, extended helpline opening hours and accelerated
advance payments and claims processing. Roughly 70% of
claims reported were settled within a month of the disaster.
To support clients affected by the storm, ČSOB also provided
loan repayment deferrals of up to six months.

55Annual Report KBC Group 2024
to manage their money based on real-life examples. The
programme consists of different components, such as
responsible lending, household budget management and
complex financial products. We also organise other events
on financial literacy. For example, we organised financial
advice days for seniors throughout the Czech Republic.
Besides financial literacy, we also covered topics such as
cybersecurity, powers of attorney and wills.

56 Annual Report KBC Group 2024
2024 result
Net result
858 million euros
(+18%)
Net interest income
1 298 million euros (+7%)
Insurance service result
115 million euros (+2%)
Net fee and commission income
352 million euros (+14%)
Operating expenses (incl. bank
and insurance tax)
964 million euros (+4%)
Impairment on loans
34 million euros reversal
(70-million-euro reversal)
Cost/income ratio
(excl. bank and insurance tax)
43% (44%)
Combined ratio
86% (84%)
Credit cost ratio
-0.09% (-0.18%)
Impaired loans ratio
1.3% (1.4%)
Figures for 2024 (the figures in brackets are for, or indicate the difference compared to, 2023). Insurance service result = insurance revenues before reinsurance - insurance
service expenses before reinsurance + net result from reinsurance contracts held. A detailed breakdown of the income statement for each business unit and each country can
be found in ‘Note 2.2: Results by segment’ in the ‘Consolidated financial statements’ section.
• 5% decrease in the average exchange rate of the Czech koruna against the euro. The growth figures in the table and the
analysis have been calculated excluding this foreign-exchange effect.
• 7% increase in net interest income. The business unit’s loans and advances to customers increased by 7% and customer
deposits went up by 2%. The net interest margin for 2024 came to 2.42%, compared to 2.30% in 2023.
• 2% increase in the insurance service result, with the increase in insurance service expenses (partly due to the impact of
storm Boris) being offset by an improved reinsurance result and higher insurance revenues.
• 14% increase in net fee and commission income due to higher fees for both asset management services and banking
services.
• 10-million-euro increase in all other income items combined.
• 4% increase in costs, due mainly to higher staff expenses and ICT costs and partly offset by lower bank and insurance tax.
• 35-million-euro lower reversal of impairment on loans, due to higher impairment on individual loans and a more or less
equal reversal of the remaining reserve for geopolitical and macroeconomic uncertainties.

57Annual Report KBC Group 2024
International markets
Macroeconomic context
Growth in both Slovakia and Bulgaria outperformed
euro-area growth again in 2024. The Hungarian economy on
the other hand was faced with another technical recession
from the second quarter of the year with two consecutive
quarters of negative growth, but rebounded into positive
territory in the fourth quarter. Overall, annual real GDP
growth came to 2.1% (estimate) in Slovakia, 2.2% (estimate) in
Bulgaria and 0.6% in Hungary.
Inflation in the Central European economies converged
somewhat towards that of the euro area in 2024 (2.4%), but
still remained above it. This was mainly driven by the
dependence on energy imports and the weakness of the
Hungarian forint. Inflation in Slovakia, Hungary and Bulgaria
stood at 3.2%, 3.7% and 2.6%, respectively.
Falling inflation allowed the National Bank of Hungary (NBH)
to lower its key rate further, from 10.75% to 6.50%, at year-end
2024. While further moderate easing is on the horizon for
2025, the NBH will have to take into account inflation trends
and the exchange rate of the Hungarian forint. 2024 was a
year of trend weakening for the Hungarian forint, as a result
of the recession of the Hungarian economy and increased
risk factors such as trade conflicts and geopolitical shocks.
Figures for forecast GDP growth in 2025 and 2026 can be
found under ‘Market conditions in our core markets’.
• UBB: ‘Best Digital Bank’ and ‘Best ESG Bank in Bulgaria’
(Euromoney)
• UBB Mobile: ‘Best Mobile Banking App in Bulgaria’ (Global
Finance)
• UBB: ‘Bank of the Year’ (Bank of the Year foundation)
• UBB: Kate in Bulgaria awarded first prize in the In-house
Solutions category (Digitalk&A1 Awards 24)
• K&H: ‘Best Bank in Hungary’ (Euromoney)
• K&H: ‘Best Digital Bank in Hungary’ (Euromoney)
• K&H: ‘Top Employer’ (Top Employers Institute)
• ČSOB Slovakia: ‘Best Trade Finance Provider’ and ‘Best Sub-
custodian Bank in Slovakia’ (Global Finance)
• ČSOB Slovakia: ‘Best Bank for Corporate Responsibility’
(Euromoney)
• ČSOB Poisťovňa Slovakia: ‘Commercial Smart insurance
company 2024’ and first place in the ‘Mobile application of
a smart commercial insurance company’ category (Smart
insurance company of the year survey)

58 Annual Report KBC Group 2024
• The group strategy presents a number of opportunities for
all countries in the business unit, viz.:
- The further development of unique ‘bank-insurance+’
propositions.
- To continue digitally upgrading our distribution model.
- To drive up the volume of straight-through and scalable
processing.
- To increase the capacity in relation to data and AI to
enable us to proactively offer relevant and personalised
solutions.
- To selectively continue expanding our client base and
market position with a view to securing a top-three
position in banking and insurance.
- To use data to proactively offer personalised solutions.
Our digital assistant Kate, who was launched a couple of
years ago, has advanced significantly and in 2025 the
innovation will continue at an accelerated pace with the
introduction of Kate Coins and Sustainable Mobility
Ecospheres.
- To implement a socially responsible approach in all
countries, with a particular focus on environmental
awareness, financial literacy, entrepreneurship and
health. To be a pioneer for sustainability in all countries.
• Country-specific:
- In Bulgaria, UBB successfully completed the migration of
all clients and products of the former Raiffeisen Bank,
concluding the technical merger between the two
banks. Both UBB and DZI are market leaders and in the
top two in each of their targeted client and product
segments. Further focus is now on expanding our
franchise, promoting our banking and insurance business
and on digital innovation.
- In Hungary we are focusing on vigorous client acquisition
for the bank, to become the undisputed leader in the
area of innovation, and to substantially expand our
insurance activities, primarily through sales at bank
branches for life insurance, and both online and via
agents, brokers and bank branches for non-life
insurance.
- In Slovakia we aim to maintain our robust growth in
strategic products (i.e. current accounts, mortgages,
consumer finance, business loans, leasing and
insurance), partly through cross-selling to group clients
and via digital channels. Other priorities include the sale
of funds and increased fee income.
2024 developments
We saw rapid growth in the use of our digital
channels in Slovakia, Hungary and Bulgaria
in recent years. In the past few years we also
gradually added even more services to our
smartphone apps, focusing in particular on
Kate, our personalised digital assistant,
which was launched in Slovakia, Hungary and Bulgaria in
2022. In these three countries combined, close to 1.7 million
clients have already used Kate since her launch; moreover,
the number of cases resolved fully autonomously by Kate in
each of these three countries grew to more than 60% at year-
end 2024. More information about Kate can be found in ‘The
client is at the centre of our business culture’.
A great deal of attention was also devoted to the further
improvement of our other mobile banking applications. For
example, UBB in Bulgaria successfully introduced the
innovative InResto functionality in UBB Mobile, which allows
clients to automatically save and invest their spare change.
In turn, K&H is the first in the Hungarian market to offer
pension insurance sales taking place in mobile from start to
end. The range of non-financial services was also expanded.
In Slovakia, for example, ČSOB clients can now also use their
banking app to buy electronic road vignettes for different
countries, and in Hungary a new mobility service was added
that allows clients to pay for certain parking services through
the mobile app. In fact, the latter option is also already
available in Slovakia. Thanks to these continuous
innovations, the number of users of our mobile banking apps
increased substantially again in 2024: by around 8% in
Slovakia, 11% in Hungary and 7% in Bulgaria, totalling nearly
1.7 million users for the three countries of the business unit
combined. The share of digital sales in total sales also
showed further growth again: based on the key banking
products, this accounted for roughly two-thirds of the total
sales in Slovakia, half of the total sales in Hungary and a little
over a third of the total sales in Bulgaria. In Bulgaria, both
UBB Bank and DZI Insurance achieved the highest Net
Promoter Scores of all local banks and insurers, respectively.
As in previous years, we again posted
strong organic growth in the volume of
banking and insurance products and asset
management in 2024. For the business unit
as a whole (excluding exchange rate
effects), in 2024 customer deposits grew by
roughly 5% and loans and advances to customers grew by
9%. Broken down by country, deposit growth and growth in
loans and advances stood at 3% and 3%, respectively, in
Slovakia, at 8% and 9%, respectively, in Hungary, and at +5%
and +15%, respectively, in Bulgaria. Sales of non-life insurance
went up 15% in 2024 (with solid growth in all three countries),
and sales of life insurance rose by 1%. And owing to strong net
inflow and an increase in asset prices, assets under
management grew by no less than 20%.
Specific objectives

59Annual Report KBC Group 2024
Our focus on bank-insurance delivers many
commercial synergies. For instance, home
insurance was sold in conjunction with
around nine out of ten home loans taken
out in each of the three countries. For the
business unit as a whole, there was a further increase of 6% in
the number of clients who hold at least one banking product
and one insurance product from the group companies (i.e.
bank-insurance clients) in 2024, while the number of clients
with at least two banking and two insurance products from
the group companies even went up by 11%. At year-end 2024,
bank-insurance clients accounted for 68% of the business
unit’s active clients (clients with a current account into which
their income is regularly paid); stable bank-insurance clients
made up 22% of active clients.
We once again took a number of initiatives in
terms of our social engagement, focusing on
financial literacy, environmental responsibility,
entrepreneurship and health. Some examples
of recent projects:
Together with Sofia University, we organised a
master class in Bulgaria for young entrepreneurs from the
Kardzhali region, one of the poorest regions in the country. As
part of the project, finance and academic experts help
young entrepreneurs in the region set up their own business.
In addition, UBB collaborated with SIS, the Coca-Cola
Foundation and Cleantech Bulgaria to develop sustainability
programmes for SMEs. We launched two initiatives in 2024:
an e-learning platform with courses on topics including
sustainability, sustainable finance, circular economy and
sustainability strategies, and an intensive programme for
SMEs and NGOs seeking to integrate sustainability in their
business models.
Following ČSOB Czech Republic, we launched a
Green0Meter pilot project in Slovakia. As part of this pilot
project, we invited 150 clients to test the platform, which
included a free calculation of their Scope 1 and 2 emissions.
The full rollout of the platform is scheduled for early 2025.
Additionally, ČSOB Poist’ovňa was the first insurance
company in Slovakia to introduce a product specifically for
solar panels. This insurance covers general risks, natural
disasters and the cost of supplying power from alternative
sources in the event of an unscheduled interruption of the
power supply from the panels.
In Hungary, we offer our agricultural clients a free greenhouse
gas calculator – a unique tool in the market, with modules for
calculating emissions from both crops and livestock. The
calculator gives our clients insight into their environmental
impact and proposes steps they can take to reduce it. We
have organised the ‘K&H Family Business Club’ four times a
year every year, since 2015. This club is open to family
business owners and their families. Each edition focuses on
challenges and topics relating specifically to family
businesses.
Furthermore, we are also represented in the start-up
community in Bulgaria, Hungary and Slovakia. We remain
committed to supporting women entrepreneurs as well as to
promoting various sustainability themes in these countries,
too.

60 Annual Report KBC Group 2024
2024 result
Net result
751 million euros
(+13%)
Slovakia
101 million euros (-3%
1
)
Hungary
345 million euros (+26%)
Bulgaria
304 million euros (+6%)
Net interest income
1 290 million euros (+11%)
Insurance service result
49 million euros (+11%)
Net fee and commission income
546 million euros (+13%)
Operating expenses (incl. bank
and insurance tax)
1 157 million euros (+10%)
Impairment on loans
25 million euros reversal
(19-million-euro reversal)
Cost/income ratio
(excl. bank and insurance tax)
38% (39%)
Combined ratio
96%
2
(97%)
Credit cost ratio
-0.08% (-0.06%)
Impaired loans ratio
1.6% (1.8%)
Figures for 2024 (the figures in brackets are for, or indicate the difference compared to, 2023). Insurance service result = insurance revenues before reinsurance - insurance
service expenses before reinsurance + net result from reinsurance contracts held. A detailed breakdown of the income statement for each business unit and each country can
be found in ‘Note 2.2: Results by segment’ in the ‘Consolidated financial statements’ section.
1 Excluding the special bank tax in 2024, earnings growth came to about 21%.
2 93% excluding the additional insurance tax in Hungary (94% 2023).
• 4% decrease in the average exchange rate of the Hungarian forint against the euro. The growth figures in the table and the
analysis have been calculated excluding this foreign-exchange effect.
• 11% growth in net interest income. The business unit’s loans and advances to customers increased by 9% and customer
deposits went up by 5%. The net interest margin for 2024 came to 3.25%, roughly stable year-on-year.
• 11% higher insurance service result, with the increase in insurance service expenses being more than offset by the increase in
insurance revenues and a higher reinsurance result.
• 13% increase in net fee and commission income, due mainly to higher fees for asset management services and for banking
services (mainly payment services).
• 30% drop in the other income items combined (due to lower Net other income).
• 10% increase in costs, due in part to higher staff expenses and ICT costs and higher bank and insurance tax (mainly in
Slovakia).
• 5-million-euro higher net reversal of impairment on loans, due to a lower net increase in impairment on individual loans,
partly offset by a lower reversal of the remaining reserve for geopolitical and macroeconomic uncertainties (see Note 3.9 in
the ‘Consolidated financial statements’ section).

61Annual Report KBC Group 2024
Group Centre
Besides financial reporting for the three business units, we
also report on a separate Group Centre, which mainly
comprises the results of activities and/or decisions focusing
specifically on the group (the operating expenses of our
group’s holding-company activities, certain costs related to
capital and liquidity management, and so on) and the results
of activities and companies scheduled for run-down,
including Exicon (the remaining activities of KBC Bank
Ireland) in particular.
The Group Centre generated a net result of -40 million euros
in 2024, compared to 97 million euros in 2023. The negative
change of 137 million euros was accounted for by:
• a 15-million-euro decrease in net result in Ireland. In both
2024 and 2023, the result for Ireland was heavily impacted
by positive one-off items relating to the sale transactions.
In 2024, the liquidation process resulted in tax savings of
318 million euros (in ‘Income tax expense’) and in 2023 the
sale of the remaining loans and deposits led to one-off
items totalling 365 million euros (in several items, mainly in
‘Net other income’). More information on this matter can be
found in Note 6.6 of the ‘Consolidated financial
statements’.
• a 122-million-euro decrease in net result for the other
items, owing primarily to the combination of lower income
(due mainly to lower trading and fair value income and net
interest income), lower reinsurance result and higher
impairment on loans.

Our statutory auditors have audited the information in this section that forms part of the IFRS financial statements.
This information is marked with
AUDITED
How do we manage our risks?
Introduction
Mainly active in banking, insurance, and asset management, we are subject to a
number of industry-specific risks including credit risk, interest and exchange rate risk,
liquidity risk, insurance underwriting risk, operational risk and other non-financial risks.
ESG-related risks are not considered in isolation but identified as key risks which
manifest themselves through these risk areas. Furthermore, integrated risks occur when
the aforementioned risks accumulate and possibly reinforce each other. Continuous
and holistic risk management is in place to actively identify, manage and assess the
material risks KBC is exposed to. This section outlines our risk governance model and
the most significant risks we encounter and how these are managed. More detailed
information is available in the KBC Risk Report.
Sound risk management is the result of a strong risk culture,
adequate resources (sufficient and skilled people, data and
tooling), an effective organisation and a qualitative design
and implementation of strict governance and effective risk
management processes, which are aligned to and transform
in sync with the external context, the KBC business model
and its various activities, processes and so on.
KBC and the financial sector as a whole operate in a rapidly
changing environment characterised by volatility,
uncertainty, complexity and ambiguity:
• The financial industry is undergoing a major transition, with
the digital transformation bringing new opportunities (e.g.,
the opportunity to embed artificial intelligence (AI), big
data analysis and automation technologies in our
operations to make our interactions with our clients
instant, straight-through and friction-free) and challenges
(including in the areas of cyber risk, ethical AI and new
digital competitors).
• At the same time, the financial sector plays a crucial role in
the transition to a greener and more sustainable economy:
financial institutions not only need to reflect on their own
activities, taking into account all new regulations, but also
have a crucial role in helping their clients to make the
transition towards a more sustainable world.
• On top of this, the industry continues to face major
macroeconomic, financial and geopolitical challenges and
instability, whereas regulatory and supervisory pressure and
uncertainty continue to be extremely challenging.
KBC responds to these key challenges with its data-driven
digital strategy, aiming to create ecosystems that help our
clients to save time and money by combining financial and
non-financial services, and with its ambition to contribute to
a more sustainable world.
The risk, compliance and actuarial functions (which
together form the ‘CRO Services’) support KBC in achieving
these strategic objectives, contribute to its resilience and
agility, provide management and the Board with insights
supporting risk-conscious decision-making and inform
them about the risks KBC is facing. Priorities for risk
management are defined in the KBC Risk Strategy. This
strategy finds its origin in the KBC Risk Appetite, the
62 Annual Report KBC Group 2024

Corporate Strategy and the Pearl Culture, and sets the bar
for risk management throughout KBC. To remain in sync with
the changing business environment and the KBC Corporate
Strategy, the risk, compliance and actuarial functions
regularly assess and update their strategy, considering all
relevant elements (e.g., top risks), including the ‘external
supervisory view’ and upcoming regulatory changes. In this
way, we continuously adapt and further strengthen KBC’s
Risk Management Framework and its underlying risk
management processes.
KBC has a strong corporate culture which guides the actions
of our KBC colleagues in all their activities and which is also
reflected in the way risks are managed and decided on
throughout the entire organisation. The vision of KBC’s Risk
Management is to put risk in the hearts and minds of all staff
to help KBC create sustainable growth and earn its clients’
trust. To maintain and grow trust, it is important that we
behave responsibly in everything we do, across all layers of
the organisation. This means that the mindset of all KBC staff
should extend beyond regulations and compliance. These
aspects are captured via the ‘risk culture’, which
encompasses the collective mindset and the shared set of
norms, attitudes and values that shape the everyday
behaviour of our employees in terms of awareness,
management and control of risks. The strong risk culture is
reflected, for example, in business proposals which include a
thorough assessment of the risks involved, and in the
thoughtful consideration in the decision-making process of
the challenge of and opinions on these proposals, made by
the risk function.
The strategy of the risk, compliance and actuarial functions
is based on three key pillars:
• Support the business: we support, advise and challenge
the business both in its everyday activities (‘business as
usual’) and in its transformation, aiming to help it keep
KBC’s control environment up to standards and respect
KBC’s risk appetite at all times.
• Transform ourselves: in sync with the KBC Corporate Strategy
and business we become more digital, data-driven and
straight-through. By being more efficient and effective in our
business-as-usual processes, we create room to develop
approaches for new risks. Moreover, we extend and improve
our risk and compliance framework for an increasingly
digital, interconnected and sustainable future.
• People: we attract and nurture talent, building an
engaged workforce of the future as an enabler of
transformation and the execution of our business as usual.
We ensure that our people have a clear view of KBC’s
strategic direction, how KBC’s transformation impacts their
job and how they contribute to KBC’s strategy.
Managing risks in 2024
In 2024, geopolitical risks increased further, as evidenced by
the continuing Russia-Ukraine conflict, the conflict in Gaza/
Israel and the Middle East, tensions between the US and
China, etc. Furthermore, a significant number of elections,
including in the US, added to the geopolitical uncertainty.
These events put additional pressure on economic
competitiveness in Europe, causing significant challenges for
the economy and financial markets in general, and for the
financial sector in particular (including in the areas of credit
risk, market risk, liquidity risk, and operational risk).
Regulatory developments (including in relation to capital
requirements, operational resilience and the new DORA
requirements regarding third parties, anti-money laundering
regulations, GDPR and ESG) also remained a dominant
theme for the sector, as did enhanced consumer protection.
Digitalisation (with technology, including AI, as a catalyst)
presents both opportunities and threats to the business
model of traditional financial institutions. More specifically,
cyber risks (reinforced by the use of AI and deepfake
technologies) have become one of the main threats over the
past few years and are fuelled by international conflicts,
such as the war in Ukraine.
Lastly, climate and environmental-related risks are becoming
increasingly prevalent. This was evidenced by storm Boris,
63Annual Report KBC Group 2024

which caused abundant rainfall for several days in
September, leading to severe floods in Central and Eastern
Europe. The damage in KBC home countries was the largest
in the Czech Republic, but Slovakia and – albeit to a lesser
extent – Hungary were also hit. For KBC, the financial
consequences were predominantly linked to its insurance
activities. KBC is fully aware of the risks posed by the possible
effects of environmental change on its business model and
continues to assess this (see the Sustainability Statement in
this report and the KBC Risk Report 2024).
Risk governance
AUDITED
Our risk governance model includes the following main
elements:
• The Board of Directors (Board), supported by the Risk &
Compliance Committee, decides on the risk appetite –
defining the group’s overall risk playing field and the risk
strategy – and supervises KBC’s risk exposure in relation to
this risk appetite. It is also accountable for having robust
governance arrangements in place to ensure that all
material risks of KBC Group are managed appropriately
and for promoting a sound, consistent group-wide risk
culture.
• The Risk & Compliance Committee (RCC) is an advisory
committee that advises on topics for which the Board is
accountable, such as the group’s risk appetite, the
monitoring of risk exposure compared to the group’s risk
appetite and the supervision of the implementation,
efficiency and effectiveness of the Enterprise Risk
Management Framework.
• The Executive Committee (ExCo) is the management
committee responsible for integrating risk management,
operating in alignment with decisions taken by the Board
related to risk appetite, strategy, and performance goals.
• The ExCo is supported by the CRO Services Management
Committee (CRO Services MC), risk committees (right-hand
side of the figure) and business committees (left-hand side
of the figure).
We manage our risks using the ‘Three Lines of Defence’ model:
• Risk-aware business people act as the first Line of Defence
for conducting sound risk management. This involves
allocating sufficient priority and capacity to risk topics,
performing the right controls in the right manner and
making sure that the risk self-assessment of the business
side is of a sufficiently high standard.
• In line with regulations, independent control functions, at
both group and local level, act as (part of) the second Line
of Defence:
- The risk function develops, imposes and monitors
consistent implementation of the Enterprise Risk
Management Framework, describing the processes,
methods and approaches to identify, measure and
report on risks and to define the risk appetite. To
strengthen the voice of the risk function and to ensure
that the decision-making bodies of the business entities
Board of Directors
Internal Sustainability
Board
Group Lending
Committee
Group Assets &
Liabilities Committee
Group Markets
Committee
Global IT
Committee
Group Insurance
Committee
Group Payments
Committee
Group Internal Control
Committee
Risk & Compliance
Committee
Executive Committee
CRO Services Management
Committee
64 Annual Report KBC Group 2024

are appropriately challenged on matters of risk
management and receive expert advice, KBC has
deployed independent Chief Risk Officers (CROs)
throughout the group. Risk departments at group (Group
Risk, Group Credit Risk Directorate and Model & Model
Risk Management Division) and local level (present in the
main entities in our home countries) support the CROs
and work closely together. Close collaboration with the
business is assured since the independent CROs are
present in management committees and take part in
the local decision-making process, while their
independence is achieved through a functional
reporting line to the Group CRO. If necessary, they can
exercise a right of veto.
- The compliance function’s prime objective is to prevent
KBC from running a compliance risk (i.e. incurring loss or
damage – regardless of its nature – due to non-
compliance with applicable laws, regulations or internal
rules) that falls either within the scope of the compliance
function or within the areas assigned to it by the ExCo
(as described in the Integrity Charter). The compliance
Risk management refers to the coordinated set of activities
to proactively identify and manage the risks that KBC faces.
It helps KBC to achieve its objectives and to realise its
strategy.
The KBC Enterprise Risk Management Framework (ERMF),
approved by the Board, defines the risk governance,
including the Three Lines of Defence, and sets clear rules and
procedures on how risk management should be performed
throughout the group. It refers to a set of minimum standards
and risk methods, processes and tools that must be
translated into all risk-type-specific Risk Management
Frameworks (RMFs) and that all entities must adhere to. The
ERMF and risk-type-specific RMFs not only detail how KBC
manages risks in business as usual, but also in times of
change (small and big transformations) and crisis situations,
up to the most stressful situations (like recovery and
resolution). They also aim to keep KBC compliant with
regulatory requirements. Moreover, they cover risks
originating from KBC’s own operations as well as from the
value chain (e.g., the provision of products and services to
clients, and outsourcing activities).
function is characterised by its specific status (as
provided for by law and regulations and described in the
Compliance Charter), its place in the organisation chart
(Group Compliance, hierarchically under the CRO) and
the associated reporting lines (reporting to the RCC and
even to the Board in certain cases).
- The actuarial function ensures additional quality control
by providing expert technical actuarial advice to the
supervisory body, the RCC and the executive body of
KBC Group, of KBC Insurance and all reinsurance and
insurance entities within the group. Such advice covers
the calculation of the technical provisions for insurance
liabilities, the reinsurance policy and underwriting risk. As
described in the ‘Actuarial Function Charter’, in order to
safeguard independence, the actuarial function holder
reports functionally to the Group CRO.
• Internal audit acts as the third Line of Defence. It is
responsible for giving reasonable assurance to the Board
that the overall internal control environment is effective,
and that effective policies and processes are in place and
applied consistently throughout the group.
In order to continuously safeguard their relevance, the ERMF
and risk-type-specific RMFs are annually reviewed, in addition
to a formal annual assessment of the quality of their
implementation. In our risk taxonomy, environmental, social
and governance risks are identified as key risks related to KBC’s
business environment which manifest themselves through (all)
other traditional risk areas, such as credit risk, technical
insurance risk, market risk, operational and reputational risk. As
such, ESG is not considered in isolation, but firmly embedded in
all aspects and areas of KBC’s ERMF and underlying processes.
For more information on how ESG risk management is
performed throughout the group, we refer to the Sustainability
Statement in this report and to the KBC Risk Report 2024.
The risk management process consists of risk identification,
risk measurement, setting and cascading risk appetite, risk
analysis, reporting, response and follow-up.
Risk identification
Risk identification is the process of systematically and
proactively discovering, assessing and describing risks, both
within and outside KBC, that could negatively impact the
group’s strategic objectives today and in the future. Not only
the sources of risk are analysed, but also their potential
consequences and – in a later step – materiality.
Components of sound risk management
65Annual Report KBC Group 2024

defined) is provided in the ERMF and risk-type-specific
frameworks.
In order to ensure that risk measures are and remain fit for
use and are of high quality, they are subject to strict and
robust processes, including adequate documentation and
strong governance. Regular reviews and the use of the
‘four-eyes principle’, including independent internal
validation where appropriate, further enhance the accuracy
and reliability of these risk measures. All requirements that
relate to these processes are documented in the KBC Risk
Measurement Standards (RMS).
Setting and cascading risk appetite
Taking and transforming risks is an integral part – and hence
an inevitable consequence of – the business of a financial
institution. Therefore, KBC does not aim to eliminate all the
risks involved (risk avoidance) but instead seeks to identify,
control and manage them in order to make optimal use of its
available capital (i.e. risk-taking as a means of creating
value).
KBC’s tolerance for risk is captured via its ‘risk appetite’. This
risk appetite expresses – both qualitatively and
quantitatively – how much and which types of risk we want
to take and within which boundaries they should be
managed. The ability to accept risk is limited by financial
constraints (available capital and liquidity buffers, borrowing
capacity, etc.), non-financial constraints (strategic ability,
skills, legal constraints, etc.) and regulatory restrictions (e.g.,
regulatory floors on capital and liquidity ratios). The
willingness to accept risk depends on the interests of the
various stakeholders. A key component in defining risk
appetite is therefore an understanding of the expectations
of the organisation’s key stakeholders.
Risk appetite is made explicit via the ‘risk appetite
statement’ (RAS), which is decided at both group and local
level. The RAS reflects the view of the Board and the ExCo on
the acceptable level and composition of risks, ensuring
coherence with the desired return and allowing the group to
implement its corporate strategy within a clear risk playing
field. The high-level risk appetite objectives, which are
annually reviewed and reconfirmed by the Board, are further
detailed for each separate risk type via qualitative and
quantitative statements and via a risk appetite label, which
can be Low, Medium or High. The long-term risk appetite is
monitored based on a set of risk measures for which risk
thresholds are defined. Lastly, risk appetite is translated into
risk-type-specific group limits/targets (annually approved by
the Board), which are further cascaded down to the entities
(annually approved by the ExCo).
As the risk appetite defines the playing field for the business,
the risk appetite process is firmly embedded in the financial
planning cycle. The Board annually approves the preliminary
For the purpose of risk identification, KBC has set up robust
and solid processes, at both the strategic and operational
level, to uncover all material risks to which KBC is exposed.
These include:
• The Risk Scan, which is a strategic group-wide exercise
aimed at identifying and assessing the top risks for KBC,
i.e. the risks that keep managers ‘awake at night’ because
they can severely undermine KBC’s business model,
financial stability and long-term sustainability. The
identified top risks are inputs for the yearly financial
planning process and for several risk management
exercises, including for defining the priorities of the risk
function, risk appetite setting and stress testing.
• The New and Active Products Process (NAPP), which is a
group-wide, formalised process to identify and mitigate
product-related risks, both for KBC and for its clients.
Within the group, no products, client-facing processes or
services can be created, purchased, changed or sold
without approval in line with NAPP governance. The risk
department also conducts periodic assessments of the
impact of the expanded and/or updated product and
service offering on the group’s risk profile.
• Risk signals, which are continuously collected at all levels
of the organisation (group and local). The internal and
external environments are constantly scanned, using all
possible sources of information, to detect events or
changes that can potentially impact the group, either
directly or indirectly. Risk signal reporting provides
management with a summary of the identified risks, their
potential impact and possible remedial actions.
• Deep dives and challenges (e.g., in-depth or case studies,
detailed risk assessments, ethical hacking, etc.) are
performed to gain additional insights into the risk profile or
into potential (future) vulnerabilities for KBC and/or to test
the strength and maturity of the control environment (i.e. a
check on whether the risk requirements and controls
imposed by the ERMF are properly implemented).
Risk measurement
KBC defines risk measurement as ‘the action to come to a
quantitative expression of a risk, or a combination of risks, on
a portfolio of instruments/exposures by applying a model or
methodology’. Once risks have been identified, certain
attributes of the risk can be assessed, such as impact,
probability of occurrence, size of exposure, etc. This is done
with the help of risk measures, which allow us to assess the
materiality of risks, to monitor them over time (with a
frequency that is appropriate for the risk type) and to assess
the impact of risk management actions.
Risk measures (including the calculation method used) are
designed to measure a specific risk or multiple risks at the
same time and can be either internally developed or
imposed by the regulator. An overview of the extensive set of
risk measures in use in KBC (both regulatory and internally
66 Annual Report KBC Group 2024

risk appetite as input into the planning cycle. The financial
planning is approved by the Board after a final check has
been performed to determine whether the preliminary risk
appetite is respected throughout the planning horizon. To
ensure that the risk profile remains within the risk appetite
when executing the financial plan, the risk appetite is
translated into concrete early warning levels and limits.
Furthermore, for some indicators, we also set recovery and
resolution triggers which, if breached, trigger the activation
of the Recovery/Resolution Plan.
Risk analysis, reporting, response and
follow-up
Risk analysis and reporting aim to give management an
increased level of transparency by ensuring a
comprehensive, forward-looking and ex-post view of the
development of the risk profile versus the risk appetite and of
the context in which KBC operates.
This is done via reports that are tailored to the needs of the
recipients and recognise the different information needs of
the Board, the RCC, the ExCo, top management and other
levels of the organisation, helping them to understand the
potential issues and to take the relevant actions. In addition
to internal reporting, external reports are also prepared for
the different stakeholders of KBC, in particular clients,
shareholders, debt holders, supervisory authorities,
regulators and rating agencies.
The ExCo, the RCC and the Board receive periodic and ad
hoc updates on KBC’s risk landscape through comprehensive
internal risk reporting. This includes the ‘Integrated Risk
Report’ (IRR), which is submitted to these committees eight
times per year. This holistic risk report consists of risk signals
considered material for the group, allowing us to take timely
action if and as needed, and of an overview, for all risk types,
of the development of various risk measures versus the risk
appetite via the ‘health check’ dashboard. The IRR is
complemented with ad hoc reporting when required. For
instance, at least twice a year, it is supplemented with a
detailed climate risk dashboard and an information risk
management dashboard.
The main external reports to the supervisory authority
include the ICAAP (Internal Capital Adequacy Assessment
Process), ILAAP (Internal Liquidity Adequacy Assessment
Process), and ORSA (Own Risk and Solvency Assessment)
reports. These provide a holistic and substantiated
67Annual Report KBC Group 2024

Credit risk
Managing credit risk
AUDITED
In the area of credit risk, the ExCo is supported by the
Group Lending Committee (GLC), which manages KBC’s
credit risk and the resulting capital requirement in the area
of lending. The governance, rules and procedures on how
credit risk management should be performed throughout
the group are outlined in the Credit Risk Management
Framework (CRMF). Its implementation is monitored by
Group Credit Risk (GCRD) and its Credit Risk Competence
Centre. GCRD works in close cooperation with the local
CROs and local risk departments, which are responsible for
the local implementation of the CRMF. Business entities are
consulted for those areas of the CRMF that impact business
processes and/or governance.
Credit risk is the risk related to non-payment or non-performance by a contracting party, due to that party’s
insolvency or lack of willingness to pay or perform, or to events or measures taken by the political or monetary
authorities of a particular country.
The building blocks for managing credit
risk
AUDITED
• Risk identification: several risk identification exercises as
described in the ‘Components of sound risk management’
section apply to the credit risk management context (such
as the collection of risk signals). A vital part of the credit
risk identification process is capturing credit risk signals,
both at transactional and portfolio level. Both the internal
and external environment are scanned for events or
developments that have already occurred or could occur
and which directly or indirectly have or could have a
significant impact on credit quality. In addition, thematic
and sectoral deep dives are performed to gain further
insights into credit risk.
underpinning of the opinion of the Board and the ExCo on
the adequacy of KBC’s capital and liquidity. For this purpose,
we have internal economic capital models in place to
complement the existing regulatory capital models. These
allow us to assess our capital adequacy from an internal
perspective, in addition to the regulatory perspective. These
reports are complemented by an annual FICO (Financial
Conglomerate) report which zooms in on additional risks that
could be triggered by KBC being a Financial Conglomerate
and on their mitigation. In the context of crisis management
regulation, the Recovery Plans of KBC Group, KBC Bank and
KBC Insurance are created to prepare the possible responses
in case of (strong) adverse financial circumstances and to
allow KBC to act more rapidly and effectively in a crisis
situation. In case all mitigating actions in business as usual
and in crisis management mode fail, the Resolution Plan is
activated, which describes the strategy for rapid and orderly
resolution in the event of material financial distress and
failure of KBC.
Stress testing
Stress testing is an important tool to support our risk
management and decision-making processes by simulating
the potential negative impact of specific events and/or
movements in risk factors on KBC’s (financial) condition, so
that we can better prepare for these situations or adjust our
risk exposure proactively.
For this purpose, KBC has developed a comprehensive set of
stress tests, ranging from plausible to exceptional and even
extreme events or scenarios, both at the level of individual risk
types and across risk types (integrated stress tests). Integrated
stress testing is an important tool to assess to what extent KBC’s
capital is adequate to cover its risks, whether profit generation is
sustainable, etc., under various conditions. It complements
stress testing per risk type as it looks at the interaction and
combined impact of stress across multiple risk types, including
interaction and feedback loops between stresses on financial
indicators. The stress testing mix reflects an appropriate
balance of different severities of stress, stress testing
methodologies, etc., both at integrated and risk-type-specific
level. It is kept relevant and up to date via a yearly review.
The outcome of some of the main integrated stress tests is
used in important risk management processes and reporting,
including ICAAP, ILAAP and ORSA, and recovery and
resolution planning. As part of the annual ICAAP, ILAAP and
ORSA processes, KBC simulates a once-in-20-years stress
event to check and demonstrate that it is able to meet the
regulatory capital and liquidity requirements and internal risk
appetite targets even under such stressed conditions. Stress
tests designed in the context of recovery planning are even
more severe and bring KBC to the brink of default. In such
scenarios, KBC needs to demonstrate its recovery capacity
(in terms of both depth and speed of capital-increasing and
risk-reducing actions). Finally, stress testing in the context of
resolution prepares KBC for situations when the group is no
longer viable and authorities need to step in to either save
(via bail-in mechanisms) or liquidate the group.
On top of stress testing performed on KBC’s own initiative (at
group and/or local level), the regulator and supervisory
authority can also impose stress tests (e.g., biannual EBA
Stress Test, annual EIOPA stress tests, ECB cyber stress test).
68 Annual Report KBC Group 2024

New and upcoming prudential (capital) credit risk
regulation, product or client-specific regulation and
legislation is followed up at group or local level to ensure
that these are promptly implemented in KBC’s policies and
instructions.
A specific risk identification process is the leading indicator
process designed to identify emerging credit risks that
could lead to impairment. The main objective is to have a
reliable estimate of impairment for the current quarter at
an early stage, thus avoiding surprises. It is part of the
quarterly reporting round on loan and bond impairment.
• Risk measurement: credit risk measurement involves a
quantitative expression of a credit risk on a portfolio of
instruments/exposures by applying a model or
methodology. A minimum group-wide set of credit risk
measurements is defined and can be complemented with
local measurements.
Central to this is the risk class, with a ranking being made
based on the Probability of Default (PD) and the Loss
Given Default (LGD). The latter reflects the estimated loss
that would be incurred if an obligor were to default. In
order to determine the risk class, we have developed
various rating models for measuring how creditworthy
borrowers are and for estimating the expected loss of
various types of transactions. A number of uniform models
throughout the group (models for governments, banks,
large companies, etc.) are in place, while others have been
designed for specific geographic markets (SMEs, private
individuals, etc.) or types of transaction. We use the same
internal rating scale throughout the group.
We use the output generated by these models to split the
non-defaulted loan portfolio into internal rating classes
ranging from 1 (lowest risk) to 9 (highest risk) for the PD. We
assign PD 10 to PD 12 to a defaulted obligor. PD class 12 is
assigned when either one of the obligor’s credit facilities is
terminated by the bank, or when a court order is passed
instructing repossession of the collateral. PD class 11
groups obligors that are more than 90 days past due (in
69Annual Report KBC Group 2024

arrears or overdrawn), but that do not meet PD 12 criteria.
PD class 10 is assigned to obligors for which there is reason
to believe that they are unlikely to pay (on time), but that
do not meet the criteria for classification as PD 11 or PD 12.
‘Defaulted’ status is fully aligned with the ‘non-performing’
and ‘impaired’ statuses. Obligors in PD classes 10, 11 and 12
are therefore referred to as ‘defaulted’ and ‘impaired’.
Likewise, ‘performing’ status is fully aligned with the
‘non-defaulted’ and ‘non-impaired’ statuses.
Impairment losses are recorded according to IFRS 9
requirements (calculated on a lifetime expected credit loss
(ECL) basis for defaulted borrowers and on a 12-month or
lifetime ECL basis for non-defaulted borrowers, depending
on whether there has been a significant increase in credit
risk and a corresponding shift from ‘Stage 1’ to ‘Stage 2’).
Specific collective IFRS 9 models are used for this purpose,
except for material defaulted borrowers, which are
assessed individually to estimate ECL.
Together with ‘probability of default’ and ‘exposure at
default’, measures such as ‘expected loss’ and ‘loss given
default’ form the building blocks for calculating the
regulatory capital requirements for credit risk, as KBC has
opted to use the Internal Ratings-Based (IRB) approach for
most of its portfolios. Since the end of 2023, the following
entities and portfolios have switched to the Standardised
approach due to model simplification: the entities ČSOB in
Slovakia, K&H, the sovereign portfolios in the entire KBC
Group and some immaterial portfolios in the Belgium
Business Unit and ČSOB in the Czech Republic. Apart from
the above-mentioned exceptions, the main group entities
in Belgium and the Czech Republic continue to adopt the
IRB Advanced approach, while non-material entities as
well as the entire International Markets Business Unit adopt
the Standardised approach.
• Setting and cascading risk appetite: the KBC Risk Appetite
Statement defines the amount of credit risk KBC is able and
willing to accept in pursuit of its strategic objectives. Credit
risk appetite is made tangible by assigning credit risk limits
and early warning levels to a limited set of credit risk (signal)
indicators, which are valid for one year.
Primary credit risk limits are decided by the Board of
Directors or the Executive Committee. These entail limits
on Expected Loss (EL), Stressed Credit Loss (SCL) and
Credit Risk-Weighted Assets (RWA) and, for new home loan
production, Loan-to-Value (LTV) and Debt-Service-To-
Income (DSTI). These limits are supplemented by a portfolio
limit system (PLS) framework to constrain concentration risk
on counterparty groups or authorities and other credit risk
limits set at group or local level that include sector and
activity limits and limits on risks, such as counterparty
credit risk for professional transactions or issuer risk.
The risk playing field is also determined by group-wide risk
boundaries defined in Credit Risk Standards, which aim to
align the risk management of specific credit-risk-related
topics throughout the group by defining restrictions and/or
recommendations.
• Risk analysis, reporting, response and follow-up: the loan
portfolio is analysed on a continuous basis. In addition to
portfolio analyses performed by the business, the local
and group credit risk departments analyse the credit risk
profile of the loan portfolio in order to obtain an
independent view of the evolution of credit risk. The results
of the analyses are reported to the appropriate risk
committees. It is the responsibility of both line
management and the risk committees to respond, i.e. to
keep or bring risks in line with the risk appetite. Corrective
action plans can be taken to avoid (further) credit risk,
reduce it (mitigation), transfer the risk or accept it.
• Stress testing: stress testing is a core component of sound
credit risk management and is performed at local and
group level.
Credit risk exposure in the banking
activities arising from lending and
investing
Credit risk arises in both the banking and insurance activities
of the group. As regards the banking activities, the main
source of credit risk is the bank’s loan portfolio. It includes all
the loans and guarantees that KBC has granted to
individuals, companies, governments and banks. Debt
securities are included in the investment portfolio if they are
issued by companies or banks. Government bonds are not
included in the investment portfolio. Furthermore, the table
does not take into account the credit risk related to the
trading book (issuer risk) and the counterparty credit risk
related to derivative transactions. We describe these items
separately below.
The loan and investment portfolio as defined in this section
differs from ‘Loans and advances to customers’ in Note 4.1 of
the ‘Consolidated financial statements’ section. For more
information, please refer to the ‘Glossary of financial ratios
and terms’.
Note that, as regards the table below, more detailed
breakdowns are available in KBC’s quarterly reports
(at www.kbc.com) and (as regards stages) in Note 1.2 of
the ‘Consolidated financial statements’ section.
70 Annual Report KBC Group 2024

Loan and investment portfolio, banking A: Total loan portfolio 31-12-2024 31-12-2023 Total loan portfolio (in billions of EUR) Amount outstanding and undrawn 263 258 Amount outstanding 211 203 Loan portfolio breakdown by business unit (as a % of the outstanding portfolio) Belgium1 65% 65% Czech Republic 19% 19% International Markets 16% 15% Group Centre 0% 1% Total 100% 100% Loan portfolio breakdown by counterparty sector (as a % of the outstanding portfolio) Private individuals 41% 41% Finance and insurance 5% 6% Governments 3% 3% Corporates 51% 50% Services 11% 11% Distribution 8% 8% Real estate6 7% 7% Building and construction 5% 5% Agriculture, farming, fishing 3% 3% Automotive 3% 3% Food producers 2% 2% Other (sectors < 2%) 13% 13% Total 100% 100% Loan portfolio breakdown by region (as a % of the outstanding portfolio)2 Belgium 55% 55% Czech Republic 19% 18% Slovakia 6% 6% Hungary 4% 4% Bulgaria 6% 5% Rest of Western Europe 8% 8% Rest of Central and Eastern Europe 0% 0% North America 1% 1% Asia 1% 1% Other 1% 1% Total 100% 100% Loan portfolio breakdown by risk class (as a % of the outstanding portfolio, based on internal rating scale) Unimpaired PD 1 (lowest risk, default probability ranging from 0.00% up to, but not including, 0.10%) 24% 24% PD 2 (0.10% – 0.20%) 14% 14% PD 3 (0.20% – 0.40%) 12% 14% PD 4 (0.40% – 0.80%) 17% 18% PD 5 (0.80% – 1.60%) 14% 14% PD 6 (1.60% – 3.20%) 10% 8% PD 7 (3.20% – 6.40%) 5% 4% PD 8 (6.40% – 12.80%) 2% 1% PD 9 (highest risk, ≥ 12.80%) 1% 1% Unrated 0% 0% Impaired PD 10 0.9% 1.1% PD 11 0.3% 0.2% PD 12 0.8% 0.8% Total 100% 100% Loan portfolio breakdown by IFRS 9 ECL Stage3 (as a % of the outstanding portfolio) Stage 1 (no significant increase in credit risk since initial recognition) 90% 80% Stage 2 (significant increase in credit risk since initial recognition – not credit impaired) incl. POCI4 8% 18% Stage 3 (significant increase in credit risk since initial recognition – credit impaired) incl. POCI4 2% 2% Total 100% 100%
71Annual Report KBC Group 2024

B: Impaired loan portfolio 31-12-2024 31-12-2023
Impaired loans (PD 10 + 11 + 12; in millions of EUR or %)
Impaired loans
5
4 171 4 221
Of which more than 90 days past due
2 178 2 051
Impaired loans by business unit (as a % of the impaired loan portfolio)
Belgium
1
65% 63%
Czech Republic 13% 13%
International Markets
13%
13%
Slovakia
5% 4%
Hungary
2% 4%
Bulgaria
6% 6%
Group
Centre 9% 10%
Total 100% 100%
Impaired loans by sector (as a % of the impaired loan portfolio)
Distribution 20% 19%
Private individuals 15% 16%
Real estate
6
11% 13%
Services 10% 9%
Automotive 10% 9%
Building and construction 8% 7%
Chemicals 5% 4%
Agriculture, farming, fishing 3% 2%
Other (sectors < 2%) 17% 21%
Total 100% 100%
Loan loss impairment (in millions of EUR)
Impairment for Stage 1 portfolio 201 168
Impairment for Stage 2 portfolio, incl. POCI
4
(cured) 340 502
Impairment for Stage 3 portfolio, incl. POCI
4
(still impaired) 1 979 1 888
Of which impairment for impaired loans that are more than 90 days past due
1 492 1 459
Credit cost ratio
Belgium Business Unit
1
0.19% 0.06%
Czech Republic Business Unit -0.09% -0.18%
International Markets Business Unit -0.08% -0.06%
Slovakia
-0.14% -0.07%
Hungary
-0.27% -0.14%
Bulgaria
0.14% 0.00%
Group Centre 1.58% 0.07%
Total 0.10% 0.00%
Impaired loans ratio
Belgium Business Unit
1
2.0% 2.0%
Czech Republic Business Unit 1.3% 1.4%
International Markets Business Unit 1.6% 1.8%
Slovakia
1.5% 1.4%
Hungary
1.2% 1.9%
Bulgaria
2.0% 2.2%
Group Centre 38.3% 36.2%
Total 2.0% 2.1%
Of which more than 90 days past due
1.0% 1.0%
Coverage ratio
Loan loss impairment / impaired loans 47% 45%
Of which more than 90 days past due
69% 71%
Loan loss impairment / impaired loans (excl. mortgage loans) 50% 47%
Of which more than 90 days past due
71% 74%
1 Also includes the small network of KBC Bank branches established in the rest of Europe, the US and Southeast Asia (with a total outstanding portfolio of 7 billion euros at year-end
2024).
2 A more detailed breakdown by country is available in KBC’s quarterly reports (www.kbc.com).
3 For more information on stages, see Note 1.2 of the ‘Consolidated financial statements’ section.
4 Purchased or originated credit impaired assets; gross amounts, as opposed to net amounts in the accounting treatment.
5 Figures differ from those appearing in Note 4.2 of the ‘Consolidated financial statements’ section, due to differences in scope. The 50-million-euro decrease between 2024 and
2023 breaks down as follows: +39 million euros at the Belgium Business Unit, -5 million euros in the Czech Republic, +21 million euros in Slovakia, -59 million euros in Hungary ,+6
million euros in Bulgaria and -52 million euros for the rest (due to the finalised sale of KBC Ireland).
6 Real estate: income producing real estate to third parties.
72 Annual Report KBC Group 2024

The ‘Loan portfolio breakdown by IFRS 9 ECL Stage (as a % of the outstanding portfolio)’ and ‘Loan loss impairment’ sub-sections
in the above table have been broken down further as follows:
Loan portfolio breakdown by IFRS 9 ECL stage 31-12-2024 31-12-2023
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Loan portfolio by country/business unit
Belgium 57.9% 5.3% 1.3% 64.5% 51.1% 12.3% 1.3% 64.7%
Czech Republic 17.9% 1.2% 0.3% 19.4% 16.1% 2.9% 0.3% 19.3%
International Markets 14.1% 1.3% 0.3% 15.6% 12.5% 2.7% 0.3% 15.4%
Slovakia 5.6% 0.3% 0.1% 5.9% 5.0% 0.9% 0.1% 6.1%
Hungary 3.4% 0.5% 0.0% 4.0% 3.0% 1.0% 0.1% 4.1%
Bulgaria 5.1% 0.4% 0.1% 5.7% 4.4% 0.7% 0.1% 5.2%
Group Centre 0.3% 0.0% 0.2% 0.5% 0.4% 0.0% 0.2% 0.6%
Total 90.2% 7.8% 2.0% 100.0% 80.1% 17.9% 2.1% 100.0%
Loan portfolio by sector
Private individuals 38.8% 1.7% 0.3% 40.8% 36.4% 4.1% 0.3% 40.8%
Finance and insurance 5.3% 0.1% 0.0% 5.3% 5.8% 0.2% 0.0% 6.0%
Governments 2.5% 0.3% 0.0% 2.9% 2.4% 0.2% 0.0% 2.7%
Corporates 43.6% 5.8% 1.6% 51.0% 35.4% 13.4% 1.7% 50.5%
Total 90.2% 7.8% 2.0% 100.0% 80.1% 17.9% 2.1% 100.0%
Loan portfolio by risk class
PD 1–4 64.5% 2.2%
- 66.7% 64.5% 5.1% - 69.7%
PD 5–9 25.7% 5.6% - 31.3% 15.5% 12.7% - 28.3%
PD 10–12 - - 2.0% 2.0% - - 2.1% 2.1%
Total 90.2% 7.8% 2.0% 100.0% 80.1% 17.9% 2.1% 100.0%
Total (in millions of EUR) 190 193 16 538 4 171 210 903 162 474 36 258 4 221 202 953
Impairment broken down by IFRS 9 ECL Stage 31-12-2024 31-12-2023
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Impairment by country/business unit
Belgium 4.2% 6.7% 45.7% 56.5% 2.6% 9.3% 40.0% 51.9%
Czech Republic 1.6% 3.9% 9.6% 15.1% 1.6% 5.5% 9.9% 16.9%
International Markets 2.2% 2.9% 9.7% 14.8% 2.4% 4.8% 9.5% 16.7%
Slovakia 0.5% 0.9% 3.6% 5.0% 0.5% 2.0% 3.4% 6.0%
Hungary 0.7% 0.7% 1.3% 2.7% 1.0% 1.2% 1.7% 3.9%
Bulgaria 1.0% 1.3% 4.8% 7.1% 0.9% 1.6% 4.4% 6.9%
Group Centre 0.0% 0.0% 13.6% 13.6% 0.0% 0.0% 14.4% 14.4%
Total 8.0% 13.5% 78.5% 100.0% 6.6% 19.6% 73.8% 100.0%
Impairment by sector
Private individuals 1.4% 3.7% 8.9% 14.1% 1.1% 4.4% 6.5% 12.0%
Finance and insurance 0.2% 0.2% 1.3% 1.6% 0.2% 0.2% 1.8% 2.2%
Governments 0.0% 0.1% 0.2% 0.3% 0.2% 0.6% 1.4% 2.2%
Corporates 6.4% 9.5% 68.2% 84.1% 5.0% 14.5% 64.1% 83.5%
Total 8.0% 13.5% 78.5% 100.0% 6.6% 19.6% 73.8% 100.0%
Impairment by risk class
PD 1–4 1.6% 0.7%
- 2.3% 1.2% 1.1% - 2.3%
PD 5–9 6.4% 12.8% - 19.1% 5.4% 18.5% - 23.9%
PD 10–12 - - 78.5% 78.5% - - 73.8% 73.8%
Total 8.0% 13.5% 78.5% 100.0% 6.6% 19.6% 73.8% 100.0%
Total (in millions of EUR) 201 340 1 979 2 519 168 502 1 888 2 559
•
73Annual Report KBC Group 2024

from ‘defaulted’ to ‘non-defaulted’ status and to remove the
forbearance status. If a client/facility has been assigned
‘defaulted’ status (before or at the time forbearance
measures are granted), the client/forborne facility
(depending on whether defaulted status is assigned at client
or facility level) must remain defaulted for at least one year.
Only upon strict conditions can the client/facility be
reclassified as ‘non-defaulted’. A forborne facility with a
‘non-defaulted’ status will be tagged as ‘forborne’ for at
least two years after the forbearance measure has been
granted, or after the client/facility becomes non-defaulted,
and can only be removed when strict extra criteria have been
met (non-defaulted, regular payments, etc.). As a
forbearance measure constitutes an objective indicator (i.e.
impairment trigger) that requires assessing whether
impairment is needed, all forbearance measures are subject
to an impairment test.
Forbearance measures
Forbearance measures consist of concessions towards a
borrower facing, or about to face, financial difficulties. They
may involve lowering or postponing interest or fee payments,
extending the term of the loan to ease the repayment
schedule, capitalising arrears, declaring a moratorium or
providing debt forgiveness.
A client with a loan qualifying as forborne will in general be
assigned a PD class that is worse than before the
forbearance measure was granted, given the increased risk
of default. When that is the case, the client’s unlikeliness to
pay is also assessed (according to specific ‘unlikely to pay’
criteria). In accordance with IFRS 9 requirements, a facility
tagged as ‘forborne’ is allocated to ‘Stage 2’ (if the client/
facility is classified as ‘non-defaulted’) or to ‘Stage 3’ (if the
client/facility is classified as ‘defaulted’).
KBC applies criteria that are consistent with the
corresponding EBA standards to move forborne exposures
On-balance-sheet exposures
with forbearance measures:
gross carrying value
AUDITED
(in millions of EUR)
Opening
balance
Loans
which have
become
forborne
Loans which
are no
longer con-
sidered to
be forborne
Repay-
ments Write-offs Other
1
Closing
balance
2024 2 303 545 -683 -334 -16 28 1 843
2023 2 939 642 -1 001 -361 -20 103 2 303
On-balance-sheet exposures with
forbearance measures: impairment
(in millions of EUR)
Opening
balance
Existing
impairment
on loans
which have
become
forborne
Decrease
in impair-
ment
because
loans are
no longer
forborne
Increase
in impair-
ment on
forborne
loans
Decrease
in impair-
ment on
forborne
loans Other
2
Closing
balance
2024 387 71 -61 100 -93 -4 400
2023 428 63 -55 86 -122 -13 387
1 Includes foreign-exchange effects for loans granted in currencies other than the local currency, changes in the drawn/undrawn portion of facilities, increases in the gross
carrying value of existing forborne loans and additions or disposals through business combinations.
2 Includes the use of impairment in respect of write-offs and additions or disposals through business combinations.
Forborne loans
As a % of the
outstanding
portfolio
Breakdown by PD class
(as a % of the entity’s portfolio of forborne loans)
PD 1-8 PD 9
PD 10
(impaired, less
than 90 days
past due)
PD 11-12
(impaired, 90
days and more
past due)
31-12-2024
Total 1% 33% 6% 42% 20%
By client segment
Private individuals
1
1% 63% 3% 27% 7%
SMEs 1% 29% 15% 33% 23%
Corporations
2
1% 17% 2% 56% 26%
31-12-2023
Total 1% 33% 8% 46% 14%
By client segment
Private individuals
1
1% 64% 3% 25% 8%
SMEs 1% 30% 12% 42% 16%
Corporations
2
1% 13% 8% 63% 16%
1 84% of the forborne loans total relates to mortgage loans in 2024 (86% in 2023).
2 19% of the forborne loans relates to commercial real estate loans in 2024 (32% in 2023).
74 Annual Report KBC Group 2024

Other credit risks in the banking
activities
Trading book securities. These securities carry an issuer risk
(potential loss should the issuer default). We measure
exposure to this type of risk on the basis of the market value
of the securities. Issuer risk is curtailed through the use of
limits both per issuer and per rating category.
Government securities in the investment portfolio of banking
entities. We measure exposure to governments in terms of
nominal value and book value. Such exposure relates mainly
to EU states. We have put in place limiting caps for both
non-core and core country sovereign bond exposure. Details
on the exposure of the combined banking and insurance
activities to government bonds are provided in a separate
section below.
Counterparty credit risk of derivatives transactions. The
amounts shown in the table below are the group’s pre-
settlement risks, which are measured using the internal
model method for interest rate and foreign exchange
derivatives in the Belgium Business Unit. For inflation, equity
and commodity derivatives, pre-settlement risks are
calculated as the sum of the (positive) current replacement
value (‘mark-to-market’ value) of a transaction and the
applicable add-on. This calculation is also used for
measuring pre-settlement risks for interest rate and foreign
exchange derivatives in the other business units.
Risks are curtailed by setting limits per counterparty. We also
use close-out netting and collateral techniques. Financial
collateral is only taken into account if the assets concerned
are considered eligible risk mitigants for regulatory capital
calculations.
Other credit exposure, banking
AUDITED
(in billions of EUR) 31-12-2024 31-12-2023
Issuer risk
1
0.05 0.05
Counterparty credit risk of derivatives transactions
2
4.1 4.2
1 Excluding a nominative list of central governments, and all exposure to EU institutions and multilateral development banks.
2 After deduction of collateral received and netting benefits.
75Annual Report KBC Group 2024

Credit risk exposure in the insurance
activities
For the insurance activities, credit exposure exists primarily in
the investment portfolio and towards reinsurance
companies. We have guidelines in place for the purpose of
controlling credit risk within the investment portfolio with
regard to, for instance, portfolio composition and ratings.
The upper part of the table below shows the market value of
the investment portfolio of the insurance entities broken
down by asset type under Solvency II, while the lower part
provides more details of the bond and other fixed-income
security components of the portfolio.
Investment portfolio of KBC group insurance entities (in millions of EUR, market value)
1
AUDITED
31-12-2024 31-12-2023
Per asset type (Solvency II)
Securities 17 286 16 785
Bonds and alike
16 021 15 540
Shares
1 224 1 205
Derivatives
41 40
Loans and mortgages 2 076 2 160
Loans and mortgages to clients 1 699 1 768
Loans to banks 377 393
Property and equipment and investment property 306 328
Unit-linked investments
2
16 602 14 348
Investments in associated companies 318 298
Other investments 6 7
Total 36 594 33 926
Details for bonds and other fixed-income securities
By external rating
3
Investment grade
99% 99%
Non-investment grade
1% 1%
Unrated
0% 0%
By sector
3
Governments
67% 66%
Financial
4
23% 22%
Other
11% 12%
By remaining term to maturity
3
Not more than 1 year
8% 12%
Between 1 and 3 years
17% 16%
Between 3 and 5 years
18% 14%
Between 5 and 10 years
30% 28%
More than 10 years
28% 30%
1 The total carrying value amounted to 36 759 million euros at year-end 2024 and to 34 155 million euros at year-end 2023. Figures differ from those appearing in Note 4.1 of the
‘Consolidated financial statements’ section, due to asset class reporting under Solvency II.
2 Representing the assets side of unit-linked (class 23) products and completely balanced on the liabilities side. No credit risk involved for KBC Insurance.
3 Excluding investments for unit-linked life insurance. In certain cases, based on extrapolations and estimates.
4 Including covered bonds and non-bank financial companies.
76 Annual Report KBC Group 2024

We are also exposed to a credit risk in respect of (re)
insurance companies, since they could default on their
commitments under (re)insurance contracts concluded with
us. We measure this particular type of credit risk by means of
a nominal approach (the maximum loss) and expected loss
(EL), among other techniques. Name concentration limits
apply. Probability of Default (PD) and expected loss is
calculated using internal or external ratings. We determine
the exposure at default (EAD) by adding up the net loss
reserves and the premiums, and the loss given default (LGD)
percentage is fixed at 50%.
Credit exposure to (re)insurance companies by risk class
1
:
AUDITED
EAD and EL
2
(in millions of EUR)
EAD
2024
EL
2024
EAD
2023
EL
2023
AAA up to and including A- 228 0.1 178 0.1
BBB+ up to and including BB- 14 0.0 3 0.0
Below BB- 0 0.0 0 0.0
Unrated 0 0.0 0 0.0
Total 242 0.1 181 0.1
1 Based on internal ratings.
2 EAD figures are audited, whereas EL figures are unaudited.
Market risk in non-trading activities
Market risk relates to changes in the level or in the volatility of prices in financial markets. The process of managing
our structural exposure to market risks in the non-trading activities covers interest rate risk, gap risk, basis risk, option
risk (such as prepayment risk), currency risk, equity price risk, real estate price risk, credit spread risk and inflation risk.
‘Structural exposure’ encompasses all exposure inherent in our commercial activity or in our investments (banking and
insurance). Trading activities are therefore not included. This process is also known as Asset/Liability Management (ALM).
Managing market risk in non-trading
activities
AUDITED
In the area of market risk in the non-trading activities, the
ExCo is supported by the Group Asset and Liability
Committee (GALCO), which is to provide assistance in the
area of (integrated) balance sheet management at group
level. The governance, rules and procedures and how asset
and liability risk management is performed throughout the
group are outlined in the Non-Trading Market Risk
Management Framework. Its implementation is monitored by
the Market Non-Trading Risk Competence Centre of Group
Risk. Within the risk function, the ALM & Liquidity Risk Council,
chaired by the CRO Markets & Treasury, aims to establish,
facilitate, promote and support the solid and efficient
integration of all tasks assigned to the local and group risk
departments covering ALM and liquidity risks.
The building blocks for managing
market risk in non-trading activities
AUDITED
• Risk identification: all risk identification exercises
described in the ‘Components of sound risk management’
section apply to the non-trading market risk management
context (such as the Risk Scan, the NAPP and the collection
of risk signals). Within the Framework, deep dives (in-depth
analyses) are performed to identify specific risks related to
the market (non-trading) activities and their materiality.
Additionally, the key risk drivers for ALM risk for KBC are
determined and updated annually and regulatory
developments are monitored on a continuous basis.
• Risk measurements: a common rulebook, which
supplements the framework for technical aspects, and a
shared group measurement tool ensure that these risks are
measured consistently throughout the group through,
among others:
- Basis Point Value (BPV) for interest rate risk;
- gap analysis for interest rate risk, related to repricing
mismatches between assets and liabilities and inflation
risk;
- economic sensitivities for currency risk, equity price risk
and real estate price risk.
Measures are complemented by stress tests, covering
back testing of prepayments, net interest income results
under various scenarios, or the impact on regulatory
capital stemming from interest, spread or equity risk
residing within the banking books.
• Setting and cascading risk appetite: we pursue a medium
risk appetite for non-trading market risk. Limits cover all
material market risks resulting from the ALM activities,
being interest rate risk, equity risk, real estate risk and
foreign exchange risk.
• Risk analysis, reporting, response and follow-up: besides
regulatory reporting, structural reporting to the GALCO is
performed. The reporting process includes a sign-off
process to ensure data and processing accuracy.
77Annual Report KBC Group 2024

Market risk in the non-trading activities consists of different
risk sub-types. These are outlined below, including more
details and figures.
Interest rate risk and gap risk
We manage the interest rate risk positions separately for the
banking and insurance activities.
The main technique used to measure interest rate risks is the
10 Basis Point Value (BPV) method, which measures the
extent to which the value of the portfolio would change if
interest rates were to go up by ten basis points across the
entire swap curve (negative figures indicate a decrease in
the value of the portfolio).
Impact of a parallel 10-basis-point increase in the swap1 curve for the KBC group, impact on value2(in millions of EUR) 2024 2023 Banking -55 -45 Insurance 20 11 Total -35 -33
1 In accordance with market standards, sensitivity figures are based on a risk-free curve (swap curve).
2 Full market value, regardless of accounting classification or impairment rules.
For the banking activities, two other methodologies to
measure interest rate sensitivity, which are comparable
across institutions, are the outlier stress test (SOT) on
Economic Value of Equity (EVE) and the outlier stress test
(SOT) on Net Interest Income (NII), both calculated according
to the guidelines of the European Banking Authority.
For the SOT on EVE, six different scenarios are applied to the
banking books (material currencies) every quarter. These
scenarios comprise material parallel shifts up and down,
steepening or flattening of the swap curves or shifts in the
short-term rates only. The worst-case scenario impact (the
most negative impact on the economic value of equity) is set
off against tier-1 capital. For the banking book, the SOT EVE
came to -5.20% of tier-1 capital at year-end 2024. This is well
below the -15% threshold, which is monitored by the
European Central Bank and indicates that the overall interest
rate sensitivity of KBC’s balance sheet is limited.
The SOT EVE is complemented by the SOT NII, which
measures the impact of two scenarios (parallel up and down)
on NII, assuming a constant balance sheet. The impact of the
worst-case scenario on NII is also set off against tier-1
capital. According to this measure, the interest rate
sensitivity of KBC is limited too: it came to -1.55% at year-end
2024, compared to the 5% outlier threshold used by the
supervisory authority.
We also use other techniques to measure potential
imbalances in terms of our interest rate position, such as gap
analysis, the duration approach, scenario analysis and stress
testing. Information regarding the Gap table, detailing
mismatches between assets and liabilities by time bucket, is
provided in the Risk Report.
Concerning the group’s insurance activities, the fixed-
income investments for the Non-life reserves are invested
with the aim of matching the projected pay-out patterns for
claims, based on extensive actuarial analysis.
The non-unit-linked Life activities (class 21) combine a
guaranteed interest rate with a discretionary participation
feature (DPF) fixed by the insurer. The main risks to which the
insurer is exposed as a result of such activities are a low-
interest-rate risk (the risk that return on investments will drop
below the guaranteed level) and the risk that the investment
return will not be sufficient to give clients a competitive
profit-sharing rate. The risk of low interest rates is managed
via a cashflow-matching policy, which is applied to that
portion of the Life insurance portfolios covered by fixed-
income securities. Unit-linked Life insurance investments
(class 23) are not dealt with here, since this activity does not
entail any market risk for KBC.
78 Annual Report KBC Group 2024

Expected cashflows (not discounted), Life insurance activities (in millions of EUR) 0–1 year 1–2 years 2-3 years 3-4 years 4-5 years >5 years Total 31-12-2024 Fixed-income assets backing liabilities, 1 629 942 924 1 072 895 8 507 13 969 guaranteed component Equity - - - - - - 964 Property - - - - - - 286 Other (no maturity) - - - - - - 182 Liabilities, guaranteed component 1 120 941 969 722 714 9 945 14 410 Difference in time-sensitive expected cashflows 509 1 -45 350 181 -1 438 -422 Mean duration of assets 5.67 years Mean duration of liabilities 7.35 years 31-12-2023 Fixed-income assets backing liabilities, 1 787 741 932 787 1 044 8 225 13 516 guaranteed component Equity - - - - - - 937 Property - - - - - - 108 Other (no maturity) - - - - - - 299 Liabilities, guaranteed component 1 595 1 201 807 882 834 9 474 14 793 Difference in time-sensitive expected cashflows 192 -460 125 -95 210 -1 250 -1 278 Mean duration of assets 6.72 years Mean duration of liabilities 7.92 years
As mentioned above, the main interest rate risk for the insurer
is the risk of low rates for a longer period. We adopt a
liability-driven ALM approach focused on mitigating the
interest rate risk in accordance with KBC’s risk appetite. For
the remaining interest rate risk, we adhere to a policy that
takes into account the possible negative consequences of a
sustained decline in interest rates, and have built up
adequate supplementary reserves.
Breakdown of the reserves for non-unit-linked Life insurance by guaranteed interest rate, insurance activities 31-12-2024 31-12-2023 5.00% and higher 3% 3% More than 4.25% up to and including 4.99% 5% 6% More than 3.50% up to and including 4.25% 3% 4% More than 3.00% up to and including 3.50% 9% 9% More than 2.50% up to and including 3.00% 4% 3% 2.50% and lower 74% 73% 0.00% 2% 2% Total 100% 100%
Credit spread risk
We purchase bonds with a view to acquiring interest income.
Their selection is largely conservative and based on criteria
such as credit risk rating, risk/return measures and liquidity
characteristics.
We manage the credit spread risk for, inter alia, the sovereign
bond portfolio by monitoring the extent to which the value of
the sovereign bonds would change if credit spreads were to
go up by 100 basis points across the entire curve. In addition
to the sovereign portfolio, KBC holds a non-sovereign bond
portfolio (banks, corporations, supranational bodies). More
details regarding the bond portfolio components can be
found in the Risk Report.
79Annual Report KBC Group 2024

Exposure to bonds at year-end 2024, KBC Group, carrying value (in millions of EUR)
AUDITED
At fair value For compari- through other son purposes: Economic comprehen- total impact of At amortised sive income Held at year-end +100 basis cost (FVOCI) for trading Total 2023 points1 Sovereign 41 955 18 165 3 360 63 480 59 509 -2 943 Of which2: Czech Republic 11 236 1 977 1 755 14 968 15 611 -708 Belgium 6 568 5 325 833 12 727 11 367 -704 France 3 934 2 809 109 6 851 5 451 -290 Slovakia 3 577 992 307 4 876 4 207 -245 Hungary 2 515 1 203 50 3 767 3 066 -106 Non-sovereign3 8 121 4 374 1 661 14 225 11 908 -388
1 Theoretical economic impact in fair value terms of a parallel 100-basis-point upward shift in the spread over the entire maturity structure. Only a portion of this impact is
reflected in profit or loss and/or equity. Sensitivity figures relate to non-trading positions in sovereign bonds for the banking and insurance businesses (impact on trading book
exposure was quite limited and amounted to -57 million euros at year-end 2024).
2 Top 5 largest sovereign portfolios.
3 An immaterial portfolio held at fair value through profit or loss is included in the Non-sovereign total.
Equity risk
We define equity risk as the risk due to changes in the level or
in the volatility of equity prices. KBC holds equity portfolios
for several purposes. The main exposure to equity is within
our insurance business, where the ALM strategies are based
on a risk-return evaluation, taking into account the market
risk attached to open equity positions. The vast majority of
the equity portfolio is held as an economic hedge for
long-term liabilities of the insurance company. A limited
tactical portfolio (99 million euros) aims to contribute to the
financial objectives through dividend payouts and capital
gains. Smaller equity portfolios are also held by other group
entities, where the portfolios are of a strategic nature, such
as participations in relation to the execution of KBC’s
business model. The sectoral repartition of the portfolio is
included in the Risk Report.
Equity portfolio of the KBC group Banking activities Insurance activities Group 31-12-2024 31-12-2023 31-12-2024 31-12-2023 31-12-2024 31-12-2023 In billions of EUR* 0.24 0.23 1.42 1.39 1.66 1.63 of which unlisted 0.23 0.22 0.24 0.18 0.47 0.4
* The main reason for the difference with ‘Equity instruments‘ in Note 4.1 of the ‘Consolidated financial statements’ section is that shares in the trading book are excluded above,
but included in the table in Note 4.1.
Impact of a 25% drop in equity prices, impact on value (in millions of EUR) 2024 2023 Banking activities -60 -59 Insurance activities -355 -348 Total -415 -407
Net realised gains Net unrealised gains (in income statement) on year-end exposure Non-trading equity exposure (in equity) (in millions of EUR) 31-12-2024 31-12-2023 31-12-2024 31-12-2023 Banking activities - - 22 19 Insurance activities -1 2 339 212 Total -1 2 361 231
80 Annual Report KBC Group 2024

Real estate risk
We define real estate risk as the risk due to changes in the
level or in the volatility of real estate prices. Real estate that
is exclusively used by KBC and its subsidiaries for their own
activities are excluded here. The group’s real estate
businesses hold a limited real estate investment portfolio.
KBC Insurance also holds a diversified real estate portfolio,
as an investment for Non-life reserves and long-term Life
activities. The real estate exposure is viewed as a long-term
hedge against inflation risks and as a way of optimising the
risk/return profile of these portfolios.
Impact of a 25% drop in real estate prices, impact on value (in millions of EUR) 2024 2023 Bank portfolios -116 -94 Insurance portfolios -120 -107 Total -235 -201
Inflation risk
We define inflation risk as the risk due to changes in the level
or in the volatility of inflation rates. Inflation can impact a
financial company in many ways, for instance via changes in
interest rates or operational costs. Inflation in general
therefore is not easily quantifiable as a market risk concept.
However, certain financial products or instruments have a
direct link with inflation and their value is directly impacted
by a change in market expectations. KBC Bank uses
inflation-linked bonds as an opportunity to diversify its asset
portfolio. At KBC Insurance, inflation risk relates specifically
to workmen’s compensation insurance, where, particularly in
the case of permanent or long-term disabilities, an annuity
benefit is paid to the insured person (with the annuity being
linked to inflation by law). KBC Insurance partly mitigates the
risks by investing in inflation-linked bonds and complements
its inflation hedging programme by investing in real estate
and shares, as these assets are traditionally correlated with
inflation and do not have a maturity date.
The banking business holds a portfolio of inflation-linked
bonds with a sensitivity to inflation (BPI) of 5.6 million euros (a
0.10% move in inflation expectations) at the end of 2024. For
the insurance activities the BPI of liabilities was calculated at
-4.9 million euros (increasing the liabilities), against which
inflation-linked bonds are held with a 4.2-million-euro BPI,
supplemented with a 33-million-euro real estate portfolio.
The sensitivity of liabilities to inflation is only known with a
quarter’s delay. Therefore, the insurance figures in this
section are based on the third quarter of 2024.
Foreign exchange risk
We define foreign exchange risk as the risk due to changes in
the level or in the volatility of currency exchange rates. We
pursue a prudent policy as regards our non-trading currency
exposure. Material foreign exchange exposure in the ALM
books of banking entities with a trading book is transferred
via internal deals to the trading book, where it is managed
within the allocated trading limits. The foreign exchange
exposure of banking entities without a trading book and of
insurance and other entities has to be hedged, if material.
However, non-euro-denominated equity holdings in the
insurance portfolio are not hedged, as foreign exchange
volatility is considered part of the investment return.
KBC focuses on stabilising the common equity ratio against
foreign exchange fluctuations.
Impact of a 10% decrease in currency value* Banking Insurance (in millions of EUR) 31-12-2024 31-12-2023 31-12-2024 31-12-2023 CZK -217 -209 -32 -31 HUF -74 -85 -10 -9 BGN -100 -93 -25 -22 USD -3 6 -59 -52
* Exposure for currencies where the impact exceeds 10 million euros in Banking or Insurance.
81Annual Report KBC Group 2024

Hedge accounting
Assets and liabilities management uses derivatives to
mitigate interest rate and foreign exchange risks. The aim of
hedge accounting is to reduce the volatility in P&L resulting
from the use of these derivatives.
KBC decided not to apply hedge accounting to credit and
equity risks. When the necessary criteria are met, it is applied
to remove the accounting mismatch between the hedging
instrument and the hedged item. For more information about
hedge accounting, please see ‘Notes on the accounting
policies’ in the ‘Consolidated financial statements’ section.
Hedging interest rate risks
Hedging derivatives are used to mitigate an interest rate risk
that arises from a difference in the interest rate profile of
assets and their funding liabilities. The hedge accounting
status of a hedge can be associated with either the asset or
the liability item.
Interest rate derivatives can be designated as:
• Hedges of the fair value of recognised assets or liabilities.
Changes in the fair value of derivatives that are
designated and qualify as fair value hedges are recorded
in profit or loss, together with any changes in the fair value
of the hedged asset or liability that are attributable to the
hedged risk. The gain or loss relating to the ineffective
portion is also recognised in profit or loss.
• Hedges of the cashflow of recognised assets and liabilities
which are either certain or highly probable forecasted
transactions. The effective portion of changes in the fair
value of derivatives that are designated and qualify as
cashflow hedges is recognised in the cashflow hedge
reserve within equity. The gain or loss relating to the
ineffective portion is recognised directly in profit or loss.
KBC uses macro hedge accounting strategies for
homogeneous portfolios of smaller items, where the
frequency of occurrence or the relatively small size of the
average operation renders the one-to-one relationship
sub-optimal. This is the case for inter alia mortgages, loans
to SMEs or customer deposits. Macro hedge strategies may
be dynamic and undergo frequent changes based on
balancing the portfolio (‘open portfolio hedge’), among other
things.
The micro hedge designation is used when large individual
assets or liabilities are hedged. Typical assets are large
corporate loans and bond acquisitions for which only the
credit spread profile is relevant. Liabilities can include KBC’s
own issues. Micro hedges are either fair-value or cashflow
based.
Hedging foreign exchange risks
KBC has strategic investments denominated in non-euro
currencies. The net asset value of significant participations is
partly funded in the local currency by deposits and foreign
exchange derivatives, to ensure stability of the common
equity ratio. By using hedges of net investments in foreign
operations, the foreign exchange component is reported in
equity until realisation (unwinding of funding due to
liquidation, dividend payments or other decreases in net
asset value).
KBC also has a limited portfolio of foreign-currency-
denominated bonds that are funded through euro proceeds.
These bonds are hedged by cross-currency interest rate
swaps to create a synthetic EUR fixed-rate interest income.
Cashflow hedge accounting (micro-hedge) is performed to
mitigate foreign exchange volatility.
Hedge effectiveness
Hedge effectiveness is determined at the inception of the
hedge relationship, as well as through periodic prospective
and retrospective effectiveness assessments, to ensure that
a relevant relationship between the hedged item and the
hedging instrument exists and remains valid.
Effectiveness testing
For interest rates, several prospective and retrospective tests
are performed to ensure the relationship between the
hedged item and the hedging instrument qualifies for the
hedge accounting strategy.
Prospective tests are mostly based either on a sensitivity
analysis (verifying if the basis point value of the hedged
portfolio relative to the hedging instrument stays within the
80-125% interval) or volume tests (if the principal amount of
hedge-eligible items exceeds the notional volume of
hedging instruments expected to be repriced or repaid in
each specified time bucket).
For macro cashflow hedges, extensive forward-looking
analyses assess the sufficient likelihood that the future
volume of hedged items will largely cover the volume of
hedging instruments. A hedge ratio – measuring the
proportion of a portfolio that is hedged by derivatives – is
calculated for each hedging strategy.
The retrospective effectiveness test of the hedge
relationship is periodically carried out by comparing the
change in fair value of the portfolio of hedging instruments
relative to the change in fair value of the hedged eligible
items imputable to the hedged risk over a given period (the
ratio of fair value changes remains within the 80-125%
interval).
For foreign exchange hedging, effectiveness is ensured by
adjusting the sum of the nominal amount of the funding
deals and foreign exchange derivatives to the targeted
hedge amount of the strategic participations. For foreign-
currency-denominated bonds swapped into euro, the start
date, maturity date and coupon dates are also matched.
82 Annual Report KBC Group 2024

Sources of hedge ineffectiveness
Ineffectiveness for interest rate swaps may occur due to:
• differences in relevant terms between the hedged item
and the hedging instrument (it can include discrepancies
in interest curves and in periodicity);
• a reduction in volume of the hedged item that would fall
under the volume of hedging instruments for any time
bucket;
• the credit value adjustment on the interest rate swap not
being matched by the loan. However, hedging swaps are
fully collateralised or traded through clearing houses and
the credit value adjustment is limited.
Regarding the hedge of the net investment in foreign
currency, the interest rate component from the hedging
instruments can be a source of inefficiency. The counterparty
risk on the hedging instrument, even if collateralised, can
also be a source of inefficiency.
Discontinuation of hedge accounting
Hedge accounting strategies failing the effectiveness tests
are discontinued. A de-designated hedging instrument can
be re-designated in a new hedge relationship. Effective
hedge accounting strategies may also be discontinued for
technical or strategic reasons. Any impact on profit and loss
arising from hedge ineffectiveness and discontinuation is
reported to the GALCO.
Capital sensitivity to market movements
Available capital can be impacted by changes in the value
of balance sheet items (e.g., sovereign and corporate bonds
and equity) booked at fair value through other
comprehensive income or fair value through profit or loss.
This impact can be negative when the market is stressed,
which can be triggered by a number of market parameters,
including swap rates or bond spreads that increase or equity
prices that fall. At KBC, we use this capital sensitivity as a
common denominator to measure the vulnerability of the
banking book to different market risk shocks.
CET1 sensitivity to main market drivers (under Danish compromise), KBC group (as % points of CET1 ratio), IFRS impact caused by: 31-12-2024 31-12-2023 +100-basis-point parallel shift in interest rates -0.1% -0.1% +100-basis-point parallel shift in spread -0.4% -0.2% -25% in equity prices -0.2% -0.1%
The table shows that the sensitivity of capital to market
movements is limited. The sensitivity to spread volatility has
increased over the past year as KBC has opted to increase
the part of its bond portfolio that is booked at fair value
through other comprehensive income. However, the majority
of the portfolio is deemed to be held to maturity and is
therefore booked at amortised cost. Those positions do not
impact capital unless they are liquidated before maturity.
Note that KBC holds material amounts of liquid assets (see
the liquidity section) to absorb unexpected funding outflows.
If these are not sufficient, KBC can still enter into repo
agreements to access liquidity rather than having to realise
losses on the bonds.
83Annual Report KBC Group 2024

Liquidity risk
Liquidity risk is the risk that an organisation will be unable to meet its liabilities and obligations as they come due,
without incurring higher-than-expected costs.
Managing liquidity risk
AUDITED
In the area of liquidity risk, the ExCo is supported by the
Group Asset and Liability Committee (GALCO), which
management at group level, including liquidity and funding.
The governance, rules and procedures and how asset and
liability risk management is performed throughout the group
are outlined in the Liquidity Risk Management Framework. Its
implementation is monitored by the Liquidity Risk
Competence Centre of Group Risk. Within the risk function,
the ALM & Liquidity Risk Council aims to establish, facilitate,
tasks assigned to the local and group risk departments.
The building blocks for managing
liquidity risk
AUDITED
• Risk identification: all risk identification exercises described
in the ‘Components of sound risk management’ section
apply to the liquidity risk management context (such as the
Risk Scan, the NAPP and the collection of risk signals).
• Risk measurement: identified liquidity risks are measured
by means of both regulatory metrics such as the Liquidity
Coverage Ratio (158% in 2024) and the Net Stable Funding
Ratio (139%), and internal metrics on, for example, the
liquid asset buffer. In the maturity analysis table below,
KBC’s structural liquidity risk is illustrated by grouping the
assets and liabilities according to the remaining term to
maturity (using the contractual maturity date). The
difference between the cash inflows and outflows is
referred to as the ‘net funding gap’.
• Setting and cascading risk appetite: the GALCO monitors
the development of the liquidity risk profile in relation to
the limits. KBC’s low risk profile for liquidity risk is illustrated
by the fact that KBC is well above the thresholds for
regulatory and internal liquidity measures. The GALCO
decides on and periodically reviews a framework of limits,
early warning levels and policies on liquidity risk activities
that is consistent with the group’s risk appetite.
• Risk analysis, reporting, response and follow-up: to
mitigate day-to-day and intraday liquidity risk, group-
wide trends in funding liquidity and funding needs are
monitored continuously by the Group Treasury and Risk
function. A Liquidity Contingency Plan drafted by the
Group Treasury function is in place to address possible
liquidity crisis situations and is tested at least annually.
• Stress testing: liquidity stress tests assess KBC’s liquidity
contingency risk by measuring how the liquidity buffer of
the group’s bank and insurance entities changes under
extreme stress scenarios. This buffer is based on
assumptions regarding liquidity outflows and liquidity
inflows resulting from actions to increase liquidity. The
liquidity buffer has to be sufficient to cover liquidity needs
over (i) a period that is required to restore market
confidence in the group following a KBC-specific event, (ii)
a period that is required for markets to stabilise after a
general market event and (iii) a combined scenario, which
takes a KBC-specific event and a general market event
into account. This information is fed into the Liquidity
Contingency Plan.
Moreover, KBC has an Internal Liquidity Adequacy
Assessment Process (ILAAP) in place to ensure it has robust
strategies, policies, processes and systems for identifying,
measuring, managing and monitoring liquidity risk and
funding positions over all appropriate time horizons, in order
to maintain adequate levels of liquidity buffers.
Maturity analysis
AUDITED
The table below shows the maturity analysis of the total
inflows and outflows. Note that the structural liquidity gap
shown in the table does not include the concept of a Liquid
Asset Buffer (i.e. the fact that KBC can monetise its liquid
bonds at all times via repo or pledging to central banks).
Rather, in this table, cash-generating capacity from bonds is
only visible at final maturity of the bond. As a result, the net
funding gaps shown in the first buckets in the table are a
clear overestimation of the risk as in practice KBC would
monetise its Liquid Asset Buffer (95 billion euros at year-end
2024 (101 billion euros, 12-month average over 2024), of which
53 billion euros in unencumbered central bank eligible assets
and the remainder in cash and withdrawable central bank
receivables) to address these net outflows.
At year-end 2024, KBC had 53 billion euros’ worth of
unencumbered central bank eligible assets, 44 billion euros
of which in the form of liquid government bonds (83%). The
remaining available liquid assets were mainly covered bonds
(14%). Most of the liquid assets are expressed in our home
market currencies. The funding from non-wholesale markets
was accounted for by stable funding from core customer
segments in our core markets.
provides assistance in the area of (integrated) balance sheet
promote and support the solid and efficient integration of all
funding mix and concentration and the composition of the
84 Annual Report KBC Group 2024

Liquidity risk (excluding intercompany deals)* <= 1 1–3 3–12 1–5 >5 On Not (in billions of EUR) month months months years years demand defined Total 31-12-2024 Total inflows 7 14 29 105 119 7 55 336 Total outflows 66 25 19 26 7 163 30 336 Professional funding 22 0 0 1 0 8 0 32 Customer funding 26 14 16 13 6 154 0 229 Debt certificates 15 10 3 13 1 0 0 43 Other 3 0 0 0 0 0 3 0 3 3 Liquidity gap (excl. undrawn commitments) -59 -11 10 79 112 -155 25 0 Undrawn commitments - - - - - - -49 -49 Financial guarantees - - - - - - -11 -11 Net funding gap (incl. undrawn commitments) -59 -11 10 79 112 -155 -35 -60 31-12-2023 Total inflows 4 12 27 100 115 7 47 312 Total outflows 49 30 20 26 6 152 29 312 Professional funding 10 3 1 0 0 4 0 18 Customer funding 24 14 14 13 5 148 0 218 Debt certificates 11 13 5 13 1 0 0 43 Other 4 0 0 0 0 0 29 33 Liquidity gap (excl. undrawn commitments) -45 -18 7 74 108 -145 18 0 Undrawn commitments - - - - - - -48 -48 Financial guarantees - - - - - - -11 -11 Net funding gap (incl. undrawn commitments) -45 -18 7 74 108 -145 -41 -59
* Cashflows include interest rate flows consistent with internal and regulatory liquidity reporting. Inflows/outflows that arise from margin calls posted/received for MtM positions
in derivatives are reported in the ‘Not defined’ bucket. ‘Professional funding’ includes all deposits from credit institutions and investment firms, as well as all repos. Instruments
are classified on the basis of their first callable date. Some instruments are reported at fair value (on a discounted basis), whereas others are reported on an undiscounted basis
(in order to reconcile them with Note 4.1 of the ‘Consolidated financial statements’ section). Due to the uncertain nature of the maturity profile of undrawn commitments and
financial guarantees, these instruments are reported in the ‘Not defined’ bucket. The ‘Other’ category under ‘Total outflows’ contains own equity, short positions, provisions for
risks and charges, tax liabilities and other liabilities.
Funding information
We have a strong retail/mid-cap deposit base in our core markets, resulting in a stable funding mix. A significant portion of the
funding is attracted from core customer segments and markets.
Funding mix Information 31-12-2024 31-12-2023 Funding from customers1 Demand deposits, term deposits, savings deposits, other deposits, 75% 79% savings certificates and debt issues placed in the network Debt issues placed with institu- Including covered bonds, tier-2 issues, KBC Group NV senior debt 8% 9% tional investors Net unsecured interbank funding Including TLTRO 3% 4% Net secured funding2 Repo financing -0% -7% Certificates of deposit – 5% 6% Total equity Including AT1 issues 8% 9% Total 100% 100% in billions of EUR 306 276
1 Some 86% of this funding relates to private individuals and SMEs at year-end 2024.
2 Negative on account of KBC carrying out more reverse repo transactions than repo transactions.
85Annual Report KBC Group 2024

Market risk in trading activities
Market risk relates to changes in the level or in the volatility of prices in financial markets. Market risk in trading activities
is the potential negative deviation from the expected value of a financial instrument (or portfolio of such instruments) in
the trading book due to changing interest rates, exchange rates, equity or commodity prices, etc.
KBC’s strategic objectives in undertaking trading activities
are to offer sound and appropriate financial products and
solutions to its clients in order to help them manage their risks
and access capital, and to engage in certified market-
making activities. In addition to the small (long or short)
positions that occur during our certified market-making
activities, our focus on client-driven, client-facilitation-
related business leaves us with some residual market risks,
which are necessary to enable us to fulfil our intermediary
role towards clients.
Traditionally, the focus of our trading activities is on interest-
rate instruments, while activity on the foreign exchange
markets and in relation to equity is limited. In order to ensure
the tradability of these positions, the following principles
apply:
• Trading activity is limited to linear and non-linear interest-
rate, foreign-exchange and equity products, as well as to
bonds, bond futures and government debt;
• Commodity-related products are only allowed on a
back-to-back basis.
These activities are carried out by our dealing rooms in our
home countries as well as via a minor presence in the UK and
Asia.
Managing market risk
AUDITED
In the area of market risk in the trading activities, the ExCo is
supported by the Group Markets Committee (GMC), which
advises on risk monitoring and capital usage with respect to
trading activities. The governance, rules and procedures on
how trading risk management should be performed
throughout the group are outlined in the Trading Market Risk
Management Framework.
The building blocks for managing
market risk
AUDITED
• Risk identification: all risk identification exercises
described in the ‘Components of sound risk management’
section apply to the trading market risk management
context (such as the Risk Scan, the NAPP and the collection
of risk signals). Furthermore, we analyse the results of value
and risk calculations, market developments, ESG risk
assessments, industry trends, new modelling insights,
changes in regulations, etc.
• Risk measurement: we measure trading risk via a number
of parameters including nominal positions, concentrations,
Basis Point Value (BPV) and other sensitivities and scenario
analysis. However, the primary tool we use for measuring
and monitoring market risk exposures in the trading book is
the Historical Value-at-Risk (HVaR) method, which gives an
estimate of the amount of economic value that might be
lost on a given portfolio due to market risk over a defined
holding period, with a given confidence level.
• Setting and cascading risk appetite: the risk appetite for
market risk in trading activities is set at low and is overseen
by the GMC via a risk limit framework consisting of a
hierarchy of limits and early warning indicators. These are
defined down to trading desk level and, in addition to
HVaR, include a series of concentration limits, basis-point-
value limits and (stress) scenario limits.
• Risk analysis, reporting, response and follow-up: in
addition to the more proactive elements described under
‘Risk identification’, this involves compiling the necessary
external and internal reports, issuing advice on business
proposals, and monitoring and advising on the risks
attached to the positions. The GMC, which meets every
month, receives an extensive Core Report as well as
periodic and ad hoc memos and reports. The GMC also
receives a dashboard halfway between the monthly
meetings whose frequency is increased (up to daily, if
needed) depending on market circumstances.
• Stress testing: in addition to the risk limit framework, we
conduct extensive stress tests on our positions on a weekly
basis. The stress tests are discussed at GMC meetings to
enable the members to gain an insight into potential
weaknesses in the positions held by the group.
Market risk profile
AUDITED
Our Approved Internal Model is used to calculate the vast
majority of market risk regulatory capital. Regulatory capital
for business lines not included in the Approved Internal Model
is measured according to the Standardised approach. The
tables below show the Management HVaR (using our
Approved Internal Model and a 99% confidence interval,
one-day holding period) for the residual trading positions at
all the dealing rooms of KBC that can be modelled by HVaR
and the breakdown per risk type.
86 Annual Report KBC Group 2024

Market risk (Management HVaR) (in millions of EUR) 2024 2023 Average for 1Q 7 7 Average for 2Q 5 6 Average for 3Q 5 6 Average for 4Q 4 7 As at 31 December 4 8 Maximum in year 10 10 Minimum in year 3 4
Average for Average for Breakdown by risk factor of trading HVaR for the KBC group (Management HVaR; in millions of EUR) 2024 2023 Interest rate risk 4.9 6.3 FX risk 0.5 0.9 Equity risk 1.9 2.1 Diversification effect -2.0 -2.8 Total HVaR 5.2 6.5
Technical insurance risk
AUDITED
Technical insurance risk is the risk of loss due to (re)insurance liabilities or of adverse developments in the value of (re)
insurance liabilities related to Non-life, Life and Health (re)insurance contracts, stemming from uncertainty about the
frequency and severity of losses.
Specific information on the insurance activities is provided in
Notes 3.6 and 5.6 of the ‘Consolidated financial statements’
section.
Managing technical insurance risk
In the area of technical insurance risk, the ExCo is supported
by the Group Insurance Committee (GIC), which monitors
risks and capital regarding the (re)insurance activities. The
governance, rules and procedures on how technical
insurance risk management should be performed throughout
the group are outlined in the Technical Insurance Risk
Management Framework. Its implementation is monitored by
Group Risk and its Technical Insurance Risk Competence
Centre. The Competence Centre is responsible for providing
support for local implementation and for the functional
direction of the insurance risk management processes of the
insurance subsidiaries. The actuarial function helps to ensure
continuous compliance with the requirements regarding the
calculation of technical provisions and the risks arising from
this calculation and assesses the reinsurance policy and
underwriting risk.
The building blocks for managing
technical insurance risk
• Risk identification: all risk identification exercises
described in the ‘Components of sound risk management’
section apply to the technical insurance risk management
context (such as the Risk Scan, the NAPP and the collection
of risk signals). Furthermore, special attention is paid to the
adequacy of the technical provisions. Part of the risk
identification process consists of reliably classifying all
insurance risks that may be triggered by (re)insurance
contracts. Under the Solvency II directive, insurance
activities are split up into three main categories, namely
Life, Non-life and Health, each subdivided into
catastrophe and non-catastrophe risks.
• Risk measurement: technical insurance risk is measured by
means of both regulatory measures, such as Solvency
Capital Requirement (SCR) and Best Estimate valuation of
insurance liabilities, and internal measures on, for example,
economic profitability of insurance portfolios and Non-life
capital requirements based on internal stochastic models.
These measures of insurance risk are used consistently
throughout the group.
• Setting and cascading risk appetite: the risk appetite for
technical insurance risk is set at low and is overseen by the
GIC, where the defined limits are reviewed and reported.
The insurance risk limits are determined and set at group
level and further cascaded to the local entities. The
necessary compliance checks are conducted.
• Risk analysis, reporting, response and follow-up: regular
reporting and follow-up of the risk measurements is
presented in the Insurance Integrated Risk Report, which is
submitted to the Group Insurance Committee on a
quarterly basis. In addition, relevant risk signals are
reported on a regular basis as part of the regular
(Insurance) Integrated Risk Report.
• Stress testing: internal and externally driven (regulatory)
stress tests and sensitivity analyses are performed and the
87Annual Report KBC Group 2024

outcome of these tests is reported in the annual Own Risk
and Solvency Assessment report (ORSA) and other reports
(such as the Regular Supervisory Report (RSR) and the
Insurance Integrated Risk Report).
Reinsurance
The insurance portfolios are protected against the impact of
large claims or the accumulation of losses by limits per policy,
diversification of the portfolio across product lines and
geographical regions, and reinsurance.
Reinsurance programmes can be divided into three main
groups, i.e. property insurance, liability insurance and
personal insurance. Most of the reinsurance contracts are
concluded on a non-proportional basis, which provides
specific cover against the impact of large loss events.
The independent insurance risk function is responsible for:
• advising on the restructuring of the reinsurance
programme during the annual negotiations;
• informing management on a quarterly basis of the top
natural catastrophe claims and how these were managed
and mitigated;
• conducting ad hoc analyses/deep dives following risk
signals or management requests to analyse possible
trends in catastrophe events.
Actuarial function
The Solvency II regulatory framework requires an actuarial
function to be installed as one of the independent control
functions (in addition to the risk management, compliance
and internal audit functions) at the level of each insurance
entity and at insurance group level. An actuarial function
holder is appointed to take charge of the actuarial function’s
activities. Basically, the task of such a function is to ensure
that the company’s Board of Directors or Supervisory Board
is fully informed of technical actuarial topics in an
independent manner.
The main tasks of the actuarial function are to:
• ensure the appropriateness of the methodologies and
underlying models used, as well as the assumptions made,
in the calculation of technical provisions;
• assess the sufficiency and quality of the data used in the
calculation of technical provisions;
• compare best estimates against experience;
• inform the administrative, management or supervisory
body of the reliability and adequacy of the calculation of
technical provisions;
• express an opinion on the overall underwriting policy;
• express an opinion on the adequacy of reinsurance
arrangements; and
• contribute to the effective implementation of the risk
management, in particular with respect to the risk
modelling underlying the calculation of the capital
requirements.
Sensitivity to parameters underlying the
IFRS 17 valuation of insurance liabilities
The table gives an overview of the sensitivity of IFRS 17
insurance liabilities to a change at the reporting date of a
selection of parameters which are used in the calculation of
the IFRS 17 fulfilment cashflows. Liabilities on the balance
sheet which are in scope of IFRS 9 reporting, mainly
unit-linked liabilities, are not included in the sensitivity
reporting below. The impact is reported before reinsurance,
given the small impact which the reinsurance has on the
sensitivities.
88 Annual Report KBC Group 2024

31-12-2024 31-12-2023 Sensitivity (in millions of EUR) Discounted Contrac- Result Equity: OCI Discounted Contrac- Result Equity: OCI fulfilment tual Service before tax before tax fulfilment tual Service before tax before tax cashflows Margin cashflows Margin Life insurance: balance 11 782 2 143 - - 11 745 2 117 - - Impact of: Mortality rates: +1% 6 -4 -0 -1 5 -3 0 -2 Mortality rates: -1% -6 5 -0 1 -5 3 0 2 Morbidity rates: +1% 6 -6 -1 1 6 -6 -0 1 Morbidity rates: -1% -6 7 0 -1 -6 6 0 -1 Expenses: +5% 55 -57 -7 9 49 -54 -3 9 Expenses: -5% -55 57 6 -9 -49 53 3 -9 Lapse rate: +10% 58 5 3 -66 55 50 7 -112 Lapse rate: -10% -60 -5 -4 69 -58 -52 -6 116 Non-life insurance: balance 2 444 - - - 2 238 - - - Impact of: Unpaid claims & expenses: +5% 122 - -125 3 111 - -116 5 Unpaid claims & expenses: -5% -122 - 125 -3 -111 - 116 -5
Comparison of IFRS 17 carrying amount and amounts payable for Life insurance
contracts
In this table the amounts ‘payable on demand’ for Life
insurance contracts measured under IFRS 17 are set off
against the carrying amount of those contracts. The carrying
amount is defined as the sum of the present value of future
cashflows of those contracts increased by the risk
adjustment and the contractual service margin. ‘Amounts
payable on demand’ is the amount to which policyholders
are contractually entitled if they were to surrender their
contracts on the reporting date, before deduction of the
surrender fees.
31-12-2024 31-12-2023 Life insurance (in millions of EUR) Amounts Carrying Difference Amounts Carrying Difference payable on amount of payable on amount of demand insurance demand insurance liabilities liabilities Unit-linked (IFRS 17) 808 842 34 788 811 24 Non-unit-linked 11 866 12 099 232 12 825 12 804 -21 Hybrid contracts 1 165 985 -180 233 246 13 Total 13 839 13 925 87 13 846 13 862 16
89Annual Report KBC Group 2024

Sensitivity of the IFRS 17 valuation of insurance liabilities to a change
in the discount curve
The table shows the sensitivity to a 30-bp parallel shift up and down of the discount curve.
31-12-2024 31-12-2023 Sensitivity (in millions of EUR) Fulfilment Contrac- Result Equity: OCI Fulfilment Contrac- Result Equity: OCI cashflows tual Service before tax before tax cashflows tual Service before tax before tax Margin Margin Life insurance Assets: balance 14 729 - - - 14 466 - - - Impact of discount rate +0.30% -230 0 4 -234 -220 0 2 -222 Impact of discount rate -0.30% 238 0 -4 242 228 0 -2 230 Insurance liabilities (excl. unit-linked): balance 11 782 2 143 - - 11 745 2 117 - - Impact of discount rate +0.30% -334 6 -0 328 -306 5 1 300 Impact of discount rate -0.30% 364 -7 1 -358 354 -6 -0 -348 Combined effect - - - - - - - - Impact of discount rate +0.30% 104 -6 3 95 86 5 3 78 Impact of discount rate -0.30% -126 7 -3 -116 -126 -6 -2 -118 Non-life insurance Assets: balance 4 204 - - - 4 152 - - - Impact of discount rate +0.30% -13 0 0 -13 -12 0 0 -12 Impact of discount rate -0.30% 13 0 0 13 12 0 0 12 Insurance liabilities: balance 2 444 - - - 2 238 - - - Impact of discount rate +0.30% -36 0 0 35 -31 0 0 31 Impact of discount rate -0.30% 38 0 -0 -37 31 0 -0 -31 Combined effect - - - - - - - - Impact of discount rate +0.30% 23 0 0 23 19 0 0 19 Impact of discount rate -0.30% -25 0 -0 -24 -19 0 -0 -19
90 Annual Report KBC Group 2024

Non-life claims development
The table below provides a disclosure about claims development (the Non-life Building Block Approach is excluded because of
immateriality). For each accident year, this table shows a yearly follow-up of the total claim charge throughout the years
following the year in which the claims occurred. The estimate of the future cashflows is obtained by subtracting for each
accident year the amounts that have already been paid from the total estimated claims charge of that year. As IFRS
17-compliant data is available from 2022 on, the three last diagonals show the claims charge calculated according to IFRS 17
principles. The figures in italics were reported under IFRS 4 and are added for reference.
Accident year Non-life claims development, KBC insurance (in millions of EUR) <2015 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Estimates of undiscounted cumula- tive claims before reinsurance At the end of accident year – 940 1 024 1 000 1 072 1 149 1 018 1 262 1 097 1 091 1 247 – 1 year later – 796 888 882 939 1 019 897 1 022 1 091 1 234 – – 2 years later – 751 825 849 894 989 782 1 020 1 086 – – – 3 years later – 720 811 833 876 895 793 1 028 – – – – 4 years later – 708 806 816 782 903 779 – – – – – 5 years later – 697 787 743 786 888 – – – – – – 6 years later – 690 746 743 782 – – – – – – – 7 years later – 651 751 740 – – – – – – – – 8 years later – 654 751 – – – – – – – – – 9 years later – 652 – – – – – – – – – – Estimates of undiscounted cumula- tive claims before reinsurance at reporting date - 652 751 740 782 888 779 1 028 1 086 1 234 1 247 9 188 Cumulative actual claims paid before reinsurance in the last 10 accident years - 597 662 666 704 775 676 857 871 861 672 7 340 Total (cumulative) undiscounted future cashflows before reinsurance 703 55 89 74 78 113 103 172 216 372 576 2 550 Effect of discounting - - - - - - - - - - - -375 Effect of (discounted) risk adjustment - - - - - - - - - - - 256 Other - - - - - - - - - - - -6 Discounted insurance liabilities for incurred claims before reinsurance - - - - - - - - - - - 2 426 Discounted ceded reinsurance as- sets for incurred claims - - - - - - - - - - - 116
Non-financial risks
Operational risk
Managing operational risk
In the area of operational risk, the ExCo is supported by the
Group Internal Control Committee (GICC) to strengthen the
quality and effectiveness of KBC’s internal control system.
The governance, rules and procedures on the performance
of operational risk management throughout the group are
outlined in the Operational Risk Management Framework.
The framework is fully aligned with the Basel requirement for
Operational Resilience and the EU Digital Operational
Operational risk is the risk of inadequate or failed internal processes, people and systems or of sudden man-made or
natural external events.
Resilience Act (DORA) – Regulation (EU) 2022/2554. Its
implementation is coordinated and monitored by the
Operational Risk Competence Centre of Group Risk, which
consists of risk experts at both group and local level. The
Competence Centre cooperates with other expert functions
covering the nine operational risk sub-types: Information
Technology, Information Security, Business Continuity,
Process, Third-Party and Outsourcing, Model, Legal, Fraud,
and Personal and Physical Security risk.
91Annual Report KBC Group 2024

The building blocks for managing operational risks
• Risk identification: KBC identifies its operational risks
based on various sources, such as following up on
legislation, using the output of the New and Active
Products Process (NAPP), performing risk scans, analysing
key risk indicators and performing independent control
monitoring activities and root cause analysis of
operational incidents, near misses and losses. A structured
repository of operational risks and related mitigating
controls is in place, with a review process ensuring that the
repository remains in line with new or emerging operational
risk sub-types. Risk self-assessments on the operational
business lines are performed by the first Line of Defence
with the aim of identifying additional local risks and
possible operational control gaps. Dynamic trigger-based
risk assessments are executed based on the continuous
screening of both internal and external risk events. On top
of that, risk signals are collected by regular proactive
scanning of the environment in order to identify external or
internal (cyber) trends which could negatively impact our
company in a direct or indirect way.
• Risk measurement: uniform group metrics and scales are in
place to determine individual (inherent and residual)
operational risk levels in the business lines and to underpin
the risk profile of an entity in a comprehensive and
integrated way across operational risk sub-types and
across KBC and its entities.
In addition, KBC closely monitors the maturity of its internal
control environment in a data-driven way. This allows us to
frequently assess and report on maturity and take action
when necessary. Once a year, these insights also serve as
input for the regulatory required Internal Control
Statement (ICS), which evaluates how well KBC is in control
of and manages its operational risks.
To determine the degree of assurance that a control
measure mitigates a particular risk as expected, we
measure the ‘control effectiveness’ via several metrics such
as employee phishing campaign click rates, website
vulnerability patching speeds and the number of
processing errors.
• Setting and cascading risk appetite: overall, KBC strives
for a low operational risk environment in a business-as-
usual situation. However, in case of projects that introduce
a large-scale transformation (such as mergers and
acquisitions), the level is increased to ‘the lower end of
medium’ whilst maintaining strict boundaries. The
operational risk appetite is set at the overarching level as
well as at the level of each operational risk sub-type (see
below). The current operational risk profile in relation to the
operational risk appetite is discussed quarterly as part of
the Operational and Compliance Risk Report to the GICC.
• Risk analysis, reporting, response and follow-up:
operational risk analysis and reporting aim to give a
transparent and comprehensive, forward-looking and
ex-post view on the development of the risk profile and the
context in which KBC operates. Structural reporting to the
GICC (via the Operational and Compliance Risk Report), to
the Board, the RCC and the ExCo (via the Integrated Risk
Report) takes place on a quarterly basis, and to the Global
IT Committee (GITCO) on a monthly basis. The maturity of
the internal control environment is reported once a year to
the ExCo, the RCC and the Board and to the NBB, the
FSMA and the ECB via the annual Internal Control
Statement. These are complemented by regular or ad hoc
reports that provide additional details on the
aforementioned reports.
• Stress testing: stress testing in the context of operational
risk is done by using scenarios with a potential negative
impact on KBC’s (financial) position in order to prepare the
KBC entities for (extreme) crisis situations. These scenarios
describe specific operational risk events ranging from
plausible to exceptional or even extreme and/or
movements in operational risk loss impacts. Stress testing
enables KBC entities, for example, to deal with local cyber
crises and handle major incidents. To ensure that
Information Security and Information Technology risks are
effectively mitigated, a number of challenges are
performed throughout the group on a regular basis, such
as technical cyber resilience and readiness testing,
detailed investigations, employee phishing tests, crisis
simulations and other incident drills.
Dedicated focus to manage our major operational risks:
Information risk management
Information risk management encompasses the risks of
information security and information technology, driven by an
ever changing cyber threat landscape. Information security
risk is one of the most material risks that financial institutions
face today, driven by factors such as geopolitical tensions,
organised cybercrime, technological growth and innovation
(e.g., use of AI for phishing, deepfakes, etc.) and internal
factors (such as further digitalisation, experiments with
emerging technology, and so on). These threats could lead to
a loss of integrity, loss of confidentiality and unplanned
unavailability, which could impact our data, the availability of
our operations and services, KBC’s reputation, and so on.
Cyber risks are structurally and continuously managed
throughout the group. KBC actively identifies cyber risks by
actions such as monitoring the cyber threat landscape,
regular ethical hacks, and targeted training and awareness
programmes. By combining cyber threat intelligence with
insights and findings from these actions, we proactively
identify, assess and understand cyber risks that could target
our company and stakeholders, enhancing our ability to
defend against and respond to cyber threats effectively.
More information about how information risk (including cyber
risks) is managed can be found in the Sustainability
Statement in this report or in the KBC Risk Report.
92 Annual Report KBC Group 2024

Third-party and outsourcing risk management
Third-party and outsourcing risk is the risk stemming from
problems regarding continuity, integrity and/or quality of the
activities outsourced to third parties (whether or not within
the group) or performed in collaboration with third parties, or
from the equipment or staff made available by third parties.
In view of the potential impact on KBC and its clients, it is
important to identify, assess, monitor, and control risks
related to third-party relationships throughout the entire life
cycle of those relationships. Therefore, effective third-party
risk management follows the stages of the life cycle for
third-party arrangements, which includes due diligence, risk
assessment, contracting, onboarding, ongoing monitoring
and termination.
Outsourcing risk management is a specific aspect of
third-party risk management (TPRM). Regulatory
requirements regarding follow-up, measurement and
reporting of outsourcing risk have increased over the years
(for example, via DORA and the EBA and EIOPA Guidelines on
Outsourcing). As contracting external service providers is an
essential part of operational processes and intra-group
outsourcing is an important aspect of the KBC strategy, the
need to focus on outsourcing risk remains a key element of
group-wide risk management.
To ensure robust management of its outsourcing processes
and risks, KBC has put in place a group-wide outsourcing
framework. The framework comprises a group-wide
Outsourcing and DORA TPRM policy which sets out the
principles and strategy for outsourcing activities and aims to
standardise the approach adopted when an activity is
considered for outsourcing. It is supported by the
Outsourcing & DORA TPRM Process Guidance to ensure a
strict and standardised approach throughout the group,
applicable to both outsourcing and nearshoring.
Controls are in place to adequately mitigate risks arising from
either external or internal outsourcing during the full life cycle
of a service provider. Qualitative risk governance of KBC
outsourced activities is ensured by regular risk assessments,
their frequency being defined by the criticality of the
outsourced activity.
Model risk management
KBC’s data-driven strategy is underpinned by an expanding
set of advanced mathematical, statistical and numerical
models to support decision-making, measure and manage
risk, manage businesses and streamline processes. AI-based
models are also becoming an increasingly common feature
across the different business domains (banking, insurance,
asset management). As the use of models increases, so does
the importance of recognising, understanding and mitigating
risks related to the design, implementation or use of models,
in order to protect both KBC and its clients. KBC’s model risk
management standards establish a framework that allows
us to identify, understand and efficiently manage model risk,
similar to any other risk type. The scope of this framework
covers in particular generative AI models and high-risk AI
models, in line with the EU AI Act.
As the use of AI models is an important aspect in KBC’s
strategy, it is important to ensure that the output of the AI
models we use is reliable and aligned with KBC’s values and
principles. To achieve this, KBC adheres to the Trusted AI
Framework.
Business continuity management, including crisis
management
To ensure availability of critical services, KBC has a business
continuity management (BCM) process in place. This ensures
that regular business impact analysis is performed and
recovery time objectives are defined and implemented.
The BCM process is a mature process within the group, with a
focus on both prevention and response. Crisis prevention
focuses on reducing the probability of a crisis, while crisis
response focuses on the effective and efficient handling of a
crisis should one occur. To enable this, practical scenarios
called runbooks are available on how to handle an ongoing
crisis. Lessons learned from any (internal or external) incident
or crisis are drawn and, when needed, our BCM plans are
adapted.
93Annual Report KBC Group 2024

Compliance risk
Compliance risk is the risk that a judicial, administrative or regulatory sanction is imposed on an institution and/or its
employees because of non-compliance with the laws and regulations pertaining to the compliance domains, resulting
in loss of reputation and potential financial loss. This loss of reputation can also be the result of non-compliance with
the internal policy in this regard and with the institution’s own values and codes of conduct in relation to the integrity of
its activities.
Managing compliance risks
As a matter of priority and as a minimum, the scope of
activities of the compliance function is to be concentrated
on the following areas of integrity: Anti-Money Laundering
and Countering the Financing of Terrorism, Tax Fraud
Prevention, Investor Protection and Protection of the
Policyholder, Data Protection and AI including AI Act
Compliance, Business Ethics, Consumer Protection,
Governance aspects of CRD IV and V, Solvency II and/or
local legislation and Sustainable Finance and Sustainability.
Compliance risk is covered by a holistic framework that
includes the Compliance Charter, the Integrity Policy, the
specific risk appetite and the accompanying Key Risk
Indicators, the Group Compliance Rules, the Compliance
Monitoring Programme and other reporting. To guarantee
the independence of the compliance function, proper
governance is in place with an adequate escalation process
to the ExCo, the RCC and the Board. The governance of the
compliance function is described in more detail in the
Compliance Charter and is in line with EBA/EIOPA guidelines
on internal governance.
The building blocks for managing compliance risks
To manage compliance risks, KBC aims to comply with laws
and regulations in the compliance domains as determined
by KBC’s Compliance Charter. The compliance function’s role
in managing these risks is twofold:
On the one hand, it is particularly dedicated to the
identification, assessment and analysis of the risks linked to the
compliance domains. Furthermore, it provides advice from an
independent viewpoint on the interpretation of laws and
regulations pertaining to the domains it covers. This preventive
role is put into practice by Group Compliance Rules that define
minimum requirements for the entire group, the provision of
procedures and instructions, tailored training courses and
awareness initiatives, information on new regulatory
developments to the governance bodies, support in the
implementation of the group strategy, and the implementation
of legal and regulatory requirements by the various businesses
concerned. Additionally, the compliance function provides
advice and independent opinions in the New and Active
Products Process (NAPP). Together with the other control
functions, the compliance function ensures that, under the
NAPP, the launch of any new products conforms with the many
legal and regulatory provisions in place, such as MiFID II, the
Insurance Distribution Directive (IDD) and other local and EU
Regulations, as well as being in line with KBC’s values.
On the other hand – as the second Line of Defence – it
carries out risk-based monitoring to ensure the adequacy of
the internal control environment. More specifically, monitoring
allows it to verify whether legal and regulatory requirements
are correctly implemented in the compliance domains. It also
aims to ensure the effectiveness and efficiency of the
controls performed by the first Line of Defence. Moreover,
quality controls are performed by Group Compliance in the
main group entities to assure the Board that the compliance
risk is properly assessed by the local compliance function.
Insight into managing some specific compliance domains
Group Compliance (GCPL) has been working on developing
the foundations of a strong group-wide compliance function.
The main focus points were processes and efficiency,
creating a future-proof strategy reflected in the vision and
strengthening staffing and the management team. In
addition, GCPL has invested in different tools and in the
group’s role to meet the ECB’s expectations. Going forward,
the focus will be on further improving the methodology and
processes within the compliance function in order to provide
the necessary assurance to the Board and the regulator.
GCPL strives towards a mature organisation with data-driven
and documented planning which will aid group-wide
steering. The goal is to achieve group-wide synergy and
scalability at all levels and in all domains, for example by
means of risk assessments, regulatory watches, knowledge
management, etc. The main goal is a holistic, risk-based and
data-driven approach to compliance.
Financial Crime
A Financial Crime Compliance department was set up to
enhance synergies between AML (Anti-Money Laundering),
embargoes and other related domains. The prevention of
money laundering and terrorist financing, including
embargoes, has been a top priority for the compliance
function in the past few years and will continue to be
prioritised. Efforts are continuously made to adapt the
organisation to a constantly changing regulatory
94 Annual Report KBC Group 2024

environment, particularly with regard to clients who present
an increased risk and for whom additional information is
required. As such, the compliance function is also closely
following the EU developments at the level of the new AML
Authority (AMLA) and regulatory provisions expected. Special
emphasis is placed on a preventive risk management
approach (for example, embargo circumvention measures).
Data and Consumer Protection and AI
Conformity with data and consumer protection obligations is
a central hallmark of any sustainable and client-centric
organisation. In the context of KBC’s data-driven strategy, it
is crucial to pay attention to all upcoming regulatory
developments in the data and consumer protection domains
to ensure future-proof, reliable and dependable bank-
insurance activities for KBC clients. The compliance function
closely follows up on the regulatory developments impacting
the data and/or consumer protection domains such as FIDA,
PSD3/PSR and the Basic Banking Service. Since 2020, Kate,
the personal assistant, has gained maturity and can
increasingly facilitate the everyday lives of our clients. The
study of the potential use of generative AI models is closely
followed to ensure that risks are duly identified, including the
new risks deriving from the AI Act. In anticipation of the
implementation of the AI Act, KBC has developed its ‘Trusted
AI Framework, which ensures that the technologies we use
operate in a transparent, fair and secure way.
Investor and Policyholder Protection
Financial markets and insurance legislation are the subject of
constant changes and continuous expansion. KBC strives for
early preparedness by ensuring that the internal framework
(rules, policies, and minimum first- and second-line controls)
allows for the frictionless adaptation of business activities. In
2024, this implied a forward-looking approach to translate
upcoming requirements into actionable business advice (e.g.,
Value for Money in insurance, new market structure rules,
changes to market abuse provisions). In addition, the
compliance function anticipated regulatory expectations in
new fields (e.g., crypto-asset legislation). To foster the
compliance culture and reduce compliance risk, several
initiatives were taken to make Group Compliance Rules
easier to understand, use, and interpret (e.g., methodology
changes, e-learning courses, guidelines, standardised texts).
Corporate Governance and Business Ethics
Corporate governance in credit institutions and insurance
undertakings aims to ensure that they operate in a safe and
sound manner, manage risks effectively, and make decisions
that are in the best interests of their stakeholders. Strong
corporate governance practices strengthen KBC in dealing
with, and controlling, compliance risk. As in previous years,
Compliance therefore advises on and monitors compliance
with governance aspects of CRD IV and V and Solvency II
such as outsourcing, the functioning and composition of
committees, Fit & Proper, the incompatibility of mandates,
follow-up of complaints handling, conflicts of interest, sound
remuneration, etc. In 2024, particular attention was paid to
efficiency gains (e.g., in the process of reporting complaints
handling to the Board) and the follow-up of new and/or
upcoming regulatory requirements impacting the
aforementioned governance areas (e.g., CRD VI, DORA, etc.).
Additionally, governance of the compliance function, as an
independent control function, is of essential importance when
dealing with compliance risk. Continuous efforts are made to
strengthen compliance governance and enhance group-wide
steering, alignment and cooperation with local entities.
Corporate governance principles also go hand in hand with
the concept of responsible behaviour, which is one of the
three cornerstones of KBC's sustainability strategy.
Together with business ethics, responsible behaviour is
essential in ensuring that KBC maintains one of its most
valuable assets: trust.
Risks linked to irresponsible and/or unethical behaviour are
often labelled as ‘conduct risk’. As in previous years, KBC
continues to limit and mitigate these risks with targeted
training and awareness programmes, codes of conduct and
specific policies on conflicts of interest, anti-corruption, gifts
and entertainment, protection of whistleblowers, etc., and with
recurrent risk assessments and quality controls, which ensure
sound implementation of these policies. Particular attention in
the Business Ethics domain is also paid to the risks linked to
the increased use of AI solutions.
Reputational risk
Reputational risk is the risk arising from the loss of confidence by, or negative perception on the part of, stakeholders
(such as KBC employees and representatives, clients and non-clients, shareholders, investors, financial analysts,
rating agencies, the local community in which it operates, etc.) – be it accurate or not – that can adversely affect a
company’s ability to maintain existing, or establish new, business and client relationships, and to have continued access
to sources of funding.
Reputation is a valuable asset in business and this certainly
applies to the financial services industry, which thrives to a
large extent on trust. Reputational risk is mostly a secondary
risk since it is usually connected to – and materialises
together with – other risks. To manage reputational risk, we
remain focused on sustainable and profitable growth,
95Annual Report KBC Group 2024

fulfilling our role in society and the local economy to the
benefit of all stakeholders. We promote a strong corporate
culture that encourages responsible behaviour throughout
the organisation, including social and environmental
responsibilities. We put the clients’ interests at the heart of
what we do and foster trust by treating the client fairly and
honestly.
The governance, rules and procedures and how reputational
risk management should be performed throughout the group
are outlined in the Reputational Risk Management
Framework. Its implementation is monitored by Group Risk.
Proactive and reactive management of reputational risk is
the responsibility of the business, supported by specialist
units (including Group Communication, Investor Relations
and Group Compliance). In this respect, we actively monitor
a non-exhaustive list of business indicators which provide
valuable input from a risk management perspective,
including Net Promoter Scores (NPS), the Corporate
Reputation Index, statistics on complaints, ESG ratings and
the development of the stock price index and other financial
indicators.
Managing and reporting on reputational risks is also
significantly relevant in the context of crisis management.
Any crisis, big or small, can have an impact on our reputation.
Therefore, preparation, speed of action and good
communication are crucial in any crisis to improve the
likelihood of successfully weathering it and to limit
reputational damage. To support its reputational resilience,
KBC proactively prepares for potential crisis situations via, for
example, its Business Continuity Plans (as outlined in the
‘Operational risk’ section) and the Recovery Plan.
96 Annual Report KBC Group 2024

How do we manage our capital?
Capital Management is a key management process relating to all decisions on the
level and composition of our capital. It aims to achieve the best possible balance
between regulatory requirements, rating agencies’ views, market expectations and
management ambitions.
Solvency reporting
We report the solvency of the group, the bank and the
insurance company based on IFRS data and according to the
rules imposed by the regulator. For the KBC group, this implies
that we calculate our solvency ratios based on CRR/CRD.
CRR/CRD implements the Basel rules in Europe and is
updated from time to time. When new requirements are
implemented, a transitional period during which these rules
are gradually phased in may be allowed. Currently, KBC
makes use of the IFRS 9 transitional measures (applied as
from the second quarter of 2020). These make it possible to
add back a portion of the increased impairment charges to
common equity capital (CET1) when provisions unexpectedly
rise due to a worsening macroeconomic outlook, during the
transitional period until 31 December 2024 .
Based on CRR/CRD, profit can be included in CET1 capital
only after the profit appropriation decision by the final
decision-making body (for KBC Group this is the General
Meeting). The ECB can allow the inclusion of interim or annual
profit in CET1 capital before the decision by the General
Meeting. In that case, the foreseeable dividend should be
deducted from the profit that is included in CET1.
Considering that our dividend policy of ‘at least 50%’ does
not include a maximum, the ECB requires the use of a 100%
payout to determine the foreseeable dividend.
Consequently, KBC no longer requests ECB’s approval to
include interim or annual profit in CET1 capital before the
decision of the General Meeting. As such, the annual profit of
2024 and the final dividend for 2024 will be recognised in the
transitional CET1 of the first quarter of 2025, which will be
reported after the General Meeting. Since 31 December 2021,
the fully loaded figures immediately reflect the interim or
annual profit, taking into account our Dividend Policy and/or
any dividend proposal/decision by the Board of Directors.
The general rule under CRR/CRD for insurance participations
is that an insurance participation is deducted from common
equity at group level, unless the competent authority grants
permission to apply a risk weighting instead (Danish
compromise). Since the fourth quarter of 2020, the revised
CRR/CRD requires the use of the equity method, unless the
competent authority allows institutions to apply a different
method. KBC has received ECB’s approval to continue to use
the historical carrying value (a historical carrying value of
2 469 million euros) for risk weighting (370%), after having
deconsolidated KBC Insurance from the group figures.
Solvency requirements
The minimum solvency ratios required under CRR/CRD are
4.5% for the common equity tier-1 (CET1) ratio, 6% for the tier-1
capital ratio and 8% for the total capital ratio (i.e. pillar 1
minimum ratios). In addition, CRR/CRD requires a capital
conservation buffer of 2.5%.
As a result of its supervisory review and evaluation process
(SREP), the competent supervisory authority (in KBC’s case,
the ECB) can require that higher minimum ratios be
maintained (= pillar 2 requirements). Following the SREP cycle
for 2024, the ECB formally notified KBC that the pillar 2
requirement (P2R) is unchanged at 1.86% (of which 1.09% in
CET1 taking into account CRD Article 104a). The CET1
requirement related to P2R now includes 100% of the
11-basis-point add-on related to the back-stop shortfall for
old non-performing loans (exposures defaulted before 1 April
2018). KBC may consider further optimising its capital
structure by filling up the AT1 and T2 buckets within the P2R.
The pillar 2 guidance (P2G) is unchanged at 1.25% of CET1.
The overall capital requirement for KBC is determined not only
by the ECB, but also by the decisions of the local competent
authorities in its core markets. The most recently announced
countercyclical buffer rates by the countries where KBC’s
relevant credit exposures are located correspond to a
countercyclical buffer at KBC group level of 1.15%.
For Belgian systemic financial institutions, the NBB had
already announced its systemic capital buffers at an earlier
date. For the KBC group, this means that an additional
capital buffer of 1.5% of CET1 is required.
On 1 May 2022, the National Bank of Belgium (NBB)
introduced a sectoral systemic risk buffer. The amount of the
CET1 capital buffer corresponds to 6% as from April 2024 of
the RWA under the IRB approach for the exposures secured
by residential real estate in Belgium, which corresponds to
0.14% of total RWA for KBC Group consolidated.
Altogether, this brings the fully loaded CET1 requirement
(under the Danish compromise) to 10.88%.
The data above reflects the situation as known on 31
December 2024.
97Annual Report KBC Group 2024

98 Annual Report KBC Group 2024

Solvency figures under CRR/CRD
Solvency at group level (consolidated; under CRR/CRD,
Danish compromise method) (in millions of EUR)
31-12-2024
Fully loaded
31-12-2024
Transitional
31-12-2023
Fully loaded
31-12-2023
Transitional
Total regulatory capital, after profit appropriation
1
22 374 21 048 21 260 19 768
Tier-1 capital 19 811 18 485 18 986 17 389
Common equity
2
17 947 16 621 17 236 15 639
Parent shareholders’ equity (after deconsolidating KBC Insurance) 21 589 18 932 21 181 18 209
Intangible fixed assets, incl. deferred tax impact (-) -743 -743 -712 -712
Goodwill on consolidation, incl. deferred tax impact (-) -1 052 -1 052 -1 070 -1 070
Minority interests 000 0
Hedging reserve, cashflow hedges (-) 508 508 579 579
Valuation differences in financial liabilities at fair value – own credit risk (-) -29 -29 -29 -29
Value adjustment due to requirements for prudent valuation (-)
3
-35 -35 -24 -24
Dividend payout (-) -1 249 0 -1 287 0
Share buyback - partly not yet executed (-)
00
-803 -803
Coupon on AT1 instruments (-) -27 -27 -26 -26
Deduction with regard to financing provided to shareholders (-) -23 -23 -56 -56
Deduction with regard to irrevocable payment commitments (-) -90 -90 -90 -90
Deduction regarding NPL backstops (-)
4
-205 -205 -204 -204
Deduction with regard to pension plan assets (-) -205 -205 -121 -121
IRB provision shortfall (-) -141 -66 -4 0
Deferred tax assets on losses carried forward (-) -353 -353 -98 -98
Transitional adjustments to CET1 07084
Limit on deferred tax assets from timing differences relying on future
profitability and significant participations in financial entities (-)
000 0
Additional going concern capital
5
1 864 1 864 1 750 1 750
CRR-compliant AT1 instruments 1 864 1 864 1 750 1 750
Minority interests to be included in additional going concern capital 000 0
Tier-2 capital 2 563 2 563 2 273 2 379
IRB provision excess (+) 167 167 277 265
Transitional adjustments to Tier-2 capital 0 0 0 -60
Subordinated liabilities
6
2 396 2 396 1 997 2 174
Subordinated loans to non-consolidated financial sector entities (-) 000 0
Minority interests to be included in tier-2 capital 000 0
Total weighted risk volume 119 945 119 950 113 038 113 029
Banking 110 082 110 087 103 201 103 192
Credit risk 94 213 94 218 88 051 88 042
Market risk
7
2 026 2 026 2 116 2 116
Operational risk 13 843 13 843 13 034 13 034
Insurance 9 133 9 133 9 133 9 133
Holding-company activities and elimination of intercompany transactions 729 729 704 704
Solvency ratios
Common equity ratio (or CET1 ratio) 15.0% 13.9% 15.2% 13.8%
Tier-1 ratio 16.5% 15.4% 16.8% 15.4%
Total capital ratio 18.7% 17.5% 18.8% 17.5%
1 The difference between the fully loaded and the transitional figure as at 31-12-2024 is explained by the net result for 2024 (3 333 million euros under the Danish compromise
method), the proposed final dividend (-1 926 million euros) and the impact of the IFRS 9 transitional measures and IRB excess/shortfall (-81 million euros).
2 Audited figures (excluding ‘IRB provision shortfall’, ‘Value adjustment due to requirements for prudent valuation’ and ‘Deduction regarding NPL backstops’).
3 CRR ensures that prudent valuation is reflected in the calculation of available capital. This means that the fair value of all assets measured at fair value and impacting the
available capital (by means of fair value changes in P&L or equity) needs to be brought back to its prudent value. The difference between the fair value and the prudent value
(also called the ‘additional value adjustment’ or AVA) must be deducted from the CET1 ratio.
4 NPL backstops refer to the minimum coverage requirements on non-performing loans for loans originated after 26 April 2019 (CRR requires a deduction from CET1) and the ECB’s
minimum coverage expectations on non-performing loans for exposures defaulted after 1 April 2018 but originated before 26 April 2019 (KBC decided to voluntary deduct from
CET1 any shortfalls relative to supervisory expectations).
5 In September 2024, KBC Group issued a new AT1 for an amount of 750 million euros and at the same time repurchased 636 million euros from the 1-billion-euro AT1 instrument
that was issued in April 2018 and that has a first call date of 24 October 2025.
6 The EBA Monitoring report on AT1, tier-2 and TLAC/MREL eligible liabilities instruments (27 June 2024) recommends the use of the carrying amounts (including accrued interest
and hedge adjustments) instead of nominal amounts for own funds calculation. KBC has applied this EBA recommendation: as at 31-12-2024 it had a 47-million-euro positive
impact on tier-2 capital at KBC Group level.
7 The HVAR and SVAR multiplier used for the calculation of market risk is equal to 3.0.
99Annual Report KBC Group 2024

The fully loaded CET1 ratio dropped from 15.2% at year-end
2023 to 15.0% at year-end 2024, which is explained by the
2024 profit (impact of +2.9 percentage points), the proposed
4.85 euros-per-share dividend (0.70 euros in extraordinary
dividend related to 2023 and 4.15 euros in proposed dividend
related to 2024; impact of -1.7 percentage points), the
increase in RWA (impact of -1.1 percentage points) and
prudential adjustments (including DTA and IRB shortfall;
impact of -0.5 percentage points).
Note: the recognition in profit and loss (+0.3 billion euros) of
the deferred tax asset resulting from the liquidation of Ireland
is deducted from KBC’s regulatory capital (-0.3 billion euros)
and is therefore neutral for KBC's regulatory capital.
However, the application of 50% dividend payment on the
additional result of 0.3 billion euros had a limited negative
impact on KBC's fully loaded CET1 ratio of -0.13%-points.
Moving towards the Basel 4 era, and applying a static
balance sheet (first half of 2024) and all other parameters
ceteris paribus, without any mitigation actions, KBC projects:
• on 1 January 2025: a first-time application impact of 1
billion euros in risk-weighted assets;
• by 1 January 2033: a further impact of 7.5 billion euros in
risk-weighted assets.
The impact on the common equity ratio of the most
significant acquisitions and disposals in 2024 and 2023 is
described in Note 6.6 of the ‘Consolidated financial
statements’ section.
Solvency at group level (consolidated; CRR/CRD,
deduction method) (in millions of EUR)
31-12-2024
Fully loaded
31-12-2024
Transitional
31-12-2023
Fully loaded
31-12-2023
Transitional
Common equity 17 303 15 843 16 521 14 755
Total weighted risk volume 115 372 115 044 108 287 107 858
Common equity ratio 15.0% 13.8% 15.3% 13.7%
Condensed solvency calculations for KBC Bank and KBC Insurance can be found in Note 6.7 of the ‘Consolidated financial
statements’ section.
Maximum Distributable Amount
Amounts for distribution (dividend payments, payments related to additional tier-1 instruments or variable remuneration) are
limited when the combined buffer requirements described above are breached. This limitation is referred to as Maximum
Distributable Amount (MDA) thresholds.
Buffer compared to the Overall Capital Requirement
(consolidated; under CRR/CRD, Danish compromise method)
31-12-2024
Fully loaded
31-12-2024
Transitional
31-12-2023
Fully loaded
31-12-2023
Transitional
CET1 Pillar 1 minimum 4.50% 4.50% 4.50% 4.50%
Pillar 2 requirement to be satisfied with CET1 1.09% 1.05% 1.05% 1.05%
Capital conservation buffer 2.50% 2.50% 2.50% 2.50%
Buffer for systemically important institutions (O-SII) 1.50% 1.50% 1.50% 1.50%
Systemic risk buffer 0.14% 0.14% 0.14% 0.21%
Entity-specific countercyclical buffer 1.15% 1.12% 1.24% 0.67%
Overall Capital Requirement (OCR) – with P2R split, CRD Article 104a(4) 10.88% 10.80% 10.92% 10.43%
CET1 used to satisfy shortfall in AT1 bucket (B) 0.27% 0.29% 0.30% 0.30%
CET1 used to satisfy shortfall in T2 bucket (C) 0.30% 0.33% 0.45% 0.36%
CET1 requirement for MDA (A+B+C) 11.45% 11.42% 11.68% 11.09%
CET1 capital (in millions of EUR) 17 947 16 621 17 236 15 639
CET1 buffer (= buffer compared to MDA) (in millions of EUR) 4 212 2 919 4 036 3 105
100 Annual Report KBC Group 2024

Solvency figures under FICOD
KBC also has to disclose its solvency position as calculated in
accordance with the Financial Conglomerate Directive. In
line with this directive, available capital is calculated on the
basis of the consolidated position of the group and the
eligible items recognised as such under the prevailing
sectoral rules, which are CRD for the banking business and
Solvency II for the insurance business. The resulting available
capital is to be compared with a capital requirement
expressed as a risk-weighted asset amount. For this latter
figure, the capital requirements for the insurance business
(based on Solvency II) are multiplied by 12.5 to obtain a
risk-weighted asset equivalent (instead of the 370% risk
weighting applied to the equity value in the insurance
company under the Danish compromise).
KBC is required to satisfy the pillar 1 requirements. No pillar 2
requirements or management target are defined at the level
of the FICOD ratio.
Solvency at group level (consolidated; FICOD method)
(in millions of EUR)
31-12-2024
Fully loaded
31-12-2024
Transitional
31-12-2023
Fully loaded
31-12-2023
Transitional
Common equity 19 456 18 563 18 625 17 536
Total weighted risk volume 138 265 138 270 128 965 128 956
Common equity ratio 14.1% 13.4% 14.4% 13.6%
Leverage ratio
Leverage ratio at group level (consolidated; under CRR/CRD,
Danish compromise method) (in millions of EUR)
31-12-2024
Fully loaded
31-12-2024
Transitional
31-12-2023
Fully loaded
31-12-2023
Transitional
Tier-1 capital 19 811 18 485 18 986 17 389
Total exposure 360 085 360 092 333 791 333 894
Total assets 373 048 373 048 346 921 346 921
Deconsolidation of KBC Insurance -33 734 -33 734 -30 980 -30 980
Transitional adjustment 0 7 0 103
Adjustment for derivatives -885 -885 -1 341 -1 341
Adjustment for regulatory corrections in determining tier-1 capital -2 681 -2 681 -2 286 -2 286
Adjustment for securities financing transaction exposures 1 686 1 686 1 357 1 357
Central bank exposures 0 0 0 0
Off-balance-sheet exposures 22 651 22 651 20 119 20 119
Leverage ratio 5.5% 5.1% 5.7% 5.2%
More details, including a description of the processes used to manage the risk of excessive leverage, can be found in KBC’s Risk
Report, which is available at www.kbc.com (the risk report has not been audited by the statutory auditor).
101Annual Report KBC Group 2024

Minimum requirement for own funds and eligible liabilities (MREL)
Besides the ECB and NBB, which supervise KBC on a going
concern basis, KBC is also subject to requirements set by the
Single Resolution Board (SRB). The SRB is developing
resolution plans for the major banks in the euro area.
The resolution plan for KBC is based on a Single Point of Entry
(SPE) approach at KBC group level, with ‘bail-in’ as the
primary resolution tool. Bail-in implies a recapitalisation and
stabilisation of the bank by writing down certain unsecured
liabilities or converting them into shares. The SPE approach
at group level reflects KBC’s business model, which relies
heavily on integration, both commercially (e.g., banking and
insurance) and operationally (e.g., risk, finance, treasury, ICT,
etc.). Debt instruments that are positioned for bail-in are
issued by KBC Group NV. This approach keeps the group
intact in resolution and safeguards the bank-insurance
model in going concern.
It is crucial that there are adequate liabilities eligible for
bail-in. This is measured by the minimum requirement for own
funds and eligible liabilities (MREL). The SRB defines the
minimum MREL level for KBC. It communicated MREL targets
to KBC expressed as a percentage of Risk-Weighted Assets
(RWA) and Leverage Ratio Exposure Amount (LRE):
• 28.48% of RWA as from the fourth quarter of 2024 (including
a transitional Combined Buffer Requirement of 5.25%);
• 7.42% of LRE.
Besides a total MREL amount, BRRD2 also requires KBC to
maintain a certain part of MREL in subordinated form. The
binding subordinated MREL targets are:
• 24.05% of RWA as from the fourth quarter of 2024 (including
a Combined Buffer Requirement of 5.25%);
• 7.42% of LRE.
MREL (in millions of EUR) 31-12-2024 31-12-2023
Own funds and eligible liabilities (transitional) 36 818 34 672
CET1 capital (consolidated, CRR/CRD, Danish compromise method) 16 621 15 639
AT1 instruments (consolidated, CRR/CRD) 1 864 1 750
T2 instruments (consolidated, CRR/CRD) 2 563 2 379
Subordinated liabilities (issued by KBC Group NV but not included in AT1 & T2) 0 8
Senior debt (issued by KBC Group NV, nominal amount, remaining maturity > 1 year) 15 770 14 897
Risk-Weighted Assets (RWA) 119 950 113 029
MREL as a % of RWA 30.7% 30.7%
Leverage Ratio Exposure Amount (LRE) 360 092 333 894
MREL as a % of LRE 10.2% 10.4%
Information on ICAAP, ORSA and stress testing is provided in KBC’s Risk Report, available at www.kbc.com.
102 Annual Report KBC Group 2024

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104 Annual Report KBC Group 2024
Corporate governance statement
The main aspects of our corporate governance policy are set out in the Corporate
Governance Charter of KBC Group NV (the ‘Charter’, which is published at
www.kbc.com). We have adopted the 2020 version of the Belgian Corporate
Governance Code (‘Code 2020’) as our benchmark. It can be downloaded at
www.corporategovernancecommittee.be. The company has complied with all the
provisions of this code, except for those deviated from, for the reasons explained
in this section.
More factual information regarding corporate governance and on the application
of certain statutory provisions is contained in this corporate governance
statement.
Unless otherwise indicated, the period dealt with runs from 1 January 2024 to 31 December 2024.
A number of terms have been abbreviated as follows in this section of the annual report:
• Board of Directors: Board
• Executive Committee: ExCo
• Audit Committee: AC
• Risk & Compliance Committee: RCC
• Companies and Associations Code: CAC
• The Belgian Act of 25 April 2014 on the legal status and supervision of credit institutions: The Banking Act
Composition of the Board and its committees at year-end 2024
A list of the external offices held by all members of the Board is provided at www.kbc.com, as is a brief CV for each director. The
number of meetings attended is shown in the columns relating to the committees.
Koenraad
Debackere
Philippe
Vlerick
Johan
Thijs
Alain
Bostoen
Erik
Clinck
Sonja
De Becker
Marc
De Ceuster
Franky
Depickere
Frank
Donck
Liesbet
Okkerse
Bartel
Puelinckx
Diana Rádl
Rogerová
Alicia Reyes
Revuelta
Theodoros
Roussis
Raf
Sels
Christine Van
Rijsseghem

105Annual Report KBC Group 2024
Company Primary responsibility Period served on the Board in 2024 Expiry date of current term of office Board meetings attended Non-executive directors Core shareholders’ representatives Independent directors ExCo AC RCC Nomination committee Remuneration committee
Number of meetings in 2024 12 7 10 12 4
Koenraad Debackere Chairman of the Board Full year 2027 12
QQ
12 (c) 4 (c)
Philippe Vlerick Deputy Chairman of the Board; CEO of the
Vlerick Group
Full year 2025 12
QQ
84
Johan Thijs President of the ExCo and Executive Director,
KBC
Full year 2028 12
Q (c)
Alain Bostoen CEO, Christeyns Group Full year 2027 12
QQ
Erik Clinck Executive Director, Enactus Belgium Full year 2028 11
QQ
Sonja De Becker Chairperson, MRBB Full year 2028 12
QQ
10 11
Marc De Ceuster Professor of Financial Economics, University of
Antwerp
Full year 2027 12
QQ
7 (c)
Franky Depickere Managing Director; CEO of Cera and KBC
Ancora
Full year 2027 12
QQ
10 (c) 12
Frank Donck Managing Director, 3D Full year 2027 11
QQ
10
Liesbet Okkerse Financial Director, Zoersel Municipality and
Public Social Welfare Centre
Full year 2028 12
QQ
Bartel Puelinckx Executive Director, KBC 4 months 2025 4
Q
Diana Rádl Rogerová Managing partner of Behind Inventions 8 months 2028 7
QQ
4610
Alicia Reyes Revuelta Director at several companies Full year 2026 10
QQ
73*
4
Theodoros Roussis Chairman of the Board, Ravago Group Full year 2025 11
QQ
Raf Sels CEO, MRBB Full year 2027 12
QQ
Christine
Van Rijsseghem
Executive Director, KBC Full year 2026 12
Q
Statutory auditor: PricewaterhouseCoopers (PwC), represented by Damien Walgrave and Jeroen Bockaert.
Secretary to the Board: Wilfried Kupers.
(c) Chairman of this committee.
* Appointed by the Board as member of the RCC in August 2024.

106 Annual Report KBC Group 2024
Changes in the composition of
the Board in 2024 and proposed
changes for 2025
• Vladimira Papirnik resigned as director with effect from the
General Meeting of 2024. At the General Meeting in 2024,
Diana Rádl Rogerová was appointed as an independent
director for a four-year term of office, within the meaning
of and in line with the relevant legal criteria and Code
2020.
• At the General Meeting in 2024, Johan Thijs, Erik Clinck,
Sonja De Becker and Liesbet Okkerse were re-appointed
as directors for a four-year term of office, and Theodoros
Roussis was re-appointed as director for a one-year term
of office.
• With the approval of the ExCo and on the advice of the
Nomination Committee, the Board decided to appoint
Bartel Puelinckx as new Chief Financial Officer and
member of the ExCo. He succeeded Luc Popelier, who
resigned to take up the position of CEO of Hamburg
Commercial Bank (Germany) as of 1 September 2024.
Bartel Puelinckx’s appointment as CFO took effect on 1
September 2024, and he was co-opted by the Board to
complete Luc Popelier’s remaining term of office. It will be
proposed to the General Meeting of Shareholders of 30
April 2025 to proceed to a definitive appointment for a
four-year term of office.
• Theodoros Roussis has reached the age limit of 70. His
succession will be proposed to the General Meeting.
• With a view to strengthening the company’s governance, it
is proposed to the General Meeting to appoint two
additional independent directors for a four-year term of
office, within the meaning of and in line with the relevant
legal criteria and Code 2020.
• On the advice of the Nomination Committee, Philippe
Vlerick is nominated for re-appointment as director for a
one-year term of office.
Brief CV of Bartel Puelinckx:
• After graduating in applied economics from the Katholieke
Universiteit Leuven (KU Leuven) and obtaining a law
degree from the Université Libre de Bruxelles (ULB), Bartel,
born on 16 December 1965, started his career in trade
finance at Kredietbank (Belgium) in 1992. In 2002, he was
appointed at KBC Bank as group-wide relationship
manager for major multinational business clients. From
2006 to 2010, he worked for K&H, the Hungarian banking
subsidiary of KBC, where he was responsible for managing
corporate banking policy. After being nominated to the
Executive Committee of K&H in 2007, he took charge of HR
management and credit policy. He was Chief Finance
Officer for KBC’s Czech banking subsidiary ČSOB from
2010 to 2014, where he also headed up Finance
Management, Asset & Liability Management, Credit
Management and Investor Relations. He was also a
member of the Board of Directors of ČMSS (a subsidiary
specialising in mortgage loans) since 2010, and
represented ČSOB in that board as main shareholder. He
returned to Belgium in July 2014 where he was appointed
Senior General Manager of Group Finance. He was
appointed CEO of KBC Securities NV in September 2016
and Senior General Manager Group Compliance since 1
May 2019.
The CVs for the three other new proposed directors, the
Corporate Governance Charter, the CVs for the other
members of the Board and the agenda for the General
Meeting can be found at www.kbc.com.

107Annual Report KBC Group 2024
The Group Executive Committee (ExCo)
Changes in 2024:
• Luc Popelier was succeeded by Bartel Puelinckx as of 1 September 2024. See previous paragraph.
* ‘Joined company in …’ refers to KBC Group NV, group companies or pre-merger entities (Kredietbank, Cera, ABB, etc.).
Johan
Thijs
°1965
Belgian
Master’s Degree
in Science
(Applied
Mathematics)
and Actuarial
Sciences
(KU Leuven)
Joined com-
pany in* 1988
Group CEO (Chief
Executive Officer)
Aleš
Blažek
°1972
Czech
Master’s Degree
in Law (Charles
University Law
School in Prague)
Joined company
in* 2014
CEO of the
Czech Republic
Business Unit
Erik
Luts
°1960
Belgian
Master’s Degree
in Pedagogy
(KU Leuven)
Joined company
in* 1988
CIO (Chief
Innovation
Officer)
Peter
Andronov
°1969
Bulgarian
Master’s Degree
in Finance
(University of
National and
World economy
in Sofia)
Joined company
in* 2007
CEO of the
International
Markets Business
Unit
David
Moucheron
°1973
Belgian
Master’s Degree
in Law (UCL)
Joined company
in* 2015
CEO of the
Belgium Business
Unit
Bartel
Puelinckx
°1965
Belgian
Master’s Degree
in Applied
Economics
(KU Leuven)
and Law (ULB)
Joined company
in* 1992
CFO (chief
financial officer)
Christine
Van Rijsseghem
°1962
Belgian
Master’s Degree
in Law (UGent)
Joined company
in* 1987
CRO (Chief Risk
Officer)

108 Annual Report KBC Group 2024
Governance model
On 31 December 2024, the Board had 16 members, namely:
• Its Chairman, who is an independent director;
• Two independent directors;
• Three members of the ExCo (the CEO, the CFO and the
CRO);
• Ten representatives of the core shareholders.
Given that the Banking Act stipulates that at least three
members of the ExCo should also be directors (acting as
‘executive directors’), it is legally not possible to implement a
pure, dual governance structure with a clear split between
the Board (dealing with strategy, risk appetite and the
supervision of management) and the ExCo (operational
management). The CEO, the CFO and the CRO are all
executive directors.
The core shareholders (Cera, KBC Ancora, MRBB and the
other core shareholders) have concluded a shareholder
agreement in order to ensure shareholder stability and a
long-term focus for the management of the group, as well as
to support and coordinate its general policy. To this end, the
core shareholders act in concert at the General Meeting of
KBC Group NV and were represented on its Board by ten
directors at year-end 2024.
It will be proposed to the General Meeting of Shareholders of
30 April 2025 to appoint two additional independent
directors, increasing their total from three to five. Therefore,
there is no majority of independent directors on the Board.
However, KBC has placed a strong emphasis on selecting
high-calibre, independent directors at the level of KBC Group
NV, as well as on the boards of KBC Bank and KBC Insurance.
These individuals are of high standing, come from diverse
backgrounds and bring specific financial and governance
expertise to the Board. Moreover, the boards of KBC Group
NV, KBC Bank and KBC Insurance always hold joint meetings
in practice. Since the Boards of both KBC Bank and KBC
Insurance also at all times include two independent directors,
the joint Board meetings will actually be attended by nine
independent directors. The collective nature of the decision-
making process generally used in these joint Board meetings
also reflects the importance attached to the views of the
independent directors.
The core shareholders’ wish for their representatives to hold a
majority on the Board is considered the corollary of the
commitment they have made in the context of their
shareholder agreement, with the aim of ensuring shareholder
stability and guarantee continuity for the group. Given the
long-term nature of their commitment, the core shareholders
inherently pay particular attention to value creation, a solid
capital base, prudent risk management, sustainability and
social relevance in the geographical areas where the group
is active. With effect from the Annual Meeting, all advisory
committees will include a majority of independent directors.
All members of the ExCo participate in the Board’s meetings,
except when it meets to discuss the operations of the ExCo
and the remuneration to be granted to members of the ExCo,
and when requested by non-executive Board members.

109Annual Report KBC Group 2024
Diversity policy
The Board has drawn up a policy regarding the desired
amount of diversity in the composition of the Board itself and
in the ExCo. The aim of this policy is to guarantee diversity in
terms of know-how, experience, gender and geographical
background. It aims to ensure that the Board and the ExCo
can both fall back on a broad base of relevant competences
and know-how and receive diverse opinions and input for
their decision-making process.
The policy stipulates that the Board should have a balanced
composition to ensure that it has suitable expertise in the
area of banking and insurance, the requisite experience in
executive management and a broad awareness of societal
and technological developments.
The policy also stipulates that:
• At least one-third of the Board’s members must be of a
different gender than the other members;
• The members of the Board must be of different
nationalities, with due account being taken of the different
geographical areas where KBC is active;
• At least three directors must be independent within the
meaning of and in line with the criteria set out in Article 7:87
of the CAC;
• Three members of the ExCo must also sit on the Board.
The Board usually holds its meetings together with the
Boards of KBC Bank and KBC Insurance. The two additional
independent directors on each of these two boards provide
extra expertise and diversity.
The policy also stipulates that the ExCo should have a
balanced composition to ensure that it has suitable
expertise regarding the financial sector and the requisite
know-how relating to all areas in which KBC operates.
The policy also stipulates that:
• At least one member of the ExCo must be of a different
gender than the other members; the objective is to
achieve a more balanced gender composition;
• The ExCo should strive towards achieving diversity in terms
of the nationality and age of its members;
• All members of the ExCo have the necessary and
diversified financial knowledge, professional integrity and
management experience, but have followed different
career paths.
The Board will see to it that this diversity policy is applied
properly when deciding on the profile of a new director or a
new member of the ExCo.
The Nomination Committee regularly checked to see whether
this policy was being applied in practice and established
that this was the case in 2024. For the purpose of
strengthening the company’s governance – and upon the
proposal of the Nomination Committee – the Board decided
to propose to the General Meeting that two additional
independent directors be appointed.
A complete CV for each member of the Board and the ExCo
is provided at www.kbc.com > Corporate Governance >
Leadership.
A table reflecting the diversity among the Board and ExCo
members is provided under 1.2.1 in the ‘Sustainability
statement’ section.

110 Annual Report KBC Group 2024
AC: application of Article 7:99 of the CAC and section 6.2.3 of the Charter
On 31 December 2024, the AC had two independent
directors within the meaning of and in line with the criteria set
out in Article 7:87 of the CAC and in Code 2020:
• Diana Rádl Rogerová holds a Master’s Degree in
International Trade, Monetary Economics and Banking
(VŠE, University of Economics and Business in Prague). In
2006, she became an audit partner at Deloitte in Prague
and from 2016 to 2022, she was a managing partner of
Deloitte Czech Republic. In 2022, Diana founded Behind
Inventions, an investment company that has a number of
technological start-ups in its portfolio, and became its
managing partner.
• Alicia Reyes Revuelta holds a Master’s Degree in Law,
Economics and Business Administration (ICADE, Madrid)
and a PhD in Quantitative Methods and Financial Markets
(ICADE, Madrid). She has held senior management
positions at Bear Stearns, Olympo Capital and Wells
Fargo, and is currently an independent Board Member of
Ferrovial, Energias de Portugal and Banco Sabadell, and a
Fellow Professor at the Institute of Finance and Technology
(University College London).
The Chairman of the AC is:
• Marc De Ceuster (non-executive director), who holds a
Doctor’s degree in Applied Economics (UFSIA Antwerp) and
a Master’s Degree in Law (UIA Antwerp). He is Professor of
Financial Economics at the University of Antwerp and
Executive Director of CERA and KBC Ancora.
It can be concluded on the basis of the profiles and
competences of the members of the AC that the committee
is constructed and has the requisite skills and experience in
accordance with the requirements of Article 7:99 of the CAC
and of section 6.2.3 of the Charter.
RCC: application of Article 56, §4 of the Banking Act and section 6.3.3 of
the Charter
On 31 December 2024, the RCC of KBC Group NV had two
independent directors within the meaning of and in line with
the criteria set out in Article 7:87 of the CAC and in Code
2020:
• Diana Rádl Rogerová (see CV above);
• Alicia Reyes Revuelta (see CV above).
The other members of the RCC are:
• Franky Depickere (non-executive director), who holds
Master’s Degrees in Trade & Finance (UFSIA Antwerp) and
in Financial Management (VLEKHO Business School). He
was internal auditor at CERA Bank and has held positions
and offices in various financial institutions. He is currently
Managing Director at Cera and KBC Ancora. Mr Depickere
is the Chairman of the RCC.
• Frank Donck (non-executive director), who holds a Master’s
Degree in Law (UGent) and a Master’s Degree in Finance
(Vlerick Business School). He is Managing Director of 3D NV,
Chairman of Atenor Group NV, and an independent
director at Barco NV, Elia System Operator Group NV and
Luxempart SA. He also holds directorships at several
unlisted companies. Mr Donck is a member of the Belgian
Corporate Governance Commission.
• Sonja De Becker (non-executive director), who holds a
Master’s Degree in Law (KU Leuven). She has held several
positions at Boerenbond and Landelijke Gilden, where she
was Chair from 2015 to 2022. She is currently the Chair of
MRBB, Arvesta, Agri Investment Fund, SBB Accountants &
Adviseurs and Aktiefinvest, and Director of Acerta.
It can be concluded on the basis of the profiles and
competences of the members of the RCC that the
committee is constructed in accordance with the
requirements of the Charter and it possesses the requisite
skills and experience.

111Annual Report KBC Group 2024
Remuneration Committee: application of Article 56, §4 of the Banking Act
and section 6.5.2 of the Charter
On 31 December 2024, the Remuneration Committee had
two independent directors within the meaning of and in line
with the criteria set out in Article 7:87 of the CAC and in Code
2020:
• Koenraad Debackere (independent director and Chairman
of the Board), who holds a Master of Science in
Electromechanical Engineering and a Doctor’s degree in
Management. He is an ordinary Professor at the Faculty of
Economics and Business at KU Leuven and Chairman of
the KU Leuven Association. He is also an independent
director at Umicore NV. Koenraad Debackere chairs the
Remuneration Committee.
• Alicia Reyes Revuelta (see CV above).
The other member of the Remuneration Committee is:
• Philippe Vlerick (non-executive director), who holds a
Bachelor’s Degree in Philosophy, a Master’s Degree in Law
(KU Leuven), a Master’s Degree in Management (Vlerick
Business School in Ghent) and an MBA degree (Indiana
University, Bloomington, USA). He is Executive Chairman of
Vlerick Group and of UCO, Chairman of Raymond Uco
Denim, BIC Carpets, Pentahold, Besix Group and
Smartphoto, Non-Executive Director of Exmar, Concordia
Textiles, B.M.T, L.V.D. and Mediahuis, Director of Vlerick
Business School, and Chairman of Festival of Vlaanderen
and of Europalia.
It can be concluded on the basis of the profiles and
competences of the members of the Remuneration
Committee that the committee is constructed in accordance
with the requirements of the Charter and it possesses the
requisite skills and experience.
Nomination Committee: application of Article 56, §4 of the Banking Act
and section 6.4.2 of the Charter
On 31 December 2024, the Nomination Committee of KBC
Group NV had two independent directors within the meaning
of and in line with the criteria set out in Article 7:87 of the CAC
and in Code 2020:
• Koenraad Debackere, Chairman of the Nomination
Committee (see CV above);
• Diana Rádl Rogerová (see CV above).
The other members of the Nomination Committee are:
• Franky Depickere (see CV above).
• Philippe Vlerick (see CV above).
• Sonja De Becker (see CV above).
It can be concluded on the basis of the profiles and
competences of the members of the Nomination Committee
that the committee is constructed in accordance with the
requirements of the Charter and it possesses the requisite
skills and experience.

112 Annual Report KBC Group 2024
Application of and non-compliance with Code 2020
The corporate governance statement included in the annual
report must indicate whether any provisions of Code 2020
have not been complied with and state the reasons for
non-compliance (the ‘comply-or-explain principle’). This
involves the following provisions:
Provision 4.19 of Code 2020 stipulates that the Board should
set up a nomination committee composed of a majority of
independent non-executive directors.
As specified above, on 31 December 2024 the Nomination
Committee was composed of five directors, one of whom
was the Chairman of the Board (who is also an independent
director), a second independent director, and three who
represented the core shareholders.
When selecting the members of the Nomination Committee,
the group took due account of the specific shareholder
structure and, in particular, of the presence of the core
shareholders. Given their long-term engagement, the Board
considered it appropriate to involve them in a suitable
manner in the activities of this committee. With effect from
the Annual Meeting of 30 April 2025, the Nomination
Committee will also be composed of a majority of
independent directors, in accordance with the provisions of
Code 2020.
Code 2020 also stipulates that the ‘Corporate governance
statement’ must contain all relevant information on events
that affected governance. Besides the matters set out
above, no other such events occurred in 2024.
Statutory auditor
The statutory auditor, PwC Bedrijfsrevisoren BV (PwC), was
represented by Messrs Damien Walgrave and Jeroen
Bockaert.
On the recommendation of the AC and with the approval of
the regulator, KPMG Bedrijfsrevisoren is nominated by the
Board for appointment as auditor by the Annual Meeting for
a three-year term of office. The auditor will be represented
by Messrs Kenneth Vermeire and Stéphane Nolf.
KPMG Bedrijfsrevisoren was also appointed by the Annual
Meeting in 2024 as auditor for the assurance of the
sustainability reporting.
Details of the statutory auditor’s remuneration are provided
in Note 6.4 of the ‘Consolidated financial statements’
section.
Report on the activities of the Board and its committees in 2024
Board
Besides carrying out the activities required by law, reviewing
the quarterly results and the activities of the AC, RCC,
Nomination Committee and Remuneration Committee, and
handling and taking decisions on the dossiers submitted by
these committees, the Board also dealt with the following
matters:
• The strategy and operations (focusing on banking and
insurance) in the Belgium, Czech Republic, Bulgaria and
Slovakia business units/countries, and in Markets and KBC
Asset Management;
• Governance;
• The capital policy and dividend policy;
• Share buybacks;
• The introduction of the CSRD;
• The sustainability strategy and the associated
dashboards;
• The IT strategy and digital transformation (including Kate
and strategy, transformation and innovation trends);
• The Rainbow project (creation of a platform ensuring
high-quality financial, risk and treasury reports) and
Starlight (data quality management);
• Implementing the (re)insurance strategy;
• Reviewing the Corporate Sustainability strategy and the
Sustainable Finance Programme;
• The HR policy, with particular attention being paid to the
succession policy;
• The strategy of the group’s Competence centres and of
the group’s Organisation and operations;
• The outsourcing policy;
• The ICAAP/ILAAP/ORSA Report;
• The Risk Appetite Statement;
• The risk reports;
• The compliance reports and the compliance function;
• Reviewing the Internal Control Statement;
• The Board’s self-assessment.
The ExCo reported monthly on the trend in the results and
the general course of business at the group’s various
business units. In addition, the Board focused on the strategy
and specific challenges for the different areas of activity.
Regular training sessions were also organised for all
members of the Board (newly appointed directors also

113Annual Report KBC Group 2024
followed an extensive induction programme). The following
topics were addressed: generative artificial intelligence; the
internal model landscape, the transposition of CSRD; the EU
data strategy; Basel IV and MiCAR. Furthermore, an
exhaustive training programme was developed and rolled
out covering the insurance activities.
Sustainability parameters have been incorporated into the
KBC Sustainability Dashboard to enable the situation within
the KBC group to be monitored and adjustments to be
made, where necessary. The Board assesses the
performance of these parameters twice a year. More
information in this regard can be found in the ‘Sustainability
statement’ section.
Audit Committee (AC)
The AC is tasked with a number of responsibilities, including
advising the Board on the integrity of financial and non-
financial reporting and the effectiveness of the internal
control process and risk management. It provides guidance
to the internal audit function and supervises the external
auditor. The AC of KBC Group NV acts in the same capacity
for KBC Global Services.
The AC met in the presence of the President of the ExCo, the
Group CRO, the Group CFO, the internal auditor, the
compliance officer and the statutory auditors. Besides
reviewing the company and consolidated financial
statements, the annual report, the half-year and quarterly
figures, approving the relevant press releases and discussing
the auditor’s findings – including the declaration of
independence – it also discussed the quarterly reports
drawn up by the internal auditor (including the approved
annual audit plan).
The AC also examined:
• The statement of effective management with regard to
the assessment of internal control systems and the
monitoring of the resulting action plans;
• Intra-group conflicts of interest;
• The results of inspections performed by the supervisory
authorities and the action plans drawn up by
management;
• The evaluation of the internal audit function and the
corresponding remuneration, including the results of the
periodic external quality assessment;
• The selection process for the external auditor’s term of
office;
• The first-time adoption of the CSRD rules, including the
outcome of the Double Materiality Assessment.
Risk & Compliance Committee (RCC)
The RCC advises the Board on current and future risk
tolerance and on risk strategy, and assists it in supervising
how the ExCo implements this strategy. It ensures that the
prices of assets and liabilities and of categories of off-
balance-sheet products that are offered to clients, factor in
the risks run by the institution, with due account taken of its
business model and risk strategy, viz. risks – especially
reputational risks – that might arise from the types of
product offered to clients. The RCC monitors the risk and
compliance functions. The RCC of KBC Group NV acts in the
same capacity for KBC Global Services.
The RCC met in the presence of the President of the ExCo,
the Group CRO, the Group CFO, the internal auditor, the
compliance officer and the statutory auditors. Besides
discussing the periodic reports from the risk function and the
compliance officer, it also examined the reports drawn up by
the legal, tax and branch inspection departments.
The RCC paid special attention to:
• ESG and Climate-related risk as part of the periodic
reports from the risk function;
• Major digitalisation projects such as Rainbow and
Temenos;
• Progress reports on the implementation of the EU data
policy (GDPR, Schrems II), and other specific regulations,
such as AML and MiFID as well as EC regulations;
• The statement of effective management with regard to
the assessment of internal control systems and the
monitoring of the resulting action plans;
• The ICAAP-ILAAP Report for 2024;
• The KBC ORSA Report for 2024;
• The KBC Recovery Plan for 2024;
• Information Security and Cyber Risk;
• The results of inspections performed by the supervisory
authorities and the action plans drawn up by
management;
• The updated Compliance Charter;
• The Integrity Policy and the updated Incompatibility Code;
• The Compliance Annual Report to the Board;
• The Data Protection Officer Report;
• The Conflict of Interest Report;
• The Anti-Money Laundering Committee Report;
• The Enterprise-Wide Risk Assessment;
• The Taping and the Conflict of Interest Policy;
• The Complaints Handling Report;
• The Acceptance Policy;
• The Whistleblower Policy;
• The Group Treasury Frameworks.
Nomination Committee
The Nomination Committee of KBC Group NV acts in the
same capacity for KBC Insurance, KBC Bank and KBC Global
Services.
The main matters dealt with were:
• Appointments and reappointments to the Board;
• Succession planning for the Board and the ExCo;
• Profile development methodology for the Top 300;
• Changes to the governance of the company;

114 Annual Report KBC Group 2024
• Assessment of the collective suitability of the ExCo and the
Board;
• Creation of a profile for each Board member and the
related education portfolio;
• The HR policy;
• Evaluation of the operations and composition of the Board
and the Nomination Committee.
Remuneration Committee
The Remuneration Committee of KBC Group NV acts in the
same capacity for KBC Insurance, KBC Bank and KBC Global
Services. The Remuneration Committee met each time in the
presence of the Chairman of the RCC, with the President of
the ExCo usually in attendance too.
The main matters dealt with were:
• The assessment of the criteria for evaluating the ExCo in
2023;
• The criteria for evaluating the ExCo in 2024;
• The annual Remuneration Review;
• The remuneration of the AC and RCC members;
• The preparation of the remuneration report;
• The update of the pension regulations for DC members.
For a general description of how the Board and its
committees function, see sections 5 and 6 of the Charter of
KBC Group NV (at www.kbc.com).
Principal features of the evaluation process for the Board, its committees
and its members
Under the leadership of its Chairman and assisted by the
Nomination Committee, the Board evaluates at least once
every three years its own performance, how it interacts with
the ExCo, and its scope, composition and operations, as well
as that of the committees.
Each Board committee carries out an evaluation of its own
composition and operations at least once every three years,
before reporting its findings and, where necessary, making
proposals to the Board.
Directors who are nominated for reappointment are subject
to an individual evaluation regarding their attendance at
Board and committee meetings and their contribution to and
constructive involvement in discussions and decision-
making. This evaluation is conducted by the Nomination
Committee.
On the initiative of the President of the ExCo, the full ExCo
discusses its objectives and assesses its performance once a
year. Each year, the President of the ExCo evaluates each
member of the ExCo individually after which the evaluations
are discussed in the Remuneration Committee and approved
by the Board. The individual evaluation of the President is
performed by the Chairman of the Board in consultation with
the Remuneration Committee before being approved by the
Board.

115Annual Report KBC Group 2024
Conflicts of interest that fell within the scope of Article 7:115, 7:116 or 7:117 of
the CAC
During financial year 2024, the Board’s decision on the
assessment of the ExCo members required the application of
Article 7:115 of the CAC. The proposal was discussed at the
Board meeting of 7 February 2024, the relevant minutes of
which are provided below:
The Board discusses the individual performance score of the
Executive Committee members (except the CEO). The Board
agrees.
The CEO then leaves the meeting and the Board discusses
and agrees upon the proposal of the Remuneration
Committee as to the individual performance score of the
CEO.
The Chair further explains that the Remuneration Committee
discussed the (collective) KPI’s of the Executive Committee for
2023 and came to a global score of 98.92% (compared to
97.79 in 2022). As for the CRO the risk & control parameters
count double and the business parameters are not taken into
account (due to regulatory requirements), the final score for
the CRO is 98.58%.
In addition, the Board’s decision to grant discharge to the
ExCo members – in implementation of Article 7:109, §3 of the
CAC – required the application of Article 7:115 of the CAC.
The proposal was discussed at the Board meeting of 14
March 2024, the relevant minutes of which are provided
below:
It is explained that KBC Group NV has a dual governance
model, though hybrid as at least 3 members of the Executive
Committee must also be member of the Board of Directors.
Article 7:109, §3 CCA provides that, after the adoption of the
annual accounts, the Board has to decide on the granting of
discharge to the members of the Executive Committee. The
Board has to describe the pecuniary consequences of the
proposed decision and the justification for its decision.
The Board recognizes that there is a conflict of interest of a
patrimonial nature, but that there is no patrimonial impact
since the Board does not intend to bring a claim for damages
against the Executive Committee and its members.
The Board grants discharge to the members of the Executive
Committee.
There were no conflicts of interest that required the
application of Article 7:116 or 7:117 of the CAC.

116 Annual Report KBC Group 2024
Transactions between the company and its directors and members of
the ExCo, not covered by the statutory regulations governing conflicts of
interest
None.
Measures regarding insider dealing and market manipulation
The Dealing Code requires a list of key employees to be
drawn up, annual blocking periods to be set, and
transactions by persons with managerial responsibility and
with persons connected with them to be reported to the
Belgian Financial Services and Markets Authority (FSMA).
Main features of the internal control and risk management systems
Part 1: Description of the main features
of the internal control and risk
management systems at KBC
A clear strategy, organisational structure and division of
responsibilities set the framework for the proper
performance of business activities
We examine the strategy and organisational structure of the
KBC group in the ‘Our business model’ and ‘Our strategy’
sections of this annual report.
The KBC group has a dual governance structure based on
the Belgian model:
• The Board is responsible for defining general strategy and
policy. It exercises all the responsibilities and activities
reserved to it by law and – based on a proposal by the
ExCo – decides on the overall risk appetite. It appoints the
members of the ExCo.
• The ExCo is responsible for the operational management
of the company within the confines of the general strategy
and policy approved by the Board. To assume its specific
responsibility towards financial policy and risk
management, the ExCo appoints a chief financial officer
(CFO) and a chief risk officer (CRO) from among its ranks.
The Charter describes the respective responsibilities of both
management bodies, their composition and operations, as
well as the qualifications their members must possess.
Corporate culture and integrity policy
Ethical behaviour and integrity are essential components of
sound business practice. Honesty, integrity, transparency
and confidentiality, together with sound risk management,
are part of the strict ethical standards that KBC stands for –
both in the letter and the spirit of the regulations.
We refer to our Sustainability statement elsewhere in this
annual report, in which we elaborate on (our policies on)
domains such as integrity, combating corruption and bribery,
anti-money laundering practices, responsible taxpayers,
whistleblowers and data protection.
These subjects are also covered in various (classroom and/or
digital) training courses (see table).

117Annual Report KBC Group 2024
Training courses completed, 2024, KBC group As a % of the selected target audience
Training course on combating corruption and bribery 99%
Training course on anti-money laundering 98%
Training course on GDPR 99%
Other data, 2024, KBC group In numbers
Conflicts of interest (non-MiFiD) received 35
Donations (of or exceeding 250 euros) reported
34
Whistleblower reports received
25
The ‘Three Lines of Defence’ model
1 The business
The business operations side is fully responsible for all the
risks in its area of activity and has to ensure that effective
controls are in place. In so doing, it ensures that the right
controls are performed in the right way, that self-assessment
of the risks of the business side is of a sufficiently high
standard, that there is adequate awareness of risk and that
sufficient priority/capacity is allocated to risk themes.
2 The Group risk, compliance and actuarial functions, and
– for certain matters – Finance, Legal and Tax, constitute
the second line of defence.
Independent of the business side, the second-line risk and
control functions formulate their own opinion regarding the
risks confronting KBC. In this way, they can oversee the
control environment and the risks taken, without taking over
primary responsibility from the first line. In this regard, the
second-line functions are tasked to identify, measure and
report risks. To ensure that the risk function is respected, the
chief risk officers have a veto right, which can be used in the
various committees where important decisions are made.
The second-line risk and control functions also support the
consistent implementation of the risk policy, the risk
framework, etc., throughout the group, and supervise how
they are applied.
Compliance is an independent function within the group,
characterised by its specific status (as provided for by law
and regulations and described in the Compliance Charter),
its place in the organisation chart (hierarchically under the
CRO with a functional reporting line to the President of the
ExCo) and associated reporting lines (reporting to the RRC
and even to the Board in certain cases). Its prime objective is
to prevent KBC from running a compliance risk or from
incurring loss/damage – regardless of its nature – due to
non-compliance with applicable laws, regulations or internal
rules that fall either within the scope of the compliance
function or within the areas assigned to it by the ExCo.
Hence, the compliance function devotes particular attention
to adherence to the integrity policy.
The actuarial function is an independent function that
ensures additional quality control by providing expert
technical actuarial advice to the Board, the RCC, the ExCo
of KBC Group NV, and to the KBC Insurance group and all
reinsurance and insurance entities within the group. Such
advice covers the calculation of the technical provisions for
insurance liabilities, the reinsurance policy and underwriting
risk. The independence of this function is supported by its
modified status, as described in the actuarial function
Charter.
3 As independent third line of defence, Internal Audit
provides support to the ExCo, AC, RCC and the Board in
monitoring the effectiveness and efficiency of the internal
control and risk management system.
Internal Audit provides reasonable assurance about whether
the internal control and risk management processes,
including corporate governance, are effective and efficient.
As independent third line of defence reporting to the AC, it
performs risk-oriented audits to this end and ensures that
policy measures and processes are in place that are
consistently applied within the group to guarantee the
continuity of operations.
Responsibilities, features, organisational structure and
reporting lines, scope, audit methods, cooperation between
internal audit departments of the KBC group, and
outsourcing of internal audit activities are set out in the Audit
Charter of KBC Group NV.
In accordance with international professional audit
standards, an external entity screens the audit function on a
regular basis
The AC and RCC play a central role in monitoring the
internal control and risk management systems
Each year, the ExCo evaluates whether the internal control
and risk management system is still compliant and reports its
findings to the AC and RCC. These committees supervise, on
behalf of the Board, the integrity and effectiveness of the
internal control measures and the risk management system
set up under the ExCo, with the AC paying special attention
to correct financial reporting. They also examine the
procedures set up by the company to see whether they
comply with the law and other regulations. Their role,
composition and operations, along with the qualifications of
their members, are laid down in their respective charters,
which are included under the Charter. More information on
these committees is provided elsewhere in this section.

118 Annual Report KBC Group 2024
Part 2: Description of the main features
of the internal control and risk
management systems in relation to the
financial reporting process
Periodic reporting at company level is based on a
documented accounting process. The accounting
procedures and financial reporting process are documented
in a comprehensive manual. Periodic financial statements
are prepared directly from the general ledger. Bookkeeping
accounts are examined to see whether they correspond to
underlying inventories. The result of these controls can be
demonstrated. Periodic financial statements are prepared in
accordance with local accounting policies. Periodic reports
on own funds are prepared in accordance with the IFRS
accounting policies and the most recent National Bank of
Belgium (NBB) resolutions.
The main affiliated companies have their own accounting
and administrative organisation, as well as a set of
procedures for internal financial controls. The consolidation
process is explained in a descriptive document. The
consolidation system and the consolidation process have
been operational for some time and have numerous built-in
consistency controls.
The consolidated financial statements are prepared in
accordance with IFRS accounting policies that apply to all
the companies included in the scope of consolidation. The
relevant senior financial managers (CFOs) of the subsidiaries
certify to the accuracy and completeness of the financial
figures reported in accordance with group accounting
policies. The Approval Committee, which is chaired by the
general managers of the Investor Relations Office and of
Experts, Reporting & Accounting, monitors compliance with
IFRS accounting policies and the completeness of IFRS
disclosure requirements.
Pursuant to the Banking Act, the ExCo of KBC Group NV
evaluated the internal control system for the financial
reporting process and prepared a report on its findings.
The group-wide roll-out of ‘fast close’ procedures, the
monitoring of intercompany transactions within the group,
and permanent follow-up of a number of key risk,
performance and quality indicators continually help raise the
quality of both the accounting process and the financial
reporting process.
The internal control of the accounting process has been
based on Group Key Control Accounting and External
Financial Reporting standards since 2006. These rules for
managing the main risks attached to the accounting process
involve the establishment and maintenance of accounting
process architecture, the establishment and maintenance of
accounting policies and accounting presentations,
compliance with authorisation rules and the separation of
responsibilities when transactions are registered in the
accounts, and the establishment of appropriate first- and
second-line account management.
The Challenger Framework and Data Management
Framework define a solid governance structure and clearly
describe the roles and responsibilities of the various players
in the financial reporting process. The aim here is to radically
reduce reporting risks by challenging input data and
improving the analysis of – and therefore insight into – the
reported figures.
Each year, when preparing the Internal Control Statement for
the supervisory authorities, the legal entities have to assess
themselves as to whether they comply with the Group Key
Control Accounting and External Financial Reporting
standards. The findings of this self-assessment are registered
in the risk function’s Group Risk Assessment Tool. Business
process management (BPM) techniques are also applied,
using process inventories, process descriptions (turtle
diagrams) and analyses of the potential risks in the processes
(Failure Mode & Effects Analysis (FMEA)), supplemented by
the questionnaire completed by the CFOs. In this way, the
CFOs formally confirm by substantiated means that all the
defined roles and responsibilities relating to the end-to-end
process for external financial reporting have been properly
assumed within their entity.
KBC Group NV’s Internal Audit function conducts an end-to-
end audit of the accounting process and external financial
reporting process at both company and consolidated level.

119Annual Report KBC Group 2024
Disclosure under Article 34 of the Belgian Royal Decree of 14 November
2007 concerning the obligations of issuers of financial instruments
admitted to trading on a regulated market
1 Capital structure on 31 December 2024
The share capital was fully paid up and was represented by
417 544 151 shares of no nominal value. For more information,
see the ‘Additional information’ section.
2 Restrictions on transferring securities
as laid down by law or the Articles of
Association
Each year, KBC Group NV carries out a capital increase for its
employees and the employees of certain of its Belgian
subsidiaries. If the issue price of the new shares is less than
the set closing price, the employee may not transfer these
new shares for two years, starting from the payment date,
unless he or she dies.
The shares issued under the capital increase in 2024 remain
blocked (until 11 December 2026). The shares issued under the
capital increase in 2023 are issued on an undiscounted basis
and therefore not blocked.
3 Holders of any securities with special
control rights
None.
4 Systems of control of any employee
share scheme where the control rights
are not exercised directly by the
employees
None.
5 Restrictions on exercising voting rights
as laid down by law or the Articles of
Association
The voting rights attached to the shares held by KBC Group
NV and its direct and indirect subsidiaries are suspended.
See Note 5.10 in the ‘Consolidated financial statements’
section.
6 Shareholder agreements known to
KBC Group NV that could restrict the
transfer of securities and/or the exercise
of voting rights
The core shareholders of KBC Group NV comprise KBC
Ancora NV, its parent company Cera CV, MRBB BV, and a
group of legal entities and individuals referred to as ‘Other
core shareholders’.
Based on the most recent notifications provided to KBC, their
shareholdings are:
• KBC Ancora NV 77 516 380
• Cera CV 16 555 143
• MRBB BV 51 905 219
• Other core shareholders 28 247 408
• Total 174 224 150
(41.7% of total number of shares at 31 December 2024)
A shareholder agreement was concluded between these
core shareholders that provides for a contractual
shareholder syndicate. It sets out the rules for the syndicated
shares, management of the syndicate, syndicate meetings,
voting rights within the syndicate, preferential subscription
rights in the event of the transfer of syndicated shares,
withdrawal from the agreement, and duration of the
agreement. Apart from a limited number of decisions, the
syndicate meeting may take decisions by a two-thirds
majority vote, on the understanding that none of the
shareholder groups can block a decision. The agreement
was extended for a ten-year period, with effect from 1
December 2024.
7 Rules governing the appointment and
replacement of board members and the
amendment of the Articles of
Association of KBC Group NV
Appointment and replacement of members of the Board:
Following the approval of or notification to the supervisory
authority, proposals to appoint nominated directors or to
reappoint directors are submitted by the Board to the
General Meeting for approval. Each proposal is
accompanied by a documented recommendation from the
Board, based on the advice of the Nomination Committee.
Without prejudice to the applicable legal provisions,
nominations are communicated as a separate agenda item
for the General Meeting at least thirty days before it is held.
When nominating an independent director, the Board will
state whether the individual meets the independence criteria
set out in Article 7:87 of the CAC. The General Meeting
appoints directors by a simple majority of votes cast. From
among its non-executive members, the Board elects a
chairman and one or more deputy chairmen, if necessary. In
principle, outgoing directors are eligible for reappointment.
If, during the course of a financial year, a directorship falls
vacant as a result of decease, resignation, dismissal or for
any other reason, the remaining directors may provisionally
arrange for a replacement and appoint a new director. In
that case, the next General Meeting will proceed to a
definitive appointment.

120 Annual Report KBC Group 2024
Amendment of the Articles of Association:
The General Meeting is entitled to amend the Articles of
Association. Accordingly, the General Meeting may only
validly deliberate and take decisions about such
amendments if they have been accurately proposed in the
convening notice and if the shareholders present or
represented at the meeting represent at least half the
capital. If the latter condition is not satisfied, a second
convening notice is required and the new meeting can validly
deliberate and take decisions, regardless of the share of
capital represented by the shareholders present or
represented at the meeting. An amendment is only adopted
if it receives three-quarters of the votes cast (Article 7:153 of
the CAC).
If an amendment to the Articles of Association pertains to
the object of the company, the Board must justify the
proposed amendment in a detailed report that is referred to
in the agenda. An amendment will then only be adopted if it
receives at least four-fifths of the votes cast (Article 7:154 of
the CAC).
8 Powers of the Board with regard to the
issue and repurchase of treasury shares
The General Meeting authorised the Board until 22 May 2028
to increase, in one or more steps, the share capital in cash or
in kind, by issuing shares. The Board is also authorised until
the same date to decide on one or several occasions to issue
convertible bonds (whether subordinated or otherwise) or
warrants that may or may not be linked to bonds (whether
subordinated or otherwise) that could result in capital being
increased. This authorisation related to a sum of 146 000 000
euros, where the Board is entitled – in the company’s interest
– to suspend or restrict the preferential subscription rights of
existing shareholders, and to a sum of 554 000 000 euros,
without the Board having the power to suspend or restrict
preferential subscription rights. On 6 November 2024, the
Board decided to use its authorisation to increase capital by
issuing shares with preferential subscription rights cancelled
to employees. For more information, see ‘Notes to the
company annual accounts’ in the ‘Additional information’
section.
The General Meeting of 5 May 2022 authorised the Board, for
a period of four years calculated from the announcement of
the resolution, to acquire a maximum of 10% of the KBC
Group NV shares on Euronext Brussels or another regulated
market at a price per share that may not exceed the last
closing price on Euronext Brussels preceding the date of
acquisition plus 10%, and that may not be lower than one
euro. Under this authorisation, the Board acquired 20 980 823
shares in 2023 and 2024 (an aggregate 5.02% of the number
of shares in circulation).
For information on KBC Group NV shares belonging to KBC
Group NV and its subsidiaries, see Note 5.10 in the
‘Consolidated financial statements’ section.
9 Significant agreements to which KBC
Group NV is a party and which take
effect, alter or terminate upon a change
of control of KBC Group NV following a
public takeover bid
None.
10 Agreements between KBC and its
directors or employees providing for
compensation if the directors resign or
are made redundant, or if employees
are made redundant, without valid
reason following a public takeover bid
None.

121Annual Report KBC Group 2024
Shareholder structure on 31 December 2024
Notifications of shareholdings are provided under the Act of
2 May 2007, under the Act on public takeover bids or on a
voluntary basis. A summary containing the most recent
disclosures is provided under ‘Our business model’ in the
‘Report of the Board of Directors’ section.
It should be noted that the figures provided below may differ
from the current number of shares in possession, as a change
in the number held does not always give rise to a new
notification. The most recent shareholding update can be
found under ‘Our capital’ in the ‘Our business model’ section.
Shareholder structure based on notifications received under the Act of 2 May 2007
concerning the disclosure of significant participations in issuers whose shares are
admitted to trading on a regulated market
Shareholder structure on
31 December 2024 (based on
the most recent notifications
received) Address
Number of KBC shares/voting
rights (as a % of the current
number of shares/voting
rights)
1
Notification
relating to
Core shareholders
1
KBC Ancora NV Muntstraat 1, 3000 Leuven, Belgium 77 516 380 / 18.56% 1 December 2024
Cera CV Muntstraat 1, 3000 Leuven, Belgium
16 555 143 / 3.96% 1 December 2024
MRBB BV Diestsevest 32/5b, 3000 Leuven, Belgium
51 905 219 / 12.43% 1 December 2024
Other core shareholders
C/o Ph. Vlerick, Ronsevaalstraat 2, 8510
Bellegem, Belgium
28 247 408 / 6.77% 1 December 2024
Other shareholders (≥ 3%)
BlackRock, Inc.
50 Hudson Yards, New York, NY, 10001,
United States 18 217 405 / 4.36% 1 October 2024
Share buybacks
2
KBC Group NV Havenlaan 2, 1080 Brussels, Belgium 20 942 766 / 5.02% 30 July 2024
1 Includes the ‘voting rights that may be acquired if the instrument is exercised’ as stated under ‘B) Equivalent financial instruments’ in the transparency notification. Any
shareholders falling below the 3% notification threshold are no longer included in the table (unless they are a core shareholder). KBC publishes these notifications on
www.kbc.com. The data regarding the core shareholders is sourced from the press release of 24 December 2024, which can also be viewed at www.kbc.com.
2 Following this notification, a limited number of treasury shares were repurchased. The total number of treasury shares repurchased is 20 980 823. The voting rights attached to
these shares are suspended.

122 Annual Report KBC Group 2024
Disclosures under Article 74 of the Belgian Act on public takeover bids
Within the framework of this law, KBC Group NV received a number of updated disclosures in August 2024. The entities and
individuals referred to below act in concert.
A Disclosures by (a) legal entities and (b) individuals holding 3% or more of securities carrying voting rights
1
Shareholder
Shareholding
(quantity) %
2
Shareholder
Shareholding
(quantity) %
2
KBC Ancora NV 77 516 380 18.56% Niramore International NV 400 000 0.10%
MRBB BV
48 066 407 11.51% Cecan Invest NV 397 563 0.10%
CERA CV
16 555 143 3.96% Robor NV 359 606 0.09%
VIM BV
4 032 141 0.97% Rodep NV 320 000 0.08%
Plastiche Finance NV
3 380 500 0.81% Dufinco BV 300 000 0.07%
Agev SAK
2 807 731 0.67% Beluval NV 267 698 0.06%
Almafin SA
1 627 127 0.39% Bareldam SA 260 544 0.06%
Anchorage NV
1 550 000 0.37% Algimo NV 210 000 0.05%
De Berk NV
1 138 208 0.27% Gavel NV 200 000 0.05%
Cecan NV
1 087 697 0.26% Ibervest NV 190 000 0.05%
SAK PULA
981 450 0.24% Iberanfra STAK 120 107 0.03%
Rainyve SA
950 000 0.23% Promark International NV 110 000 0.03%
Alia SA
938 705 0.22% Agrobos NV 85 000 0.02%
Stichting Amici Almae Matris
917 731 0.22% Wiljam NV 65 000 0.02%
3D NV 911 893 0.22%
Hendrik Van Houtte en
Co NV 40 000 0.01%
Alginvest NV
900 901 0.22% Filax Stichting 38 529 0.01%
Ceco NV
591 499 0.14% Van Holsbeeck Kristo BV 18 720 0.00%
Van Holsbeeck NV
513 656 0.12% Ravago IBP-OFP 9 833 0.00%
Sereno SA
502 408 0.12%
B Disclosures by individuals holding less than 3% of securities carrying voting rights (the identity of the individuals concerned
does not have to be disclosed)
Shareholding
(quantity) %
2
Shareholding
(quantity) %
2
– 900 000 0.22% – 63 562 0.02%
–
884 000 0.21% – 50 000 0.01%
–
285 000 0.07% – 41 446 0.01%
–
285 000 0.07% – 38 000 0.01%
–
250 000 0.06% – 33 318 0.01%
–
167 498 0.04% – 30 000 0.01%
–
125 200 0.03% – 23 131 0.01%
–
102 944 0.02% – 18 167 0.00%
–
89 562 0.02% – 10 542 0.00%
–
81 212 0.02% – 9 915 0.00%
–
75 000 0.02% – 3 431 0.00%
–
71 168 0.02% – 730 0.00%
–
67 479 0.02% – 321 0.00%
1 No such disclosures were received.
2 The calculation is based on the total number of shares on 31 December 2024.
The most recent shareholding update can be found under ‘Our capital’ in the ‘Our business model’ section.

123Annual Report KBC Group 2024
Remuneration report for financial year 2024
Procedures for developing the
remuneration policy and for determining
the remuneration granted to individual
directors and members of the ExCo
The remuneration policy for the Board and ExCo is based on
prevailing legislation, the Corporate Governance Code and
market data. It is monitored and regularly checked by the
Remuneration Committee to see whether it complies with
changes in the law, the Code, and prevailing market
practices and trends. The Chairman of the Remuneration
Committee informs the Board of the committee’s activities
and advises it of any changes to the remuneration policy
and its implementation. The minutes of the meetings of the
Remuneration Committee are provided to the Board for
information purposes. The Board may also instruct the
Remuneration Committee to examine potential changes to
the remuneration policy and to advise it accordingly. If
required by law, the Board will submit any policy changes to
the General Meeting for approval.
The RCC assists the Board in drawing up a sound
remuneration policy and also checks each year whether that
policy is consistent with healthy and effective risk
management, and whether or not the incentives in the
system promote risks.
On the basis of advice obtained from the Remuneration
Committee, the Board decides on proposals to change the
remuneration package for its members and, where
necessary, submits such proposals for approval at the
General Meeting.
On the basis of advice obtained from the Remuneration
Committee and taking account of the established
remuneration policy, the Board determines the remuneration
to be granted to members of the ExCo, and assesses this
amount at regular intervals. The amount in question is split
into a fixed component and a variable (profit-related/
performance-related) component.
Non-compliance with the Corporate
Governance Code
• The Corporate Governance Code stipulates that members
of the Board should receive a portion of their remuneration
in the form of company shares as a way of encouraging
them to act as long-term shareholders or, as phrased by
the Corporate Governance Commission, to ensure that the
directors have ‘skin in the game’. While agreeing with the
thinking behind it, the Remuneration Committee did not
consider it expedient to follow this rule given KBC’s specific
shareholder structure, where – with the exception of the
independent directors – all non-executive directors at
KBC are representatives of the core shareholders. These
core shareholders, by their very nature, are long-term
shareholders who together hold more than 40% of KBC’s
shares. So it is fairly safe to say there is ‘skin in the game’.
Adding a limited number of shares by means of their
remuneration would, therefore, not have any impact
whatsoever. Consequently, the Remuneration Committee
believes it is not necessary to implement this rule to
achieve the intended objective. The Board followed the
advice of the committee.
• The Corporate Governance Code also stipulates that the
Board should determine the minimum number of shares
that members of the ExCo may hold in a personal
capacity. The reasoning behind this position is to bring the
interests of executive management into line with those of
the shareholders and because it would contribute to
sustainable value creation. In this regard, too, the
Corporate Governance Commission reiterates the
importance of having ‘skin in the game’. Moreover, a
positive correlation is believed to exist between
shareholdings by senior management and future
operating profit. The Remuneration Committee advised
the Board not to implement this particular provision of the
Code. The Board followed the advice of the committee
based on the fact that the idea behind this provision and
the positive impact of shareholdings by senior
management are already deeply embedded in the current
structure of the remuneration package currently in place
for members of the ExCo. Not only is payment of 60% of
their variable remuneration deferred over a period of five
years, half of the variable remuneration is also paid in the
form of phantom stocks. In other words, half of the variable
remuneration is linked to the development of the value of
the KBC share over a period of seven years following the
year for which the variable remuneration was awarded. So
we can safely conclude there is already quite some ‘skin in
the game’. Continuing good results and a positive share
price performance are therefore as important to members
of the ExCo as they are to the shareholders. The additional
requirement of having members of the ExCo hold a
package of KBC shares would make an overly large
portion of their assets dependent on the KBC share price.
General framework
The policy for remunerating members of the Board and the
ExCo is published in the Remuneration Policy for the Board of
Directors and Members of the Executive Committee, which
the General Meeting approved by 73% of the votes on 2 May
2024.

124 Annual Report KBC Group 2024
The main principles for setting variable remuneration are set
out below:
• Variable remuneration must always comprise a profit-
related component (for the ExCo as a collective body) and
a performance-related component (for individual
achievements).
• 60% of variable remuneration awarded to members of the
ExCo may not be paid straightaway but its payment is to
be spread over a period of five years.
• Half of the total amount of variable remuneration is to be
awarded in the form of equity-related instruments
(phantom stocks or other instrument specified by a local
regulator). This ensures that the size of the variable
emolument partly depends on the longer-term effects of
the policy pursued.
• No advance payments may be made in relation to the
variable component and clawback/holdback provisions
are in place.
• The variable remuneration may not exceed half of the
fixed remuneration components.
• The criteria for assessing the performance of the ExCo
member responsible for the risk function may not refer in
any way to the results of the KBC group.
• Some of the criteria used for assessing the performance of
members of the ExCo must always relate to risk. The
sustainability policy is another element that is taken into
account when setting variable remuneration.
Clawback provisions
• Payment of the total annual variable remuneration is not
only spread over time; half of it is also awarded in the form
of phantom stocks that are subject to a retention period of
one year (i.e. they are only converted into cash one year
after being awarded). The variable remuneration
component, including the deferred part, is only acquired
when this can be reconciled with the financial situation of
the entire institution and justified by the performances of
the KBC group and the ExCo.
• Action can be taken regarding payment of deferred
amounts that have still to be acquired (malus
arrangement) in certain situations. In exceptional
circumstances, some or all of the variable remuneration
already awarded can also be clawed back, which is
decided on by the Board on the advice of the
Remuneration Committee.
Remuneration awarded to non-
executive directors
• The remuneration paid to non-executive directors consists
of (i) an annual fixed component of 20 000 euros, which is
non-performance-related and non-results-based
(directors also sitting on the Board of KBC Bank and/or
KBC Insurance receive an additional fixed remuneration of
10 000 euros for the work they perform in that regard), and
(ii) the fee received for each meeting attended (5 000
euros) (if meetings coincide with Board meetings of KBC
Bank and/or KBC Insurance, the attendance fee will be
paid just once to directors sitting on more than one of
these Boards). Given his duties, the Deputy Chairman
receives a higher fixed component (an additional 30 000
euros).
• In light of the considerable time he devotes to the ongoing
supervision of KBC group affairs, the Chairman of the
Board receives a different remuneration package that
comprises solely a fixed component, which is set
separately by the Remuneration Committee and approved
by the Board. It amounts to 200 000 euros for the
chairman of KBC Group NV and to 50 000 euros each for
the chairmen of KBC Bank NV and KBC Insurance NV.
• The directors sitting on the AC and/or RCC receive an
additional fixed emolument of 60 000 euros for the work
they perform in that regard. Similarly, the emolument will
be paid just once to directors also sitting on the AC or RCC
of KBC Bank and/or KBC Insurance. The chairmen of the
AC and RCC receive a higher fixed emolument (an
additional 30 000 euros and 100 000 euros, respectively).
Directors sitting on either the Nomination Committee or
the Remuneration Committee do not receive additional
remuneration for the work they perform in that regard.
• In light of the considerable time required for directors
residing outside Belgium to attend Board meetings,
additional remuneration (attendance fees) of 2 500 euros
is paid to them for each meeting attended. This does not
apply to meetings held virtually or to virtual attendance of
in-person meetings.
• KBC Group NV does not grant loans to directors. Loans or
guarantees may, however, be granted by KBC Group NV
banking subsidiaries pursuant to Article 72 of the Banking
Act, meaning that loans may be granted at terms applying
to clients and approved by the Board.
Individual remuneration awarded to
non-executive directors of KBC Group NV
• The non-executive directors of KBC Group NV – and,
where relevant, of other companies of the KBC group –
received the amounts set out in the following table.
• The members of the ExCo who also sit on the Board as
executive directors did not receive either a fixed
remuneration or any attendance fees.

125Annual Report KBC Group 2024
Remuneration per individual director
(on a consolidated basis, in EUR)
Remuneration
(for FY 2024)
Remuneration for AC
and RCC members
(for FY 2024)
Attendance fees
(for FY 2024) Total
Koenraad Debackere 300 000 - - 300 000
Alain Bostoen
30 000 - 55 000 85 000
Eric Clinck
30 000 - 55 000 85 000
Sonja De Becker
40 000 60 000 55 000 155 000
Marc De Ceuster 65 000 90 000 61 250 216 250
Franky Depickere 65 000 160 000 61 250 286 250
Frank Donck 30 000 60 000 55 000 145 000
Liesbet Okkerse 40 000 - 55 000 95 000
Vladimira Papirnik (until 2 May 2024)
10 000 20 000 30 000 60 000
Alicia Reyes Revuelta 30 000 60 000 75 000 165 000
Diana Rádl Rogerová (from 2 May 2024) 20 000 40 000 52 500 112 500
Theodoros Roussis 30 000 - 50 000 80 000
Raf Sels
30 000 - 55 000 85 000
Philippe Vlerick
60 000 - 55 000 115 000
Remuneration paid to the President and
the other members of the ExCo
• The remuneration of individual ExCo members is made up
of the following components:
- A fixed monthly emolument;
- A defined pension contribution in a defined contribution
plan;
- An annual, profit-related variable emolument (the
amount of which depends on the performance of the
ExCo as a whole and on the performance of the
institution);
- An annual, individual variable emolument based on the
performance by each member of the ExCo and on the
example they set in respecting the group’s values;
- Any emolument for offices performed on behalf of KBC
Group NV (exceptional).
• A quantitative risk-adjustment mechanism – the ‘risk
gateway’ – is used to set the variable remuneration. It
comprises a number of capital and liquidity parameters
that have to be met before the variable remuneration
component may be awarded. The parameters are set
each year by the Board. If one of these parameters is not
met, no variable remuneration will be awarded for that
year.
• For members of the ExCo, the individual variable
component is set on the basis of an assessment of the
performance of the member in question. The
Remuneration Committee broadly assesses each member
of the ExCo against the aspects of our corporate culture
and the aspect of being Respectful as a core value for the
entire KBC organisation. On the basis of this assessment,
the Remuneration Committee proposes a percentage
between 0 and 100% to the Board. The Board then decides
on this final score, which ultimately determines the size of
the individual variable emolument.
Criteria for awarding members of the
ExCo the individual variable remuneration
component Explanation*
Performance We strive for excellent results and do what we promise to do.
Empowerment We offer every employee the chance to develop their creativity and talent.
Accountability We meet our personal responsibility towards our clients, colleagues, shareholders and
society.
Responsiveness We anticipate and respond proactively to the questions, suggestions, contributions and
efforts of our clients, colleagues and management.
Local Embeddedness and group-wide
cooperation
We view the diversity of our teams and of our clients in the different core markets as a
strength and we stay close to our clients.
Respectful We treat people as our equals, we are transparent, we trust them and appreciate them
for what they do and who they are.
* See ‘What makes us who we are?’

126 Annual Report KBC Group 2024
• On the advice of the Remuneration Committee, the Board
sets the collective profit-related variable component on
the basis of an assessment of a number of pre-agreed
criteria relating to the performances of the ExCo and the
company (see table). These criteria are centred on four
broad areas, viz. implementing strategy, realising financial
plans, strengthening the risk control environment, and the
satisfaction of all stakeholders. The performance of the
ExCo in each of these four areas determines the size of this
variable remuneration component, with each area
accounting for 40%, 20%, 20% and 20%, respectively (the
breakdown was 25%/25%/25%/25% up to and including
2023; the Board decided to increase the share of the
strategy component to highlight the importance of the
Ecosphere strategy and the increase in the number of
bank-insurance clients). The assessment of these criteria is
reflected in a percentage between 0% and 100% that is
applied to the maximum profit-related variable
emolument. The size of the variable emolument, therefore,
depends to a small extent on achieving financial results.
Other aspects such as risk management and stakeholder
management are equally important in this regard. And, as
it determines at least 30% of the profit-related variable
emolument, sustainability is also an increasingly important
factor.
Criteria for awarding members of the ExCo
the profit-related variable remuneration
component Explanation Weighting*
Implementing strategy Besides achieving any specific targets, the main focus is on what has
been achieved in terms of client centricity, sustainability and innovation.
In 2024, this primarily involved further progress in the implementation of
the Ecosphere strategy (including Kate and Kate coins), qualitative and
quantitative progress made in the area of bank-insurance clients, digital
sales and STP (straight-through processing), the implementation of the
Temenos platform, and progress, both qualitative and quantitative, on
key sustainability indicators.
40%
Realising financial plans Comprises a number of financial parameters (return, profit, capital, and
cost of credit) and assessment of the progress made in terms of income
diversification.
20%
Strengthening the risk control environment Assessed based on liquidity, capital and funding criteria, implementing
recommendations made by Audit and the regulator, and the degree
to which the internal control environment, including compliance, has
improved. In 2024, we continued to focus on cyber risks and the further
implementation of AML and GDPR strategy. In addition to enhancing
the risk control environment, many of these criteria also contribute to
strengthening the company’s good governance and to encouraging
responsible conduct.
20%
Stakeholder satisfaction Assessed based on results from client and employee satisfaction
surveys and on progress made in terms of sustainability. A sustainability
dashboard that contains numerous parameters is used for measuring
sustainability in a range of areas, including our banking and insurance
activities (e.g., the share of renewable energy loans in the loan portfolio
and phasing out financing of the coal sector), our role in society (e.g., our
own ecological footprint), sustainable growth (e.g., managing risk and
creating long-term value), reputation and HR policy, etc.
20%
* For the variable remuneration of the CRO, the realisation of financial plans is not taken into account, but the relative weighting of risk-related criteria is doubled.
• The variable remuneration of the members of the ExCo is
not only based on the results of a single financial year, but
also considers the long-term impact. This is embedded in
the structure of the payment of the variable remuneration:
- Half of the remuneration is linked to the development of
the price of the KBC share over a period of seven years
following the performance year (by distributing phantom
stocks);
- 60% of the variable remuneration is not paid
immediately, but is spread over a period of six years
following the performance year. Events that have a
material negative impact on KBC’s results or reputation
may give rise to non-payment or reduced payment of
the variable remuneration.
• Members also benefit from a retirement and survivor’s
pension scheme, which comprises a supplementary
retirement pension or – if the insured dies while still in
employment and leaves a spouse – a survivor’s pension
(and, where applicable, an orphan’s pension), and also
provides cover in the event of disability.

127Annual Report KBC Group 2024
Provisions concerning severance
payments for executive directors and
members of the ExCo of KBC Group NV
• In compliance with legal and regulatory limits, for members
of the ExCo who have worked six years or less, such
payments have been set at 12 months’ remuneration, for
those who have worked between six and nine years, they
are equal to 15 months’ remuneration, and for those who
have worked more than nine years, they are equal to 18
months’ remuneration. In this context, remuneration is
taken to be the fixed remuneration component for the
current year and the variable component for the last full
year preceding termination of office.
Relative importance of the different
components of remuneration
• The variable component is split into a collective profit-
related variable emolument and an individual variable
emolument. For 2024,
- a maximum of 729 682 euros applies for the profit-
related variable component for the President of the
ExCo and a maximum of 386 696 euros for the individual
variable component;
- the limits for these components are 327 910 and 147 355
euros, respectively, for the other members of the ExCo.
• The final amount is set by the Board on the advice of the
Remuneration Committee, based on an assessment of the
individual and collective achievements during the previous
financial year.
Characteristics of performance-related
bonuses in the form of shares, options,
or any other rights to acquire shares
• The total amount of annual variable remuneration (i.e. both
the profit-related and individual components) for members
of the ExCo is paid over a period of six years, with 40%
being paid in the first year and the rest spread equally
over the next five years.
• Payment of these deferred amounts is subject to the
clawback provisions outlined above.
• Of the total annual variable remuneration, 50% is awarded
in the form of equity-related instruments called phantom
stocks, the value of which is linked to the price of the KBC
Group NV share (though not in the Czech Republic, where a
specific non-cash instrument is used whose value changes
in lockstep with ČSOB’s results and the underlying factors
determining the value of the phantom stocks). These
stocks must be retained for one year after being allocated.
The period over which they are allocated is also six years.
The average price of the KBC share during the first three
months of the year is used to calculate the number of
phantom stocks to which each member of the ExCo is
entitled. These stocks are then converted into cash a year
later on the basis of the average price of the KBC share
during the first three months of that year. They are subject
to the allocation and acquisition conditions described
under ‘Clawback provisions’.
Pension arrangements, disability cover
and death cover
• The members of the ExCo have a separate defined
contribution plan that is funded entirely by KBC. When
drawing up this plan, account was taken of the fact that
the career of a member of the ExCo is shorter than that of
an average employee. In the pension formula, therefore,
the first ten years that an individual sits on the ExCo are
the ones in which a significant part of the supplementary
pension is built up. The contribution that KBC makes to the
pension plan amounts to 32% of the fixed emolument
during those first ten years, 7% for the next five years and
3% starting from the sixteenth year of plan membership. A
minimum return of 0% (capped at 8.25%) is guaranteed on
the contributions. During the first ten years, the size of the
payment made into the pension fund is rather large, but
declines to a fraction of what it had been previously
starting from the eleventh year and even more markedly
from the sixteenth year.
• The plan applies to all members of the ExCo who are
resident in Belgium. Similar cover is provided for the other
members of the ExCo under an insurance contract.
• The pension plan includes a death benefit, which equals
four times the amount of the fixed emolument (or, if higher,
the reserves that have been built at the time of death).
Where applicable, there is also an orphan’s pension,
comprising a one-off benefit of 239 670 euros and an
annuity of 7 773 euros per year.
• The invalidity benefit provided under the plan amounts to
923 021 euros per year.
Fixed and variable remuneration for
2024
• Figures for the fixed and variable remuneration
components are given in the table.
• The Board decided that the members of the ExCo should
be awarded collective profit-related variable
remuneration for 2024 that equalled 97.6% of the maximum
amount (97.1% for the CRO). Despite our very strong
performance in 2024, the score is slightly below the level of
2023. The strategy target carries more weight this year
(40%, compared to 25% in 2023), which explains the
year-on-year development.

128 Annual Report KBC Group 2024
2024 score Explanation
Score
decided on
A Implementing strategy Substantial progress was made with implementing the ‘S.T.E.M., the
Ecosphere’ strategy. All countries follow the roadmap to achieve their targets.
Significant progress was made again in the area of sustainability. We are on
track to meet the 2030 targets, although we have noticed that the target
for the share of green property loans (and the corresponding share of green
insurance policies) remains a challenge, especially because of a lack of data
(e.g., a lack of EPC information) and a lack of government support.
More and more processes are entirely ‘straight-through’, which also makes
them scalable. The same holds true for sales through our digital channels,
where we are also on target. However, the ambitious targets for bank-
insurance clients were insufficiently achieved.
96.9%
B Realising financial plans The financial targets were met or exceeded, leading to very strong results. 100%
C Strengthening the risk control
environment
The majority of the KPIs were met (audit recommendations, liquidity, funding
and capital planning, level of operating losses, etc.). Substantial efforts
and significant progress were again made in a few areas, such as data
quality, GDPR and anti-money laundering issues. In terms of data quality,
processes are now under control. There is still room for improvement in
terms of GDPR and anti-money laundering issues, which is partly due to
ever-growing expectations of supervisory authorities. All criteria related to
the group’s good governance practices were met. This also contributes to
responsible behaviour throughout the group, an important cornerstone of our
sustainability strategy.
97.8%
D Stakeholder satisfaction The already high level of employee satisfaction increased slightly further. Our
sustainability performance has remained strong, as the sustainability report
also shows. KBC continues to be recognised as a frontrunner in this area in
the financial sector, which among other things resulted in confirmation of the
excellent sustainability ratings. Virtually all KBC entities met their NPS target
as well as their reputation targets. Employee satisfaction, NPS scores and
reputation also benefit from good governance and responsible behaviour, to
which considerable attention is paid.
96.3%
Total weighted score (percentage that is
applied to the maximum
profit-related variable emolument)
DC members excl. CRO ((96.9 x 40%) + (100 x 20%) + (97.8 x 20%) + (96.3 x 20%)) 97.6%
CRO ((96.9 x 40%) + (100 x 0%) + (97.8 x 40%) + (96.3 x 20%)) 97.1%
• Half of the variable remuneration component is paid in
cash and the other half is awarded in the form of phantom
stocks. As regards the cash component, 40% will be paid in
2025 and the remaining 60% spread equally over the next
five years (2026 to 2030, inclusive). The amounts awarded
are included in the table below.
• Phantom stocks for 2024: The number of phantom stocks is
calculated on the basis of the average price of the KBC
share during the first quarter of 2025. Like the other
variable components, 40% will be awarded in 2025 and the
remaining 60% spread equally over the next five years.
Given that phantom stocks are to be retained for one year,
they are paid out in cash one year after being awarded,
which means that payment is spread over 2026 to 2031,
inclusive. The amounts for which phantom stocks were
awarded in this way for 2024 are given in the table below:

129Annual Report KBC Group 2024
Amounts awarded in the form of phantom
stocks (in EUR) Total
Vesting in
2025
Vesting in
2026
Vesting in
2027
Vesting in
2028
Vesting in
2029
Vesting in
2030
Johan Thijs 545 444 218 178 65 453 65 453 65 453 65 453 65 453
Erik Luts 227 749 91 099 27 330 27 330 27 330 27 330 27 330
Luc Popelier
1
148 394 59 358 17 807 17 807 17 807 17 807 17 807
Christine Van Rijsseghem 223 354 89 342 26 803 26 803 26 803 26 803 26 803
David Moucheron 224 802 89 921 26 976 26 976 26 976 26 976 26 976
Peter Andronov 228 486 91 394 27 418 27 418 27 418 27 418 27 418
Aleš Blažek
2
136 160 54 464 16 339 16 339 16 339 16 339 16 339
Bartel Puelinckx
1
72 969 29 188 8 756 8 756 8 756 8 756 8 756
1 Luc Popelier, ExCo member until 1 September 2024; Bartel Puelinckx succeeded him on 1 September 2024. Fees are pro rata temporis.
2 Specific instruments in the Czech Republic, as set out above.
Variable remuneration relating to
previous years
• A portion of the (deferred) variable remuneration
component awarded for 2019-2023 will be paid in 2025.
• A portion of the phantom stocks awarded for 2018-2022
was converted into cash at 63.22 euros per share in April
2024.
• The amounts paid are given in the table.
Severance payments in 2024
• None.
Other benefits
• Each member of the ExCo has a company car, the
personal use of which is charged in accordance with the
prevailing regulations. Other benefits which members of
the ExCo receive include hospitalisation insurance,
assistance insurance and accident insurance. The value of
these benefits is given in the table. These figures do not
include the flat-rate expenses allowance of 335 euros
which each member of the ExCo receives each month.
Overview
• The tables below show the remuneration paid to a) the
former members of the ExCo and b) the current members
of the ExCo. Employment status of the members of the
ExCo: self-employed.
a) Remuneration paid to former members of
the ExCo of KBC Group NV, 2024
Luc
Gijsens
Daniel
Falque
Hendrik
Scheerlinck
John
Hollows
Luc Popelier
(ExCo member until 1
September 2024)
Paid Paid Paid Paid Awarded Paid
Base remuneration (fixed) – – – –
688 449 688 449
Individual remuneration for financial year (vari-
able)
- cash – – – –
41 751 16 700
- phantom stocks – – – – 41 751 –
Profit-related remuneration for financial year
(variable)
- cash – – – –
106 644 42 657
- phantom stocks – – – – 106 644 –
Remuneration for previous financial years
- individual variable remuneration –
10 025 11 193 17 439 – 28 743
- profit-related variable remuneration – 33 352 33 352 50 328 – 81 362
- phantom stocks 5 247 80 669 76 370 117 304 – 174 550
Sub-total (variable remuneration) 5 247 124 046 120 915 185 071 296 790 344 012
Defined contribution pension plan (contribution)
(excl. taxes) – – – –
245 355 245 355
Other benefits – – – – 7 677 7 677
Total 5 247 124 046 120 915 185 071 1 238 271 1 285 493
Ratio of fixed to variable remuneration (%) – – – – 76/24 73/27

130 Annual Report KBC Group 2024
b) Remuneration paid to
the current members of
the ExCo of KBC Group NV
(2024)
Johan
Thijs
(CEO)
Peter
Andronov
Aleš
Blažek
1
Erik
Luts
David
Moucheron
Bartel
Puelinckx
(4 months)
Christine
Van Rijsseghem
Awarded Paid Awarded Paid Awarded Paid Awarded Paid Awarded Paid Awarded Paid Awarded Paid
Base remuneration (fixed) 2 213 377 2 213 377 1 038 900 1 038 900 719 816 719 816 1 038 900 1 038 900 1 038 900 1 038 900 350 451 350 451 1 038 900 1 038 900
Individual remuneration for
financial year (variable)
- cash 189 481 75 792 68 520 27 408 33 196 13 279 67 783 27 113 64 836 25 934 19 647 7 859 64 099 25 640
- phantom stocks 189 481 – 68 520 – 33 196 – 67 783 – 64 836 – 19 647 – 64 099 –
Profit-related remuneration
for financial year (variable)
- cash 355 963 142 385 159 965 63 986 102 964 41 185 159 965 63 986 159 965 63 986 53 322 21 329 159 255 63 702
- phantom stocks 355 963 – 159 965 – 102 964 – 159 965 – 159 965 – 53 322 – 159 255 –
Remuneration for previous
financial years
- individual variable
remuneration – 68 266 – 19 227 – 10 341 – 31 614 – 17 983
– – – 30 089
- profit-related variable
remuneration – 151 382 – 48 011 – 31 034 – 81 362 – 48 011 – – – 81 358
- phantom stocks – 338 353 – 95 083 – 47 244 – 173 476 – 92 997 – – – 177 332
Sub-total (variable
remuneration) 1 090 888 776 178 456 971 253 715 272 320 143 083 455 497 377 551 449 603 248 911 145 938 29 188 446 709 378 121
Defined contribution pension
plan (contribution) (excl.
taxes)
2
787 334 787 334 271 323 271 323 414 949
3
414 949
3
332 488 332 488 378 826 378 826 126 050 126 050 356 836 356 836
Other benefits 15 571 15 571 8 239 8 239 4 867 4 867 10 340 10 340 8 039 8 039 1 825 1 825 8 826 8 826
Total 4 107 170 3 792 460 1 775 433 1 572 177 1 411 951 1 282 714 1 837 225 1 759 279 1 875 369 1 674 677 624 265 507 515 1 851 271 1 782 683
Ratio of fixed to variable
remuneration (%) 73/27 80/20 74/26 84/16 81/19 89/11 75/25 79/21 76/24 85/15 77/23 94/6 76/24 79/21
1 The net remuneration paid to Aleš Blažek is the same as that for the other members of the ExCo.
2 The pension contribution also includes death cover and disability cover.
3 Includes 146 589 euros as compensation for the tax and social security contributions due in the Czech Republic on premiums paid.

131Annual Report KBC Group 2024
Top management remuneration in
perspective
• To put developments in the remuneration of top
management in perspective, we have provided an
overview of the total remuneration earned by the current
members of the ExCo, the average salary of KBC Group NV
employees (in FTE), the lowest salary of a KBC Group NV
employee (in FTE) and certain indicators of KBC’s
performance.
• The remuneration awarded to non-executive directors has
not been included in the overview due to the fact that it
has remained unchanged during the past five years.
Top management
remuneration in
perspective 2020 2021
(year-
on-year
change) 2022
(year-
on-year
change) 2023
(year-
on-year
change) 2024
(year-
on-year
change)
Remuneration of ExCo
members (in EUR)
Johan Thijs
2 245 548 2 421 147 +8% 3 067 231 +27% 3 620 237 +18% 4 107 170 +13%
Peter Andronov –
1 506 087
(12/12) – 1 602 089 +6% 1 720 579 +7% 1 775 433 +3%
Aleš Blažek – – –
1 111 584
(12/12) – 1 202 965 +8% 1 411 951 +17%
1
Erik Luts 1 426 805 1 534 287 +8% 1 643 993 +7% 1 793 078 +9% 1 837 225 +2%
David Moucheron –
1 520 236
(12/12) –
1 627 611 +7% 1 779 555 +9% 1 875 369 +5%
Luc Popelier/Bartel
Puelinckx – – – – – – –
1 862 536 –
Christine Van Rijsseghem
1 424 458 1 529 211 +7% 1 632 959 +7% 1 779 830 +9% 1 851 271 +4%
Average (excluding CEO
2
) 1 422 900 1 522 517 +7% 1 541 991 +7% 1 677 673 +9% 1 768 964 +5%
Average salary of Belgian
employees of KBC Group
NV (in EUR)
Average salary
92 124 94 312 +2% 109 106 +16%
3
112 376 +3% 114 578 +2%
Lowest salary
46 448 47 767 +3% 53 559 +12% 54 704 +2% 55 457 +1%
Ratio of highest to lowest
salary 1/48 1/51 1/57 1/66 1/73
Performance indicators
Group’s net result
(in millions of EUR)
1 440 2 614 +82% 2 818
4
+5% 3 402 +21% 3 415 +0%
Group’s total income (in
millions of EUR) 7 195 7 558 +5% 10 035
4
+12% 11 224 +12% 11 167 -1%
Own greenhouse gas
emissions (in tonnes of
CO2 per FTE)
1.54 1.02 -34% 1.49
5
– 1.48 -1% 1.46 -1%
Volume of responsible
investment funds
(in billions of EUR) 16.8 31.7 +89% 32.3 +2% 40.7 +26% 50.8 +25%
Common equity ratio
(fully loaded) 17.6% 15.5% -12% 15.3% -1% 15.2% -0% 15.0% -1%
1 The increase is largely driven by compensation for the tax and social security contributions due in the Czech Republic on premiums paid (pension contribution).
2 This calculation was based on the ExCo’s composition at the time.
3 The increase was impacted by the separation of KBC Global Services.
4 According to IFRS 17. Percentage increase from 2021 without considering IFRS 17.
5 Recalculated based on the disposal of KBC Ireland and the inclusion of the private use of our own or KBC-managed vehicle fleet.
Remuneration from 2025
• No changes to the remuneration package for ExCo members are currently planned.

132 Annual Report KBC Group 2024
Sustainability statement
General information
General
Environment Social Governance
A number of terms have been abbreviated as follows in this section of the annual report:
Abbreviation Term
AC Audit Committee
Board Board of Directors
CSRD Corporate Sustainability Reporting Directive
DCM Direct Client Money
DDA Disclosure Delegated Act
ERIM Environmental Risk Impact Map
ESB External Sustainability Board
ESG Environmental, Social and Governance
ESRS European Sustainability Reporting Standards
ExCo Executive Committee
FTE Full-Time Equivalent
GHG GreenHouse Gases
ISB Internal Sustainability Board
KPI Key Performance Indicator
NAPP New and Active Product Process
NC Nomination Committee
OECD Organisation for Economic Co-operation and Development
ORSA Own Risk and Solvency Assessment
PACTA Paris Agreement Capital Transition Assessment
PCAF Partnership for Carbon Accounting Financials
RC Remuneration Committee
RCC Risk and Compliance Committee
RI Responsible Investing

133Annual Report KBC Group 2024
Basis for preparation (1.1)
General basis for preparation of sustainability statements (1.1.1)
The KBC Group Sustainability Statement has been prepared on a consolidated basis, in accordance with the scope applied in
the preparation of the consolidated financial statements (we refer to Note 6.5 of the ‘Consolidated financial statements’ in this
report for more information).
The following consolidated subsidiaries are exempted from publishing an individual or consolidated Sustainability Statement:
Exempted KBC subsidiaries Registered office Activity
CBC Banque SA Namur - BE Credit institution
Československá Obchodní Banka a.s. Prague - CZ Credit institution
K&H Bank Zrt. Budapest - HU Credit institution
United Bulgarian Bank AD Sofia - BG Credit institution
KBC Insurance NV Leuven - BE Insurance undertaking
ČSOB Pojišt’ovna a.s. Pardubice - CZ Insurance undertaking
In addition to information on own operations, we have also included material impacts, risks and opportunities related to our
upstream and downstream value chain, following the outcome of our due diligence process and of our double materiality
assessment.
We did not use the option to omit a specific piece of information corresponding to intellectual property, know-how or the results
of innovation that would qualify as a trade secret. Nor did we use the exemption that allows us to decide, in exceptional cases,
to omit information relating to impending developments or matters in the course of negotiation, where the disclosure of such
information would be seriously prejudicial to the commercial position of the group and provided that such omission does not
prevent a fair and balanced understanding of the group’s development, performance, and position, and the impact of its
activity.
Disclosures in relation to specific circumstances (1.1.2)
Deviating time horizons
In the context of the double materiality assessment (see section 1.4.1), different time intervals as opposed to those defined in the
ESRS were applied to determine the financial materiality of the risks, as these are also used in our ESG risk management and
decision-making processes:
• For the short-term risk assessment, we used a 0- to 3-year time horizon, differing from the ESRS’ 1-year period aligned with the
reporting period in the financial statements;
• For the medium-term risk assessment, we applied a 3- to 10-year time horizon, while the ESRS consider up to 5 years;
• For the long-term risk assessment, we used a time horizon of beyond 10 years, in contrast to the ESRS’ beyond-5-year
approach.
Please note that the time horizons prescribed by the CSRD were used to determine the impact materiality and financial
materiality of the opportunities.
Sources of estimation and outcome uncertainty
Some of the metrics we disclose are subject to measurement uncertainty. In most of the cases the source for this uncertainty is
linked with data availability and/or quality. In the table below we present an overview of the metrics and quantitative amounts in
this Sustainability Statement that are subject to a high level of measurement uncertainty, along with the source of that
uncertainty and the assumptions, approximations and judgements used when measuring the amount. For value chain
information where we used indirect sources (such as sector averages or other proxies), we give further information on the
embedded level of accuracy, and we describe planned actions related to the accuracy of our data in the future, if any.

134 Annual Report KBC Group 2024
Metrics subject to measurement uncertainty
Metric Source of uncertainty Assumptions, approximations and judgements used
GHG emissions Data availability We measure our GHG emissions at situation date 30 September 2024, which
serves as an approximation for our emissions as at 31 December 2024. Given
relative portfolio stability, this is considered to give a sufficient level of accuracy
for the reader. We are taking action to shift the situation date of the emissions
to 31 December in the future.
GHG emissions – Scope 1 Data availability In some cases, the information on Net Calorific Value is not available and
is approximated by the Gross Calorific Value, which results in a (slight)
overestimation.
GHG emissions – Scope 2 Data availability For some company-owned electric vehicles, we do not have the information
on the kWh charged outside the company premises. In these cases we use
distance as a proxy, which leads to a limited overestimation of our emissions.
GHG emissions – Scope
3 – lending
Data availability/quality For financed emissions associated with our lending activities, we use the PCAF
global standard. As part of the standard we assign quality scores which reflect
the quality level of the underlying emission data used and the subsequent
calculation quality. The weaker the quality score, the higher the level of
uncertainty. Proxies / sector-average emission factors are used for some parts
of the financed emissions. We refer to section 2.2.3.2 for more information on the
quality scores, which reflect the level of accuracy.
GHG emissions – Scope
3 – asset management
activities, sovereign bond
portfolio of KBC Bank and
own investments insurance
Data availability/quality We use emissions data from an external data provider. This data is based on
direct information from the undertakings, but in case of lack of data, the data
provider adds estimations.
GHG emissions – Scope
3 – insurance-associated
emissions
Data availability For our insurance-associated emissions we use the PCAF global standard Part
C, which currently covers personal motor lines and commercial lines (we only
report on insurance-related emissions from our largest business unit (Belgium)).
For Private Vehicles we use exact data of the types of vehicles we insure
wherever possible, but when this is not available, we approximate by using
country-specific proxies. For our commercial lines portfolio, all emissions are
calculated using the PCAF emission factor database.
Internal carbon price Measurement technique Internal carbon price levels are based on climate scenarios. As these scenarios
outline potential future plausible transition pathways, they are not to be
mistaken with forecasts. By definition, this creates a level of uncertainty in
our internal carbon price measurements. We refer to section 2.2.3.4 for more
information.

135Annual Report KBC Group 2024
Incorporation by reference
The following Disclosure Requirements and/or datapoints have been incorporated by reference:
• For the disclosure of ESRS 2 GOV-1 (section 1.2.1) paragraph 21 (c), we refer to the ‘Corporate Governance Statement’ section
and more specifically to the respective paragraphs on the composition of the Board and its committees, the Group ExCo, AC,
RCC, RC and the NC.
• For the disclosure of ESRS 2 GOV-3 (section 1.2.3) paragraph 29, we refer to the ‘Corporate Governance Statement’ section
(Remuneration Report).
Disclosures about our (ESG-related) risk management practices are included throughout this Sustainability Statement. All
necessary information required by the ESRS is incorporated in this Statement through a high-level explanation on how our risk
management is performed. For more detailed information, we refer to the KBC Risk Report (not subject to external assurance),
available at www.kbc.com.
Governance (1.2)
Role of the administrative, management and supervisory bodies (1.2.1)
Composition and diversity of members
In the table below, we show the composition and diversity of the members in the administrative, management and supervisory
bodies. The bodies included are the ExCo, the RCC, the AC, the NC, the RC and the Board.
Composition and diversity of the
Board and its committees and
the ExCo, 31-12-2024 ExCo RCC AC NC RC Board
Number of executive members 7 0 0 0 0 3
Number of non-executive
members
-535 3 13
of which number of independent
members
-222 2 3
Number of years on the body
0-2 / 3-10 / more than 10 years 2 / 3 / 2
members
- - - - 5 / 4 / 7
members
Average number of years 6 years - - - - 9 years
Representation of employees and
other workers
0000 0 0
Age
41-50 / 51-60 / older than 60
years of age
0 / 5 / 2
members
- - - - 1 / 8 / 7
members
Average age 57 years of age - - - - 59 years of age
Gender 1 woman /
6 men
3 women /
2 men
2 women
/1 man
2 women /
3 men
1 woman /
2 men
5 women /
11 men
Nationality 5 Belgian,
1 Czech,
1 Bulgarian
3 Belgian,
1 Spanish,
1 Czech
1 Belgian,
1 Spanish,
1 Czech
4 Belgian,
1 Czech
2 Belgian,
1 Spanish
14 Belgian,
1 Spanish,
1 Czech
Qualifications* law 29%, economics/
finance 29%,
MBA 14%, actuarial
sciences/insurance
14%, other 14%
- - - - law 25%, economics/
finance 31%,
MBA 17%, actuarial
sciences/insurance 6%,
other 19%
* Rough percentage breakdown based on all qualifications (various individuals have more than one degree)
On the basis of the profiles and competences of the members in the aforementioned bodies, we conclude that all these bodies
possess the required skills and experience in accordance with our Corporate Governance Charter. For more information on the
experience of the individual members in each body, we refer to the Corporate Governance Statement.

136 Annual Report KBC Group 2024
Responsibilities of the bodies regarding the management of impacts, risks and opportunities
As part of the overall strategy of the group, KBC’s sustainability strategy is set by the Board. The Board further defines the
group’s risk appetite taking into account ESG-related risks and decides on the corporate sustainability policies. As the highest-
level supervisory body, it oversees the implementation and progress of the sustainability strategy. Oversight of the Board covers
ESG-related themes in the broad sense, including climate and other environmental topics, gender diversity and human rights,
but also business conduct topics such as ethical behaviour and integrity. Important changes to sustainability policies and
sustainability-related reporting are discussed at Board level, when required. Furthermore, the ExCo has defined climate and
environmental risk, cyber risk, compliance risk and conduct risk as top risks for KBC. These risks are also closely monitored by the
RCC and the Board.
The ExCo is tasked with the operational management of ESG-related matters. This responsibility includes making proposals to
the Board on the sustainability strategy and policies as well as monitoring the groupwide implementation thereof. The role of the
ExCo further includes assessing ESG impacts, risks and opportunities. They are responsible for internal control measures for
impacts and risks as well as for pursuing opportunities within the confines of KBC’s overarching strategy as set by the Board. The
AC ensures that the ExCo establishes adequate and effective internal control measures and monitors KBC’s sustainability
reporting processes.
The aforementioned responsibilities for impacts, risks and opportunities of each of the bodies are outlined in our Corporate
Governance Charter.
The ExCo has granted decision-making power on both operational and strategical ESG-related issues to other relevant
committees and top management positions. The ISB serves as the principal forum at KBC for discussion of ESG-related issues. All
ExCo members are either members of or represented on the ISB. In 2024, the ISB met nine times. The members of the ISB are
responsible for communicating on sustainability matters within their respective business lines and countries, for creating a
support and sponsorship base and for making the group’s sustainability strategy work.
Other core components of our sustainability governance include the Sustainability department at group level and the
Sustainability departments at local level, as well as several other sustainability committees. The risk function is actively
represented in the internal bodies and (sustainability) committees, both at group and local level. The management of ESG-
related risks is fully embedded in the existing risk management governance, including the ‘Three Lines of Defence Model’ (as
explained in the ‘How do we manage our risks?’ section). On top of that, we also have two external boards. The ESB advises
Group Corporate Sustainability on sustainability policies and strategy, whereas the RI Advisory Board oversees the screening of
the responsible nature of our RI funds.
All ESG-related targets are reviewed and approved by the ExCo and endorsed by the Board. Twice a year, the Board reviews a
comprehensive overview of all sustainability-related domains and (climate) targets by means of the KBC Sustainability
Dashboard. This dashboard provides measurable and verifiable parameters related to the key themes and actions of our
sustainability strategy. Progress on the different objectives affects the variable remuneration of the members of the ExCo, as
described in section 1.2.3.
Additionally, specific climate-related Key Risk Indicators are monitored via a Climate Risk Dashboard, which is reported to the
ExCo and the Board on a semi-annual basis, as part of the Integrated Risk Report.
The following figure depicts an overview of our sustainability governance, including the role of and reporting lines to the different
bodies.

137Annual Report KBC Group 2024
Sustainability governance
Board of Directors: sets the sustainability strategy and oversees the implementation thereof by the ExCo. This includes our policy on
climate change, as well as other relevant sustainability issues such as gender diversity. Since climate-related and environmental risks have
been classified as a top risk, the RCC monitors sustainability risks closely. The Board evaluates the implementation of the sustainability
strategy using a Sustainability Dashboard and expresses its opinion on major changes to sustainability policies. The AC monitors the
sustainability reporting process.
Executive Committee: is responsible for the implementation of the sustainability strategy, including the policy on climate change. It
ratifies the decisions of the ISB and the Sustainable Finance Steering Committee.
Internal Sustainability Board: serves as the principal forum at KBC for the discussion of overall ESG-related issues. The Board is
chaired by the Group CEO and includes the Group CFO as the vice-chairman. It is furthermore composed of executive and top
management representatives of all our business units, core countries and group services. The ISB operates in close partnership with
the Group Corporate Sustainability division and the Senior General Manager of Group Corporate Sustainability, who is also a member of
the ISB.
Sustainable Finance Steering Committee: supervises the Sustainable
Finance Programme, which specifically focuses on KBC’s approach to climate
action and other environmental themes such as biodiversity, water and
circularity. The committee is chaired by the CFO. It reports to the ExCo and
the Board and maintains contact with the ISB.
CSRD Steering Committee: supervises the conceptualisation and
implementation of our CSRD programme.
Data and Metrics Steering Committee: manages the challenges
relating to sustainability-related data collection and reporting.
Group Corporate Sustainability: responsible
for developing, implementing and supervising the
sustainability strategy. The team reports to the
ISB on the implementation of the strategy and
prepares the KBC Sustainability Dashboard. The
department is led by the Senior General Manager
of Group Corporate Sustainability, who reports
directly to the Group CEO.
Country Sustainability General Managers: bear ultimate responsibility for all matters pertaining to sustainability in their country.
They are part of top management. They are responsible for communication on sustainability in every country and for the integration of the
sustainability strategy. They are part of the local country organisation and, therefore, are subject to hierarchical reporting. As they work
closely with both the local ISB representative and Group Corporate Sustainability, they also come under the functional responsibility of the
Senior General Manager of Group Corporate Sustainability.
The Sustainability departments and committees in each core country: are organised in such a way as to support their senior
managers, who sit on the Internal Sustainability Board, and the General Manager of Sustainability in integrating our sustainability strategy
and organising and communicating local sustainability initiatives. Among other things, the employees and committees involved also
supply and validate non-financial information.
External Sustainability Board: consists chiefly of sustainability experts from the academic world and advises Group Corporate
Sustainability on sustainability policy and strategy.

138 Annual Report KBC Group 2024
Expertise and skills on sustainability matters
The collective suitability matrix, which is used to assess the skills and expertise of the Board and ExCo as a whole, explicitly
includes sustainability matters. The suitability assessment covers the capability to understand and critically assess climate-
related and environmental risks, cybersecurity and business conduct risks (including money laundering and financing terrorism
risks), as well as the capability to critically assess risk, audit and compliance reports and the functioning of the risk, audit and
compliance functions. Furthermore, (new) members’ expertise in societal issues is also assessed. The outcome of this assessment
indicates whether the members of the Board and ExCo have sufficient or in-depth knowledge of the selected matters. Where
necessary, members are required to develop their expertise. Hence, by means of the collective suitability matrix, KBC ensures
that the Board and ExCo have the necessary skills and expertise to fulfil their role, including the supervision of sustainability
matters.
All new Board members follow an onboarding programme, which includes a meeting with the Senior General Manager of Group
Corporate Sustainability. During this meeting, the most important sustainability matters for KBC are explained and discussed
based on our Sustainability Report and the KBC Sustainability Dashboard. Additionally, sustainability topics are part of the
training programme that we provide for the Board and the ExCo. Members of the ExCo and the Board also consult on ESG issues
with internal subject matter experts on an ad hoc basis as well as with external experts (e.g., the ESB).
Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies (1.2.2)
As mentioned above, twice a year the KBC Sustainability Dashboard is presented to the ISB, ExCo and the Board. The
dashboard is presented by the Senior General Manager of Group Corporate Sustainability. Furthermore, the Board and the ExCo
review the corporate sustainability strategy, progress on the Sustainable Finance Programme and our external sustainability
reports on a regular basis.
The Senior General Manager of Human Resources (HR) regularly reports to the ExCo on different HR topics. This includes matters
such as headcount evolution, external hiring and appointments, performance and appraisals, results of our employee
engagement survey, and training. Every year, a specific report on diversity and inclusion is also presented to the ExCo. Once per
year other selected topics (e.g., succession management) within the remit of the HR function are reported to the ExCo and the
Board.
ESG risks are firmly integrated into KBC’s Risk Management Framework and risk management governance. The ExCo, the RCC
and the Board are the prime recipients of various outputs of our main risk management processes. For example, an Integrated
Risk Report is presented to the Board, Exco and RCC eight times per year, and regularly includes ESG-related topics (including a
Climate Risk Dashboard). Consistently, the RCC provides advice to the Board on risk management matters within the Board’s
responsibility. As part of its responsibility to manage ESG-related risks, the ExCo is supported and regularly informed by other
committees such as the Group Lending Committee for credit-related topics, the Asset/Liability Committee for balance sheet
management, etc.
In addition, the ExCo and the RCC are advised on a quarterly basis on compliance matters, whereas the Board is updated
annually on compliance activities and the management of compliance risks including those related to ESG. This is done through
consolidated reports prepared by our Compliance department. The reports cover breaches, if any, and remedial actions taken
by management.

139Annual Report KBC Group 2024
As described in section 1.4.1, as part of our double materiality assessment, we have impacts, risks and opportunities (IROs) linked
to ESG matters. For a brief overview of our material IROs related to the different sustainability matters, we refer to section 1.3.3.1.
The table below lists the material sustainability matters addressed by the governance bodies in 2024.
Material sustainability matters addressed by the governance bodies in
2024 ExCo RCC AC Board
Climate change Climate change mitigation
Energy
Climate change adaptation
Water and marine resources
Biodiversity and ecosystems
Own workforce Working conditions
Equal treatment and opportunities for all
Other (privacy)
Consumers and end-users Information-related (including cybersecurity)
Social inclusion
Business conduct Business ethics and corporate culture
Relationship with suppliers
Integration of sustainability-related performance in incentive schemes (1.2.3)
Our management bodies have an important role in the implementation of our sustainability strategy. Elements such as
sustainability are becoming increasingly important and today determine at least 30% of the collective, variable, results-related
remuneration component that is awarded to the members of the ExCo. The three cornerstones of our sustainability strategy are
properly reflected to incentivise our management bodies to limit our negative impact on society, to increase our positive impact
and to encourage responsible behaviour among all staff members. Hence, the variable remuneration focuses on enabling the
transition to a sustainable future, on good governance, on responsible behaviour and on providing sustainable solutions to our
clients. Besides GHG emissions reduction targets (see section 2.2.3.1), there are other qualitative sustainability-related targets.
Moreover, sustainability-related matters and metrics are taken into consideration in the overall assessment as described in the
Corporate Governance Statement and affect the variable remuneration. Climate-related considerations, which mainly include
progress against our GHG emissions reduction targets, form an integral part of the assessment for determining the variable
remuneration component. Climate-related considerations also include the development of sustainable products and our own
ecological footprint within the implementation of our strategy and stakeholder satisfaction. The proportion of the variable
remuneration of the members of the ExCo that is directly related to climate-related considerations is about 8-10%.
For further information, we refer to the Corporate Governance Statement.

140 Annual Report KBC Group 2024
Statement on due diligence (1.2.4)
Throughout this document, we touch on various aspects of our due diligence process with regard to material sustainability
matters. The table below explains how and where the application of these main steps and aspects are reflected in our
Sustainability Statement.
Due diligence in the sustainability statement
Core elements of due diligence Sections in the sustainability statement
Embedding due diligence in
governance, strategy and business
model
Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies: section 1.2.2
Integration of sustainability-related performance in incentive schemes: section 1.2.3
Material impacts, risks and opportunities and their interaction with strategy and business model:
section 1.3.3
Engaging with affected
stakeholders in all key steps of the
due diligence
Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies: section 1.2.2
Interests and views of stakeholders:
- General: section 1.3.2
- Own workforce: section 1.3.2
- Consumers and/or end-users: section 1.3.2
Description of the processes to identify and assess material impact, risks and opportunities: section
1.4.1
Policies related to:
- Climate change: section 2.2.2.1
- Water and marine resources: section 2.3.1.1
- Biodiversity and ecosystems: section 2.4.2.1
- Own workforce: section 3.1.1.1
- Consumers and/or end-users: section 3.2.1.1
Identifying and assessing adverse
impacts
Description of the processes to identify and assess material impact, risks and opportunities:
section 1.4.1
Material impacts, risks and opportunities and their interaction with strategy and business model:
section 1.3.3
Taking actions to address those
adverse impacts
Actions related to:
- Climate change: section 2.2.2.2
- Water and marine resources: section 2.3.1.2
- Biodiversity and ecosystems: section 2.4.2.2
- Own workforce: section 3.1.1.4
- Consumers and/or end-users: section 3.2.1.4
Tracking the effectiveness of these
efforts and communicating
Tracking effectiveness (through targets or other) related to:
- Climate change: section 2.2.3
- Water and marine resources: section 2.3.2
- Biodiversity and ecosystems: section 2.4.3
- Own workforce: section 3.1.2
- Consumers and/or end-users: section 3.2.2
- Business conduct: section 4.1.2
Metrics related to:
- Climate change: sections 2.2.3.2, 2.2.3.3 and 2.2.3.4
- Own workforce: sections 3.1.2
- Business conduct: section 4.1.2
Risk management and internal controls over sustainability reporting (1.2.5)
Over the past years, our sustainability reporting processes have evolved to address new regulatory requirements and
incorporate voluntary disclosure frameworks and other initiatives. We are continuously striving towards more robust
sustainability reporting, and this requires adequate risk management and internal control processes, as further described in this
section.
Sustainability reporting at KBC involves a groupwide process with strict hierarchical validation. The preparation of sustainability
reports starts from input collected from business and sustainability experts in all core countries. The coordination of our
Sustainability Statement is led by our Finance department, which safeguards compliance with the ESRS requirements. As
sustainability information and data is processed and consolidated at group level, it is subject to a range of internal controls and
reviews on top of the four-eyes principle which is applied throughout the process. For every datapoint, we determine which team
is in the lead as well as which stakeholders are involved either as input provider or as challenger. Specifically for our statement
under CSRD, a dedicated CSRD Steering Committee was set up to oversee and manage the implementation process. The

141Annual Report KBC Group 2024
members of the CSRD Steering Committee represent top management of the main involved internal stakeholders such as the
Sustainability, Finance, Risk, Credit Risk, HR and Compliance departments. Furthermore, our statement under CSRD is approved
by our Sustainability Statement Approval Committee prior to review and approval by the ExCo, the AC and the Board.
The table below provides an overview of the main risks identified as well as our corresponding mitigation measures and how
these are integrated into relevant internal functions and processes. Throughout this sustainability reporting process, the
above-mentioned committees were periodically informed about these aspects.
Risk related to sustainability reporting processes
Type of risk Description Mitigation of risk
Regulatory risks Changing external regulatory frameworks and
evolving standards can put increasing pressure
and non-compliance can result in regulatory fines.
We closely monitor the regulatory landscape and
corresponding guidance
Data quality and verification
risks
External sustainability data often lacks
standardisation, making it challenging to ensure
consistent and comparable reporting.
Low data quality can lead to immature disclosures
We work with trusted ESG data partners and
perform checks on input data. Since 2022,
sustainability data is managed via KBC’s
dedicated Data & Metrics project (with a separate
Steering Committee), involving all core countries
and group functions
Legal, compliance and
reputational risks
Risk of greenwashing The information in this statement is based on
factual information and subject to internal controls,
including the four-eyes principle
Operational risks Sustainability reporting has to be integrated into
existing systems, processes and reports which is a
complex task that – without proper automation –
can lead to inefficiencies and manual errors.
We aim to further automate our sustainability
reporting processes. Our Data & Metrics Steering
Committee manages the challenges related to
sustainability data collection and sustainability
reporting
We continue to work on enhancing our reporting processes by closely following up on each of these risks and through various
mitigation measures and via several internal functions and processes as shown in the table. Furthermore, we note that internal
audits were carried out in 2024 on our double materiality assessment process and EU Taxonomy reporting.
Strategy (1.3)
Strategy, business model and value chain (1.3.1)
Our strategy
KBC is an integrated bank-insurance group (banking, insurance and asset management), mainly active in Belgium, Bulgaria, the
Czech Republic, Hungary and Slovakia (our core markets). We are also present to a limited extent in several other countries to
support corporate clients from our core markets. We offer a wide range of loan, deposit, asset management, insurance and
other financial products and services in all our core countries, through our distribution channels (our network of branches and
online channels), where our focus is mainly on retail, private banking, SME and midcap clients. We support our clients in their
sustainability transitions through our different core activities.
Our strategy rests on principles such as client centricity, a bank-insurance+ experience, sustainable profitable growth and
assuming our role in society. We refer to the ‘Our strategy’ section for more detailed information on our strategy (not subject to
external assurance).
The following table shows our headcount of employees per geographical area:
Employee by country (headcount) 31-12-2024
Belgium 14 553
Czech Republic 11 432
Slovakia 3 279
Hungary 3 912
Bulgaria 6 338
Rest of the world 415
Total
39 929

142 Annual Report KBC Group 2024
We want to meet the needs of society and create long-term value for society, local economies and all our stakeholders.
Supporting the transition to a more sustainable and resilient society is therefore a crucial part of our overall corporate strategy
and our day-to-day business. We want to collaborate with our clients and other stakeholders to achieve this goal. Through the
financial products and services we provide, we support, for example, economic growth, good health and well-being, and job
creation.
Our sustainability-related goals are linked to the Sustainable Development Goals (SDGs) established by the United Nations. In all
our core countries, our current significant products and services and significant client groups are considered in relation to these
goals as follows:
SDG 3 Good health and well-being: we value a work-life balance for our employees and design our products
to enhance healthcare, quality of life and road safety.
SDG 7 Affordable and clean energy: we promote local renewable energy production and its efficient use. KBC
has phased out financing, insuring and investing in thermal coal. We also have clear restrictions in our Energy
Policy on other non-sustainable energy solutions, like oil and gas.
SDG 8 Decent work and economic growth: we support entrepreneurs and invest in innovative businesses. We
especially support start-ups and scale-ups with a focus on female entrepreneurship through our Start it
community. Our microfinance and microinsurance activities provide rural entrepreneurs in the Global South with
access to financial services, driving sustainable local development and financial inclusion.
SDG 12 Responsible consumption and production: we offer banking and insurance products tailored to
low-carbon and circular businesses, while promoting Responsible Investing (RI) as our first and preferred
investment solution.
SDG 13 Climate action: we implement strict sustainability policies across our core activities and have set
climate targets in our lending and investment portfolio to align with the Paris Agreement. We engage with
clients as well as our investees to reduce their climate impact while also working to minimise our own footprint.
Our (sustainability) strategy is linked to the SDGs described above:
• Limiting our adverse impact by applying strict rules to our business activities related to the impacts identified: linked to SDG 7,
SDG 12 and SDG 13;
• Increasing our positive impact by providing more sustainable finance and supporting our clients in their sustainable transition:
linked to SDG 3, SDG 7, SDG 8, SDG 12 and SDG 13;
• Financial resilience: linked to SDG 8.
We encourage responsible behaviour on the part of all our employees who bring our strategy to life. We therefore invest heavily
in building sustainable skills and a sustainable vision carried by all employees.
Our business model
Our business model as a bank-insurer is built on the principle of creating sustainable value. As a bank we create this sustainable
value by offering, for example, sustainable investments to our clients to enable them to grow their wealth and by lending to
different client groups (such as private individuals, companies and governments) and sectors (including, for example, social
profit and infrastructure) to support the economy. As an insurer, we support our clients in reducing their risks. We offer several
other financial and non-financial services which also contribute to the (local) economy and social network. In all these activities

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we consider our impacts on the environment and society across our value chain. We create sustainable value thanks to our
resources such as our own workforce, our physical and digital distribution network, our different stakeholders (see section 1.3.2)
and our financial capital (such as our equity and deposits). For more detailed information, we refer to the ‘Our business model’
section (which is not subject to external assurance).
Our value chain
Our value chain encompasses all our activities, resources and relationships which are related to our business model and used to
create our products and services from conception to delivery. Upstream we rely on three main clusters of activities and their
related suppliers and other business relations. The core activities that we perform are situated in our own operations and enable
us to deliver products and services (split into our five main activities) to our distributors, clients and business relations
downstream. In addition, our value chain also considers the communities in which we operate.
Value chain
Major upstream activities Major activities in our own operations Major downstream activities
• ICT (software, hardware, security, etc.)
• Services (certain human resources
services, professional/consultancy
services, etc.)
• Facilities (electricity, office furniture, etc.)
• Human resources (our own workforce)
• Infrastructure (property and equipment
for self-use, etc.)
• Sales/marketing (including advice linked
to the sales of our products and
services, sponsorships and partnerships,
advertising, donations, etc.)
• Product development (research,
handling personal data, etc.)
• Business conduct (relationships with
suppliers, public relations, etc.)
• Lending
• Asset management/investments
• (Re)insurance
• Other financial services (such as
factoring, operational leasing, fleet
management, etc.)
• Other non-financial services (such as real
estate, roadside assistance, employee
benefits, support for start-ups, etc.)
Interests and views of stakeholders (1.3.2)
Our stakeholders can be divided into two groups: affected stakeholders (those whose interests are affected or could be
affected by our activities and business relationships across our value chain) and users/readers of the Sustainability Statement.
The affected stakeholders are our clients (retail, SME and corporates), our employees, our suppliers and society at large
(including nature as a silent stakeholder). The users of the Sustainability Statement are not only our investors, core shareholders
and public authorities, but also our business partners, trade unions, non-governmental organisations, governments, academics
and analysts.
We engage (at group level and in each of our core countries) in dialogue with our stakeholders on a regular basis, as part of our
due diligence process (see section 1.2.4) and our materiality assessment process (see section 1.4.1). These engagements are done
with the purpose of capturing our stakeholders’ views and interests. This underpins our strategy and business model.

144 Annual Report KBC Group 2024
Key interactions with our stakeholders
Stakeholder groups Engagement activities Their interests and views
Our consumers inform
us through:
• an annual client satisfaction ranking which is
translated into a client net promotor score (NPS)
• regular client panels and client consultations
• local engagement by the branch network and
relationship managers
• our Complaints Management, providing us with
insights on the views of our clients
• A trustworthy partner
• Respect for privacy and protection against cyber
risk
• Transparency
• Broad accessibility
• Top expertise
• Innovation
• Simplicity, relevant solution and personal advice
We are informed by our
employees through:
• employee surveys (e.g., Shape Your Future survey)
• the annual meeting of the European Works Council
• regular consultations with the occupational health
and safety committees, health, safety and security
advisers, and employee representatives
• regular progress meetings with all staff
• Work-life balance
• Personal and professional development
• Health and safety
• Ethical conduct
Our suppliers give us
information through:
• the ESG questionnaire, which is an integral part of
our supplier assessments
• vendor meetings on all levels of the hierarchy
• transparent, simultaneous communications and
approaches in competitive sourcing cases
• Transparency
• Connect and collaborate to identify opportunities
• Strengthen long-term relationships
• Shared vision, strategy and values
• Shared risk and reward
• Joint value creation
• Timely payment
• Respect contractual agreements
The view of our
investors and core
shareholders are
taken into account
through:
• collective or one-on-one meetings with investors
and analysts
• the Annual General Meeting
• reviews by credit rating agencies
• sustainability assessments such as the S&P Global
Corporate Sustainability Assessment, CDP,
Sustainalytics
• ad hoc ESG questionnaires of investors
• Value creation
• Long-term business model with clear financial and
non-financial targets
• ESG as part of our strategy
• Transparency
We are informed by
public authorities via:
• our membership of banking and insurance
federations
• our membership of other national and international
representative bodies to establish and maintain
relationships with political actors and to achieve
closer follow-up of regulatory initiatives that
impact the financial sector (e.g., public
consultations)
• via our active participation in networking events
• Compliance with applicable legislation
We are informed about
the existing views and
interests of the society
via:
• the membership of local works councils
• our membership of sustainability network
organisations
• research papers and media analysis
• advice by external advisory boards on various
aspects of our sustainability strategy and their
challenge on a wide range of topics (these boards
mainly consist of experts from the world of
academia)
• Local employment
• Transparency and good communication
Members of our ExCo and Board are informed about most of these engagements. Moreover, the outputs from our structured
stakeholder dialogues, follow-up on stakeholder concerns, and investor viewpoints serve as key indicators for the KBC
Sustainability Dashboard, which is evaluated by the ExCo and the Board (we refer to section 1.2.1). Furthermore, the ExCo and the
Board are informed about the outcome of the materiality assessment which also gives insight in the interests and views of the
abovementioned stakeholders.

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Material impacts, risks and opportunities and their interaction with strategy and
business model (1.3.3)
Overview of material impacts, risks and opportunities (1.3.3.1)
During our materiality assessment, we identified actual and potential impacts, risks and opportunities associated with our own
operations, and upstream and downstream value chain. We linked the identified impacts, risks and opportunities to the
sustainability matters listed in the ESRS and subsequently assessed which impacts, risks and opportunities are material (see
section 1.4.1 for more details on our materiality assessment). The table below shows to which material sustainability matters our
material impacts, risks and opportunities have been linked and where they are situated within our value chain (own operations
(OO), upstream value chain (US), downstream value chain (DS)).
Material sustainability matters
Impacts Risks Opportunities
OO US DS OO US DS OO US DS
Climate change Climate change mitigation
QQ Q Q
Energy
QQQ
Climate change adaptation
QQ
Water and marine resources
QQ
Biodiversity and ecosystems
QQ
Own workforce Working conditions
Q
Equal treatment and opportunities for all
Q
Other (privacy)
QQ
Consumers and end-users Information-related (incl. cybersecurity)
Q QQQ Q
Social inclusion
QQQ
Business conduct Business ethics and corporate culture
QQQQ
Relationship with suppliers
Q
Climate change
Through its downstream value chain, KBC can have material impacts on the environment and its retail and corporate clients in
terms of climate change mitigation and energy. Potential negative impacts arise from investing in, funding and insuring carbon-
intensive sectors and unsustainable energy solutions (e.g., thermal coal). However, through our loan and lease portfolios we
generate a positive impact by offering products and services that contribute to a low-carbon economy and by facilitating
financing of renewable energy projects. Also through our investment portfolios (both own investments and on behalf of clients),
we have a potential positive impact by investing in companies whose products and services offer solutions on the climate
challenges (e.g., promoting the transition to renewable energy) of today and tomorrow. Through our insurance activities, we have
a potential positive impact by supporting the transition to alternative energy sources and mitigating the effects of climate
change by developing specific insurance products and services and by implementing strict policies on the underlying subject of
insurance. We further aim to combat climate change by increasing awareness and directing the buying habits of our retail
clients towards products and services which are environmentally friendly. In our upstream value chain, we also have a potential
positive impact on climate change mitigation and energy by encouraging our suppliers to reduce GHG emissions and transition
to renewable energy sources. With respect to our leasing activities, this particularly includes our suppliers from the automotive
sector. The aforementioned impacts are considered to affect climate change over the medium term whereas they affect the
consumption and production of energy over the short and medium term.
As a financial institution, the most material climate-related risks are also expected through our lending, insurance and
investment activities (financial as well as reputational risks). The identified material risks that relate to climate change are
‘climate change transition risks’ (related to climate change mitigation and energy) and ‘climate change physical risks’ (related to
climate change adaptation). The latter can be driven by temperature-, water-, wind- or solid mass-related physical phenomena.
These climate risks can lead to financial risks (credit, market, liquidity and technical insurance risk) and non-financial risks
(operational, reputational and compliance risk). For example, over the short, medium and long term, transition risks can lead to
sudden repricing of assets, market volatility, credit losses and climate-related litigation resulting from financing obsolete (brown)
technology or infrastructure, impacting lending and investment portfolios, whereas physical risk can significantly increase the
level of claims under the insurance policies we provide as well as impact the value of our assets or collateral over the medium
and long term.

146 Annual Report KBC Group 2024
The aforementioned impacts and risks also create opportunities. These opportunities are mainly situated in our downstream
value chain, where we support our clients in preparing and executing their own climate and energy transition plans by offering a
broad range of lending, insurance and advisory products and services (including non-financial products and services). We
particularly identified short-term opportunities in the ecosystems of housing and mobility, the transition to alternative energy
sources (e.g., new technologies including energy storage) and new insurance products related to climate-related risks.
Water and marine resources
From a financial materiality perspective, we consider water as a material topic. Risks stemming from water stress in our
downstream value chain can result in negative medium- and long-term financial effects for KBC. In this regard, transition risks
include, for example, regulatory initiatives to limit the impact of water stress (e.g., redistributing water use from less to more
critical sectors), which might impact businesses and hence also our loan and investment portfolios. Physical water-related risks
entail, for example, dwindling water supply, which can also cause supply chain disruptions as well as water and food insecurity,
potentially impacting the whole economy. On the other hand, we can leverage our lending and investing capabilities to foster
the sustainable use of water. Supporting our clients through funding in their water treatment and water saving solutions
(including landscaping in the agricultural sector) is regarded as a short-term opportunity.
Biodiversity and ecosystems
Our materiality assessment indicates that, for our own operations, biodiversity and ecosystems are not a material topic.
Therefore, we did not particularly assess any negative impacts in terms of land degradation, desertification or soil sealing, nor
did we assess whether our operations affect threatened species. However, the impact of our lending and investing activities on
biodiversity and ecosystems is deemed material in the medium term. Potential negative impacts arise from funding and
investing in activities (both own investments and on behalf of clients) associated with unsustainable land use and other drivers of
biodiversity and ecosystems loss. Potential positive impacts can be realised through investments in companies whose products
and services tackle the challenge of scarcity of natural resources.
From a risk perspective, we are aware of the potential medium- and long-term negative financial effects from biodiversity loss
and damage to ecosystem services. Both the associated physical and transition risks are viewed as material. For example,
policies introduced to contain biodiversity loss (e.g., restrictions on deforestation, excessive land use, etc.) might impact
businesses and hence also our loan and investment portfolios. Continued biodiversity loss can also lead to more systemic risks
with, for instance, supply chain disruptions, increased pandemic risk or food insecurity, potentially impacting the whole economy
(including KBC’s loan, investment and insurance portfolios).
Own workforce
The identified material impacts, risks and opportunities related to our own workforce pertain to our own employees. In other
words, anyone who has signed an employment agreement with an entity within KBC is included in the scope of our Sustainability
Statement.
From an impact perspective, no material actual negative impacts were identified through our materiality assessment. The
identified material impacts affect all of our employees equally and in a positive manner over the short, medium and long term. In
terms of working conditions (in particular with respect to secure employment, working time, adequate wages, social dialogue,
freedom of association, collective bargaining, work-life balance and health and safety), KBC goes beyond regulatory
expectations in all its core countries on a wide range of employee rights and benefits. We also create a positive impact for our
employees through equal treatment and opportunities. In this regard, we highly value gender equality and structurally embed
equal pay for work of equal value. KBC strives to create a stimulating work environment where our employees get the
opportunity to develop themselves, to express their ideas and to take responsibility (corporate citizenship). Here, we particularly
have a positive impact on diversity through our recently updated Diversity and Inclusion Policy as well as through the measures
we have in place against violence and harassment in the workplace. On top of that, we also focus on the development of talent
and skills through extensive training opportunities. Another important impact that KBC has on its employees is in terms of
privacy, where we deem this impact positive since data protection is treated as a top-level priority.

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Stemming from the impact that KBC has on the privacy of its employees, reputational and litigation risks could arise in the short,
medium and long term when the privacy of the employees would not be respected or when employee data would leak as the
result of a cyberattack. Our materiality assessment did not identify any other risks related to our own workforce. Risks related to
incidents, forced labour and child labour are very improbable in the countries and sectors in which we operate.
In addition, we did not identify any material opportunities arising from impacts and dependencies on our own workforce.
We further note that the transition plans and actions outlined in section 2 (see sections 2.2.1.1 and 2.4.1.1) do not give rise to any
material impacts on our own workforce.
Consumers and end-users
Over the past years, we have worked towards the digital transformation of our core business model and have put the interests
and views of all our consumers and end-users at the heart of everything we do. This is the cornerstone of our strategy and we
keep a close eye on the impacts on our consumers and end-users (see section 1.3.2 for our key interactions with our
stakeholders). The (digital) interactions with our consumers and end-users form the basis of our business model in our strategy,
not only in terms of sales and advice, but also in process and product development. In doing so, we take into account potential
negative impacts related to matters such as privacy, access to quality information, responsible marketing practices and
cybersecurity. We aim to prevent potential material negative impacts in a widespread context, as well as potential negative
impacts in individual cases/incidents.
Through our stakeholder engagements (see section 3.2.1.2.), we develop our understanding of how consumers and end-users
with particular characteristics or those using particular products or services may be at greater risk of harm. We have not
identified specific groups of consumers or end-users which are at a greater risk of harm in relation to particular material risks, as
these risks apply to all of our consumers and end-users. Nevertheless, our processes guarantee specific attention for children
when offering products and services and processing personal data.
We could have a potential material negative impact on the privacy of our consumers (directly and indirectly via third parties) in
the short term and consequently also on the fundamental human rights of our clients, which is mitigated by processing personal
data with utmost respect for privacy. The processing of personal data also serves to benefit our consumers by offering extra
services and convenience. We collect and process sensitive data of our consumers and therefore have a potential negative
impact on their privacy should sensitive data leak and privacy be breached. A breach in our cybersecurity could give rise to a
material negative impact in the short term as the impact of a cyberattack could not only affect our business and consumers, it
could also damage our business’ standing and consumer trust. We exert a material positive impact from cybersecurity by taking
up our role in society by organising information sessions and campaigns to create awareness among our clients on cyber risks.
We also aim to limit the negative medium-term impact that our suppliers (and, more specifically, third parties) could have on the
privacy of our clients. We have strong policies and processes in place to reduce the possibility of data loss events caused by
third parties. Furthermore, KBC plays an important role in the financial resilience of individuals and businesses over the short
term. We protect our clients from the financial consequences of healthcare risks with the insurance products we provide and
protect the confidentiality of their health information.
In terms of social inclusion, we could also have a potential material negative medium-term impact on our consumers and
end-users when our marketing practices are not clear, straightforward and accurate (in this case the information is not suitable
to enable consumers to make informed decisions).
The material risks identified for our own operations and upstream activities that relate to consumers and end-users can emerge
over the short, medium and long term from the negative impacts as highlighted above (cyber risks, data protection issues,
information-related risks, social exclusion) and can lead to non-financial risks (operational, reputational and compliance risk).
Risks are also present in our downstream activities: e.g., if our corporate clients do not adequately deal with the above-
mentioned social topics, this can also lead to financial risks for KBC (e.g., credit risk).
Providing access to quality information is a material short-term opportunity, as we could guide our consumers through their
sustainability journey with our advisory services (through webinars, third-party services, face-to-face interactions) related to
subsidies, regulations and taxonomy.

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Business conduct
In the context of business conduct, KBC aims to have a positive impact in the medium term on corporate culture by promoting
and safeguarding ethical and responsible behaviour in all our operations. We also take up our role in society and have policies
and strict rules in place for our employees to limit the impacts in the short term related to tax avoidance and clients seeking to
violate the tax regulations. In terms of financial materiality, we identified material risks related to business conduct in different
parts of our value chain. Risks could emerge over the short, medium and long term if our own business conduct (i.e. responsible
behaviour in general, including our practices regarding responsible tax practices, bribery and corruption, whistle-blowing
channels, anti-money laundering and counter terrorist financing) and related policies are not properly established and
managed, leading to non-financial risks (legal and compliance risk). Additionally, if our corporate clients or third parties do not
actively establish good business conduct-related practices and policies, this can also lead to credit and operational risk.
Furthermore, operational and compliance risks can emerge over the short, medium and long term in case the relationships with
our suppliers would be damaged by, for example, inadequate payment practices or when KBC would engage/contract suppliers
involved in corruption and bribery.
Changes to material IROs
We note that, as this is our first sustainability statement under ESRS, we are not (yet) able to disclose any changes to the material
impacts, risks and opportunities compared to the previous reporting period.
Entity-specific disclosures
We highlight that all the material impacts, risks and opportunities are covered by the ESRS Disclosure Requirements; however, in
our opinion, cybersecurity and responsible tax practices are not sufficiently covered. We have therefore integrated cybersecurity
into section 3.2 (Consumers and end-users) and responsible tax practices into section 4.1 (Business conduct) alongside the
relevant disclosure requirements.
Interaction with strategy and business model (1.3.3.2)
Effects on business model and strategy
At KBC, we strive to create value for all our stakeholders through our financial products and services, including the society at
large. Throughout our value chain, we examine the current and anticipated effects of our material environmental impacts, risks
and opportunities on our sustainability strategy and business model. Recognising the material significance of these effects, we
have developed comprehensive strategies aimed at minimising our negative effect on our stakeholders, maximising our positive
effect on our stakeholders and pursuing opportunities where identified. These strategies result in policies and concrete actions.
For climate change, this is described in section 2.2.2, whereas for biodiversity this is covered in section 2.4.2. Furthermore, the
management of our material environmental risks related to climate change, water and marine resources and biodiversity is
embedded in our Risk Management Framework (see section 2.2.2.2).
As a bank-insurer, the basis of our business model is client trust. Therefore, client centricity remains a cornerstone of the KBC
strategy. We carefully consider consumer protection, investor protection, and data protection in our product development
processes. An important focus is to ensure optimal protection against cybercrime for both our clients and our subsidiaries. The
Information Security Strategy (see section 3.2.1.1) addresses the negative impacts of security incidents and associated losses.
Furthermore, we aim to support our clients in the best possible way by listening to and understanding their needs, by offering
products and services that strengthen their financial resilience and by adequately informing them during client interactions and
through responsible marketing practices.
With respect to our own workforce, we aim to attract and retain strong profiles who are capable and committed to upholding
KBC’s high standards across all our business activities and internal operations. We value the day-to-day work of all our
employees as a crucial enabler for implementing our strategy and creating sustainable value. In this regard, employee trust and
satisfaction are essential prerequisites. To this end, we safeguard the positive impacts we have on our employees throughout
the employee lifecycle and in this way also the associated effects on our business in terms of recruitment, employee satisfaction
and retention. This includes respecting and protecting the privacy of our employees.
In addition, we want to stress the importance of correct business conduct and responsible behaviour as key foundations in
developing and implementing our strategy and business model. We continue our ongoing efforts to foster a culture of ethical
and responsible behaviour and to monitor the business conduct risks across our value chain.

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Resilience of strategy and business model
We continuously assess the resilience of our sustainability strategy to material impacts, risks and opportunities. Through its
sustainability strategy, KBC aims to take up its role in society and create value for its stakeholders. In this regard, we monitor (the
implementation of) our policies and adjust them when needed. In general, our strategy seeks to safeguard our business whilst
preparing ourselves for the evolving regulatory context, the geopolitical context and macroeconomic changes, rapidly
changing technologies, societal changes, shifts in client behaviour and other sustainability evolutions. During our annual
financial planning cycle, we explicitly consider sustainability across all levels of the organisation, among other things by
including plans to meet our climate targets, detecting opportunities, and integrating ESG risk into the risk appetite. To be less
vulnerable to changes in the external environment – including environmental change – we pursue diversification and flexibility in
our business mix, client segments, distribution channels and geographies. At all times, we refrain from focusing on short-term
gains at the expense of long-term stability. Our solid risk management framework and risk appetite further ensure financial and
operational resilience, taking into account all of the identified material risks (as described in section 1.3.3.1) in the short, medium
and long term and across environmental, social and governance matters.
When assessing the resilience of our business model and our capacity to honour our financial responsibilities, we consider large
societal challenges (e.g., climate change) and apply scenario analysis. Particularly in the context of climate risk management, in
addition to participating in regulatory/supervisory exercises, we regularly conduct several internal stress testing exercises to
analyse the resilience of our business model in relation to climate change. For this purpose we consider mild, medium and severe
climate risk stresses for time horizons aligned with our financial planning cycle (three years), but also beyond, in order to cover
risks which are expected to grow in the longer-term. The scenario used assumes that the transition towards a green economy
negatively impacts some P&L and capital drivers of our bank and insurance activities, such as operational expenses, net interest
income, and insurance claims. Moreover, competition in sustainable products and services is putting pressure on volumes.
Although profitability could be impacted under the more severe climate-related stresses, returns for shareholders remain above
the cost of equity.
These conclusions are considered in the context of our internal exercises to assess our capital and liquidity adequacy (i.e. the
regulatory required Internal Capital/Liquidity Adequacy Assessment Process – ICAAP & ILAAP – for KBC Group as a whole and
for our banking activities, and the Own Risk & Solvency Assessment – ORSA – for our insurance activities). In these exercises we
also test the adequacy of our capital, by applying more severe stress tests within our reverse stress testing mix and dedicated
climate risk stress tests. These cover both highly elevated transition risk and severe physical risk scenarios. Overall, the results of
the scenario analyses and stress tests performed demonstrate that no material impact is expected within the short term and
that therefore the capital that we hold, also from a Pillar 2 perspective (based on our internal capital model), is adequate. The
same holds for the capital that we calculate under Solvency II for the risks associated with natural catastrophe events (physical
risks) in our insurance business.
It can be concluded that long-term financial stability is not jeopardised, as even adverse assumptions regarding the severity of
transition and physical risks do not jeopardise our solid capital and liquidity position. Nevertheless, we are already proactively
adjusting our processes, policies, and portfolios in order to be prepared for possible (disrupting) medium- or long-term climate
change impacts on capital and as such avoid severe future impacts caused by transition or physical risks.
Current financial effects related to material risks and opportunities
Whereas the stress tests give a good indication of the order of magnitude of the expected financial impacts in case specific
climate scenarios would materialise, the data currently available is not granular enough to perform a precise quantification
exercise. Due to the current restrictions regarding the availability of ESG risk data, our calculations are still reliant on proxies
(especially for value chain activities). Moreover, ESG risk measurement methodologies are still maturing. This can impact both the
reliability and stability of estimates. The same holds for the financial effect of opportunities as the resources are often
embedded in the regular business budgets (‘sustainability is everyone’s responsibility’) and some of the financial effects only
become visible in the long term. However, as indicated above, we can state with sufficient reliability that no material impact is
expected on our consolidated financial position, consolidated financial performance and consolidated cash flows in the short
run (i.e. within the next annual reporting period).

150 Annual Report KBC Group 2024
Impact, risk and opportunity (1.4)
Description of the processes to identify and assess material impact, risks and
opportunities (1.4.1)
Our double materiality assessment forms the foundation of this Sustainability Statement. Through this assessment, we have
determined which sustainability matters are material to KBC from an impact or financial perspective. The impact perspective
considers the positive and negative impacts that KBC has on society and the environment, whereas the financial perspective
considers the risks and opportunities for KBC that arise from sustainability matters. This section describes our processes for
identifying and assessing our material impacts, risks and opportunities. Once an identified impact, risk or opportunity is
assessed as material, the associated sustainability matter is also marked as material.
Overall, the methodology we applied when carrying out this assessment is based on ESRS and aligned with the EFRAG
(European Financial Reporting Advisory Group) Materiality Assessment Implementation Guidance. Based on this guidance, we
defined a scoring method to assess our (potential) impacts and opportunities. The quantitative thresholds set to determine the
materiality of our identified impacts were inspired by the five-point scale as outlined in the EFRAG Materiality Assessment
Implementation Guidance. In this way, the impacts were classified into five categories ranging from ‘Minimal’ to ‘Critical’ for KBC.
Material risks were predominantly identified based on existing risk identification exercises, our risk measurement tools and risk
assessments. To complement our existing risk exercises, additional assessments were carried out based on expert judgement.
The assessment of opportunities was based on a scoring mechanism similar to the risk scoring.
In 2024, we performed the double materiality assessment in its current form for the first time. We aim to investigate on a yearly
basis whether there are substantial changes to be made to this assessment.
Impact materiality assessment
As a first step in our impact materiality assessment, we conducted a mapping of the business relationships in our value chain,
taking into account the countries in which we operate, our stakeholder dialogues and other relevant sources. By doing this early
in the process, we were able to clearly distinguish between impacts related to our own operations and indirect impacts we have
through our business relationships. As a bank-insurer, we recognise the importance of identifying the broad range of indirect
impacts related to our lending and investment portfolios (our own and on behalf of our clients) as well as through our insurance
activities.
To identify our impacts on the environment and society, we engaged with relevant internal and external stakeholders and
experts. The views and concerns of our stakeholders regarding environmental, social and governance issues were gathered
through different engagement activities that were carried out throughout the year. Engagement activities included surveys,
stakeholder dialogue and (client) meetings. They provided us with valuable insights which served as input for our impact
materiality assessment. We also collected input from various experts across all relevant internal stakeholder departments.
For our lending portfolio in particular, we used UNEP FI (United Nations Environment Programme Finance Initiative) impact
identification tools and our strategic White Papers to identify relevant impacts. Furthermore, for our financing of and advisory
services for major industrial and infrastructure (including real estate) projects, we have adopted the Equator Principles, a
framework for determining, assessing and managing environmental and social impacts. The Equator Principles include the
consultation of affected communities and the implementation of effective grievance mechanisms to resolve social and
environmental concerns related to these projects.
When identifying, assessing and monitoring the sustainability-related impacts of our investment portfolios, we use our
responsible investing methodology. This entails that we actively investigate the sustainability-related characteristics of
companies, not only based on their policies, products and services, but also based on the share of their turnover that is related
to sustainable activities.
In addition, we engaged with our ESB, which consists of external experts. The aforementioned inputs were further complemented
with external sources such as sector organisations, various sector reports (e.g., S&P Global ESG Materiality Maps), ESG rating
agencies, frameworks (e.g., Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), etc.) and our
peers.

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In this way, we ensured that our impacts related to environmental (climate change, pollution, water and marine resources,
biodiversity and ecosystems as well as resource use and circular economy), social and business conduct matters were
appropriately identified and that all topics listed in the ESRS were taken into consideration. Through a desktop analysis (bottom-
up approach), we finally derived a list of potential material topics from all the information collected.
More specifically for our impact on climate change, we leveraged our Scope 1, 2 and 3 GHG emission calculations as the primary
source for the materiality assessment. These calculations show that the largest share of our emissions comes from our lending,
investment and insurance underwriting activities, i.e. our portfolio emissions accounted under Scope 3 Category 15 ‘Investments’.
For KBC, the indirect emissions from our business activities (i.e. Scope 3 Category 15 GHG emissions) are the most material source
of our emissions and hence our impact on climate change. We refer to sections 2.2.1.1 (on locked-in GHG emissions), 2.2.3.1
(climate-related targets) and 2.2.3.2 (our GHG emissions inventory) for further information on our climate-related impact.
With regard to biodiversity, we assessed our potential direct impact by mapping whether our own offices in our core countries
are located in or near biodiversity-sensitive areas. Biodiversity-sensitive areas we considered include Natura 2000, UNESCO and
other protected areas (excluding Key Biodiversity Areas). We concluded that none of our buildings are located in strictly
protected areas (IUCN category IV and above). Furthermore, we found that a number of our offices are located in protected
landscapes such as Bird Directive areas. However, based on the best available expert knowledge and given the nature of our
bank-insurance business, we concluded that our activities do not negatively impact these protected areas. Accordingly, we did
not assess the need to implement mitigation measures at these sites any further.
As a financial institution, we mainly affect biodiversity and ecosystems through our corporate lending services and investment
portfolios. We assessed the potential impacts and dependencies of our corporate lending portfolio on nature using the tool
‘Exploring Natural Capital Opportunities, Risks and Exposure’ (‘ENCORE’). The top three sectors with a very high impact are
Building and Construction, Agriculture and Energy and the most material impact drivers are terrestrial land use, water use and
marine ecosystem use.
The materiality assessment of the identified impacts was conducted together with in-house experts, the general managers of
sustainability, the CEOs of our core countries (or their representatives) and a selection of our senior general managers. They
acted as credible proxies of the affected stakeholders identified and helped to convey the concerns of these stakeholders
based on their experience and region of operation. Each (potential) negative and positive impact was scored on a number of
parameters. The parameters assessed include scale and scope for both positive and negative impacts, complemented by
likelihood for potential impacts as well as irremediability for (potential) negative impacts. During this exercise, we differentiated
between our own operations and our value chain and considered short-, medium- and long-term time horizons. The results were
evaluated based on our internally developed scoring method and classified accordingly on a five-point scale. This enabled us to
draw a conclusion on the materiality of each impact and ultimately the corresponding sustainability matter.
For an overview of the material impacts identified within our own operations and value chain, we refer to section 1.3.3.1.
Financial materiality assessment
The financial materiality assessment involves identifying and assessing our sustainability-related risks and opportunities. This
section describes the underlying processes for risks and opportunities.
Risks
First of all, we point out that ESG risks are considered important risk drivers of the external environment that manifest themselves
through all other traditional risk areas, such as credit risk, technical insurance risk, market risk, operational and compliance risk
and reputational risk. Consequently, sustainability-related risks are not considered in isolation but are firmly embedded in all
aspects and areas of KBC’s Risk Management Framework and the underlying processes. To assess which sustainability matters
are material from a risk perspective, it was thus necessary to determine the effect of the risks stemming from the sustainability
matters assessed on the financial and non-financial risk areas. Looking at our business model and from a financial perspective,
it does not make sense to assess every prescribed sustainability matter separately. For that reason, certain sustainability
matters were aggregated so that a meaningful financial materiality assessment of the risks could be performed, considering all
underlying components. During this exercise, we maximally leveraged existing risk identification and measurement processes. In
particular, KBC has developed an ERIM to assess the impact of environmental risks (see below), and the management of social
and governance risks is an integral part of compliance and operational risk management. Both the ERIM and the underpinning
of expert judgement are based on several inputs, such as portfolio distributions, the geographical location of our operations
and clients, product characteristics, client and asset data, internal monitoring and modelling exercises, external sources (e.g.,
physical hazard maps), and so on.

152 Annual Report KBC Group 2024
As part of our financial materiality assessment of risks, we considered the following elements:
• The context KBC operates in (see section 1.3.1), including the entire value chain (see section 1.3.1), for three distinct time horizons
(see section 1.1.2);
• The likelihood that the effects related to the matter materialise, scored on a four-point scale (ranging from exceptional to
frequent);
• The magnitude of the potential financial impact if and when the effects associated with a group of sustainability matters
materialise. To this end, the financial effect of a group of sustainability matters was scored separately for every risk type (such
as credit risk, technical insurance risk, reputational risk, etc.). We also considered risks that could be derived from previously
identified material impacts. For specific areas, the assessment was based on expert judgement, underpinned by available
internal and external information. The financial effect dimension was scored on a four-point scale (ranging from a minor to a
severe financial effect).
For every group of sustainability matters, which combined the likelihood and financial effect per risk type, the assessment
resulted in a materiality classification per risk type (on a four-point scale: low, medium, high, severe). In the final stage, the
risk-type-specific materiality scores were combined to determine whether the group of sustainability matters assessed was
material from an integrated perspective. To this end, predefined materiality thresholds were put in place.
The financial materiality assessment of the environmental risks was predominantly based on our existing ERIM. This is our main
internal process for identifying and assessing the impact of environmental risks on our value chain, which encompasses:
• estimating the risks for the financial and non-financial risk types;
• distinguishing between different drivers of transition and physical risks associated with climate change, biodiversity loss, water
stress and pollution as well as risks related to non-circularity;
• considering three distinct scenarios which assume different levels of transition and physical risk for climate change and nature
loss;
• using three different time horizons.
The ERIM is annually reviewed at the level of KBC Group, but separate maps are also in place for the banking, insurance and
asset management activities. Additionally, further breakdowns are made for our core countries, given that the materiality of
environmental risks can differ across jurisdictions and locations, resulting in possibly different transition and physical risks.
Specially for climate-risk-related analyses, risk impacts are estimated for three distinct climate scenarios as made available by
the Network for Greening the Financial System (NGFS). More specifically, separate assessments are made for an Orderly
transition scenario (in which global warming is limited to 1.5°C), a Disorderly transition scenario (global warming is limited to 2°C)
and a Hot House World scenario (an increase in global warming to about 3°C). These scenarios are compatible with the climate-
related assumptions made in the financial statements. We refer to Note 3.9 of the ‘Consolidated financial statements’ section in
this report for more detailed information.

153Annual Report KBC Group 2024
With regard to:
• climate-related transition risks, the ERIM considers the risks stemming from changing policies and regulations, technologies
and changing consumer and/or investor preferences. We estimate the transition-risk-related impacts for the three
aforementioned NGFS scenarios and time horizons, as the timing and severity of transition risks depends on government and
policy action. The materiality assessment in the ERIM is underpinned by several internal exercises, such as monitoring of the
alignment of our corporate industrial loan portfolio with decarbonisation pathways (using the PACTA tool), climate-related
sector and asset-based portfolio reporting and the sectoral deep dives on sectors vulnerable to transition risk via our White
Papers. These analyses also provide further insight into the assets and business activities which could be vulnerable to
transition risks (i.e. assets and business activities which are incompatible with or need significant efforts to be compatible with
a transition to a climate-neutral economy). The identified vulnerability depends on the climate scenario and the time horizon
considered within these analyses. With respect to assets and business activities vulnerable to transition risks, we also refer to
section 2.2.1.1 (on locked-in emissions) and section 2.2.2 (policies and actions related to climate change);
• climate-related physical risks, the ERIM considers both chronic and acute temperature-related, water-related, wind-related
and solid-mass-related physical risks. The materiality assessment in the ERIM is underpinned by several internal exercises. With
respect to flood risk, for example, which is considered the most relevant physical risk driver for KBC Group, various portfolios
throughout KBC Group were analysed. The assessments were geographically tailored to the territories of the five KBC core
countries (Belgium, the Czech Republic, Slovakia, Hungary and Bulgaria). The flood risk analyses cover both bank and
insurance portfolios, as well as KBC’s own critical infrastructure. Furthermore, risk assessments on heat stress, drought,
wildfires, windstorms, landslides, subsidence and erosion were also performed for selected portfolios;
• risks stemming from biodiversity loss and ecosystem damage, the ERIM considers both transition and chronic and acute
physical risks. We focused on the physical risk assessment to identify and assess dependencies on biodiversity and
ecosystems for our own operations and in our value chain (e.g., natural resource scarcity leading to macroeconomic impacts,
operational and supply chain disruptions, and higher consumer prices), whereas transition risks were considered to identify
and assess our impact on biodiversity and ecosystems. Within these exercises, we also consider potential future
macroeconomic developments and systemic risks related to biodiversity loss and underpin the conclusion by internal exercises
such as the ENCORE analysis;
• the assessment of current and potential future risks stemming from the transition to a circular economy, expert judgement was
applied.
Opportunities
To identify our material opportunities, we considered the sustainability matters described in the ESRS as well as opportunities
that could be derived from previously identified material impacts. The assessment was performed by internal experts whose
knowledge covered the different sustainability matters listed in the ESRS as well as our business activities and the local
(geographical) situations. The experts identified opportunities throughout our entire value chain and with different time horizons.
The identified opportunities were assessed on the likelihood and magnitude of their financial effect (comparable to our
approach to risks), which resulted in a materiality classification from which material opportunities could be derived using
predefined materiality thresholds.
Regarding opportunities, we particularly encourage the incorporation of sustainability-related opportunities into our core
products and services, such as bonds, loans, investments, insurance contracts and advisory services. In this context, we are also
closely monitoring the EU Taxonomy evolutions. Across our White Paper sectors (energy, real estate, transport, agriculture, food
and beverages, building and construction, metals and chemicals), we screen and identify sector-relevant sustainability-related
opportunities during each White Paper assessment cycle.

154 Annual Report KBC Group 2024
Compared to our impacts and risks, the identification, assessment and management of opportunities are not yet integrated into
our overall management process with the same degree of maturity. The outcome of the materiality assessment was presented
to the appropriate management bodies. There are continuous efforts by the business and other departments to define and
implement opportunities, which is supported by the structural embedding of opportunities in our White Paper approach. In the
yearly budgeting round, all countries also need to consider sustainability opportunities and develop a plan to capitalise on
these opportunities. All these initiatives form a good basis for further maturing our identification and materiality assessment of
opportunities in the future.
For an overview of the material risks and opportunities across our value chain, we refer to section 1.3.3.1.
Decision-making process
In each step of the process for identification and assessment of the impacts, the intermediate results were discussed in the
Group Corporate Sustainability department. For impacts related to our own workforce, the outcome of the assessment was
validated by the Corporate HR managers and the local HR managers of the core countries in the international HR community.
This was followed by approval from the CSRD Steering Committee. Subsequently, the outcome of the assessment was also
presented to and validated by the European Works Council.
Similarly, the outcome of the risk assessment was discussed with and approved by the management of the risk functions
involved before being approved by the CSRD Steering Committee.
The outcome of the impact materiality and the financial materiality exercises was also discussed in a dedicated working group
set up around our double materiality assessment (which included colleagues from all main departments involved in our
materiality assessment).

155Annual Report KBC Group 2024
Disclosure requirements in ESRS covered by the undertaking’s sustainability
statement (1.4.2)
Overview of disclosure requirements
Below, we have listed all disclosure requirements covered in this Sustainability Statement.
For the disclosure requirements related to the identified material sustainability matters, we performed expert-based evaluations
to determine whether all the underlying information requirements are also material for KBC. To this end, we took into account
whether the information is significant as well as whether it could meet the decision-making needs of the users of the Statement.
List of Disclosure Requirements
ESRS standard
Disclosure
Requirement Full name of the Disclosure Requirement Section
ESRS 2 General disclosures BP-1 General basis for preparation of sustainability statements 1.1.1
BP-2 Disclosures in relation to specific circumstances 1.1.2
GOV-1 Role of the administrative, management and supervisory bodies 1.2.1
GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
1.2.2
GOV-3 Integration of sustainability-related performance in incentive
schemes
1.2.3
GOV-4 Statement on due diligence 1.2.4
GOV-5 Risk management and internal controls over sustainability reporting 1.2.5
SBM-1 Strategy, business model and value chain 1.3.1
SBM-2 Interests and views of stakeholders 1.3.2
SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
1.3.3
IRO-1 Description of the processes to identify and assess material impacts,
risks and opportunities
1.4.1
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement
1.4.2
ESRS E1 Climate change ESRS 2 GOV-3 Integration of sustainability-related performance in incentive
schemes
1.2.3
E1-1 Transition plan for climate change mitigation 2.2.1.1
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
1.3.3
ESRS 2 IRO-1 Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
1.4.1
E1-2 Policies related to climate change mitigation and adaptation 2.2.2.1
E1-3 Actions and resources in relation to climate change policies 2.2.2.2
E1-4 Targets related to climate change mitigation and adaptation 2.2.3.1
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 2.2.3.2
E1-7 GHG removals and GHG mitigation projects financed through carbon
credits
2.2.3.3
E1-8 Internal carbon pricing 2.2.3.4
ESRS E2 Pollution ESRS 2 IRO-1 Description of processes to identify and assess material pollution-
related impacts, risks and opportunities
1.4.1
ESRS E3 Water and marine
resources
ESRS 2 IRO-1 Description of processes to identify and assess material water and
marine resources-related impacts, risks and opportunities
1.4.1
E3-1 Policies related to water and marine resources 2.3.1.1
E3-2 Actions and resources related to water and marine resources 2.3.1.2
E3-3 Targets related to water and marine resources 2.3.2.1
ESRS E4 Biodiversity and
ecosystems
E4-1 Transition plan and consideration of biodiversity and ecosystems in
strategy and business model
2.4.1.1
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
1.3.3
ESRS 2 IRO-1 Description of processes to identify and assess material biodiversity
and ecosystem-related impacts, risks and opportunities
1.4.1
E4-2 Policies related to biodiversity and ecosystems 2.4.2.1
E4-3 Actions and resources related to biodiversity and ecosystems 2.4.2.2
E4-4 Targets related to biodiversity and ecosystems 2.4.3.1

156 Annual Report KBC Group 2024
ESRS E5 Resource use and
circular economy
ESRS 2 IRO-1 Description of processes to identify and assess material resource use
and circular economy-related impacts, risks and opportunities
1.4.1
ESRS S1 Own workforce ESRS 2 SBM-2 Interests and views of stakeholders 1.3.2
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
1.3.3
S1-1 Policies related to own workforce 3.1.1.1
S1-2 Processes for engaging with own workers and workers’
representatives about impacts
3.1.1.2
S1-3 Processes to remediate negative impacts and channels for own
workers to raise concerns
3.1.1.3
S1-4 Taking action on material impacts and approaches to mitigating
risks related to own workforce
3.1.1.4
S1-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
3.1.2.1
S1-6 Characteristics of the undertaking’s employees 3.1.2.2
S1-8 Collective bargaining coverage and social dialogue 3.1.2.3
S1-9 Diversity metrics 3.1.2.4
S1-10 Adequate wages 3.1.2.5
S1-14 Health and safety metrics 3.1.2.6
S1-16 Compensation metrics (pay gap and total remuneration) 3.1.2.7
S1-17 Incidents, complaints and severe human rights impacts 3.1.2.8
ESRS S4 Consumers and end-
users
ESRS 2 SBM-2 Interests and views of stakeholders 1.3.2
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
1.3.3
S4-1 Policies related to consumers and end-users 3.2.1.1
S4-2 Processes for engaging with consumers and end-users about
impacts
3.2.1.2
S4-3 Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns
3.2.1.3
S4-4 Taking action on material impacts on consumers and end-users,
and approaches to managing material risks and pursuing material
opportunities related to consumers and end-users, and effectiveness
of those actions
3.2.1.4
S4-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
3.2.2.1
ESRS G1 Business conduct ESRS 2 GOV-1 The role of the administrative, supervisory and management bodies 1.2.1
ESRS 2 IRO-1 Description of the processes to identify and assess material impacts,
risks and opportunities
1.4.1
G1-1 Business conduct policies and corporate culture 4.1.1.1
G1-2 Management of relationships with suppliers 4.1.1.2
G1 – MDR-A
Minimum Disclosure Requirements on actions in relation to business
conduct polices
4.1.1.3
G1-3 Prevention and detection of corruption and bribery 4.1.1.4
G1-4 Confirmed incidents of corruption or bribery 4.1.2.1
G1-6 Payment practices 4.1.2.2

157Annual Report KBC Group 2024
Other EU legislation
In what follows, we give an overview of all datapoints linked with other EU legislation, indicating where they can be found in this
Sustainability Statement, and including those that we assessed as not material. For the datapoints marked as ‘Not applicable’,
we note that the non-applicability pertains only to the information that is required by the paragraph in the ESRS indicated in the
list below.
List of datapoints in cross-cutting and topical standards that derive from other EU legislation
Disclosure
Requirement and
related datapoint SFDR reference Pillar 3 reference
Benchmark
Regulation reference
EU Climate Law
reference Section
ESRS 2 GOV-1 Board’s
gender diversity
paragraph 21 (d)
Indicator number 13
Table #1 of Annex I
Commission
Delegated Regulation
(EU) 2020/1816, Annex II
1.2.1
ESRS 2 GOV-1
Percentage of
board members who
are independent
paragraph 21 (e)
Delegated Regulation
(EU) 2020/1816, Annex II
1.2.1
ESRS 2 GOV-4
Statement on due
diligence paragraph
30
Indicator number 10
Table #3 of Annex I
1.2.4
ESRS 2 SBM-1
Involvement in
activities related to
fossil fuel activities
paragraph 40 (d) i
Indicator number 4
Table #1 of Annex I
Article 449a
Regulation (EU) No
575/2013; Commission
Implementing
Regulation (EU)
2022/2453
Table 1: Qualitative
information on
Environmental risk and
Table 2: Qualitative
information on Social
risk
Delegated Regulation
(EU) 2020/1816, Annex II
Not applicable
ESRS 2 SBM-1
Involvement in
activities related to
chemical production
paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Not applicable
ESRS 2 SBM-1
Involvement in
activities related to
controversial weapons
paragraph 40 (d) iii
Indicator number 14
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
Not applicable
ESRS 2 SBM-1
Involvement in
activities related
to cultivation and
production of tobacco
paragraph 40 (d) iv
Delegated Regulation
(EU) 2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
Not applicable
ESRS E1-1 Transition
plan to reach climate
neutrality by 2050
paragraph 14
Regulation (EU)
2021/1119, Article 2(1)
2.2.1.1
ESRS E1-1 Undertakings
excluded from Paris-
aligned Benchmarks
paragraph 16 (g)
Article 449a
Regulation (EU) No
575/2013; Commission
Implementing
Regulation (EU)
2022/2453
Template 1: Banking
book – Climate
Change transition
risk: Credit quality of
exposures by sector,
emissions and residual
maturity
Delegated Regulation
(EU) 2020/1818,
Article 12.1 (d) to (g), and
Article 12.2
2.2.1.1

158 Annual Report KBC Group 2024
ESRS E1-4 GHG
emission reduction
targets paragraph 34
Indicator number 4
Table #2 of Annex I
Article 449a
Regulation (EU) No
575/2013; Commission
Implementing
Regulation (EU)
2022/2453
Template 3: Banking
book – Climate
change transition risk:
alignment metrics
Delegated Regulation
(EU) 2020/1818, Article 6
2.2.3.1
ESRS E1-5 Energy
consumption from fossil
sources disaggregated
by sources (only high
climate impact sectors)
paragraph 38
Indicator number 5
Table #1 of Annex I
Indicator number 5
Table #2 of Annex I
Not material
ESRS E1-5 Energy
consumption and mix
paragraph 37
Indicator number 5
Table #1 of Annex I
Not material
ESRS E1-5 Energy
intensity associated
with activities in high
climate impact sectors
paragraphs 40 to 43
Indicator number 6
Table #1 of Annex I
Not material
ESRS E1-6 Gross Scope
1, 2, 3 and Total GHG
emissions paragraph
44
Indicators number 1
and 2
Table #1 of Annex I
Article 449a;
Regulation (EU) No
575/2013; Commission
Implementing
Regulation (EU)
2022/2453
Template 1: Banking
book – Climate
change transition
risk: Credit quality of
exposures by sector,
emissions and residual
maturity
Delegated Regulation
(EU) 2020/1818, Article
5(1), 6 and 8(1)
2.2.3.2
ESRS E1-6 Gross GHG
emissions intensity
paragraphs 53 to 55
Indicators number 3
Table #1 of Annex I
Article 449a
Regulation (EU) No
575/2013; Commission
Implementing
Regulation (EU)
2022/2453 Template
3: Banking book
– Climate change
transition risk:
alignment metrics
Delegated Regulation
(EU) 2020/1818, Article
8(1)
2.2.3.2
ESRS E1-7 GHG
removals and carbon
credits paragraph 56
Regulation (EU)
2021/1119, Article 2(1)
2.2.3.3
ESRS E1-9 Exposure
of the benchmark
portfolio to climate-
related physical risks
paragraph 66
Delegated Regulation
(EU) 2020/1818, Annex II
Delegated Regulation
(EU) 2020/1816, Annex II
Subject to
phase-in
ESRS E1-9
Disaggregation of
monetary amounts
by acute and chronic
physical risk paragraph
66 (a)
Article 449a
Regulation (EU) No
575/2013; Commission
Implementing
Regulation
(EU) 2022/2453
paragraphs 46 and 47;
Template 5: Banking
book – Climate
change physical risk:
Exposures subject to
physical risk.
Subject to
phase-in

159Annual Report KBC Group 2024
ESRS E1-9 Location of
significant assets at
material physical risk
paragraph 66 (c)
Article 449a
Regulation (EU) No
575/2013; Commission
Implementing
Regulation
(EU) 2022/2453
paragraphs 46 and 47;
Template 5: Banking
book – Climate
change physical risk:
Exposures subject to
physical risk.
Subject to
phase-in
ESRS E1-9 Breakdown
of the carrying value
of its real estate assets
by energy-efficiency
classes
paragraph 67 (c)
Article 449a
Regulation (EU) No
575/2013; Commission
Implementing
Regulation (EU)
2022/2453 paragraph
34; Template 2:
Banking book
– Climate change
transition risk: Loans
collateralised by
immovable property
– Energy efficiency of
the collateral
Subject to
phase-in
ESRS E1-9 Degree
of exposure of the
portfolio to climate-
related opportunities
paragraph 69
Delegated Regulation
(EU) 2020/1818, Annex II
Subject to
phase-in
ESRS E2-4 Amount of
each pollutant listed in
Annex II of the E-PRTR
Regulation (European
Pollutant Release
and Transfer Register)
emitted to air, water
and soil paragraph 28
Indicator number 8
Table #1 of Annex I
Indicator number 2
Table #2 of Annex I
Indicator number 1
Table #2 of Annex I
Indicator number 3
Table #2 of Annex I
Not material
ESRS E3-1 Water and
marine resources
paragraph 9
Indicator number 7
Table #2 of Annex I
2.3.1.1
ESRS E3-1 Dedicated
policy paragraph 13
Indicator number 8
Table 2 of Annex I
2.3.1.1
ESRS E3-1 Sustainable
oceans and seas
paragraph 14
Indicator number 12
Table #2 of Annex I
Not material
ESRS E3-4 Total water
recycled and reused
paragraph 28 (c)
Indicator number 6.2
Table #2 of Annex I
Not material
ESRS E3-4 Total water
consumption in m
3
per
net revenue on own
operations paragraph
29
Indicator number 6.1
Table #2 of Annex I
Not material
ESRS 2- IRO 1 - E4
paragraph 16 (a) i
Indicator number 7
Table #1 of Annex I
1.4.1
ESRS 2- IRO 1 - E4
paragraph 16 (b)
Indicator number 10
Table #2 of Annex I
1.4.1
ESRS 2- IRO 1 - E4
paragraph 16 (c)
Indicator number 14
Table #2 of Annex I
1.4.1

160 Annual Report KBC Group 2024
ESRS E4-2 Sustainable
land / agriculture
practices or policies
paragraph 24 (b)
Indicator number 11
Table #2 of Annex I
2.4.2.1
ESRS E4-2 Sustainable
oceans / seas
practices or policies
paragraph 24 (c)
Indicator number 12
Table #2 of Annex I
2.4.2.1
ESRS E4-2 Policies to
address deforestation
paragraph 24 (d)
Indicator number 15
Table #2 of Annex I
2.4.2.1
ESRS E5-5 Non-
recycled waste
paragraph 37 (d)
Indicator number 13
Table #2 of Annex I
Not material
ESRS E5-5 Hazardous
waste and radioactive
waste paragraph 39
Indicator number 9
Table #1 of Annex I
Not material
ESRS 2- SBM3 - S1 Risk
of incidents of forced
labour paragraph 14 (f)
Indicator number 13
Table #3 of Annex I
1.3.3
ESRS 2- SBM3 - S1 Risk
of incidents of child
labour paragraph 14
(g)
Indicator number 12
Table #3 of Annex I
1.3.3
ESRS S1-1 Human rights
policy commitments
paragraph 20
Indicator number 9
Table #3 of Annex I
Indicator number 11
Table #1 of Annex I
3.1.1.1
ESRS S1-1 Due
diligence policies
on issues addressed
by the fundamental
International Labour
Organisation
Conventions 1 to 8
paragraph 21
Delegated Regulation
(EU) 2020/1816, Annex II
3.1.1.1
ESRS S1-1 processes
and measures for
preventing trafficking
in human beings
paragraph 22
Indicator number 11
Table #3 of Annex I
3.1.1.1
ESRS S1-1 workplace
accident prevention
policy or management
system paragraph 23
Indicator number 1
Table #3 of Annex I
3.1.1.1
ESRS S1-3 grievance/
complaints handling
mechanisms
paragraph 32 (c)
Indicator number 5
Table #3 of Annex I
3.1.1.3
ESRS S1-14 Number of
fatalities and number
and rate of work-
related accidents
paragraph 88 (b) and
(c)
Indicator number 2
Table #3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
3.1.2.6
ESRS S1-14 Number of
days lost to injuries,
accidents, fatalities or
illness paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
Subject to
phase-in
ESRS S1-16 Unadjusted
gender pay gap
paragraph 97 (a)
Indicator number 12
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
3.1.2.7

161Annual Report KBC Group 2024
ESRS S1-16 Excessive
CEO pay ratio
paragraph 97 (b)
Indicator number 8
Table #3 of Annex I
3.1.2.7
ESRS S1-17 Incidents
of discrimination
paragraph 103 (a)
Indicator number 7
Table #3 of Annex I
3.1.2.8
ESRS S1-17 Non-
respect of UNGPs on
Business and Human
Rights and OECD
paragraph 104 (a)
Indicator number 10
Table #1 of Annex I
Indicator number 14
Table #3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818 Art 12 (1)
3.1.2.8
ESRS 2- SBM3 – S2
Significant risk of child
labour or forced labour
in the value chain
paragraph 11 (b)
Indicators number 12
and 13
Table #3 of Annex I
Not material
ESRS S2-1 Human
rights policy
commitments
paragraph 17
Indicator number 9
Table #3 of Annex I
Indicator number 11
Table #1 of Annex I
Not material
ESRS S2-1 Policies
related to value chain
workers paragraph 18
Indicator number 11
and 4
Table #3 of Annex I
Not material
ESRS S2-1 Non-respect
of UNGPs on Business
and Human Rights
principles and OECD
guidelines paragraph
19
Indicator number 10
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12 (1)
Not material
ESRS S2-1 Due
diligence policies
on issues addressed
by the fundamental
International Labour
Organisation
Conventions 1 to 8
paragraph 19
Delegated Regulation
(EU) 2020/1816, Annex II
Not material
ESRS S2-4 Human
rights issues and
incidents connected
to its upstream and
downstream value
chain paragraph 36
Indicator number 14
Table #3 of Annex I
Not material
ESRS S3-1 Human
Rights Policy
commitments
paragraph 16
Indicator number 9
Table #3 of Annex 1
Indicator number 11
Table #1 of Annex I
Not material
ESRS S3-1 Non-respect
of UNGPs on Business
and Human Rights, ILO
principles or and OECD
guidelines paragraph
17
Indicator number 10
Table #1 Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12 (1)
Not material
ESRS S3-4 Human
rights issues and
incidents paragraph 36
Indicator number 14
Table #3 of Annex I
Not material
ESRS S4-1 Policies
related to consumers
and end-users
paragraph 16
Indicator number 9
Table #3 of Annex I
Indicator number 11
Table #1 of Annex I
3.2.1.1
ESRS S4-1 Non-respect
of UNGPs on Business
and Human Rights
and OECD guidelines
paragraph 17
Indicator number 10
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12 (1)
3.2.1.1

162 Annual Report KBC Group 2024
ESRS S4-4 Human
rights issues and
incidents paragraph 35
Indicator number 14
Table #3 of Annex I
3.2.1.4
ESRS G1-1 United
Nations Convention
against Corruption
paragraph 10 (b)
Indicator number 15
Table #3 of Annex I
Not applicable
ESRS G1-1 Protection
of whistle-blowers
paragraph 10 (d)
Indicator number 6
Table #3 of Annex I
Not applicable
ESRS G1-4 Fines for
violation of anti-
corruption and anti-
bribery laws paragraph
24 (a)
Indicator number 17
Table #3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
4.1.2.1
ESRS G1-4 Standards
of anti-corruption and
anti-bribery paragraph
24 (b)
Indicator number 16
Table #3 of Annex I
4.1.2.1

163Annual Report KBC Group 2024
Environmental information
Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy
Regulation) (2.1)
The Taxonomy Regulation establishes an EU-wide framework according to which investors and businesses can assess whether
certain economic activities are environmentally sustainable. In order to be environmentally sustainable and thus taxonomy
aligned, the activity must:
• be a relevant activity, i.e. the activity is on the list of activities which are considered as most relevant for achieving the
environmental goals defined by Europe. The relevant activities are called taxonomy-eligible activities and are described in
Delegated Acts;
• comply with the Technical Screening Criteria for substantial contribution to the environmental objectives and do no significant
harm to these objectives;
• be carried out in compliance with minimum social and governance safeguards.
Six environmental objectives are laid out in the Taxonomy Regulation:
• Climate change mitigation (CCM);
• Climate change adaptation (CCA);
• Sustainable use and protection of water and marine resources (WTR);
• Transition to a circular economy (CE);
General
Environment
Social Governance

164 Annual Report KBC Group 2024
• Pollution prevention and control (PPC);
• Protection and restoration of biodiversity and ecosystems (BIO).
KBC is a large undertaking subject to the disclosure obligations described in the EU Taxonomy Disclosure Delegated Act (DDA).
We report on our activities as credit institution, as insurer/reinsurer and as asset manager. Various working groups, with
representatives from our core countries, address different themes, such as various forms of lending contributing to sustainability
objectives and non-life insurance aimed at promoting climate change adaptation. Individual purpose-driven credit applications
are also thoroughly screened to verify compliance with the technical criteria and social minimum safeguards. Non-purpose-
driven credit applications are reported based on the Turnover and CapEX KPI of the counterparty.
Data availability remains a challenge.
• As the European Single Access Point database is not yet operational, finding all the relevant counterparty information in the
published reports is a major challenge. Although data providers, collecting EU Taxonomy data, make progress, it remains a
challenge for them, too.
• Many of our corporate counterparties are not (yet) subject to CSRD. As a result, these companies are not required to report on
EU Taxonomy and we cannot include these counterparties in eligible and/or aligned assets.
• We are currently unable to carry out a full alignment assessment for loans to households (real estate and motor vehicles) due
to a lack of individual data on the underlying assets. For instance, we do not have all individual data on the houses being
financed, and for many financed electric vehicles we lack information on car tyres and the circular use of materials.
We therefore chose to also disclose voluntary taxonomy percentages in our Sustainability Report (at www.kbc.com), which are
based on approximations and information available in the group (not subject to assurance).
This section is focused on mandatory disclosures. The DDA prescribes a number of detailed tables for credit institutions, insurers/
reinsurers and asset managers. We have included them in the ‘EU Taxonomy – detailed tables’ section in the ‘Additional
information’ section of this annual report. When the DDA prescribes that calculations must be made on the basis of Turnover and
CapEx data of the counterparties, these tables are presented twice (once for Turnover, once for Capex). The discussion below is
limited to the data based on the counterparty’s Turnover KPIs (if applicable).
EU Taxonomy – KBC as a credit institution
Reconciliation of Total assets – Aligned assets
(2024, in millions of EUR)
338 085
-129 017
209 068
-23 264
-95 987
89 817
-4 039
85 778
-87 750
1028
Total
assets
Excluded
from
taxonomy
GAR assets
(denominator)
Other
assets
Non-
CSRD
GAR assets
(numerator)
Non-
eligible
Eligible
assets
Non-
aligned
Aligned
assets

165Annual Report KBC Group 2024
KBC as a credit institution
In this section, all assets are considered from the credit institutions in the group, i.e. those entities defined in Article 4(1), point (1),
of Regulation (EU) No 575/2013 of the European Parliament and of the Council (prudential requirements for credit institutions). As
defined in the DDA, disclosures are to be based on the scope of KBC’s prudential consolidation. This scope is in line with the
accounting scope (Note 6.5 of the ‘Consolidated financial statements’).
The mandatory eligibility percentage for the assets of our credit institutions is 41.0%
(40.8% in 2023). It includes mortgage loans
and car loans to households, as well as the eligible exposure to financial and non-financial counterparties (subject to CSRD). The
alignment percentage (GAR, green asset ratio) is 0.5%
(0.2% in 2023). The difference between the 2024 and 2023 figure is due
mainly to the following two reasons: on the one hand subsidiaries and SPVs of CSRD companies are now considered as CSRD
company (whereas they were not last year), and on the other hand there is more (qualitative) information available from our
counterparties.
This percentage nevertheless remains low due to the limited availability of data and the asymmetric definitions of the green
asset ratio numerator and denominator. For instance, in the numerator business counterparties are limited to companies subject
to CSRD, whereas the denominator must also include counterparties that are not subject to CSRD. The denominator also
contains a number of other assets that are not eligible, such as derivatives, cash and goodwill. In the chart, we reconcile total
assets (before deduction of impairment) with aligned assets (based on the counterparties’ turnover KPIs). The trading portfolio
and amounts involving central banks and central governments are excluded. The alignment percentage for financial guarantees
(off-balance) is 1.4%
(0.4% in 2023).
KBC as (re)insurer
In this section, all activities from the insurance undertakings in the group are considered, i.e. those entities as defined in Article 13,
point (1), of Directive 2009/138/EC, and from the reinsurance undertakings in the group, i.e. those entities as defined in Article 13,
point (4) of the same Directive. The figures below are based on the insurance accounting scope of KBC. For (re)insurance, two
KPIs are required: one KPI related to underwriting activities and one KPI related to investments.
2 564
-2 244
320
43
EU Taxonomy –
KBC as (re)insurer
Reconciliation of Total insurance premiums –
Aligned insurance premiums
(2024, in millions of EUR)
Aligned
insurance
premiums
Non-
aligned
Eligible
insurance
premiums
Non-
eligible
Total
insurance
premiums
-277
37 926
-11 393
-3 566
EU Taxonomy – KBC as (re)insurer
Reconciliation of Total assets – Aligned investments
(2024, in millions of EUR)
Aligned
investments
Non-
aligned
Eligible
investments
Non-
eligible
GIR
investments
(deno-
minator)
Excluded
from
taxonomy
Total
assets
3 937
26 533
-22 596
371

166 Annual Report KBC Group 2024
Underwriting activities
The percentages related to underwriting activities are expressed relative to the gross written premiums of non-life insurance. The
eligible premiums reflect the portion of the gross written premiums that is linked to the coverage of climate-related perils (within
non-life insurance activities ‘other motor insurance’ – predominantly linked to hail and windstorm damage – and ‘fire and other
damage to property insurance’ – predominantly linked to windstorms and floods). The eligibility percentage related to
underwriting activities is
12.5% (14.3% in 2023). The alignment percentage is 1.7% and is solely linked to the corporate portfolio of
fire and other property damage insurance in Belgium.
The difference between the 2024 and 2023 figure (6.6% in 2023) mainly
results from methodological improvements, based on the experience gained through last year’s reporting and after a thorough
assessment of our initial interpretation of the EU Taxonomy in the course of 2024, related to both taxonomy eligibility and
alignment. As a result of the latter, whereas we reported taxonomy alignment related to all segments of KBC Insurance’s ‘Fire
and other damage to property’ insurance portfolio in 2023, we now limit this specifically to the corporate segment. The more
standardised underwriting in the mass retail segment, which typically does not include a risk assessment and underwriting
process tailored to the specifics of an individual client, makes it more difficult to meet all of the technical screening criteria as
outlined in the EU Taxonomy. The criteria related to providing incentives for risk reduction and embedding risk-based rewards for
preventive measures into the product design are considered particularly challenging in this regard. A gap analysis has been
performed and, in the years to come, we will continue our efforts to align our range of insurance products with the taxonomy
criteria in all our other core countries. For instance, to the extent that this is not already the case, all our insurance companies are
preparing to use flood maps in insurance underwriting and are analysing ways to further embed forward-looking flood maps in
relevant insurance risk management processes. In addition, we are exploring possibilities on how to incentivise policyholders to
take preventive measures against climate-related perils. In the chart, we reconcile total insurance premiums with aligned
premiums.
Investments
Investments comprise all direct and indirect investments of the insurers, including loans, advances and buildings. The mandatory
eligibility percentage related to investments is 14.8%
(8.5% in 2023). It includes the eligible exposure to financial and non-financial
counterparties and a number of loans (including a mortgage loan portfolio acquired from KBC Bank). The alignment percentage
(GIR, green investment ratio) is 1.4%
(0.5% in 2023). The difference between the 2024 and 2023 figure mainly results from increased
data availability.
Investments are mainly managed by KBC Asset Management (AM), which has engaged an external data provider to deliver the
taxonomy data.
In the chart, we reconcile total assets with aligned investments. Amounts involving central banks and central governments are
excluded.

167Annual Report KBC Group 2024
KBC as asset manager
In this section, all assets under management related to DCM are considered (see glossary of financial ratios and terms). This
DCM is managed by KBC Asset Management (taxonomy data via an external data provider).
The mandatory eligibility percentage related to DCM is 8.7%
(2.0% in 2023). The alignment percentage (KPI for asset managers) is
1.8%
(0.9% in 2023). The difference between the 2024 and 2023 figure mainly results from increased data availability.
In the chart, we reconcile total DCM with aligned DCM. Amounts involving central banks and central governments are excluded.
KBC as a financial conglomerate
KBC calculates consolidated KPI using a revenue based weighted average.
Consolidated KPI KPI Turnover based alignment Capex based alignment
KBC as a credit institution GAR 0.5% 0.4%
KBC as a (re)insurer Combined 1.4% 1.5%
Underwriting KPI 1.7% 1.7%
Investment KPI 1.4% 1.8%
KBC as an asset manager AM KPI 1.8% 2.6%
KBC as a financial conglomerate Consolidated KPI 0.8% 0.9%
EU taxonomy – KBC as asset manager
Reconciliation of DCM (direct client money) – Aligned DCM
(2024, in millions of EUR)
115 269
-27 619
87 651
-79 982
7 669
-6 056
1 604
Total
DCM
Excluded
from
taxonomy
DCM
(deno-
minator)
Non-
eligible
Eligible
DCM
Non-
aligned
Aligned
DCM

168 Annual Report KBC Group 2024
Climate change (2.2)
Climate change strategy (2.2.1)
Transition plan for climate change mitigation (2.2.1.1)
In an initial phase, KBC has focused on several important pillars in order to embed climate transition plan elements within its
overall sustainability governance and strategy but has so far not formalised these into an integrated single document. At the
time of reporting, no decision had been taken as to whether and by when such integrated transition plan will be adopted. The
important pillars, related to transition planning, which are currently embedded into our overall sustainability governance and
strategy are:
• Governance;
• Strategy;
• Scenario analysis;
• Risk and opportunity management;
• Financial planning;
• Target setting;
• Engagement.
Our sustainability governance is structured around the Sustainable Finance Steering Committee, the ISB, the ExCo and the
Board. As these bodies oversee environmental issues, integrate them into the business strategy, and ensure accountability at all
levels, it by definition has the consequence that climate strategy, target setting (see also section 2.2.3.1), and other relevant
transition planning elements as listed above are managed and approved by the highest decision bodies within our organisation.
As these decision bodies oversee the entire business model, value creation strategy, and financial planning of KBC, there is an
intrinsic strong connection between these elements and our climate strategy. A dedicated Sustainable Finance Programme is in
place to coordinate the implementation of the overall sustainability strategy. In order to manage the challenges linked to
climate-related data collection and reporting, we installed a dedicated Data and Metrics Steering Programme. This governance
framework (including its own Steering Committee) ensures that sustainability is embedded into the organisation.
Our current climate transition planning approach includes climate-related targets on our own operations’ emissions as well as
on some of the most material emissions that are associated with our financing or investment activities, some of which are
compatible with pathways that limit global warming to 1.5°C. Consequently, our climate transition planning in its current form is
partly aligned with a 1.5°C world, which is described more thoroughly in section 2.2.3 of this statement. Our climate strategy
focuses on managing both our direct and indirect carbon footprints. We report every six months to the ISB, ExCo and Board on
the implementation of our climate transition strategy, via a dedicated Sustainability Dashboard, which includes, among other
things, the progress on our key climate targets. The dashboard outlines measurable and verifiable parameters related to the key
themes and actions of the climate strategy as well as the decarbonisation levers and actions deployed (see section 2.2.2.2). This
illustrates that transition planning elements are embedded within our overall business strategy. Our yearly financial planning
exercise also incorporates certain transition plan building blocks. For example: climate is included in the economic scenarios of
the Chief Economist which form the basis of our budgeting cycle; we follow up on climate-related volumes and targets; the
potential impact of climate-related risks on the risk profile is considered. Based on our latest climate target progress
measurements, we conclude to be overall well on track in meeting our targets and will continue to proceed with the
implementation of key actions.
We identify climate-related risks and opportunities through strategic analyses (the so-called sectoral or thematic ‘White
Papers’) and tailored risk and opportunity assessments. The management of ESG risk, including climate-related risks, is firmly
embedded in all building blocks of our Risk Management Framework (see section 2.2.2.2 ). During the White Paper analyses we
detect opportunities and translate them into concrete service offerings and products. We engage with our clients to support
their transition, develop sustainable products and monitor decarbonisation progress. The outcome of this continuous risk and
opportunity management is closely linked with our climate strategy and target follow-up and is also taken into account in our
financial planning cycle, touching directly on our portfolio mix, expenses and capital adequacy assessment. Regular monitoring
and management reporting on all of the above-stated topics ensures transparency and accountability, enabling internal and
external stakeholders to track progress and assess the effectiveness of our climate strategy and risk and opportunity
management.

169Annual Report KBC Group 2024
We use a set of climate scenarios to support transition planning, including those from the International Energy Agency (IEA), the
NGFS (Network for Greening the Financial System) and more customised scenarios. This set of scenarios reflects various models,
time perspectives, climate temperature objectives (including 1.5°C alignment) and regional coverage. The use of these scenarios
supports our overall risk identification and measurement, strategic planning, and resilience assessments for potential future
outcomes. Scenario analysis therefore influences and makes more robust our strategy, financial planning, target setting,
capacity building, and risk and opportunity management. See sections 1.4.1 (financial materiality assessment) and 2.2.3.1 for
more information.
Lastly, the implementation of our current climate transition planning approach includes engagement with various stakeholders
including policymakers and clients. Our aim is to create a ripple effect that extends a positive impact beyond our own
operations by fostering strong relationships and sharing best practices (see also section 1.3.2).
To our knowledge, there are no locked-in emissions detected for own operations which jeopardise the achievement of our GHG
emissions reduction targets. Our climate change lending targets form an important pillar in supporting decarbonisation in some
of the highest carbon-intensive activities in our loan portfolio. Progressing on our targets intrinsically also contributes to avoiding
exposure to stranded asset risk (risk of losing their economic value ahead of their anticipated useful life). Potential locked-in GHG
emissions are not quantified, but assets that have the potential to become stranded are identified via measurement updates of
our climate target progress and White Paper exercises.
KBC is not meeting any of the exclusion criteria listed in Articles 12.1 and 12.2 of the EU Climate Benchmark Regulation
(Commission Delegated Regulation (EU) 2020/1818).
Climate change: Impact, risk and opportunity management (2.2.2)
Policies related to climate change mitigation and adaptation (2.2.2.1)
All sustainability-related policies are bundled in our Sustainability Policy Framework, offering a condensed but comprehensive
overview of these policies. This framework defines the scope of our policies, summarises the governance on how policies are
determined and implemented, and describes our actual policies, based on a combination of exclusion of certain companies,
sectors or activities and the application of certain conditions. It relates to all material impacts, risks and opportunities that were
identified for KBC, and as such, we will refer to this Framework (available on www.kbc.com) when disclosing on different matters
in this Sustainability Statement.
A strict due diligence process is in place to monitor compliance with these policies, including the possibility of requesting advice
from sustainability experts on sustainability-related matters for individual cases. We also take into account reputational risk
aspects within the scope of such advice, which in some cases are mandatory.
The framework is applicable worldwide to all of our core business activities (lending, insurance, advisory services and investment
advice) as well as supporting activities (own investments and procurement), and covers all sectors and activities deemed
(potentially) controversial and for which we have developed policies (human rights, energy, steel, cement and aluminium, mining,
defence, biodiversity, gambling, tobacco, animal-related activities, and prostitution).
We update our sustainability policies at least once every two years. We consider the interests of key stakeholders, as all policies
in the Sustainability Framework are challenged by the ISB, and some are also discussed with our ESB, which represents the
interests of key (external) stakeholders.

170 Annual Report KBC Group 2024
For all of our sustainability policies, final ratification and accountability lies with the ExCo. However, all staff involved are
responsible for the implementation. Environmental responsibility is one of the focus areas of our sustainability strategy, meaning
that we are committed to managing the direct and indirect environmental impact of our business in a responsible way. It also
means that we are committed to increasing our positive impact while limiting our adverse impact on the environment.
Specifically for climate change, this means that we are supporting the transition towards a sustainable, low-carbon economy.
Environmental Policy
Our Environmental Policy sets out a series of general guidelines, such as:
• developing and offering banking, insurance and investment products and services that support a sustainable, low-carbon
and climate-resilient society;
• applying and regularly reviewing strict policies to limit the environmental impact of our core activities by reducing the
environmental and climate impact of our portfolio of loans, investments, insurance and advisory services;
• creating awareness of environmental responsibility among our internal and external stakeholders, empowering employees to
implement this policy and encouraging suppliers to adopt a similar approach.
These general guidelines are further translated into specific policies, such as the Energy Policy and the Mining Policy (see below).
A dedicated sustainability team at group level is responsible for
• challenging the internal business stakeholders on their sustainable product offering;
• regularly reviewing the specific policies;
• providing guidelines for the implementation of the restrictions in these policies.
Environmental Policy
Scope Applicable worldwide and covering all business activities and operations throughout the
group
Reference to third party agreements Paris Agreement
Taskforce on Climate-related Financial Disclosure (TCFD)
Greenhouse Gas Protocol
Collective Commitment to Climate Action (CCCA)
UNEP FI Principles for Responsible Banking (UNEP FI PRB)
Areas addressed:
Climate change mitigation Yes Examples: specific Energy Policy with restrictions on coal/oil/gas, own
footprint targets
Climate change adaptation Yes Examples: development of products and services like multi-peril crop
insurance, financing/insuring of water-saving projects
Energy efficiency Yes Examples: own footprint targets, specific products linked to EPC (Energy
Performance Certificate)
Renewable energy deployment Yes Example: financing of renewable energy projects
Other climate change-related areas No -

171Annual Report KBC Group 2024
Energy Policy
As demonstrated by our signing of the Collective Commitment to Climate Action (CCCA) in 2019, we have the ambition to
contribute to a low-carbon society. The CCCA was adopted by some signatories to the UNEP FI Principles for Responsible
Banking (PRB) as an additional climate commitment when it was launched in September 2019. Through our CCCA commitment,
we have committed ourselves to align our portfolios with the Paris Agreement goal to limit global warming to well-below 2
degrees, striving for 1.5 degrees Celsius. Our Energy Policy aims to exclude or restrict the use of fossil energy and to support the
development of renewable energy. It excludes any financing and insurance of, or advisory services related to, direct thermal
coal-related projects, and subjects any other financing and insurance of, or advisory services related to, companies still involved
in thermal coal to strict conditions. It also excludes any financing and insurance of, or advisory services related to, the
exploration and development of unconventional oil and gas fields as well as any other new oil or gas fields.
Energy Policy
Scope This policy has a worldwide scope and applies to all financing, insurance and advisory
services related to companies involved in the generation of electricity or heating, either as
producers or as suppliers or contractors to such companies
Areas addressed:
Climate change mitigation Yes This policy addresses climate change mitigation by focusing on transitioning
from a fossil-fuel energy system towards a renewable energy system
Climate change adaptation No -
Energy efficiency No -
Renewable energy deployment Yes This policy addresses renewable energy deployment by focusing on
transitioning from a fossil-fuel energy system towards a renewable energy
system
Other climate change-related areas No -
Recalculation Policy
We have external targets both for our own and for financed greenhouse gas emissions (see section 2.2.3.1.). These targets refer
to the emissions of a particular fixed base year. To anticipate events which require a restatement of this base-year calculation,
we have a policy describing the process and recommended methods of recalculation. The final decision to restate a baseline,
the recalculation method and the possible impact on the relevant target is taken by the ISB, which can delegate this to the
Sustainable Finance Steering Committee. If a previous calculation was externally assured, the recalculation is fully disclosed to
the assurance provider so they can prepare their potential re-assurance.
Recalculation Policy
Scope This policy applies to our external targets related to own footprint and financed emissions.
More specifically for the financed emissions, this policy is applicable for each sector/
domain for which we have set external emission targets. Targets are defined at KBC Group
level. KBC Asset Management and own investments are not in scope of this Recalculation
Policy for the time being.
Reference to third-party agreements This policy is based on the Greenhouse Gas Protocol
Areas addressed:
Climate change mitigation Yes This policy addresses the restatement of our external climate targets
(emissions reduction)
Climate change adaptation No -
Energy efficiency No -
Renewable energy deployment No -
Other climate change-related areas No -

172 Annual Report KBC Group 2024
Investment Policy
This policy aims to determine strict ethical restrictions with regard to investments. We exclude investments in companies listed on
the KBC Blacklist, on the KBC Human Rights Offenders List and investments in governments or other public authorities within a
country listed on the KBC Controversial Regimes List. This also applies to investments in companies that are in any way involved
in the extraction of thermal coal and/or power generation companies using thermal coal. Investments in companies involved in
tobacco are also excluded. Compliance with this policy is fully embedded in the investment processes of KBC Asset
Management.
Investment Policy
Scope This policy has a worldwide scope and is applicable to all of KBC's investment activities,
both for the account of clients as well as for KBC subsidiaries' own account
Areas addressed:
Climate change mitigation Yes This policy addresses climate change mitigation by excluding from our
investments some parties and activities with negative impact
Climate change adaptation No -
Energy efficiency No -
Renewable energy deployment Yes This policy addresses renewable energy deployment by excluding some
parties and activities with negative impact
Other climate change-related areas No -
Investment Policy for Responsible Investing funds
With responsible investing, KBC Asset Management aims to support the evolution towards a more sustainable world by:
• not investing in activities with a severe negative impact on ESG themes;
• promoting ESG principles through our investments;
• encouraging countries and companies to consider sustainability and climate change in their decision-making process;
• promoting sustainable development by investing in green, social and sustainability bonds and in issuers contributing to the UN
SDGs.
As such, our Responsible Investing funds apply a dualistic approach, based on a negative screening (see the policy below) and a
positive selection methodology. The Responsible Investing funds portfolio includes funds that are classified as Article 8 and
Article 9 under SFDR (Sustainable Finance Disclosure Regulation).
All our Responsible Investing funds must achieve specific ESG objectives, which depend on the type of fund. Concrete portfolio
targets are set with regard to ESG (risk) scores, GHG emissions, Green, Social & Sustainability bonds, and sustainable
investments. In addition, KBC Asset Management will protect the interests of its investors and continue to promote responsible
conduct through proxy voting and engagement.
A review of this policy is part of the yearly review of the responsible investing methodology.

173Annual Report KBC Group 2024
Investment Policy for Responsible Investing funds
Scope This policy is applicable to all Responsible Investing funds managed by (all subsidiaries of)
KBC Asset Management
Most senior level accountable This policy is formally approved by the ExCo of KBC Asset Management and submitted to
the ISB for review. The KBC Asset Management Financial Risk Committee is accountable
with regard to the implementation. However, all staff involved are responsible for its
implementation, both within the countries and at the level of relevant group departments
Reference to third-party agreements For all our Responsible Investing funds, we apply the standards of the Towards
Sustainability Labelling Agency, which is a not-for-profit association incorporated under
Belgian law. The label is awarded to financial products that are compliant with the
Agency’s Quality Standard for sustainable and responsible financial products, ensuring
that all labelled products contain a minimum of sustainability elements.
Consideration key stakeholders This policy has, on top of the challenge by the ISB, been presented to KBC Asset
Management’s external Responsible Investing Advisory Board
Areas addressed:
Climate change mitigation
Yes This policy addresses climate change mitigation by setting portfolio targets on
greenhouse gas emissions as well as by investing in green bonds
Climate change adaptation No -
Energy efficiency No -
Renewable energy deployment Yes This policy addresses renewable energy deployment by setting portfolio
targets on greenhouse gas emissions as well as by investing in green bonds
Other climate change-related areas No -
Exclusion Policy for Responsible Investing funds
KBC Asset Management invests systematically in companies or governments from responsible investing universes, whereby all
issuers must be screened on a predetermined set of criteria. The Responsible Investing research team of KBC Asset Management
defines these criteria, based on the advice of the Responsible Investing Advisory Board.
In this policy, all negative screening criteria (exclusion criteria) are described. The negative screening entails exclusion of:
• issuers that do not align with the exclusion policies from the responsible investment universe by the (sub-)fund or issuers that are
manually excluded based on the advice of the Responsible Investing Advisory Board;
• issuers involved in activities such as fossil fuels, the tobacco industry, arms, gambling and adult entertainment from the
(sub-)fund’s investment universe;
• investments in financial instruments linked to livestock and food prices;
• all companies that derive at least 5% of their revenues from the production or 10% of their revenues from the sale of fur or special
leather.
We do not accept in our (sub-)fund’s investment universe issuers based in countries that:
• encourage unfair tax practices;
• seriously violate fundamental principles of environmental protection, social responsibility and good governance.
A review of the negative screening criteria is part of the yearly review of the responsible investing methodology.

174 Annual Report KBC Group 2024
Exclusion Policy for Responsible Investing Funds
Scope This policy is applicable to all Responsible Investing funds managed by (all subsidiaries of)
KBC Asset Management
Most senior level accountable This policy is formally approved by the ExCo of KBC Asset Management and submitted to
the ISB for review. The KBC Asset Management Financial Risk Committee is accountable
with regard to the implementation. However, all staff involved are responsible for its
implementation, both within the countries and at the level of relevant group departments
Reference to third-party agreements For all our Responsible Investing funds, we apply the standards of the Towards
Sustainability Labelling Agency (see Investment Policy for Responsible Investing Funds
above)
Consideration key stakeholders This policy has, on top of the challenge of the ISB, been presented to KBC Asset
Management’s external Responsible Investing Advisory Board
Areas addressed:
Climate change mitigation
Yes This policy addresses climate change mitigation by excluding issuers that are
involved in fossil fuels
Climate change adaptation No -
Energy efficiency No -
Renewable energy deployment Yes This policy addresses renewable energy deployment by excluding issuers that
are involved in fossil fuels
Other climate change-related areas No -
Actions and resources in relation to climate change policies (2.2.2.2)
In addition to having policies in place to prevent, mitigate and remediate actual and potential impacts, and to address risks, we
also take numerous measures to put our commitment to climate into practice. Within the framework of our Sustainable Finance
Programme, we are working on our environmental impact while mitigating environmental risks. At the start of the programme in
2019, its focus was solely on climate. Since 2022, it has been expanded to also include other environmental themes such as
biodiversity and water. We refer to the sections on these matters (section 2.3. on water; section 2.4 on biodiversity) for more
information. Our key climate-related actions are described below.
Managing our own footprint
Each year, the GHG emissions from our own operations are measured and actions are taken, such as:
• implementing an ISO 14001 environmental management system in all core countries to manage and reduce direct
environmental impact;
• reducing our energy need and transitioning to renewable energy (both self-generated and purchased);
• leveraging renovations and relocations to reduce our environmental impact and adopt environmentally friendly alternatives;
• supporting the shift to greener employee mobility by implementing a Teleworking Policy in all our core countries, incentivising
(electric) bicycles for commuter travel, promoting public transport and supporting the transition to a greener and electric car
fleet;
• reducing waste production, and paper and water consumption.
This enables us to follow up on our own footprint targets and to provide guidance for local actions where needed. Examples are:
• replacing cooling installations by heating pumps in Belgium;
• reusing residual heat from the server room in our headquarter buildings in Prague using a heat pump installation.

175Annual Report KBC Group 2024
Managing our own footprint
Scope The GHG inventory is made for the entire group, for all subsidiaries over which there is
operational control
Time horizons Yearly actions in order to achieve our longer term targets – see section 2.2.3.1 (climate-
related targets)
Quantitative and qualitative information Sections 2.2.3.1 (climate-related targets), 2.2.3.2 (emissions) and 2.2.3.3 (offsetting)
Climate change mitigation actions by
decarbonisation lever
• Energy efficiency (isolation, telework, energy-efficient data centres)
• Switch to renewable energy (gas transition plans, heating plans)
• Increase our own energy production (photovoltaic panels, heat pumps)
• Switch to low-carbon transport (encouraging public transport, bicycle leasing,
electrification of the company fleet)
Achieved GHG emission reductions Section 2.2.3.1 (climate-related targets)
Expected GHG emission reductions Section 2.2.3.1 (climate-related targets)
Ability to implement Fully integrated into our regular operations and follow-up at head office
Yearly calculation of portfolio emissions and steering of the local implementation of loan portfolio decarbonisation
Similar as for our own emissions, our loan portfolio emissions are measured and actions are taken based on this measurement.
Key actions implemented for all sectors and products for which climate lending targets are in place include:
• financing zero/low-carbon activities or solutions (e.g., renewable energy projects, electric vehicles or low-to-zero-emission
buildings);
• financing to support decarbonisation efforts (e.g., renovation loans) or transition efforts;
• exiting the relationship.
Yearly calculation of portfolio emissions and steering of the local implementation of loan portfolio decarbonisation
Scope Key action with regard to the yearly calculation of portfolio emissions is implemented across
all lending activities (including operational and financial leasing) within KBC. Key action
with regard to the local implementation of loan portfolio decarbonisation is performed on
specific target sectors as further defined in section 2.2.3.1.2
Time horizons The targets range up to 2050 with intermediate targets being set in 2030. The key actions
apply consistently over this time horizon
Quantitative and qualitative information Sections 2.2.3.1 (climate-related targets) and 2.2.3.2 (emissions)
Climate change mitigation actions by
decarbonisation lever
• Supporting the build-out of a renewable energy system (energy targets) and phasing out
fossil fuel-based energy production (energy and thermal coal targets)
• Supporting the decarbonisation of road transport activities (vehicle financing targets)
• Supporting the decarbonisation of the building sector (real estate targets)
• Supporting the decarbonisation of the agricultural sector (agriculture targets)
• Supporting the decarbonisation of the cement sector (cement targets)
• Supporting the decarbonisation of the steel sector (steel targets)
• Supporting the decarbonisation of the aluminium sector (aluminium targets)
Achieved GHG emission reductions Section 2.2.3.1 (climate-related targets)
Expected GHG emission reductions Section 2.2.3.1 (climate-related targets)
Ability to implement Our ability to implement the key actions mainly depend on a governmental policy
environment that fully accommodates societal decarbonisation in line with the Paris
Agreement goals

176 Annual Report KBC Group 2024
Continuous monitoring of GHG reduction target of Responsible funds
The average GHG intensity of Responsible funds is continuously measured and we also make simulations when considering
trades. This enables the portfolio manager to continuously monitor the GHG reduction target specifically for that portfolio.
Responsible funds must comply with the target at all times, or adjust their portfolio composition in order to comply, in a
timeframe that is in the best interest of the client and taking into account other factors such as liquidity.
Continuous monitoring of GHG reduction target of Responsible funds
Scope Responsible funds make up the bulk of the Responsible Investing funds (with the exception
of specific thematic funds), representing more than 40% of direct client money (see glossary
of financial ratios and terms for an explanation of ‘direct client money’)
Time horizons Monitoring at individual portfolio level is performed on a daily basis. The GHG reduction
targets have a horizon until 2030 and are recalculated every quarter to arrive in a linear way
at the 50% reduction by 2030 after an initial 30% reduction. The overall target is a weighted
average of all individual funds having a GHG reduction target.
Quantitative and qualitative information Section 2.2.3.1 (climate-related targets)
Climate change mitigation actions by
decarbonisation lever
Certain issuers or sectors are excluded by the exclusion policy, but other than that it is up to
the portfolio managers of the Responsible fund to take into account the emission intensities
and their impact on the weighted average at portfolio level by making investment decisions
Achieved GHG emission reductions Section 2.2.3.1 (climate-related targets)
Expected GHG emission reductions Section 2.2.3.1 (climate-related targets)
Ability to implement The actual achievement of targets depends on the evolution of GHG intensities of issuers
in the benchmark of these funds. The update of GHG intensity numbers of issuers is
dependent on our data providers
Continuous monitoring of GHG reduction target of KBC Insurance’s investment portfolio
We calculate on a regular basis the weighted average GHG intensity of KBC Insurance’s own investments. This is used to monitor
our path towards the reduction target for KBC Insurance’s own corporate investments.
Continuous monitoring of GHG reduction target of KBC Insurance’s investment portfolio
Scope Corporate Investments (corporate bonds and listed equity, excluding unit-linked
investments) made by all insurance entities
Time horizons Continuous monitoring
Quantitative and qualitative information Included annually in this Sustainability Statement, see sections 2.2.3.1.4 and 2.2.3.2.2
Climate change mitigation actions by
decarbonisation lever
New investments in certain issuers or sectors are excluded by the Responsible Investing
Exclusion Policy which is also applicable to all new own investments. In addition to
exclusions, the portfolio managers can take into account the emission intensities and their
impact
Achieved GHG emission reductions See section 2.2.3.1 (climate-related targets)
Expected GHG emission reductions See section 2.2.3.1 (climate-related targets)
Ability to implement The achievement of this target depends on the GHG intensity of our investments/the overall
market and our ability to intervene given other constraints (e.g., accounting classifications)

177Annual Report KBC Group 2024
Climate White Papers
We assess the impacts, dependencies and associated risks and opportunities of different environmental challenges in the
sectors in scope of our White Paper approach. This continuous and cyclical process feeds into decision-making around future
actions with respect to policy and/or client engagement strategies, policy establishments or changes and – where relevant –
the establishment or change of targets.
Climate White Papers
Scope The White Papers apply across all lending activities (including operational and financial
leasing) and insurance activities within KBC
Time horizons This is a continuous process. Each year, the White Paper scopes and sectors or themes
are defined and decided at management level (ISB). In deciding the White Paper scopes,
the ISB takes into account the materiality of evolutions which take place in sectors or
environmental domains as well as the materiality of the exposures to the sectors associated
with those evolutions
Climate change mitigation actions by
decarbonisation lever
Each White Paper addresses the need to quickly follow-up on decarbonisation evolutions
in high-carbon-intensive activities and industries. As a main lever we use the risk and
opportunity assessments that come out of the White Paper assessments, to feed into
strategy and policy decisions and decisions on next actions to be taken in terms of
risk/opportunity management and engagement. One main decarbonisation lever is
addressed here, i.e. to support the transition of the targeted sectors/activities to a more
environmentally and climate-friendly state. This is done by either stopping the financing
of environmentally polluting activities or by supporting the transition of sectors to a low-
carbon state
Ability to implement Our ability to implement the key actions mainly depends on a policy environment that
fully accommodates societal decarbonisation in line with the Paris Agreement goals
(this includes, among other things, timely government action to stimulate sustainable
technologies as well as more sustainable mobility, living and lifestyle)
Green bond issuance
We issue Green Bonds whose proceeds are used to finance projects that have a positive impact on the environment by avoiding
or reducing the emissions of greenhouse gases. There are currently two bonds issued outstanding under our former Green Bond
Framework (total amount of 1.25 billion euros) and one bond issuance in 2024 under the updated Green Bond Framework
(750 million euros). This update was done in November 2023 (adding eligibility criteria, aligning with the ICMA (International
Capital Markets Association) Green Bond Principles 2021 and further aligning with the EU Taxonomy criteria for environmentally
sustainable economic activities when practically feasible). More information on our Green Bond Framework is available at
www.kbc.com. KBC plans to issue Green bonds in the future, with a view to contributing to a more sustainable future.
Green bond issuance
Scope All green bonds issued by KBC
Time horizons Green Bond 2 of 500 million euros was issued on 16 June 2020 and will expire on 16 June
2027
Green Bond 3 of 750 million euros was issued on 1 December 2021 and will expire on 1 March
2027
Green Bond 4 of 750 million euros was issued on 27 March 2024 and will expire on 27 March
2032
Climate change mitigation actions by
decarbonisation lever
Decarbonisation levers are:
• energy-efficient buildings – mortgage loans and commercial loans to (re)finance new and
existent residential buildings in Belgium
• renewable energy – loans to (re)finance equipment, development, manufacturing,
construction, operation, distribution and maintenance of renewable energy sources in
the EU and the UK
• clean transportation – (re)financing of the purchase, renting, leasing and operation of
zero-emission vehicles in Belgium
Achieved GHG emission reductions The avoided emission reductions are reported each year in our Green Bond Impact Report
(integrated in The Green and Social Bond Report as of reporting year 2024), published on
our website
Expected GHG emission reductions Future quantification is uncertain
Ability to implement The implementation of actions in the future will depend on the availability of sustainable
(mostly renewable energy) projects, demand for electric vehicles and energy efficient
buildings and on government measures (such as incentive schemes)

178 Annual Report KBC Group 2024
Integrating climate and other ESG risks into the risk management framework
The KBC Risk Management Framework (RMF) covers all (material) risks KBC is exposed to, including ESG risks (see the ‘How do we
manage our risks?’ section in this report). The main building blocks of the RMF are risk identification, risk measurement, setting
and cascading risk appetite, risk analysis, reporting and follow-up. We identify ESG risks in our internal risk taxonomy as key risks
related to our business environment which manifest themselves through all other traditional risk areas, such as credit risk,
technical insurance risk, market risk, operational risk and reputational risk. As such, we do not regard ESG risks as stand-alone
risk types.
We are making continuous efforts to further integrate ESG risks into our RMF and underlying risk management processes. Actions
are taken across the group and implemented for all our activities in all our core countries. Depending on the context, our actions
relate to risk management for our own operations, upstream activities (e.g., third-party risk management) or downstream
activities (e.g., credit, market, insurance risk in our lending, investment and insurance portfolios).
A number of key actions are listed below.
• Risk identification and materiality assessment: we use a variety of approaches to identify ESG risks in the short term (0- to
3-year horizon), the medium term (3- to 10-year horizon) and the long term (beyond 10-year horizon). To ensure proactive risk
identification, several processes are in place such as:
- the ERIM (see section 1.4.1 on financial materiality assessment) and 2024 pilot risk identification exercises on social risks. We
perform these assessments from a group perspective but also construct separate maps for the banking, insurance and
asset management activities. For the ERIM, further breakdowns are made for our core countries;
- the New and Active Product Process (NAPP) (see below);
- the use of a sectoral Environmental & Social Heatmap in the loan origination and review process;
- consideration of reputational ESG risk scores for large companies in vulnerable sectors;
- ESG risk assessments executed in the context of credit underwriting for corporates and outsourcing;
- deep dives on climate and environmental risks and opportunities (our White Papers). These are prepared for climate-
relevant sectors and product lines and for emerging environmental topics.
• Risk measurement and stress testing: we make use of a series of methodologies to strengthen our ability to identify, measure
and analyse ESG-related risks. We complement the application of methodological tracks (scenario-based) with internal
scenario analysis and stress testing. Furthermore, we are integrating ESG risk drivers into our internal stress test exercises
(considering availability of data and quantification methodologies).
• Risk appetite: ESG has been included in our Risk Appetite Statement at the highest level via a specific ESG risk appetite
objective. When considering climate and other ESG risks in our risk appetite process, we do not only focus on short-term
impacts, but also take extended time horizons into consideration. Potential short-, medium- and long-term impacts as
identified in our risk identification exercises provide input for our risk appetite discussions so that (early) warning signals can be
given in case of expected material impacts (for all time horizons) with the aim of steering the strategic debate and initiating
risk-mitigation actions in a timely manner. KBC’s risk appetite is supported by our groupwide policies and sustainability targets
(see the different sections on policies and targets under each topic). These policies define our risk playing field and are
translated into underlying standards such as the Credit Risk Standards for Responsible and Sustainable Lending and the
Investment Policy.
• Risk analysis, monitoring and follow-up: ESG-related data is increasingly included in both internal and external reporting (e.g.,
EBA Pillar 3 ESG disclosures). ESG risks are well-integrated and extensively addressed in several of our main risk management
reports (e.g., Internal Capital Adequacy Assessment Process (ICAAP) reporting reassessment of capital adequacy, Integrated
Risk Report) which are distributed to the ExCo, the RCC and the Board.
Specifically for climate risk, additional to the above, we highlight the following:
• In the ERIM, a dedicated Impact Map is in place for Climate Change, considering several physical and transition risk drivers.
• To assess our climate-related transition risks, we leverage industry practices such as PACTA (to measure the alignment of our
corporate industrial loan portfolio with the Paris Agreement climate goals), TRUCOST (for our Asset Management and the
insurer’s investment portfolio) and PCAF (to estimate the greenhouse gas emissions of our loan, investment and insurance
portfolios). These provide further insights into the impact of climate change on our business model, as well as the impact of our
lending, investment and insurance activities on the environment.
• Physical risk assessments have been performed for several acute and chronic physical hazards (e.g., flood, drought, heat
stress, wildfires). The assessments were geographically tailored to the territories of our core countries. In particular, the impact
of flood risk on our mortgage and property insurance portfolios was estimated.
• Climate transition and physical risk drivers have already been integrated into several internal stress test exercises, e.g., in
reverse stress testing, stress testing done in the context of ICAAP/ILAAP/ORSA (see 1.3.3.2 in the ‘How do we manage our risks?’

179Annual Report KBC Group 2024
section in this report on climate change resilience analysis). Both short-term and long-term climate scenarios are being
considered. Climate stress test exercises and usage of climate scenarios are continuously enhanced following new insights
from, for instance, our internal ERIM or other methodological tracks which help us to better translate the impact of climate
pathways into financial parameters. These methodologies will also enable us to gradually improve credit underwriting and
investment policies, and support us in engaging with our clients.
• In support of our risk appetite process and as part of our internal monitoring, we introduced a set of climate-related KRIs (Key
Risk Indicator). These are defined for the most material transition and physical risks as identified in the ERIM, covering a large
part of KBC’s activities and portfolios. They are integrated into a Climate Risk Dashboard which is presented to the Board
(every six months) as part of Integrated Risk Reporting.
New and Active Product Process (NAPP)
The NAPP is a group-wide, formalised process to identify and mitigate product-related risks, both for KBC and for its clients. No
products, processes or services can be created, purchased, changed or sold without approval in line with NAPP governance.
Furthermore, changes in the internal and external environment need to be monitored in order to trigger an ad hoc review of the
product or service when needed. The Risk department also conducts periodic assessments of the impact of the expanded and/
or updated product and service offering on the group’s risk profile. As the NAPP covers all risk types, the NAPP standard is
positioned as a key building block of the Risk Management Framework and applies to all material subsidiaries which provide
financial services. It covers all products and services offered by these subsidiaries and all client-facing processes.
More specifically, the NAPP aims to:
• ensure fair treatment of the client;
• safeguard the strategic fit of products/services;
• pro-actively identify and mitigate risks related to products, services and changes to client-facing processes which might
negatively impact the client and/or KBC;
• comply with regulation.
It is hence also considered as an important tool to mitigate several ESG risks (including risks related to consumer protection and
greenwashing). The Board at group and local level is accountable for the design of a sound NAPP governance and for the
implementation thereof throughout the group. NAPP committees are installed to debate and decide whether products, services
and changes in client-facing processes are ready for launch based on advice and, where appropriate, conditions imposed by a
set of advisory functions such as Risk, Compliance, Legal and the Actuarial Function Holder (for insurance products). The NAPP
Committee follows up on the fulfilment of the risk-mitigating actions.
Sustainability and climate-related policies are explicitly taken into account when deciding on new products or services through
the NAPP:
• Particular attention is paid to the adequate ‘green’ labelling of newly developed products, aligned with regulatory frameworks
such as the EU Taxonomy and the ICMA Green Bond framework. A mandatory advice of sustainability experts is required when
the product is labelled as ‘green’ or referring to external frameworks which claim environmental or sustainable contribution;
• Several ESG risks are assessed by the risk and compliance function, as part of the mandatory risk and compliance advice
within NAPP.

180 Annual Report KBC Group 2024
Climate change metrics and targets (2.2.3)
Targets related to climate change mitigation and adaptation (2.2.3.1)
We focus on diminishing our negative impact on climate change through the reduction of our direct and indirect carbon
footprint. We have set various climate-related targets and closely monitor our progress. The targets and corresponding emission
intensity metrics for our loan portfolio also serve as a tool to monitor climate-related transition risk. These intensity metrics are
also monitored as part of our Climate Risk Dashboard to assess credit and reputational risk (see section 2.2.2.2).
In this section, our climate-related targets are described separately for our own carbon footprint, our loan portfolio and our
investment portfolios.
Our own carbon footprint includes:
• Scope 1: direct emissions from fuel combustion and refrigerant gases in our office buildings and from our company-owned car
fleet (including private use);
• Scope 2: indirect emissions from purchased energy (electricity, heat, cooling and steam consumption);
• Scope 3: indirect emissions from business and commuter travel, and emissions from sources over which we have direct
operational control (such as paper and water consumption and waste generation).
Scope 3 Category 15 emissions include the indirect emissions related to our financing, investing and insurance activities. For
financial institutions, this is the most significant emission category.
We refer to section 2.2.3.2 for more detailed information on our GHG emissions as defined above.
Own carbon footprint targets (2.2.3.1.1)
The ambition to reduce our negative impact on the environment is stipulated as a key objective in the Environmental Policy. The
targets for our own carbon footprint underpin this objective. Achieving these targets largely depends on our ability to reduce the
indirect impact from our own operations. Engaging with our suppliers is a prerequisite here. Through the Sustainability Code of
Conduct for Suppliers (see section 4.1.1.1), we ensure that our suppliers support our climate-related objectives.
Climate-related targets related to our own carbon footprint are set in collaboration with stakeholders in our core countries. All of
our environmental targets have been reviewed and approved by the ISB and ExCo and endorsed by the Board.

181Annual Report KBC Group 2024
Own carbon footprint Base year Unit
Base year
value 2024
Target
year
Target
value
Progress
in line with
target?
CO
2
e emissions from own
operations
2015 tCO
2
e 170 735 53 934 2030 34 147 Yes
% change - -68% -80% Yes
Renewable electricity in % of
purchased electricity
- 100% 100% 2030 100% Yes
The GHG Protocol Corporate Standard serves as the basis for determining the scope of the GHG emissions reduction targets for
our own carbon footprint. The target for CO
2
e emissions includes our Scope 1 and 2 emissions as well as a selection of Scope 3
emission categories. The selected Scope 3 GHG emissions include the indirect emissions from purchased goods and services
(category 1), waste generated (category 5), business travel (category 6) and employee commuting (category 7), categories over
which we have direct operational control and which we can use to raise awareness amongst staff. This is in line with the Scope 3
categories included in our GHG emissions inventory as described in section 2.2.3.2. Our GHG emissions inventory as well as our
GHG reduction targets cover the following greenhouse gases: CO
2
, CH
4
, N
2
O, PFC’s, HFC’s, SF
6
and NF
3
. With respect to the scope
of entities covered by the targets, we note that they do not fully cover the scope of our GHG inventory. The targets for our own
carbon footprint cover all entities included in our financial consolidation to the extent that they operate within our bank-
insurance business context, whereas our GHG inventory also includes entities that are not fully consolidated and entities with
activities that are not related to our bank-insurance business context.
In 2023, we put a Recalculation Policy in place for both our own carbon footprint as well as for our loan portfolio climate targets.
The procedure is based on the Greenhouse Gas Protocol. In general, we aim for continuity in the baselines we use to assess the
direct and indirect greenhouse gas emissions targets. Three situations can possibly trigger a base-year recalculation:
• Structural non-organic changes via acquisitions, divestures or mergers;
• Calculation methodology changes, including changes in the assumptions used;
• The discovery of data, calculation or methodological errors.
Improvements in data quality are not part of our recalculation criteria. An evaluation to recalculate the base year is triggered if
the assessment shows that the cumulative effect(s) of these three situations in scope exceed(s) a threshold of 5% change versus
the actuals of a KPI. The Recalculation Policy is described in section 2.2.2.1.
For financial year 2024, there were some small changes in the underlying measurement methodologies related to our own
carbon footprint (see section 2.2.3.2.1 for more details). Since the combined impact of these changes was below our recalculation
threshold, no restatement of the target or recalculation of the previous year’s figures was needed.
The GHG emissions reduction target for our own carbon footprint is set using a bottom-up approach gathering feedback from
the core countries on their current decarbonisation approach and their expectations. It has been tightened over the years,
reflecting the progress we have made and is set, since 2020, at −80% by 2030 (i.e. an annual linear reduction rate of 5.33%). For
the calculation and monitoring of the target, Scope 2 market-based emissions are considered. Furthermore, this target is
combined with a commitment to offset all our remaining own emissions as from 2021, as described in section 2.2.3.3. This
ambition is aligned with the CDP technical note on science-based targets, which states that GHG emissions reduction targets
need to meet a minimum annual linear reduction rate of 4.2% to be considered 1.5°C-aligned.
Our objective to reach 100% renewable electricity consumption in own operations by 2030 underpins our GHG emissions
reduction targets. To determine the share of renewable electricity consumption in our own operations, we follow the same
methodology and reporting process as the calculation of our own carbon footprint (see section 2.2.3.2.1), relying on consumption
data collected from the local subsidiaries in the core countries.
We monitor the progress on our targets on a yearly basis and received a reasonable assurance on our disclosed target metrics
since 2016. Despite some slowdown in the reduction rate over the past two years, we are still well on track for our target. The
efforts to make our buildings more energy efficient and to electrify our company-owned fleet are starting to bear fruit, but we
still have some way to go to reduce emissions from commuter travel.

182 Annual Report KBC Group 2024
Loan and lease portfolio targets (2.2.3.1.2)
The environmental targets set on our lending portfolios must be understood in the overarching context of KBC’s commitment to
align our activities with the Paris Agreement goal of limiting global warming to well below 2°C, striving for 1.5°C. Under our
Sustainability Policy Framework, we have set up sectoral policies detailing our stance on activities with a harmful impact on the
environment, human rights and other sustainability-related issues. The objectives and criteria formulated in our policies underpin
the achievement of our GHG emissions reduction targets, as described in the table below, specifically the ban on financing
certain fossil fuel activities and our stringent lending criteria for steel, cement and aluminium producers. These policies are
applicable to all of our business units, consistent with the scope of our climate targets and our financial accounting
consolidation. For more detailed information on our climate-related policies, see section 2.2.2.1.
All of our environmental targets (including non-GHG emissions reduction targets) have been reviewed and approved by the ISB,
ExCo and endorsed by the Board. Furthermore, we have consulted with all core countries to define our loan portfolio projections
(see below in the description of our target-setting approach). These projections include estimates on the growth of our portfolio
and consider the local regulatory landscape that was in place at the time we set our targets. Our targets therefore depend to a
large extent on timely governmental action and also reflect the engagement with our clients, especially in sectors with a limited
number of highly emitting counterparties such as steel, cement and aluminium.

183Annual Report KBC Group 2024
Overview of the climate-re-
lated targets for our loan and
lease portfolios
Target based
on granted or
outstanding loan
exposure
Base
year Unit
Base
year
value 2024
2030
Target
2050
Target
Progress in line
with target?
3
Thermal coal
Direct exposure Granted 2016 m euros 16 0 0 0 Yes
Energy
Share of renewables in
total energy loan portfolio
(excluding transmission and
distribution)
Granted 2021 % 63% 67% 75% - Yes
Electricity – GHG intensity
1
Outstanding 2021 kg CO
2
e / MWh 210 93 127 49 Yes
% change 2021 % - -56% -39% -77%
Energy whole sector – GHG
intensity
2
Outstanding 2021 t CO
2
e / m euros 453 265 300 82 Yes
% change 2021 % - -42% -34% -82%
Real estate
Residential real estate – GHG
intensity
2
Outstanding 2021 kg CO
2
e / m
2
50 45 29 7 No
% change 2021 % - -10% -43% -85%
Real estate (whole sector) –
GHG intensity
2
Outstanding 2021 t CO
2
e / m euros 27 23 17 8 Yes
% change 2021 % - -15% -38% -72%
Agriculture
GHG intensity
2
Outstanding 2021 t CO
2
e / m euros 1 405 1 059 1 103 934 Yes
% change 2021 % - -25% -21% -34%
Transport
Passenger car loan and
financial leasing – GHG
intensity
1
Outstanding 2021 g CO
2
/ km 139 124 81 0 Yes
% change 2021 % - -11% -42% -100%
Light commercial vehicle loan
and financial leasing – GHG
intensity
1
Outstanding 2021 g CO
2
/ km 208 205 145 33 Yes
% change 2021 % - -1% -30% -84%
Passenger car operational
leasing – GHG intensity
1
Outstanding 2021 g CO
2
/ km 133 77 25 0 Yes
% change 2021 % - -42% -81% -100%
Light commercial vehicle
operational leasing – GHG
intensity
1
Outstanding 2021 g CO
2
/ km 196 186 132 19 Yes
% change 2021 % - -5% -33% -90%
Cement
GHG intensity
2
Granted 2021 t CO
2
e / t cement 0.69 0.62 0.58 0.22 Yes
% change 2021 % - -9% -16% -68%
Steel
GHG intensity
2
Granted 2021 t CO
2
e / t steel 1.34 1.50 1.15 0.59 No
% change 2021 % - +12% -14% -56%
Aluminium
GHG intensity
2
Granted 2021 t CO
2
e / t
aluminium
0.59 0.21
Stay well below
the global sectoral
intensity climate
benchmark
Yes
% change 2021 % - -63%
1
Includes Scope 1 emissions
2
Includes Scope 1 and 2 emissions
3
We measure this by comparing the 2024 values against the values of the KBC portfolio-specific and scenario-based sectoral decarbonisation pathways (KBC benchmark
value) for that same year. ‘Yes’ reflects either of the following options: the target is reached, the progress is at or below our target level, or the value is not more than 5% above
our 2024 benchmark value. ‘No’ reflects that the value is more than 5% above our 2024 benchmark value. The table shows rounded figures, but the delta between 2024
measurements and benchmark values, as well as the resulting progress statement, are based on unrounded calculations.

184 Annual Report KBC Group 2024
We note that our GHG emissions reduction targets are not expressed in absolute GHG reductions. Instead, we use sector-
specific carbon intensity metrics since we believe this is the most effective way to guide and track the decarbonisation efforts in
our diverse loan and lease portfolios. The GHG emissions reduction targets for our lending portfolios cover the Scope 1 and, if
applicable, the Scope 2 GHG emissions of the borrowers (as indicated in the table). The Scope 3 GHG emissions of our borrowers
are not included in the target boundaries. Consistency of our targets with our inventory boundaries is ensured by the fact that
we apply standard calculation methodologies as provided by the PCAF global standard and underlying data sources (client
data, PACTA, PCAF emission factors). In addition, as described under 2.2.3.1.1, the Recalculation Policy applies to our loan
portfolio to safeguard this consistency.
Calculating and setting climate-relevant targets requires a very diverse set of tools. This section aims to provide transparency
about our target-setting approach for our lending portfolio and outlines their main conceptual building blocks.
Scenario-based GHG emissions reduction targets
STEP 1 STEP 2 STEP 3 STEP 4
KBC loan portfolio
data
KBC loan portfolio
projections
Data sources:
1. In-house data and
projections
2. Company projections
Emission intensity
baseline 2021
Climate alignment
toolbox
Methodologies:
Convergence intensity
approach
SDA and SDA as applied
by PACTA for cement
and steel
Rate-of-reduction
approach
KBC climate
targets
Physical GHG intensity
metrics (CO
2
e per
physical metric)
Financial GHG intensity
metrics (CO
2
e per m
euros of outstanding
exposure)
Climate-relevant
data
Data sources:
1. Client data
2. PCAF calculations
3. External asset-based
data
4. Modelling missing
portfolio data
Climate-scenarios
Data sources:
1. EU NGFS scenarios
2. European Commis-
sion Model suite (MIX)
3. Global climate sce-
narios (EA or other
credible institutions)
External
data
KBC
data
As part of our engagement in the Collective Commitment to Climate Action (CCCA), we have set GHG emissions reduction
targets for our lending portfolios, following the UNEP FI guidelines. These require the application of widely accepted science-
based decarbonisation scenarios in line with the temperature goals of the Paris Agreement. Building on these requirements, we
developed a four-step approach for science-based target setting, as outlined below:
• Step 1: we combined our loan portfolio data with climate-relevant data for each sector, thereby calculating portfolio CO
2
e
intensity metrics, either related to physical units (e.g., kgCO
2
e/MWh, m
2
, ton) or, where such data was not available, financial
units (e.g., tCO
2
e/mEUR outstanding exposure). This calculation allowed us to determine the baseline values for our targets
which were set for the base year 2021.
• Step 2: we selected the relevant climate scenarios from which the decarbonisation pathways of our loan portfolios could be
deducted. In accordance with our engagement in the CCCA, we ensured the climate scenarios’ consistency with the well-
below 2°C temperature goal with no/low overshoot as well as their scientific reliability and granular sectoral coverage. We
also prioritised scenarios with regional specific pathways reflecting our prominent EU focus. Consequently, we used regional
NGFS (Network for Greening the Financial System) climate scenarios, where available, and EU PRIMES model data (used to
calculate the EU Commission Net Zero 2050 - MIX scenario) or global scenarios. Please note that, for benchmarking purposes,

185Annual Report KBC Group 2024
we performed the analyses on more than one set of scenarios and then selected the best suited ones. The final scenarios
selected are included in the table below.
• Step 3: we selected the best suited target-setting methodology and alignment calculation approach for each portfolio. For
physical intensity metrics, we followed the convergence intensity approach, also known as the Sectoral Decarbonisation
Approach (‘SDA’, see table) whereby the CO
2
e intensity of our portfolio needs to converge towards the sector intensity target
by the end date specified in the scenario. For the agricultural sector, where we selected a financial carbon intensity metric, we
used the rate-of-reduction approach, which consists in applying the sectoral emission reduction rates relevant to the sector.
• Step 4: we projected the evolution of the relevant portfolios by combining in-house expert-based input (e.g., by incorporating
redistribution effects on specific asset classes or estimated portfolio effects of government policies), company projections (i.e.
by incorporating the implementation of public climate commitments taken on by companies in our portfolio) and our own
proposed actions (i.e. focusing on stimulating positive evolutions, limiting negative impacts or a combination of both). This
allowed us to assess the future alignment of our portfolios with the respective normative climate scenario benchmarks.
Non-scenario-based GHG emissions reduction targets
We have also defined ‘partially science-based’ targets for our loan portfolio, exclusively monitored through financial carbon
intensity metrics. These targets are derived from the level of ambition of our science-based targets described above and, hence,
are not directly based on forward-looking scenario-based benchmark constructions:
• Energy (whole sector), expressed in tCO
2
e/mEUR outstanding loan exposure;
• Commercial real estate and mortgages (whole sector excluding pure commercial development), expressed in tCO
2
e/mEUR
outstanding.
Other targets
We have set two specific environmental targets related to our energy loan portfolio:
• A phase-out target for direct thermal coal-related activities (thus including electricity generation, district heating and mining),
which was set in 2016 and achieved in 2023. The target was measured in absolute financial exposure value (millions of EUR
granted). This target is aligned with the International Energy Agency (IEA) Net Zero Emissions by 2050 which requires a full
phase-out of unabated coal by 2040.
• A target for the share of renewable energy in our total energy loan portfolio, which was set in 2021 and is measured as a
percentage of our total energy loan portfolio (excluding transmission and distribution). This target is not science-based and
does not rely on scientific climate scenarios.

186 Annual Report KBC Group 2024
Target-setting methodologies, significant assumptions and scientific evidence
White
Paper
sectors
(Sub)sector/product
line within the scope
of target setting
Measurement
unit
Based
on con-
clusive
scien-
tific evi-
dence
Institu-
tion
Scenario
refe-
rence/
name
Policy
ambi-
tion
Target-
setting
method
Is the
target
exter-
nally
assu-
red?
Financed
emissions
in scope
(in
Mt CO
2
e)
PCAF
DQ
score
1
Energy Full exit from direct
thermal coal-related
financing
Millions of EUR
granted
Yes IEA Net Zero
2050
1.5°C - - - -
Share of renewables
in total energy loan
portfolio (excluding
transmission and
distribution)
%No-------
Energy (whole sector) tCO
2
e/millions of
EUR outstanding
Yes - - - - No 1 326 299
*
3.5
Electricity kgCO
2
e/MWh Yes NGFS
(phase 2)
Below
2°C
1.7°C SDA No 913 570
**
2.6
Real Estate
2
Commercial real
estate and mortgages
(whole sector excl.
pure commercial
development)
tCO
2
e/millions of
EUR outstanding
Yes - - - - No 1 985 288
*
3.0
Mortgages and
commercial residential
real estate
kgCO
2
e/m
2
/year Yes NGFS
(phase 2)
Below
2°C
1.7°C SDA No 1 566 010
*
3.0
Transport Vehicle
loans and
financial
lease
Passenger
cars
gCO
2
/km
Yes
European
Com mis-
sion
MIX
(based
on the EU
PRIMES
model)
Net
Zero
2050
(i.e.
1.5°C-
alig-
ned)
SDA No
249 696
**
3.4
Light
commer-
cial
vehicles
Yes 119 305
**
3.6
Vehicle
opera—
tional
lease
Passenger
cars
Yes 101 319
**
1.0
Light
commer-
cial
vehicles
Yes 21 775
**
1.1
Agriculture Agriculture (whole
sector)
tCO
2
e/millions of
EUR outstanding
Yes NGFS
(phase 2)
Below
2°C
1.7°C Rate-of-
reduc tion
ap proach
No 5 497 085
*
4.9
Building
and con-
struc tion
Cement producers tCO
2
e/t cement Yes IEA ETP 2020
SDS
1.7°C SDA No 64 180
*
3.2
Metals Steel producers tCO
2
e/t steel Yes IEA ETP 2020
SDS
1.7°C SDA No 360 058
*
2.8
Aluminium producers tCO
2
e/t
aluminium
Yes TPI
***
Below
2°C
<2°C SDA
No
7 929
*
1.4
1
Data quality score of the target scope emissions only, i.e. Scope 1 or Scope 1 + 2. The PCAF data quality score ranges from 1 (highest score) to 5 (lowest score). Refer to section
2.2.3.2.2 for more information.
2
Due to limitations in available information for all underlying financed assets we rely on our existing calculation approach of financed emission and KPIs for real estate (as
referenced further under Section 2.2.3.2.2) which comes with a high level of uncertainty. The emission factors have been kept identical to those used in the baseline calculation.
We invested in the platform and calculation methods and will refine our calculations and update our emission factors in the 2025 disclosures.
*
Comprises Scope 1 and 2
**
Comprises Scope 1
***
Transition Pathway Initiative
The metrics used to monitor our targets are based, to the extent possible, on actual financing (i.e. outstanding loan exposure) in
order to reflect the actual climate impact of our portfolio. The only exception to this general rule relates to cement, steel and
aluminium producers which, compared to the other sectors, are much smaller portfolios limited to a handful of counterparties. To
avoid large fluctuations in our target monitoring, it was decided to base targets on granted loan exposure.

187Annual Report KBC Group 2024
For financial year 2024, there are no changes in targets and corresponding metrics or underlying measurement methodologies
related to our loan and lease portfolios. Accordingly, no recalculation of baseline values was triggered by our Recalculation
Policy. We monitor the progress on our targets on a yearly basis and received a limited assurance on our disclosed target metrics
since 2021. Furthermore, following the UNEP FI guidelines on climate target setting, we will review our targets at least every five
years.
Below we summarise our performance against the disclosed targets for the aforementioned sectors and product lines:
• Energy: the GHG emission intensity of our electricity portfolio decreased by 56% since base year 2021. There are three reasons
for this large decrease. Firstly, we financed new renewable energy assets. Secondly, existing renewable energy assets became
operational as of this year, which means that the attribution of their zero emissions is now included in the calculation. Thirdly,
we decreased our exposure to fossil-fuel-based power production, including through the accelerated wind-down of two of
our international legacy files.
The financed emission intensity of our overall energy portfolio decreased by 42% compared to our 2021 baseline. This decrease
was mainly driven by the above-mentioned reduction in financed emissions within our electricity portfolio. Additionally, most
countries are decreasing their exposure to the upstream oil and gas sub-sector. They are also shifting their exposure in this
sector to lower-emission activities such as the storage, transmission and distribution of oil, gas and electricity.
This positive evolution in our energy-related climate targets should be considered and evaluated with care. We remain
committed to supporting the energy transition plans in our home countries. Subsequently, there may be volatility in our energy
target progress over the course of the next few years. Our efforts regarding the 2030 target values will remain unaffected.
Lastly, the share of renewable financing increased significantly to 67.5% of our total energy portfolio. This was driven by both a
large increase in renewable energy loans and a (smaller) decrease in non-renewable loans in 2024. We are therefore on track
again towards the 2030 target, though some volatility is possible along the way as country transition plans are reviewed as
indicated above.
• Real estate: in 2024, the financed emission intensity of the overall real estate portfolio decreased by 15% compared to the 2021
baseline. This is largely explained by the 10% reduction in the emission intensity of the residential portion of the real estate
portfolio. The main reason for the decrease in the emission intensity of the residential real estate portfolio is that newly
granted mortgage loans had, on average, better EPC (Energy Performance Certificate) labels and lower habitable surface
areas per million euros financed. Yet, despite this decrease, the residential real estate target itself is not yet fully in line with the
2024 KBC pathway value of 43 kg of CO
2
e/m
2
. However, we expect that a further decline can only be brought in line with the
foreseen pathways if the governments also provide the necessary incentives and measures.
• Vehicle loans/financial lease and operational lease: the emission intensity of our passenger car portfolio is structurally
decreasing compared to our base year 2021. The biggest decrease is in our operational lease portfolio, where we recorded a
reduction of 42% compared to our base year 2021. We observe different speeds of electric vehicle (EV) adoption across the
countries in KBC Group. Nevertheless, the majority of all new vehicles financed by KBC Group are EVs. This is in line with our
2030 targets. In the light commercial vehicle portfolio this decrease is more gradual (-5% compared to base year 2021) and
mainly due to slow expansion of the availability of electrified vans.
• Agriculture: the financed emission intensity of the sector dropped significantly. Each year's progress measurement is based on
measurements performed using the PCAF Global Standard. For this year's measurement, there are several factors that
contributed to the overall portfolio evolution, including implementation effects of the PCAF Global Standard itself (such as an
update and inflation adjustment of emission factors), portfolio evolutions, and improvements in emission data quality levels.
Notwithstanding these data quality improvements, we emphasise that we remain confronted with overall lower quality levels
of our measurements as reflected through our PCAF quality level scoring. Also, actual inflation does not necessarily coincide
with inflation assumptions considered at the time we set the targets. Any potential reviews of our targets will be in observance
of the experience acquired with the aforementioned measurement observations.
• Cement: the cement sector is one of the hard-to-abate industries, but despite this we note a first decrease in our portfolio
emission intensity. This decrease is a combined result of our investments in better data quality (in turn leading to improved
accuracy of our calculations) as well as the fact that one of the largest clients in our cement portfolio showed an improved
emission intensity compared to last year. This improvement is an embodiment of this company’s public commitment to
decarbonise its cement-producing activities, which has set out a decarbonisation strategy to support its target
implementation. The progress made in 2024 reflects this evolution.
• Steel: our steel portfolio progress assessment showed an increased emission intensity compared to the 2021 baseline. Due to
our portfolio being significantly concentrated on one major corporate group, the emission intensity of this entity remains a
crucial determinant of the overall portfolio's emission intensity. This corporate group has implemented a net-zero action plan,
which includes a steel production technology roadmap and associated capital expenditure impacts. Engagement discussions
are ongoing to support them in their overall transition journey. While this commitment is reassuring, it is important to note that
the targets we expressed in our 2022 Climate Report were aligned with the climate plans of the companies within the scope of

188 Annual Report KBC Group 2024
our target. Therefore, any delays in these climate plans will inevitably impact the progress we make towards our target.
Currently, there is a perceived delay in the critical capital expenditure plans of the company towards achieving net-zero steel
production. We will continue to engage with our clients to support sustainability-linked investments as they navigate their
significant transition challenges.
• Aluminium: our calculated carbon emission intensity of our aluminium portfolio is far lower than that of the global market. In
2024, our already low t CO
2
e emissions per aluminium production decreased even further. While this evolution was entirely due
to an improvement in the quality of the underlying client data used, it still solidifies the limited indirect climate impact of this
portfolio and the dedication to staying well below the global emission intensity level of the sector.
Asset management activities (2.2.3.1.3)
For our asset management activities, we also set and monitor climate-related targets. The main objective of climate-related
targets in this context is to redirect more (client) money towards responsible investing. In this regard, we note that the investment
assets for unit-linked portfolios of clients of KBC Insurance and managed by KBC Asset Management are also included here. This
supports our commitment to align our investing activities with the Paris Agreement, as outlined in our Environmental Policy.
The environmental targets for our asset management activities are set by KBC Asset Management and they have been reviewed
and approved by the ISB and ExCo and endorsed by the Board.
Climate-related targets for asset
management activities Base year Unit
Base year
value 2024
2025
Target
2030
Target
Progress
in line with
target?
Share of RI funds in total DCM 2021 % 33% 44%
1
45% 55% Yes
Share of RI funds in total annual fund
production (gross sales)
2021 % 55% 51%
1
- 65% Yes
Carbon intensity (Scope 1 + 2) of corporate
investees in Responsible funds
2019 tCO
2
e/
million USD
revenue
196 55
2
- 98 Yes
% change 2019 % - -72%
2
--50% Yes
1
Figure at end of fourth quarter of 2024
2
Figure at end of third quarter of 2024
The targets related to the share of Responsible Investing funds cover DCM managed by KBC Asset Management and its
subsidiaries. In this regard, we note that the RI funds focus on sustainability objectives beyond climate change mitigation.
Considering our entire portfolio of RI funds, climate change mitigation is the most widely applied sustainability objective. For
some funds, however, it is not the main sustainability-related focus.
Our target for carbon intensity of Responsible funds includes those RI funds for which carbon-related considerations are taken
into account (for more details on the diversity of our RI funds, we refer to the Investment Policy for Responsible Investing funds in
section 2.2.2.1). Within these RI funds, the target covers the Scope 1 and Scope 2 emissions from corporate investments, i.e.
corporate bonds and equity, for which Trucost data is available (see section 2.2.3.2.2 for more information on our methodology).
For all RI funds at least 90% of corporate investments are covered by GHG data. The funds-of-funds are not included in the
indicator calculation to avoid double-counting. For the part not covered by the indicator, no data is currently available.
It is worth mentioning that the representativeness of our 2019 baseline value is ensured since the calculation was based on
benchmarks covering a wide scope of companies. Also, since the scope of the target is limited to investees’ Scope 1 and Scope 2
emissions, insights on the progress are not affected by investees’ Scope 3 emissions. The calculation of Scope 3 emissions is less
standardised across companies, which would lead to more volatility and lower comparability.
The targets regarding the share of RI funds compared to the total DCM and the total gross sales, respectively, are calculated as
such with no limitations or significant assumptions. The carbon intensity reduction target is inspired by the target set by the Net
Zero Asset Managers Initiative. Hence, it is not based on conclusive scientific evidence.
For financial year 2024, there are no changes in targets and corresponding metrics or underlying measurement methodologies
related to our investment portfolios.
In terms of monitoring, the targets related to the share of RI funds are calculated and followed up on a monthly basis. We are
currently on track to achieve our targets. With regard to the target for the carbon intensity of corporate investees in the RI funds,
we continuously monitor this as one of the ESG targets at portfolio level. The aggregated reduction target for asset

189Annual Report KBC Group 2024
management combines the specific targets of these funds under the assumption of a neutral asset allocation. The actual result
is dependent on the asset allocation as well as on the GHG reductions achieved in the individual funds. We want to highlight
that currently, the carbon intensity of our RI funds is already below the 2030 target. This is mainly driven by the fast
implementation of the updated Investment Policy in 2021, which includes additional exclusion criteria regarding fossil fuels.
Own investments of KBC Insurance (2.2.3.1.4)
Similar to our asset management activities in the previous paragraph, we have a target for the carbon intensity of the own
investments of KBC Insurance (excluding unit-linked investments). The target is set by KBC Insurance and approved by the ISB.
This further underpins our climate-related ambitions as outlined in our Environmental Policy.
Climate-related targets for own
investments of KBC Insurance Base year Unit
Base year
value 2024
2025
Target
2030
Target
Progress
in line with
target?
Carbon intensity (Scope 1 + 2) of listed
equity and corporate bonds portfolio of KBC
Insurance
2019 tCO
2
e/
million USD
revenue
112 27
1
84 67 Yes
% change 2019 % - -75%
1
-25% -40% Yes
1
Figure at end of third quarter of 2024
The target for the own investments of KBC Insurance pertains to all insurance entities. Similar to the carbon intensity target for
our asset management activities, the scope of the target covers the Scope 1 and Scope 2 emissions from corporate investments,
i.e. corporate bonds and equity, for which Trucost data is available (see section 2.2.3.2.2 for more information on our
methodology).
Here too, the large number of investments as well as the restriction to investees’ Scope 1 and Scope 2 emissions ensure that our
baseline value remains representative. We further note that the carbon intensity is not based on conclusive scientific evidence.
For financial year 2024, there are no changes in targets and corresponding metrics or underlying measurement methodologies
related to our investment portfolios.
The GHG intensity reduction of the listed equity and corporate bond portfolio of KBC Insurance remained firmly on track after a
further decrease in 2024. As with the carbon intensity targets for our asset management activities, the GHG intensity is already
well below the 2030 target. Here too, this is mainly driven by the fast implementation of the updated Investment Policy in 2021.
GHG emissions: gross Scope 1, 2, 3 and total emissions (2.2.3.2)
We calculate our direct and indirect carbon footprint in accordance with the GHG Protocol Corporate Accounting and
Reporting Standard. Based on our Scope 1, 2 and 3 GHG emission calculations (for the definition of Scope 1, 2 and 3 emissions,
we refer to section 2.2.3.1), the largest source of emissions results from our lending, investment, and insurance underwriting
activities, i.e. portfolio emissions, accounted under Scope 3 Category 15, ‘Investments’. For KBC these sources account for more
than 99% of reported Scope 1, 2 and 3 emissions. For our non-Category 15 Scope 3 emissions, we only report emission sources
over which we have direct operational control and which we can use to create awareness amongst staff (i.e. business travel,
commuter travel, paper and water consumption and waste generation), as shown in the table below:

190 Annual Report KBC Group 2024
Source of GHG emissions Scope and boundary of KBC GHG emissions
Upstream Scope 3
Purchased goods and services (Category 1) Includes emissions from paper and water consumption from all groupwide operations
Capital goods (Category 2) Not relevant/material to KBC as a financial services company
Fuel- and energy-related activities (Category 3) Not relevant/material to KBC as a financial services company
Upstream transportation and distribution
(Category 4)
Not relevant/material to KBC as a financial services company
Waste generated in operations (Category 5) Includes emissions from waste generation and waste processing of all groupwide
operations
Business travel (Category 6) Includes emissions from business travel by not-own fleet (vehicles, public transport
and air travel) across all groupwide operations
Employee commuting (Category 7) Includes emissions from employee commuting travel by not-own fleet (vehicles and
public transport) across all groupwide operations
Upstream leased assets (Category 8) Not relevant/material to KBC as a financial services company
Downstream Scope 3
Downstream transportation and distribution
(Category 9)
Not relevant/material to KBC as a financial services company
Processing of sold products (Category 10) Not relevant/material to KBC as a financial services company
Use of sold products (Category 11) Not relevant/material to KBC as a financial services company
End-of-life treatment of sold products (Category
12)
Not relevant/material to KBC as a financial services company
Downstream leased assets (Category 13) Emissions from KBC’s operational lease portfolio (Scope 1) included in Category 15
Franchises (Category 14) Not relevant/material to KBC as a financial services company
Investments (Category 15) Emissions from KBC’s loan (Scope 1, 2 and 3) and lease (Scope 1) portfolio
Emissions from KBC’s insurance own investments (Scope 1 and 2)
Emissions from KBC’s bank sovereign bond portfolio (Scope 1 and 2)
Investments – optional (Category 15) Emissions from KBC’s insurance underwriting portfolio (Scope 1 and 2)
Emissions from KBC’s asset management activities (Scope 1 and 2)

191Annual Report KBC Group 2024
The table below provides an overview of our Scope 1, 2 and 3 GHG emissions. In 2024, we extended the scope of the entities for
our own carbon footprint beyond the financial consolidation scope to also include entities over which KBC has operational
control. For Scope 1 and 2 emissions, we provide the distinction between GHG emissions related to KBC Group (financial
consolidation scope) and GHG emissions related to other entities over which KBC has operational control. Our own carbon
footprint is defined as the GHG emissions related to Scope 1, Scope 2 and a selection of Scope 3 emissions sources over which
we have direct operational control (i.e. business travel, commuter travel, paper and water consumption and waste generation).
Scope 3 Category 15 covers our loan portfolio. This category is further broken down into emissions related to White Paper sectors
(defined in section 2.2.1.1) and emissions related to other sectors. In addition to the indirect emissions from our lending business,
Scope 3 Category 15 also includes indirect emissions stemming from our asset management activities, the sovereign bond
portfolio of KBC Bank, the own investments of KBC Insurance (excluding unit-linked investments) and our insurance underwriting
activities. However, the corresponding absolute GHG emissions for our investment portfolios are not included in the table since
absolute GHG emissions are not available at the reporting date. Instead, we separately provide carbon intensities for these
components. The GHG intensity data cover more than 97% of these corporate and sovereign investments.
We do not calculate emissions for our non-financial assets (except for assets included in our own emissions calculations (see
section 2.2.3.2.1). For an overview of KBC’s assets, we refer to the Consolidated balance sheet included in the Consolidated
financial statements of this annual report.
As a general remark, we note that the GHG emissions shown in the table are not available at year-end. The figures shown are as
at 30 September, which we consider to be a good proxy for the end-of-year figures.

192 Annual Report KBC Group 2024
Milestones and target years
1
GHG emissions Base year
Compa-
rative 2024 2025 2030 (2050)
Annual %
target /
Base year
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO
2
e) - -
40 717
----
Of which KBC Group consolidated - - 36 059 ----
Of which not fully consolidated
entities other than joint ventures and
associated companies where KBC
has operational control - -
4 658
----
Percentage of Scope 1 GHG emissions
from regulated emission trading
schemes (%) - -
0%
----
Scope 2 GHG emissions
Gross location-based Scope 2 GHG
emissions (tCO
2
e) - -
35 361
----
Of which KBC Group consolidated - - 34 870 ----
Of which not fully consolidated
entities other than joint ventures and
associated companies where KBC
has operational control - -
491
----
Gross market-based Scope 2 GHG
emissions (tCO
2
e) - -
4 626
----
Of which KBC Group consolidated - -
4 467
----
Of which not fully consolidated
entities other than joint ventures and
associated companies where KBC
has operational control - -
159
----
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG
emissions (tCO
2
e) - -
45 825 058
----
1 Purchased goods and services - - 1 552 - - -
-
2 Capital goods - - - ----
3 Fuel and energy-related activities
(not included in Scope 1 or Scope 2) - -
-
----
4 Upstream transportation and
distribution - -
-
----
5 Waste generated in operations - - 812 ----
6 Business travelling - - 4 506 ----
7 Employee commuting - - 16 794 ----
8 Upstream leased assets - - - ----
9 Downstream transportation - - - ----
10 Processing of sold products - - - ----
11 Use of sold products - - - ----
12 End-of-life treatment of sold
products - -
-
----
13 Downstream leased assets
Included in 15 Invest ments (of which White Paper sectors and product lines)
14 Franchises - - - ----
15 Investments
2
- -45 801 394 ----
Of which White Paper sectors &
product lines
3
--
26 822 564
----
Of which remaining sectors
4
- -18 978 830 ----
Total GHG emissions
Total GHG emissions (location-based)
(tCO
2
e) - -
45 901 136
----
Total GHG emissions (market-based)
(tCO
2
e) - -
45 870 401
----

193Annual Report KBC Group 2024
Insurance-associated emissions
5
--
199 719
----
Emission intensities from our asset management activities
Investments in corporates (in tCO
2
e/million USD revenue) - - 58 - - - -
Investments in sovereigns (in tCO
2
e/million USD of GDP)
6
--532 ----
Emission intensities from the sovereign bond portfolio of KBC Bank
Investments in sovereigns (in tCO
2
e/million USD of GDP)
6
-623 ----
Emission intensities from the own investments of KBC Insurance
Investments in corporates (in tCO
2
e/million USD
revenue) 2019 112
27
84 67 - -
Investments in sovereigns (in tCO
2
e/million USD of
GDP)
6
--
522
----
1
Please note that, except for the own investments of KBC Insurance in corporates, the scope of the GHG emissions in this table differs from the scope of our GHG emissions
reduction targets. We refer to section 2.2.3.1 for more information on our GHG emissions reduction targets, including a description of the scope for each target. For this reason,
the columns related to targets could not be completed.
2
The figure in column ‘2024’ represents the total of financed Scope 1 (13 737 745 tCO
2
e), Scope 2 (1 970 149 tCO
2
e) and Scope 3 (30 093 500 tCO
2
e) emissions. Please note that this
figure also includes operational leasing, which is not included in the scope of loan book reporting. Financed emissions associated with vehicle financing are double-counted
due to vehicle loans granted in sectors for which separate financed emission calculations are made. Also, for an approximate 5% of the outstanding loan book, no PCAF
calculation could be made.
3
The figure in column ‘2024’ represents the total of financed Scope 1 (11 621 420 tCO
2
e), Scope 2 (707 081 tCO
2
e) and Scope 3 (14 494 063 tCO
2
e) emissions. Calculations are made
using the PCAF Global Standard Part A. There are varying underlying data quality levels for our financed emissions which are expressed in a data quality score (more information
in Section 2.2.3.2.2 of this report). The following PCAF quality scores apply for our White Paper sectors: Agriculture (‘4.9’), Building & Construction (‘3.7’ for Cement, ‘5.0’ for the
remaining part), Energy (‘4.7’ for Oil & Gas, ‘4.7’ for Transmission & Distribution, ‘3.8’ for Electricity and ‘5.0’ for Energy Traders), Real Estate (‘3.0’ for mortgages and ‘3.4’ for
Commercial Real Estate), Food & Beverages (‘5.0’), Metals (‘2.6’ for Steel, ‘3.6’ for Aluminium and ‘5.0’ for the remaining part), vehicle financing financial lease and loans (‘3.4’),
vehicle financing operational lease (‘1.0’), Automotive (‘5.0’), Shipping (‘5.0’), Aviation (‘5.0’) and Chemicals (‘5.0’).
4
The figure in column ‘2024’ represents the total of financed Scope 1 (2 116 325 tCO
2
e), Scope 2 (1 263 068 tCO
2
e) and Scope 3 (15 599 437 tCO
2
e) emissions. Calculations are made
using the PCAF Global Standard Part A. The overall data quality score is ‘5.0’. See Section 2.2.3.2.2 of this report for more information.
5
Calculations are made using the PCAF Global Standard Part C. The figures comprise the Belgian portfolio only. The data quality score for Personal Motor Lines is 2.9 while the
data quality score for commercial lines is 5. See Section 2.2.3.2.3 of this report for more information
.
6
Please note that the most recent year of GHG data of countries is modelled by our data provider Trucost (S&P) due to a time lag of one year on sovereign reported data. We
calculated the weighted GHG intensity of the sovereign bond portfolio including updated imported emissions received in November 2024.
Own carbon footprint (2.2.3.2.1)
The calculation of the GHG emissions linked to our operational perimeter follows the GHG Protocol Corporate Accounting and
Reporting Standard. We collect primary activity data of emission sources from each core country and account for 100% of the
emissions from activities over which we have operational control. The percentage of emissions calculated using primary data is
above 98%.
For Scope 1 and 2 GHG emissions, we apply the hybrid calculation method. We use supplier-specific emission factors where
available, and standard emission factors from the IEA, Reliable Disclosure and the Association of Issuing Bodies, Department for
Energy Security & Net Zero and KBC-specific emission factors as a fall-back option.
For the Scope 3 emissions related to our own operations, we use the average-data method for Categories 1, 5, 6 and 7. These
categories are not material in KBC’s footprint, but are mainly measured and tracked to raise awareness amongst staff on
emissions sources over which we have operational control. Data is gathered for all operations in KBC.
For financial year 2024, there were some small changes in the measurement methodologies related to our GHG inventory:
• We started using net calorific value emission factors for fuel consumption, instead of gross calorific emission factors.
• We started reporting emissions for water supply under Scope 3 Category 1 (before: Scope 3 Category 5). Emissions for water
treatment are still reported under Scope 3 Category 5.
• We changed our extrapolation logic for smaller subsidiaries (<100 FTE). Where before, we only used Full-Time Equivalent (FTE)
as a parameter to extrapolate emissions, we now use FTE for transport-related emissions and floor area for building-related
emissions. The amount of extrapolated emissions account for approximately 1.5% of our total emissions.

194 Annual Report KBC Group 2024
Besides the Scope 1, 2 and 3 emissions related to our own carbon footprint, we also use the intensity metric shown in the table
below to monitor the impact of our own operations.
Own carbon footprint Description Unit 2024
All activities GHG intensity per FTE t CO
2
e / FTE 1.76
Financial activities only GHG intensity per FTE t CO
2
e / FTE 1.46
These metrics are calculated based on the total of Scope 1, Scope 2 (market-based) and Scope 3 own emissions, respectively for
all activities of KBC (as shown in the GHG emissions table above) and for our own footprint target scope (see section 2.2.3.1.1). The
metrics have not been validated by an external body other than the assurance provider.
For 2024, the share of contractual instruments used for the sale and purchase of energy is 87.7%. The types of contractual
instruments used for the sale and purchase of energy are as follows:
• Energy attribute certificates: 2.2%
• Energy attribute certificates or contracts: 85.6%
• Supplier emission rates: 0.0%
This metric considers all purchased energy reported under Scope 2: electricity, heating, steam, cooling.
Financed emissions (2.2.3.2.2)
This section describes the calculation methodologies for our Scope 3 Category 15 financed emissions. The approach for our
lending-related emissions differs from the approach for emissions linked to our investing activities.
Loan and lease portfolios
Calculating our financed emissions allows us to track performance against the targets we have set on our lending portfolios (see
section 2.2.3.1) and to evaluate the effectiveness of our climate-change mitigation actions. This also helps us meet the reporting
requirements from regulators and supervisors. We measure the financed emissions for our loan portfolio if and when calculation
methods and/or data are available. As a result, for 4.6% of our loan portfolio no associated financed emissions could be
calculated. For a definition and end-of-year figures of our ‘loan portfolio’, we refer to the ‘Glossary of financial ratios and terms’
section in this annual report. Our emission calculations are based on loan portfolio figures as at 30 September 2024, which are in
line with the end-of-year figures.
For that measurement, we describe below the methodologies, assumptions and emission factors used for:
• Parts of the loan portfolio for which targets have been set (see section 2.2.3.1; further referred to as ‘target sectors’);
• Parts of the loan portfolio for which no targets have been set (referred to as ‘non-target sectors’ below).
As part of our Sustainable Finance Programme, we identified the most carbon-intensive sectors and product lines in our lending
portfolios. To this end, we performed strategic assessments of sectors with the largest climate impact because of the nature of
the activities (carbon-intensive industrial sectors) and took into account the size of our exposure to that sector. For each of the
identified sectors, we assessed the environmental impacts, dependencies and associated risks and opportunities. All of these
assessments were compiled in our White Papers. This was done for eight industry sectors (energy, commercial real estate,
agriculture, food production, building and construction, chemicals, transport and metals), and the three most impactful product
lines (mortgages, car loans and car leasing) in our portfolios.

195Annual Report KBC Group 2024
We calculate the financed emissions related to our lending business based on GHG emissions data collected from our
counterparties. For clients for which we do not have GHG emissions information, we fall back on the sector asset-based PCAF
emission factors (secondary information, following the data quality hierarchy of PCAF). The percentage of emissions calculated
using primary data is 2.6%. For all of our calculations, we follow the PCAF guidance as closely as possible. The quality of the
financed emission calculation is reflected in a dedicated PCAF data quality score ranging from ‘1’ – highest – to ‘5’ – lowest). The
PCAF quality score cards can be consulted in the PCAF Global Standard. Through our Data and Metrics programme we invest
and have invested structurally over the years to build data gathering, calculation and reporting capabilities to support the ESG
disclosures. Our main data collection and calculation platform for our loan portfolio GHG emissions is/will be also used for
financial, risk and treasury reports; as such, the ESG reporting benefits from that infrastructure with embedded data quality
management, master data management, reconciliation processes, security, archiving etc. Real estate is the only target sector
for which the reporting remains outside the platform now. The programme endeavours to deliver the calculations aligned with
PCAF through the platform to be ready for reporting over 2025.
Target sectors
Our White Papers include, but are broader than, our target sectors and sub-sectors (as disclosed under 2.2.3.1), for which we
have developed detailed GHG emissions calculation methodologies at asset level. These methodologies take into account the
data availability, the heterogeneity of the financed sectors and the relevance for our business. In line with the PCAF Global
Standard, our financed emission calculations are based on actual financing (i.e. outstanding loan exposure) in order to reflect
the actual climate impact of our portfolio. For some of our climate lending target metrics we use more appropriate (portfolio)
weighted calculation methods to reflect the associated portfolios’ climate impacts. This approach is followed in cases where
either the numerator of the emission intensity metric has too high a level of uncertainty or where the metric is related to
committed loan exposure and not to actual financing. In such a case, the metric would become ineffective for management
purposes. E.g., for our vehicle financing targets we decided to calculate the climate impact of the portfolios by calculating the
average CO
2
emission intensity based on the emission intensity of the underlying vehicles financed rather than basing our
calculations on financed activity (kilometres driven, i.e. information which for the largest part of our portfolio is unavailable). E.g.,
for our cement, steel and aluminium producers loan portfolios, the portfolio emission intensity is based on the loan-weighted
emission intensity of the underlying companies financed. For these three concentrated sectors, it was decided to calculate the
metrics on granted loan exposure to avoid large fluctuations in our target monitoring.
PCAF methodology
We use the PCAF methodology to calculate the financed emissions metrics for most of our target sectors. Please note that, while
our target metrics only include Scope 1 and Scope 2 GHG emissions of the borrowers, we do separately calculate the Scope 1, 2
and 3 GHG emissions of our borrowers following the PCAF standard. At this stage, where client-specific GHG emissions data is
not available, we use PCAF emission factors. We apply the most recent emission factors published by PCAF, version of March
2024. Exceptions are the real estate sector which uses the PCAF emission factor database version of March 2021 and the Energy
sector which uses the PCAF emission factor database version of March 2022. These exceptions are due to technical reasons.
Please note as a general remark that we apply the inflation correction formula recommended by PCAF to all our calculations
where PCAF emission factors are used.
The PCAF methodology boils down to the following formula:
For the residential real estate sector, an entity-specific methodology has been developed at portfolio level which uses PCAF
variables (e.g., EPC emission factors), however these are not always calculated on the level of each individual financed asset.
Approximations were necessary due to the fact that PCAF relies on a loan-by-loan/asset-by-asset approach, for which data
was not available for large parts of our portfolio. In this sector, the complexity to gather asset-level data is driven by the very
high number of individual counterparties. Hence, where no or insufficient data was available at asset level, we estimate the
financed floor area by using expert-based m
2
market values. We then apply the relevant PCAF emission factor to estimate the
GHG emissions intensity of the assets. The method used is to be considered as a reasonable proxy for PCAF, emphasising the
uncertainty with regards to this statement. KBC will implement the necessary changes to its data infrastructure in the near future
to enable full application of the PCAF methodology.

196 Annual Report KBC Group 2024
PACTA
For cement and steel manufacturers, we apply the PACTA methodology. This forward-looking, scenario-based methodology,
combines loan book information (in our case the granted exposure) for the sectors in scope with company-specific physical
Asset Level Data (ALD) to calculate portfolio technology profiles and emission intensities. Where client-specific emission intensity
is available, we prefer this data over the ALD PACTA dataset. We have been reporting using the PACTA methodology since 2019.
We consider the PACTA dataset and methodology as a reliable source: the PACTA for Banks Methodology was developed by the
2° Investing Initiative together with 17 pilot banks and several non-governmental organisations (NGOs) and research institutions.
The project is supported by the German Ministry for the Environment, Nature Conservation and Nuclear Safety and the EU Life
programme.
Client data
For aluminium producers, the limited number of counterparties allows us to use client-specific data on GHG emissions intensity.
For clients for which we do not have GHG emissions information, we fall back on the sector asset-based PCAF emission factors.
We then apply the above outlined standard PCAF formula to calculate the financed emissions.
Non-target sectors
For the parts of our loan portfolio that are not covered by GHG emissions reduction targets, we apply a high-level, less detailed
calculation methodology. This calculation method combines aggregated sector exposures with country-specific PCAF
economic activity-based emission factors for that same aggregated sector (i.e. without further detailing the potential emission
factor differences between the underlying subsectors).
Methodological limitations and data choices
The limitations of our calculation methodologies for the GHG emissions intensity metrics, as reported in section 2.2.3.1.2, mostly
relate to data quality and availability issues. This is reflected in the PCAF data quality score, which we publish in addition to our
target metric measurements. Following the PCAF methodology, we update the emission factors and proxies to align with market
evolution. Furthermore, in our endeavour to increase the data quality and granularity of our GHG emissions calculation, we are
working closely with our clients to improve the systematic collection of their reported GHG emissions. This will allow us to improve
our overall PCAF data quality score, as we would be transitioning from sub-sector specific emission factors to asset/
counterparty reported GHG emissions (i.e. PCAF data quality score 1 or 2). Given the breadth of our financing activities, we adopt
a variety of methodologies to track and disclose the climate-related impact on, and of, our portfolios. The choice of the
selected methodologies is driven by a combination of relevance and applicability for our business, as well as by data
availability. If and when applicable where, given this context, we depart from the available market standards or data sources
such as PCAF or PACTA, this is explicitly mentioned. We also apply different attribution approaches, especially for the real estate
sector, due to differences in local data availability. Lastly, for the part of our portfolio not covered by our GHG emissions
reduction targets, we apply PCAF’s lowest data quality score for emission factors (score 5), which could lead to an
overestimation of our financed emissions. The continuous improvement of our data quality scores may affect the outcomes of
the calculations and artificially impact our GHG emissions performance, without being imputable to an improvement of our
portfolio performance. We established a Recalculation Policy for our target metrics and direct footprint, which is further detailed
in section 2.2.2.1 of this report. Improving our access to data also means that we are subsequently confronted with different
sources of reported GHG emissions data. Hence, where data sources show different results for the same asset or counterparty,
we engage with either the data provider, the client or both. This assessment helps us make informed decisions on the most
suitable data source.
The metrics used for measuring and monitoring the carbon footprint of our loan portfolios are described in section 2.2.3.1.2. The
methodology behind these metrics is largely described in the previous paragraphs. The carbon intensity metrics related to our
loan portfolio have not been assured by an external party other than the assurance provider.
Asset management activities
This paragraph explains the methodologies used for measuring and monitoring the GHG emissions for our asset management
activities. We calculate emissions for the DCM, Group Assets of KBC Insurance and KBC Pension Fund assets. This includes
investment assets managed by KBC Asset Management for unit-linked portfolios of clients of KBC Insurance. We refer to section
2.2.3.1.3 for the related carbon intensity metrics used to monitor our progress.

197Annual Report KBC Group 2024
For calculating the GHG emission intensities for our asset management activities, we distinguish between exposures to
corporates and exposures to governments.
The carbon intensity metrics cover Scope 1 and 2 emissions of the corporate investees. Investees’ Scope 3 emissions are
excluded since these emissions are more volatile and less comparable across corporates. All data used for the calculation is
obtained from the data provider Trucost, a subsidiary of S&P. Trucost in turn based approximately 12% of data inputs on exact
values as disclosed by corporate investees (primary data).
For corporates, we calculate a weighted average GHG intensity based on investment exposure.
For sovereigns, we calculate GHG intensity as the sum of territorial and imported emissions, divided by Gross Domestic Product
(GDP) in constant USD (i.e. inflation-adjusted). This provides insight into the GHG emissions of a country relative to its economic
output.
The assessment of our government bond portfolio suggests that the GHG intensity of our aggregated portfolio is higher than
the EMU benchmark (365 tCO
2
e/million USD of GDP at the end of the third quarter of 2024). This outcome was expected due to
high exposure to emerging market sovereigns and to countries with relatively higher GHG-intensity scores, such as Belgium, the
Netherlands, Hungary and the Czech Republic.
Our carbon intensity metrics have not been assured by an external party other than the assurance provider. We note that the
quality of our calculations depends to a great extent on the data quality of the GHG emissions data provided by Trucost. In this
context, we performed checks on both Trucost’s input data and methodology.
Sovereign bond portfolio of KBC Bank
In 2024, we calculated the GHG emission intensity of the own sovereign bond portfolio of KBC Bank for the first time. For the
calculation, we used Trucost data and the same methodology as for the investments in sovereigns within our asset management
activities. The intensity metric covers the entire sovereign bond portfolio of KBC Bank. Apart from the assurance provider, it has
not been assured by an external party.
We note that the GHG intensity of the sovereign bond portfolio is higher than the EMU benchmark. This is driven by large
exposures in our core countries and more specifically in Czech Republic and Belgium, which have relatively higher carbon
intensities.
Own investments of KBC Insurance
The calculation of the GHG emission intensities related to the own investments of KBC Insurance (i.e. excluding our unit-linked
portfolio, which is captured in the emission calculation of the asset management activities) is entirely analogous to the
methodology for our asset management activities as described above. For investments in corporates, we also refer to section
2.2.3.1.4 for more information on the corresponding target. Furthermore, we note that the largest part of the government bond
portfolio of KBC Insurance is invested in Belgian and Czech government bonds, in line with its geographical activity profile. The
GHG-intensity score for both countries is very high. Consequently, the GHG intensity of our government bond portfolio is higher
than the EMU benchmark.

198 Annual Report KBC Group 2024
Insurance-associated emissions (2.2.3.2.3)
In 2023, we calculated the emissions of part of our insurance portfolio for the first time. This section describes the methodology,
assumptions and emission factors used for this calculation.
KBC calculates the GHG emissions linked to our insurance underwriting portfolio in line with the PCAF Standard Part C. Currently,
PCAF offers methodological guidance for measuring GHG emissions in two business segments: personal motor lines and
commercial lines. Consequently, our disclosures are limited to these segments, which – in terms of gross written premium –
represent a major part of our total non-life insurance portfolio. Additionally, we only report on insurance-related emissions from
our largest business unit (Belgium). Belgium represents 16.8% of the group’s insured vehicles and 51.1% of the group’s GWP in
commercial lines.
In our personal motor lines, we include passenger cars, motorcycles, Light Commercial Vehicles (LCVs), and motorhomes. We
followed the scope outlined in PCAF Standard Part C for commercial lines. Commercial lines cover all types of insurance
contracts purchased by companies.
We cover the Scope 1 and 2 GHG emissions of the clients across all sectors. For both personal motor lines and commercial lines,
we rely on standard emission factors. The percentage of emissions calculated using primary data is 30%. Primary data
encompasses the segment of the portfolio for which we have achieved data quality levels 1 or 2, as measured in accordance
with the PCAF standard.
GHG emission metrics for our
insurance underwriting activities
in Belgium Description Unit 2024
Personal motor lines Insurance-associated emissions of our personal motor lines t CO
2
e 99 386
Commercial lines Insurance-associated emissions of our commercial lines t CO
2
e 100 333
The basic formula we use follows the PCAF Standard:
We use the attribution factor provided by PCAF for Belgium, based on publicly available information and open-source research.
Emissions are estimated using data from the Belgium Business Unit on vehicle engine type, WLTP value, and, if available, the
number of kilometres driven during the year. Scope 1 emissions cover direct fuel combustion, while Scope 2 emissions cover
indirect electricity generation for electric vehicles. When internal data is unavailable, we use third-party estimates.
We base ourselves on the insurance-specific PCAF economic emission factor database to identify the allocated emissions of our
insured commercial clients. We used NACE activity codes to determine the emissions of our commercial clients expressed in
tonnes of CO
2
e per million euros of turnover. The absolute insurance-associated emissions have not been assured by an external
party other than the assurance provider.
The main limitations of our calculation methodologies for insurance-associated GHG emissions are related to the quality of the
data we use. As explained above, we rely on third-party proxies or average calculations as a fallback option where no exact
vehicle emission or mileage data is available for personal motor lines. For commercial lines, we currently lack GHG emissions
data on our clients and hence rely on the economic activity-based emission factors provided by PCAF. Furthermore, we use a
weighted average CO
2
e emissions calculation to estimate the emissions related to the part of our portfolio where sector
mapping is missing. We are analysing and considering our options to enhance our data gathering processes and improve the
collection of GHG emissions and revenue data. We will also closely follow and align with the further development of the PCAF
Standard for insurance-associated emissions, especially the inclusion of further lines of business.

199Annual Report KBC Group 2024
GHG intensity (2.2.3.2.4)
We have set a range of targets in terms of carbon intensity for our lending and investing activities. We measure and monitor our
direct and indirect carbon footprint through various GHG intensity metrics. The way our intensity metrics are defined depends on
the context in which they are applied:
• The carbon intensity metric we use for our own carbon footprint is expressed in terms of FTE (see section 2.2.3.2.1);
• Our sector-specific lending targets are expressed relative to sector-specific physical output metrics or relative to the financed
monetary amount (see section 2.2.3.1.2);
• The carbon intensity targets for our investment portfolios are measured relative to the revenue of the underlying corporates
and relative to the GDP of the underlying sovereigns (see section 2.2.3.1.3).
As a financial institution active in banking, insurance and asset management, we believe this is the most effective way to track
our carbon impact. Given the structure and complexity of our organisation, we do not define and disclose a single total GHG
intensity metric.
GHG removals and GHG mitigation projects financed through carbon credits (2.2.3.3)
The portion of our own footprint that cannot yet be eliminated is offset using carbon credits. In practice, we calculate our own
emissions at the end of the year, then negotiate a contract based on the calculated volumes, and cancel these carbon credits
at the beginning of the next year. This means that the amount of carbon credits cancelled in the reporting year is used to offset
our own footprint of the year before. The total amount of carbon credits planned to be cancelled in 2025 is therefore not based
on existing contractual agreements.
Emission reductions or removals (tonnes of CO
2
e)
Amount of GHG emission reductions or removals from climate change mitigation projects outside our
value chain we have financed in the reporting year 2024
56 000
Share from reduction projects (%) 90%
Share from removal projects (%) 10%
Share of removal projects from biogenic sinks (%) 100%
Share of removal projects from technological sinks (%) 0%
Share from Verra Carbon Standard (%) 100%
Share issued from projects in the EU (%) 0%
Share that qualifies as a corresponding adjustment under Article 6 of the Paris Agreement (%) -
Total amount of carbon credits outside value chain that are verified against recognised quality
standards and cancelled in the reporting year 2024
56 000
Amount of carbon credits planned to be cancelled in 2025 54 000
Since 2021, we have aimed to achieve net climate neutrality with respect to our own operations. We took three steps to achieve
this goal: measure, reduce and offset. As described in ‘Own carbon footprint targets (2.2.3.1.1)’, KBC has set targets to reduce the
CO
2
e emissions from its own operations. Avoided emissions are therefore not taken into account as carbon offsets do not
contribute to achieving this target. Each year the emissions from our own operations (i.e. remaining after actions to reduce
emissions) are offset, hence achieving net carbon neutrality. To this end, we have selected high quality projects certified under
internationally recognised standards. Moreover, we specifically chose to invest in projects that address climate change, whilst
simultaneously ensuring additional benefits for local communities and biodiversity conservation. Our due diligence process is
aimed at selecting projects with a demonstrated real-world impact. However, ultimately this process relies on information
supplied by third parties and is dependent on the availability of credits within those projects. The above offsetting is not
validated by an external body other than our assurance provider.

200 Annual Report KBC Group 2024
Internal carbon pricing (ICP) (2.2.3.4)
In 2021 we established a first ICP framework which is built around the four-dimensional framework of the 2017 ‘How-to Guide to
Corporate ICP’ report of CDP/Ecofys. CDP is a credible methodological standard setter in environmental reporting, known for its
collaborations with reputable organisations, alignment with global standards, and commitment to data quality and
transparency. We put in place our first ICP levels in 2021, and our Sustainability and Economic departments review the prices
annually. We chose to identify evolutionary ICP trajectories which since our 2022 review extend up until 2050 for two major
EU-relevant transition pathways, i.e. a well-below 2° (WB2D) and a net zero 2050 (NZ2050) pathway based on NGFS (Network for
Greening the Financial System) climate scenarios. The NGFS carbon price data is averaged over the different models,
interpolated, adjusted to 2020 price levels and converted to euro, resulting in one uniform metric that can be used in internal
management processes. As a result of our 2024 application of this calculation method, our latest internal carbon price stands at
35 EUR/t CO
2
and 99 EUR/t CO
2
under WB2D and NZ2050 pathways, respectively. To reflect the associated transition under each
pathway, we establish price increase assumptions of 77% and 201% by 2030 for the WB2D and NZ2050 internal carbon price
levels, respectively. These price increases mirror those averaged over the different NGFS climate scenario models.
Our internal carbon price is currently used as a shadow price to inform credit decision-making for companies operating in
carbon-intensive industries. As a result, our internal carbon price is currently only applied to our Scope 3 Category 15 emissions.
Overall, this leads to an estimated 0.5% of our financed Scope 1 and 2 emissions potentially being subject to ICP considerations;
none of our Scope 1 and 2 emissions are subject to such pricing considerations. Going forward, as data availability is expected
to increase (due to initiatives such as the CSRD), we plan to increase the scope of application.
The measurement of the carbon prices is not validated by an external body other than the assurance provider of the
Sustainability Statement.
Water and marine resources (2.3)
Water and marine resources: Impact, risk and opportunity management (2.3.1)
Policies related to water and marine resources (2.3.1.1)
Sustainability Policy Framework
As explained in section 2.2.2.1 on climate-related policies, our Group Sustainability Policy Framework contains different policies
which are indirectly related to water, such as the Biodiversity Policy, Mining Policy and Energy policy.
Biodiversity Policy
This policy (further explained in section 2.4.2.1) contains water-related elements, such as the restriction that KBC does not
finance, insure or provide advisory services to fishing practices that irreversibly damage aquatic habitats and ecosystems, shark
finning or commercial whaling. Moreover, KBC encourages its clients to subscribe to and implement voluntary standards such as
the Marine Stewardship Council and the Aquaculture Stewardship Council.
Mining Policy
While the mining industry provides essential resources to most sectors of the economy, at the same time mining activities can
have a negative impact on the environment and on society in terms of water use and water quality, community relations, health
and safety, land use, ecosystems, waste and bribery and corruption. This policy therefore aims to limit these negative effects as
much as possible, while preserving the benefits of the mining industry to the economy in general. Under this policy, the provision
of financing, insurance or advisory services related to mining activities is subject to strict conditions, such as compliance with a
set of external standards (e.g., the Extractive Industry Transparency Initiative).
This policy has a worldwide scope and applies to all financing, insurance and advisory services related to companies involved in
mining activities. Monitoring of compliance with this policy follows the same process as described in section 2.2.2.1 on climate-
related policies.

201Annual Report KBC Group 2024
Other
KBC has sites located in areas of high-water stress (for instance, the World Resources Institute considers a large part of Flanders
as an area of extremely high-water stress). Therefore, we use potable water efficiently and monitor its use carefully. This happens
on a continuous basis and on top of various initiatives taken by the government related to both the supply and demand side in
cases of water stress. We do not have a specific policy regarding water supply as we have efforts in place related to our water
use. Moreover, this is also supported by the outcome of our materiality assessment, where own water use did not emerge as a
material matter for KBC.
Actions and resources related to water and marine resources (2.3.1.2)
Managing water-related risks
For more information on how water-related risk is embedded in our Risk Management Framework, we refer to section 2.2.2.2,
which – besides climate-related actions – also sets out more general actions.
More specifically, we assess water-related risk explicitly in the ERIM, it is included in the sectoral Environmental & Social Heatmap
(used in loan origination and for monitoring purposes) and in the scope of the NAPP standard (see section 2.2.2.2).
We are taking a step-by-step approach where follow-up actions are defined based on the insights gained from our previous
actions/analyses. Our approach advances in sync with improvements in the availability and quality of data and methodologies.
White Papers
In 2023 we extended the scope of our White Papers. As a result, in addition to the initial focus on climate change they include
other environmental objectives such as water for sectors where water is a material topic. So far, we have included water in White
Papers on agriculture and food and beverages. For 2025, we plan to dedicate a thematic White Paper to water. Our aim with
these White Papers is to increase our understanding of water-related impacts, risks and opportunities and, where possible,
formulate actions to reduce the negative impact and increase the positive impact of our lending (and, where relevant, insurance)
activities on water consumption, withdrawals and discharges. For more information on the White Papers, we refer to section
2.2.2.2.
Water and marine resources: metrics and targets (2.3.2)
Targets related to water and marine resources (2.3.2.1)
At this point in time, we do not have water and marine resources-related targets in place nor have we defined any ambition level
indicators to evaluate progress. However, we do track the effectiveness of our policies and actions via a strict due diligence
process to monitor compliance of our lending, insurance and advisory service operations with our sustainability framework. For
this, we also use third-party ESG analysts’ data on the sustainability of companies, including controversies in which they could
be involved. Our due diligence process includes the possibility of requesting advice on sustainability-related matters, including
water-related topics, for individual cases from sustainability experts. Reputational risk aspects are also taken into account
within the scope of this advice. For certain policy domains, this advice is obligatory prior to any business transaction. In other
cases, it can be requested in case of doubt. We monitor the number of requests for this expert advice and disclose them in our
yearly Sustainability Report.
When deemed feasible and appropriate, our White Papers propose follow-up actions related to the topics analysed. The topics
to be addressed in White Paper analyses are presented for approval to the ISB.

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Biodiversity and ecosystems (2.4)
Biodiversity and ecosystems strategy (2.4.1)
Transition plan and consideration of biodiversity and ecosystems in strategy and business model
(2.4.1.1)
We acknowledge that our impacts and dependencies on biodiversity and ecosystems can influence our strategy and business
model, and can thus result in risks and opportunities.
We analyse the risks stemming from biodiversity loss and ecosystem damage via our ERIM, through which the materiality of
several environmental risks is assessed. Consequently,
• we assess risks for KBC, but separate maps are also constructed for the banking, insurance and asset management activities.
Further breakdowns are made for our core countries;
• we structurally assess the risks stemming from biodiversity loss and ecosystem damage for the short term (0-3 years), the
medium term (3-10 years) and the long term (beyond 10 years);
• experts estimated risk impacts separately for all traditional risk types, taking into account the full value chain.
The assessment considers both transition and physical risks that could potentially stem from biodiversity loss and ecosystem
damage. To identify and assess dependencies on biodiversity and ecosystems for our own operations and in our value chain, we
focused on the physical risk assessment, whereas transition risks were considered to identify and assess impacts on biodiversity
and ecosystems. Within these exercises, we also consider potential future macroeconomic evolutions and systemic risks related
to biodiversity loss and underpin the conclusions by internal exercises such as the ENCORE analysis and other internal exercises
(see section 2.4.2.2).
The outcome shows that potential risks might predominantly materialise through our downstream activities (lending, insuring,
investing), in particular in case of macroeconomic impacts and related systemic risks. These feed into our main risk management
processes, such as Risk Appetite and ICAAP/ILAAP/ORSA, presented to the ExCo, RCC and Board on regular basis.
Biodiversity and ecosystems: Impact, risk and opportunity management (2.4.2)
Policies related to biodiversity and ecosystems (2.4.2.1)
We have policies in place to manage our material impacts and risks related to biodiversity and ecosystems. All policies aim to
focus on actions to mitigate nature and biodiversity loss.
Our Sustainability Policy Framework contains different policies (see section 2.2.2.1), some of which are directly and indirectly
related to biodiversity, such as the Biodiversity Policy, the Mining Policy and the Exclusion Policy for Responsible Investing funds.
It also includes requirements for clients in scope regarding sustainable land, sustainable agriculture practices and sustainable
oceans, and also contains policies to address deforestation.
As biodiversity opportunities are not material for KBC (following the results of our materiality assessment), they are not covered in
this document.

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Biodiversity Policy
This policy includes requirements for:
• producers and traders of forest commodities;
• activities in or near protected areas;
• activities involving endangered or invasive species;
• cattle farming and fisheries.
Biodiversity Policy
Climate change Not directly addressed, however addressed indirectly through requirements for
producers and traders of forest commodities
Land-use change; freshwater-use change,
sea-use change
1) KBC does not finance, insure or provide advisory services in relation to activities
located in or significantly impacting certain protected areas.
2) Secondly, as the production of forest commodities such as palm oil and soy often
involves deforestation, KBC has several requirements for producers and traders of
forest commodities, as well as for cattle farming.
3) KBC refrains from financing, insuring or providing advisory services relating to the
exploration and development of unconventional oil and gas (including Arctic and
Antarctic on- and offshore oil and gas deep-water drilling, tar sands, shale oil and
gas, coalbed methane) and the exploration of any other new oil or gas fields.
Direct exploitations KBC has several restrictions for the forestry and fisheries sector
Invasive alien species KBC does not provide services to activities involving trade in invasive alien species
Pollution Not directly addressed, however activities that significantly impact protected areas
(including through pollution) are excluded
Other KBC will not finance, insure or provide advisory services to a number of animal-related
activities such as trade in endangered species and activities where animal welfare is
compromised
Relation to material impacts The policy covers impacts in the value chain, which our double materiality assessment
considered material with respect to biodiversity
Relation to material physical and transition risks The policy defines our risk playing field and is translated into underlying risk standards
such as the Credit Risk Standards for Responsible and Sustainable Lending and the
Investment Policy
Supports traceability of products, components
and raw materials with material actual
or potential impacts on biodiversity and
ecosystems along the value chain
The Biodiversity Policy supports this traceability through its requirements for the
production and trade of forest commodities. The producers and traders in scope
must commit to have their plantation and/or supply chain fully certified under an
internationally recognised certification scheme. These certification schemes often
include specific measures on traceability of these commodities
Addresses production, sourcing or consumption
from ecosystems that are managed to
maintain or enhance conditions for biodiversity,
as demonstrated by regular monitoring and
reporting of biodiversity status and gains or
losses
The described policy addresses this in the sense that production of forest commodities
is covered, as well as activities in protected areas
Social consequences addressed Considering the production and trade of forest commodities, KBC requires clients in
scope to be certified under an internationally recognised certification scheme. Apart
from sustainable production from an environmental perspective, these certificates can
also include social safeguards
Mining Policy
Our Mining Policy (see 2.3.1.1) has restrictions regarding mining activities in order to mitigate the associated environmental risks
such as greenhouse gas emissions, land-use change and water and air pollution. This policy directly addresses the human rights
impacts of mining activities as well as the social consequences of the impacts of mining on the environment. It defines our risk
playing field and is translated into underlying risk standards such as the Credit Risk Standards for Responsible and Sustainable
Lending and the Investment Policy.

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Exclusion Policy for Responsible Investing funds
In this Asset Management Policy, biodiversity is addressed in the following way:
Exclusion Policy for Responsible Investing funds
Climate change The exclusion Policy for RI funds includes restrictions for issuers involved in
non-sustainable energy solutions, such as thermal coal, oil and gas
Land-use change; freshwater-use change,
sea-use change
All companies with a high or severe controversy score related to Land Use and
Biodiversity, for subindustries in which the topic is considered a high or severe risk as
well as companies with a severe controversy score related to Land Use and Biodiversity
for all other subindustries (e.g., sustainable land, sustainable agriculture, sustainable
oceans and deforestation ) are excluded. In addition, all companies with a severe
controversy score related to Land Use and Biodiversity in their supply chain are
excluded. In addition, all companies with activities that have a negative impact on
biodiversity and do not take sufficient measures to reduce their impact are excluded.
This would concern the following:
• All companies operating in Fishing that are not members of the Aquaculture
Stewardship Council or the Marine Stewardship Council;
• All companies operating in Palm Oil Farming that are not members of the
Roundtable on Sustainable Palm Oil;
• All companies operating in Soybean Farming that are not members of the
Roundtable on Responsible Soy;
• All companies operating in Beef Cattle Ranching Farming that do not pass a
stringent ad hoc process conducted by the Responsible Investing Team;
• All companies operating in Cocoa Farming that are not certified by the Rainforest
Alliance;
• All companies operating in Sugarcane Farming that are not members of the
Bonsucro.
Direct exploitations We refer to the restrictions for fishing as well as controversy screening on land use and
biodiversity
Invasive alien species Not addressed in this policy
Pollution Not addressed in this policy
Other Animal welfare: all companies that derive at least 5% of their revenue from the
production or 10% of their revenue from the sale of fur or special leather are excluded
Relation to material impacts The Exclusion Policy for Responsible Investing funds covers the exclusion of financing of
activities which are considered to have a negative impact on biodiversity
Relation to material physical and transition risks Given that the Exclusion Policy is applicable to all Responsible Investing funds, the
physical and transition risks stemming from biodiversity loss and ecosystem damage
are considered in all RI funds
Supports traceability of products, components
and raw materials with material actual
or potential impacts on biodiversity and
ecosystems along the value chain
As the different certifications in scope of the Exclusion Policy for biodiversity include
very specific requirements with regard to the value chains, the traceability of products,
components and raw materials is implicitly covered
Addresses production, sourcing or consumption
from ecosystems that are managed to
maintain or enhance conditions for biodiversity,
as demonstrated by regular monitoring and
reporting of biodiversity status and gains or
losses
This is addressed indirectly through controversy screening and the requirement for
producers of certain commodities to be a member of certification bodies
Social consequences addressed Companies involved in activities with a negative impact on biodiversity need to
be certified under an internationally recognised certification scheme in order to be
allowed in the Responsible Investing funds. These certificates can also include social
safeguards

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Actions and resources related to biodiversity and ecosystems (2.4.2.2)
Managing biodiversity risks
For an overview of the continuous efforts that we make to integrate biodiversity risks into our Risk Management Framework and
processes, we refer to section 2.2.2.2. We are taking a step-by-step approach in which we define follow-up actions based on the
insights gained from our previous actions/analyses. Our approach advances in sync with improvements in the availability and
quality of data and methodologies.
Specifically with respect to biodiversity risks we define the following actions:
• KBC assessed biodiversity transition and physical risks in the ERIM and included these in the sectoral Environmental & Social
Heatmap (used in loan origination and for monitoring purposes);
• We dedicated a White Paper to risks and opportunities related to biodiversity loss (in particular: deforestation);
• A high-level assessment of biodiversity impact and dependencies in our loan portfolio has been executed (see section 1.3.3.1);
• Within our internal stress testing, some biodiversity-related stresses were integrated, e.g., assessing the impact of increased
insurance risk (Risk Life portfolio) in case of a spread of infectious diseases;
• Biodiversity risks are in scope of the NAPP standard (see section 2.2.2.2).
White Papers
We extended the scope of our White Papers from the initial focus on climate change to include other environmental objectives
such as biodiversity. We initially included biodiversity-related topics for agriculture, food and beverages and construction. In 2024
we dedicated a White Paper entirely to deforestation where we assessed the deforestation-related risks and opportunities in
KBC’s lending activities.
Additional biodiversity screening in the Exclusion Policy for Responsible Investing funds
As part of the Exclusion Policy for Responsible Investing funds, we added additional screening concerning fishing, palm oil and
soybean farming, beef cattle ranching and cocoa and sugarcane farming. The scope is limited to farming and does not contain
other value chain processing. We exclude companies involved in these activities not complying with best practices on biodiversity.
Other
We did not use biodiversity offsets in our action plans, nor did we incorporate local and indigenous knowledge and nature-based
solutions into biodiversity and ecosystems-related actions.
Biodiversity and ecosystems: metrics and targets (2.4.3)
Targets related to biodiversity and ecosystems (2.4.3.1)
We do not have biodiversity-related targets in place, nor have we defined a level of ambition or qualitative or quantitative
indicators to evaluate progress. However, we do track the effectiveness of our policies and actions via a strict due diligence
process. This is the same process as the one described in section 2.3.2.1 on targets related to water and marine resources.

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Social information
Own workforce (3.1)
Own workforce: impact, risk and opportunity management (3.1.1)
Policies related to own workforce (3.1.1.1)
We have the following policies in place to manage our material impacts on our own workforce. These also mitigate risks
(including non-financial risks) such as operational risk, litigation and reputational risks. The policies are published on
www.kbc.com.
Code of Conduct for employees
The Code of Conduct gives guidance regarding key behaviour we expect from all employees within KBC. It refers to the KBC
PEARL+ values and to a strong corporate culture that encourages responsible behaviour to build trust and strike a long-term,
sustainable balance between the interests of all our stakeholders: our clients, our employees, our shareholders and society as a
whole. We refer to the ‘Our business model’ section (which is not subject to external assurance) for more details. We also foster
and promote an entrepreneurial mindset, lifelong learning, diversity, equal treatment and respect. We expect compliance with
the rules and regulations that govern our activities.
General Environment
Social
Governance

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As regards our own workforce, the following topics are included:
• Respect, diversity and equal treatment;
• Duty of discretion regarding clients and employee personal data;
• Whistleblowing;
• Compliance with rules and regulations;
• Speak-up culture.
Regular training and awareness sessions are organised by the Compliance department.
Code of Conduct for employees
Scope Applicable to all employees of KBC Group and its subsidiaries.
Most senior level accountable The Board ensures that we have processes in place for monitoring our compliance with laws
and other regulations, as well as for the application of related internal guidelines. In this
respect, the Board approves the Code of Conduct.
Top management of the business units is responsible for ensuring that activities are
conducted in line with the Code of Conduct.
Reference to third-party agreements This policy among other things contributes to our commitment to observe the UN Global
Compact Principles and to the OECD Guidelines for Multinational Enterprises on responsible
business conduct.
Consideration key stakeholders Core considerations:
• Striking a long-term, sustainable balance between the interests of all our stakeholders
(clients, employees, shareholders and society as a whole);
• Gaining and retaining the trust of those stakeholders;
• Acting in the interest of the client to mitigate the risk that KBC’s culture, organisation,
behaviour and actions would result in poor outcomes and would be detrimental to
clients.
The Code (and every change) is shared and discussed upfront with social partners/trade
unions.
Disclosure Published externally on www.kbc.com. Available internally for all employees.
There is mandatory training for all employees, who are required to underwrite the Code.
Whistleblower Protection Policy and Procedure
This policy outlines the general principles and procedures for reporting concerns related to immoral, unethical or illegal activities
within our organisation. Our goal is to ensure that all employees and other stakeholders are and feel protected when raising
concerns. By fostering an environment where whistleblowing is encouraged and safeguarded, we aim to uphold our core values
and promote a culture of responsible behaviour throughout KBC.
While the scope primarily pertains to employees and other persons linked to a work-related context, it is extended to everyone
(e.g., also consumers – see below) in case of a breach in the area of financial services, products and markets, prevention of
money laundering and terrorist financing.
As a minimum, reporting concerns breaches in the ten areas of Union law enumerated in the EU directive 2019/1937 (on the
protection of persons who report breaches of Union law and in the areas added by local legislation). Reporting of immoral or
unethical conduct, or conduct that compromises the credibility and reputation of KBC group (including all subsidiaries) in
general, is also in scope.
We provide various channels for reporting. The identity of any person who reports in good faith will remain strictly confidential
and the person is protected against any form of retaliation or negative impact. The person that is the subject of the report is
entitled to receive information about the reported breaches and to communicate their own position and exercise their right of
defence. An independent unit investigates all cases. The Compliance department is the central point of contact and reports the
outcome of investigations to the ExCo, and the general status of implementation to the RCC.
The Compliance department organises regular training and awareness sessions for our employees.

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Whistleblower Protection Policy
Most senior level accountable This policy is approved by the ExCo. Top management is responsible for implementation in
every entity.
Consideration key stakeholders The interest of stakeholders is considered while drafting the policy, e.g., protection measures
and facilitation of reporting through a broad range of channels. We consult with social
partners/trade unions.
Disclosure Published externally on www.kbc.com. Available internally for all employees. Recurrent
awareness campaigns and training for all staff.
Remuneration Policy for the Board and the ExCo
The purpose of this policy is to create a remuneration framework (for members of the Board and ExCo of KBC Group NV, KBC
Bank NV and KBC Insurance NV) that not only complies with prevailing European and national legislation and regulations, but is
also in line with, and contributes to, the business strategy (including the sustainability strategy). It aims to ensure consistency with
sound and effective risk management in line with the Risk Appetite Statement, as approved by the Board, to prevent excessive
risk-taking and to be aligned with the long-term interests of KBC.
The policy stipulates that remuneration schemes (including the conditions for awarding and paying remuneration) are gender-
neutral in order to guarantee equal pay for equal work of equal value.
The base remuneration of Board members is set at a level that reflects the qualifications and efforts required in view of KBC’s
complexity, the extent of their responsibilities and the number of Board meetings. The Chairman of the Board is entitled to an
additional base remuneration.
The remuneration of the members of the ExCo of KBC Group is set at a level that is consistent with
their decision-making powers, tasks, expertise and responsibilities. It reflects their contribution to the management and growth
of KBC and it ensures KBC’s continued ability to attract and retain the best qualified individuals as members of the ExCo. To
emphasise the fact that the ExCo acts as a committee which bears collective responsibility, the remuneration for all the
members, apart from the president, is largely identical (except for a small difference in how the CRO’s variable remuneration is
calculated, as required by regulation). Detailed information on the renumeration of the Board and ExCo is provided in the
Corporate Governance Statement.
Remuneration Policy for the Board and the ExCo
Most senior level accountable The General Meeting of Shareholders approves the Remuneration Policy (as legally
required). The Board (and the RC) is accountable for the implementation of the policy.
Reference to third-party agreements The policy is implemented with respect for the applicable legislation and regulation, the
Corporate Governance Code (on a comply or explain basis) and the possible remarks of the
supervisor.
Remuneration Policy
The remuneration for all our staff takes into account market practices, competitiveness, risks, long-term objectives of the
company and its stakeholders and continuously changing regulations.
The Remuneration Policy outlines the guidelines and procedures for remuneration within KBC, focusing on sustainability, risk
management, and alignment with long-term interests:
• Policy purpose and scope: the policy aims to create a sound remuneration framework aligned with KBC’s sustainability
strategy and European and national legislations, covering all staff except non-executive members of the Supervisory Board
and Members of the Executive Committee.
• General remuneration guidelines: the guidelines require all remuneration schemes to comply with the Remuneration Policy, be
aligned with local practices and legislation, and be compatible with stakeholders’ interests and the Corporate Sustainability
strategy. The remuneration schemes are gender-neutral in order to guarantee equal pay for workers of all genders for equal
work of equal value.
• Performance measurement: performance is measured based on a performance and appraisal process, which includes setting
objectives, continuous feedback, self-evaluation, third-party feedback, and a calibration mechanism for relative
performance measurement.

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• Global remuneration structure: remuneration schemes consist of fixed and variable components, based on competences, job
weightings, skills, contribution, and performance, with maximum ratios between fixed and variable remuneration set for
different salary levels.
• Specific guidelines for Key Identified Staff (KIS): Key Identified Staff are those who could have a material impact on the
company’s risk profile, with specific requirements for non-cash instruments, deferral, and performance-based remuneration to
promote sound risk behaviour.
Remuneration Policy
Most senior level accountable Board
Reference to third-party agreements Reporting on remuneration details is aligned with reporting required by local supervisors
and the European Banking Authority.
Consideration key stakeholders The policy complies with all legislation and regulatory requirements.
Disclosure The General Remuneration Principles which summarise the basic principles of the
Remuneration Policy are included in the annual ‘KBC Group Compensation Report’ which is
published on www.kbc.com.
Diversity and Inclusion Policy
This policy aims at the elimination of discrimination (including harassment) and promoting equal opportunities. The policy
prohibits all discrimination and unequal treatment, regardless of whether it is directly or indirectly based on race, ethnicity,
gender, nationality, marital status, sexual orientation, age, family status, education, disability or religion.
A zero tolerance is applied in case of flagrant disrespectful behaviour towards a colleague such as insults, undermining the
integrity or dignity, bullying, harassing or discriminating colleagues. We also refer to the Code of Conduct for employees above.
In case of suspicion about actual or potential wrongdoing, every employee is encouraged to report this, which will lead to an
independent, confidential and impartial investigation. We strive with this policy to create a corporate culture where an open
mindset prevails and where respect and responsible behaviour are key values. A general commitment is requested from all
managers throughout KBC on the following principles: respect as a basis and equal opportunities for all employees.
We report yearly on the evolution of diversity and inclusion to the ExCo and the Board.
Diversity and Inclusion Policy
Scope The policy is applicable to both management and employees.
All types of diversity are part of the policy but there is a specific focus on gender diversity
and disability inclusion.
Most senior level accountable The ExCo is accountable. We apply a top-down approach:
- Every manager is requested to commit to the diversity and inclusion principles/values
- Every employee must act in a responsible and respectful manner
The diversity and inclusion agenda is part of the Corporate Culture Unit at Corporate HR.
This function supports the ExCo on policy matters related to diversity, consolidates the
reporting and promotes awareness throughout the organisation. Each core country has a
similar local function, embedded in the local HR department.
Consideration key stakeholders The interests of all employees and the Board are considered via consultation of:
- the ERG (Employee Resource Group) ‘Diversity Rocks’ (see 3.1.1.2);
- trade unions;
- the HR function;
- advisory group of employees with a physical disability.
Disclosure Published externally on www.kbc.com. Available internally for all employees.

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Policy on Human Rights
We commit to meeting our responsibility to respect human rights towards all stakeholders, among which the own workforce. By
acting responsibly, our employees contribute to minimising negative human rights impacts/risks.
We comply with the core conventions and labour standards set by the International Labour Organisation, the UN Guiding
Principles on Business and Human Rights, and the UN Global Compact Principles. We are aligned with the OECD Guidelines for
Multinational Enterprises which set the standard for responsible business conduct and respect for human rights within our
operations. The relevant legal requirements as set out in the labour codes go beyond these conventions and standards.
Our Human Rights Policy refers to other policies such as the ‘Code of Conduct for Employees’ and the ‘Whistleblower Protection
Policy’ (see above). The latter was brought in line with the European legislation (i.e. EU Directive 2019/1937 on the protection of
persons who report breaches of Union Law).
Several channels are in place to address human rights impacts, including the Workers’ Council, a prevention advisory council or
equivalent per country, HR mediators or equivalent per country, and a whistleblower reporting tool. We refer to section 3.1.1.3 for
more details.
Policy on Human Rights
Scope All core stakeholders, being clients, suppliers and own employees of the group, through
specific policies and human rights due diligence processes.
Most senior level accountable The ExCo has the highest level of direct responsibility for sustainability, including human
rights.
Reference to third-party agreements UN Guiding Principles on Business and Human Rights
OECD Guidelines for Multinational Enterprises
The principles concerning fundamental rights in the eight International Labour Organisation
core conventions as set out in the Declaration on Fundamental Principles and Rights at
Work
UK Modern Slavery Act
UN Universal Declaration of Human Rights
UN Global Compact Principles
Our policies relating to our own workforce do not explicitly address trafficking in human beings, forced labour, compulsory labour
and child labour as these are prohibited by law
. We have a workplace accident prevention policy in place in all our core
countries.
Processes for engaging with own workers and workers’ representatives about impacts (3.1.1.2)
The perspectives and views of the own workforce inform our decisions and activities through considering the actual and
potential impacts on the own workforce. We engage with our employees by conducting employee engagement surveys every
six months, via regular social dialogue with our employees and through formal employee representation groups on issues
regarding reward, employment conditions, reorganisations and well-being (in accordance with local practices and laws of each
country we are operating in).
The CEO and HR managers have the operational responsibility to ensure that this engagement survey happens, and that the
results of the employee engagement are taken into account in defining the company’s organisation.
The effectiveness of the engagement survey is monitored based on the level of the response rate and satisfaction rate.
We have Employee Resource Groups (ERGs) such as Diversity Rocks where the focus lies on diversity and inclusion. It brings
together a diverse range of employees working on issues related to age, disabilities and nationality. Other ERGs exist like
Proud@CSOB and Proud@KBC which are LGBTQIA+ ERGs.

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Processes to remediate negative impacts and channels for own workers to raise concerns (3.1.1.3)
As a general approach, we put in place several preventive measures to avoid negative impacts on our own workforce:
• Top management is primarily responsible for creating the right environment, nurturing the right behaviour in the organisation
and actively shaping the collective attitudes in the group;
• At the same time, all employees are accountable for behaving responsibly in all circumstances and along the lines of KBC
values. Several policies, guidelines and actions are put in place to support this approach:
- Code of Conduct for employees and the responsible behaviour compass, including awareness sessions and mandatory
trainings;
- Promotion of a ‘speak-up’ culture;
- Diversity and Inclusion Policy containing the prohibition of discrimination and a zero tolerance on flagrant disrespectful
behaviour towards colleagues.
We have a whistleblower process (see 3.1.1.1) in place that allows employees to report immoral, unethical or disrespectful
behaviour. Every submission will lead to an independent, confidential and impartial investigation. Reporting is done via:
• a dedicated reporting tool which is made available on intranet;
• the KBC website;
• a dedicated mailbox;
• face-to-face contact with the local compliance function.
Employees also have the possibility to report negative impacts directly to their supervisor, to the General Manager of the HR
department, to the employee representatives, the Workers’ Council, the prevention counsellor and the HR mediator or equivalent
per country. We guarantee confidentiality related to the identity of the employee and protection against retaliation. For more
information on the whistleblower process, we refer to section 3.2.1.1.
Taking action on material impacts and approaches to mitigating risks related to own workforce (3.1.1.4)
Based on our principle of local embeddedness, every business or country can decide to define specific initiatives in line with the
context they are operating in. As a consequence, we have not defined groupwide key actions related to own workforce.
Some examples of local initiatives:
• In Hungary, an initiative started in 2024 to revise the well-being approach by creating focus groups in some pilot businesses,
inviting them to generate ideas on the subject. The focus was on learning about physical and mental health as well as on
community building. In 2025 the approach derived will be rolled out to the whole company.
• In Belgium we launched a so-called Team Blue Challenge in September 2024 with a first part inviting colleagues to support
non-profit organisations through volunteering. The second part, planned for 2025, will concentrate on encouraging employees
to take first aid courses and donate blood and plasma. In this way, we also increase workplace safety.
• In the Czech Republic there is an academy for parents that provides support in the form of six workshops for colleagues
planning to return to work after parental leave. An academy for fathers was created in 2024, offering workshops on flexibility,
communication, vision and innovation.
• In Bulgaria in 2024 a first issue of a publication called ‘Healthy! Compass for a Better Life’ was released, providing up-to-date
information on the opportunities available to employees to maintain their health and spirit.
None of these local initiatives qualify as key actions sufficiently material from KBC’s perspective to be included in this statement.

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The management of social risks (linked to our own workforce) is in scope of our Risk Management Framework (see section 2.2.2.2).
Within our Risk Appetite, a specific objective is dedicated to attracting, developing and retaining high-quality and committed
staff. KBC, as a European financial institution, is strictly regulated and complies with regulatory requirements in the context of
e.g., discrimination, working conditions and data protection (EU General Data Protection Regulation, GDPR) for its own
workforce. When needed, a data protection impact assessment is performed. Employees are informed about the processing of
their personal data via a dedicated HR Privacy Statement. A dedicated channel is put in place for our employees to exercise
their data subject rights.
Employee data is protected from cyberattacks, given our explicit actions in that area (see section 3.2.1.4). In the exceptional
event of a workforce strike or unavailability of workforce, business continuity plans are in place.
Own workforce: metrics and targets (3.1.2)
Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities (3.1.2.1)
Based on our principle of local embeddedness, we have not defined group-wide key targets. None of the local ambitions qualify
as targets sufficiently material from KBC’s perspective to be included in this statement.
However, we do track the effectiveness of our policies, for example:
• With regard to gender diversity, the long-term ambition is to work towards a gender distribution at all leadership levels which
is in line with the general workforce proportion. Our core countries and business units define the approach they deem
necessary, adapted to the local culture and situation. As an absolute minimum, all legal obligations on the matter need to be
implemented in every country. We monitor the evolution of the defined ambition levels on a yearly basis. The results of this
monitoring exercise is reported to the ExCo.
• Several metrics (as mentioned below) are also monitored from a risk perspective (e.g., from a reputational risk angle).
Characteristics of our employees (3.1.2.2)
To ensure consistency in the reported data throughout the group, we have determined a common definition that is approved
and applied by all countries.
Employee numbers in this statement are in headcount, unless otherwise mentioned, and they are calculated at year-end. By
‘headcount’ we understand all people having an active labour contract with KBC, and receiving a regular salary.
By ‘FTE’ we mean all full-time equivalent employees, being calculated as ‘total hours worked (excluding overtime) divided by the
average hours worked in a full-time job’. Only people included in the headcount figure, have a corresponding FTE figure
calculated.
The figures below deviate from the figures in Note 3.8 of the Consolidated Financial Statements because the calculation method
is not the same (in Note 3.8, figures are based on averages at month-end during the calendar year).
Employee headcount by gender 31-12-2024
Male 17 241
Female 22 688
Other* 0
Not reported -
Total 39 929
* KBC does not register data related to another, often more neutral gender as specified by the employees themselves

213Annual Report KBC Group 2024
Employee headcount by country – countries with at least 50 employees representing at least 10% of total
number of employees 31-12-2024
Belgium 14 553
Czech Republic 11 432
Bulgaria 6 338
Employees by contract type and gender (FTE), 31-12-2024
Female Male Other Not disclosed Total
Number of employees 20 979 16 609 0 - 37 588
Number of permanent employees 19 869 15 896 0 - 35 765
Number of temporary employees 1 017 665 0 - 1 683
Number of non-guaranteed hours employees 93 48 0 - 140
Number of full-time employees 17 321 15 443 0 - 32 764
Number of part-time employees 3 657 1 166 0 - 4 824
Employees by contract type and geography (FTE), 31-12-2024
Belgium
Czech
Republic Slovakia Hungary Bulgaria
Rest of the
world Total
Number of employees 13 503 10 532 2 991 3 846 6 310 406 37 588
Number of full-time employees 10 047 9 842 2 910 3 701 5 882 382 32 764
Number of part-time employees 3 456 690 81 145 428 24 4 824
Employee turnover
1
(headcount) and turnover rate
2
, 2024
Turnover in headcount
5 394
Turnover rate 13.5%
1 Turnover: during the reporting period a number of employees left KBC, voluntarily or due to dismissal, retirement, or death in service
2 For the calculation of the turnover rate, we divided the total number of employee turnovers by the total number of employees at the end of the year
Collective bargaining coverage and social dialogue (3.1.2.3)
In total, 87% of KBC’s employees are covered by collective bargaining agreements, and 88% are covered by workers’
representatives participating in the social dialogue.
The table below shows, for each country in the European Economic Area (EEA) in which we have significant employment (this
means: at least 50 employees by headcount representing at least 10% of our total employees), the rate of employees covered by
a collective bargaining agreement and by social dialogue.
Collective bargaining coverage and social dialogue,
coverage rate, 2024
Collective bargaining coverage
for employees – EEA
Social dialogue;
workplace representation – EEA
0-19%
20-39%
40-59%
60-79% Bulgaria Bulgaria
80-100% Belgium
Czech Republic
Belgium
Czech Republic
We have an agreement with our employees for representation by a European Workers’ Council, signed on 15 November 2012.

214 Annual Report KBC Group 2024
Diversity metrics (3.1.2.4)
Employees at top management level* (headcount) broken down by gender, 31-12-2024
Female Male Other Not disclosed Total
Number of employees at top management level 70 197 0 - 267
% of employees at top management level 26.2% 73.8% 0.0% - 100.0%
* Top management level at KBC is defined as ‘Top 300’, a specific list of Senior Management Positions within the competence of Corporate HR as approved by the ExCo, and not
including ExCo members.
Distribution of total employees by age group (headcount), 31-12-2024
% of employees under 30 years old 13.5%
% of employees between 30 and 50 years old 56.2%
% of employees over 50 years old 30.3%
Adequate wages (3.1.2.5)
We pay all our employees an adequate wage, at least in line with the minimum wages defined by the local legislation.
Health and safety metrics (3.1.2.6)
Health and safety metrics, 2024
% of employees covered by a health and safety management system 100.0%
Number of fatalities as a result of work-related injuries and work-related ill health, number of employees 0
Number of fatalities as a result of work-related injuries and work-related ill health, number of other workers working
on our sites
0
Number of work-related accidents 79
% of work-related accidents 1.2%
Compensation metrics (3.1.2.7)
Compensation metrics, 31-12-2024
Gender pay gap 31.2%
Adjusted gender pay gap 3.2%
Annual total renumeration ratio 93
Gender pay gap – contextual information
The gender pay gap represents the raw difference in average pay between male and female employees. This basic calculation
highlights to some extent the gender pay gap, but it does not account for factors like salary differences across countries,
different salary packages, local economic context, job roles or experience.
As KBC operates in different core countries with different salaries (in absolute figures) and different composition of workforce in
terms of gender, the calculation of a gender pay gap at group level does not consider the influence of these differences.
Also, other gender-neutral and objective factors should be considered to get a better view on the pay gap. Therefore, we
calculate an adjusted pay gap, following a weighted average methodology. All employees are divided in subgroups according
to these 3 parameters: country, Hay level and managerial responsibility. According to our analysis, these are the factors which
explain for the largest part the pay gap. We believe that this provides a more insightful view on gender pay gap.
The adjusted gender pay gap according to the above-mentioned method is 3.2%.
Further data analysis will be done per country and subgroup to detect other objective gender-neutral factors which can explain
the remaining pay gap. Where necessary, actions will be taken to reduce it further.

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Annual total remuneration ratio – contextual information
For the Annual Total Remuneration ratio, the specific structure of KBC should be taken into account. Our core countries have
large differences in local remuneration in absolute figures. Every country has its own CEO. The annual total remuneration ratio is
therefore more meaningful and comparable if we consider such ratio at country level, by comparing the local highest paid
individual with the local median remuneration.
Incidents, complaints and severe human rights impacts (3.1.2.8)
Numbers of incidents of discrimination including harassment, 2024
Total number of incidents of discrimination, including harassment
Of which justified incidents/complaints of discrimination, including harassment
17
4
Number of complaints filed through channels for people in own workforce to raise concerns (other work related
complaints)
9
Number of complaints filed through the National Contact Points for OECD 0
Regarding discrimination, it concerns cases on the grounds of gender, racial or ethnic origin, nationality, religion or belief,
disability, age, sexual orientation, or any other form of discrimination – including harassment. We did not pay any fines or
penalties nor did we receive any requests for compensation for damages as a result of the incidents and complaints disclosed in
the table above. As a result, nothing was taken up in the financial statements.
There were no severe human rights incidents related to our employees in the reporting period, including cases of non-respect of
the UN Guiding Principles on Business and Human Rights, ILO (International Labour Organisation) Declaration on Fundamental
Principles and Rights at Work and OECD Guidelines for Multinational Enterprises. We did not pay any fines or penalties nor did
we receive any requests for compensation for damages for incidents related to human rights. As a result, nothing was taken up in
the financial statements.
The measurement of all the metrics in this section has not been validated by an external body other than the assurance provider.
Consumers and end-users (3.2)
Consumers and end-users: impact, risk and opportunity management (3.2.1)
Policies related to consumers and end-users (3.2.1.1)
In addition to respecting the regulatory environment in which we operate, we see it as our responsibility to embed KBC’s material
impacts on consumers, and the associated material risks, in our policies.
Integrity Policy
The Integrity Policy sets out the KBC principles on integrity and ethical behaviour. It addresses conduct risk (the risk arising from
the inappropriate provision of financial services) and focuses on the following areas with respect to all our consumers:
• Protecting investors and insurance policyholders;
• Respecting rules on consumer protection including fair commercial practices in payment and lending services;
• Complaints handling;
• Data protection and privacy, confidentiality of information and duty of discretion.
For a full description of the Integrity Policy, we refer to section 4.1.1.1.

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Code of Conduct for employees
This Code of Conduct sets out our values, calls for responsible behaviour and addresses, among other things, key behaviour
expected from all employees towards all our consumers, related to:
• data protection and discretion regarding confidential information;
• fair treatment of clients;
• provision of clear, straightforward and accurate information.
There is a key role for our product approval process (NAPP, see section 2.2.2.2) in the pre-sale context, the rule of only offering
services appropriate for the client during sales and the analysis of breaches and handling complaints as part of fair client
treatment in post-sales.
For more details regarding the Code of Conduct for employees, we refer to section 3.1.1.1.
Information Security Policy
In order to protect all our clients and shareholders, we consider our Information Security Strategy a key element of our
Information Security Governance. This is accomplished by the information security controls that we continuously implement and
maintain. It is a dynamic, living set of security controls, based on the most appropriate elements of ISO standards, the NIST
Cybersecurity Framework and our own experience with information security. At the same time, these controls also establish the
binding regulatory requirements to which KBC adheres, including but not limited to the EU General Data Protection Regulation
(GDPR) and Digital Operational Resilience Act (DORA). The nature of these key controls ranges from governance, prevention,
detection and response, and covers the entire information security life cycle.

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A ‘Three Lines of Defence’ model is in place across the organisation, as described in the Enterprise Risk Management Framework
(ERMF). The Information Security Officers and Local Operational Risk Managers act as first line of defence. For the second line,
the Operational Resilience division of Group Risk jointly covers information risks, including information security, IT-related risks
and Business Continuity Management together with the local risk function. It also includes the Group Cyber Expertise and
Response Team (CERT). Internal Audit provides independent reasonable assurance on the adequacy and effectiveness of the
control environment, which constitutes our third line of defence.
The information security strategy, under the accountability of the Chief Risk Officer and the Chief Innovation Officer, applies to
KBC and all its subsidiaries and covers the full IT-security universe
.
Whistleblower Protection Policy and Procedure
This policy is relevant for all our consumers and end-users as unethical or illegal activities affecting consumers and end-users
are also explicitly in scope of the policy, such as:
• breaches relating to financial services, products and markets (including the prevention of money laundering and terrorist
financing);
• breaches in the area of consumer and investor protection;
• breaches affecting the protection of privacy and personal data and the security of network and information systems.
In addition to persons linked to a work-related environment (who are the main focus of the policy), anyone – including clients –
can report a breach in the areas of financial services, products and markets. For a description of the Whistleblower Protection
Policy and Procedure, we refer to section 4.1.1.1.
The Code of Conduct for employees, the Whistleblower Protection Policy and Procedure and the Information Security Policy are
publicly available on www.kbc.com.
Human rights commitments
As a financial institution, our highest risk in terms of potential involvement with human rights violations and potential human
rights impact arises from our business relationships (through our credit and insurance portfolio, our advisory services, our asset
management activities and our own investments). The KBC Human Rights Policy refers to other, more specific, sustainability
policies and describes our process in place, which is in line with the OECD Guidelines for Multinational Enterprises, the ILO
(International Labour Organisation) Declaration on Fundamental Principles and Rights at Work and the UN Guiding Principles on
Business and Human Rights.
For our engagement towards consumers and end-users, we refer to section 3.2.1.2, and for the measures through which we
provide and/or enable remedy for human rights impacts, we refer to sections 3.2.1.3 and 3.2.1.4.
Monitoring compliance with these Human Rights Policy commitments is embedded in our due diligence process (see section
1.2.4). In the reporting year, we did not identify any severe human rights issues and incidents related to our consumers and
end-users.
Alignment with internationally recognised instruments
KBC considers internationally recognised instruments relevant to consumers, as demonstrated by the following:
• We are a signatory of the UN Global Compact Principles
• We apply the UN Guiding Principles on Business and Human Rights
• We are committed to respect the letter and the spirit of:
- the United Nations Universal Declaration of Human Rights;
- the OECD Guidelines for Multinational Enterprises;
- other international and regional human rights treaties containing internationally recognised standards by which the
business sector must abide.

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Our commitment to respect these instruments, and in particular the OECD Guidelines for Multinational Enterprises, includes the
commitment to observe consumer interests, such as:
• fair marketing practices;
• provision of accurate, verifiable and clear information that is sufficient to enable consumers to make informed decisions;
• protection of consumers’ privacy;
• information about available dispute resolution and redress options;
• accessibility of information in plain language and for disabled people.
Through our policies related to consumers and end-users and the actions and processes described in this chapter, we protect
the human rights and interests of KBC’s consumers in line with these commitments.
None of the OECD National Contact Points received a referral concerning KBC in the reporting year.
Processes for engaging with consumers and end-users about impacts (3.2.1.2)
We have several processes in place for engaging with our affected consumers, their legitimate representatives, or with credible
proxies that have insight into their situation.
We continuously follow-up on surveys and research on, for example, consumer behaviour (at group as well as local level). We
regularly organise working groups with consumers to gain their insights. In Belgium, for example, we organise annual roundtables
(in 2024, the theme was the accessibility of our products and services). We also address consumer-related topics on an ad hoc
basis in our regular engagements with the ESB. In close collaboration with our Complaints Management departments, we
carefully follow up on consumers’ complaints. Our Sustainability Dashboard follows up on the implementation of our
sustainability strategy, including our regular stakeholders’ dialogue and the follow up on the concerns of our stakeholders. The
dashboard is presented twice a year to the ExCo and the Board.
The follow-up of information gathered via stakeholders’ engagements is organised by different departments. The general or
senior general manager of each of these departments has the operational responsibility to ensure that this engagement
happens and that the outcome is communicated to the manager who is best placed to take the views and interests of the
stakeholders into account. Through our different engagements with consumers, we also aim to gain insight into the perspectives
of consumers and end-users that may be particularly vulnerable to, for example, access to our products and services (e.g.,
consumers with disabilities, refugees), financial literacy (e.g., students and young adults). With respect to marketing practices
and privacy, specific attention is given to the situation of children.
Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
(3.2.1.3)
For our general approach and processes related to preventing and providing a remedy to negative impacts (in cases where we
would cause or contribute to a material negative impact to consumers), we refer to our NAPP process and other actions
described in section 3.2.1.4.

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We have different channels through which our consumers and other stakeholders can voice complaints. We aim to address
these concerns and consequently improve our products, services and processes. We recommend that our consumers first
contact their bank branch, relationship manager or insurance agent. This is the person who knows the consumer best and is best
placed to help find a tailored solution to the consumers’ potential grievances. We also have formal channels in place in all our
core countries through which our consumers can report complaints. Information about these channels is available on the
commercial websites of the various subsidiaries in our core countries, in the banking apps and in brochures and product sheets.
We closely follow up all complaints and handle these within strict time frames with appropriate action. The complaints handling
function is assigned to an independent unit or person outside of the commercial organisational structure. Where needed, the
Compliance department is involved. The complaints channels are actively used by a broad range of consumers. The overall
numbers, evolutions and nature of the complaints are monitored and reported at local entity or business unit level, and to the
ExCo and Board. The reports show that our consumers are aware of, and trust our complaints channels and processes.
Moreover, the relevant product or service department analyses ex-post all complaints together with the Risk and Compliance
departments in order to assess needs for improvement.
In addition to our own complaints channels, our clients have access to the Alternative Dispute Resolution Channels for
consumers that have been recognised for financial services by authorities in our core countries, such as Ombudsfin for banking
services and Ombudsman Insurance for insurance disputes in Belgium. KBC is a member of these dispute resolution bodies.
In addition to persons in a work-related environment, being the legal target group of the whistleblowing channel, anyone can
use this channel to report unethical or illegal activities in the area of financial services, products and markets and enjoy
protection against retaliation. Reporting can also be done anonymously.
We have dedicated channels for our clients and end-users in all countries and subsidiaries, to exercise their privacy and data
protection rights, including a Data Protection Officer (who can be contacted for all issues related to the processing of their
personal data) and groupwide hotlines that serve as a single contact point to report cybercrime against KBC or its clients (e.g.,
Secure4U in Belgium). Our complaints channels are also directly accessible for consumers and end-users in their contact with
KBC business relationships such as insurance agents or other business relationships that distribute our products, or to whom
client facing activities are outsourced. Certain sustainability-related inquiries or complaints are addressed by the Group
Corporate Sustainability department (via csr.feedback@kbc.be).
Taking action on material impacts on consumers and end-users, and approaches to managing
material risks and pursuing material opportunities related to consumers and end-users, and
effectiveness of those actions (3.2.1.4)
In addition to the above-mentioned policies, we have several processes and actions in place to manage, assess and follow up
the impacts, risks and opportunities of our products and services related to consumers and end-users.
We did not identify any actual material negative impacts on our consumers and end-users in the reporting year. Although we do
our utmost to avoid this, we might still have a potential negative impact in the future on our consumers and end-users related to
privacy and marketing practices, and through cyber risks.

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Integrating social topics into the risk management framework and compliance risk management
We refer to section 2.2.2.2 (describing the action on ESG integration in our Risk Management Framework (RMF)) for an overview of
the continuous efforts that we make to integrate ESG risks (including social risks) into our RMF and processes. We are taking a
step-by-step approach whereby follow-up actions are defined based on the insights gained from our previous actions/
analyses. Our approach advances in sync with improvements in the availability and quality of data and methodologies.
Specifically with respect to social risks:
• within our Risk Appetite, a specific objective is dedicated to responsible behaviour;
• we carried out a pilot risk identification exercise on social risks to identify the most material social risks for KBC. Risks are
identified for the full value chain (covering non-financial risks for our own and upstream operations, but also financial risks for
downstream operations, e.g., in case corporate clients do not respect social legislation or standards);
• social risk scenarios were included in our stress testing mix, e.g., by applying stress on high social risk sectors/counterparts and
by simulating a cyber event;
• within our operational risk management processes, several controls are in place to manage cyber risk (see also under
‘Managing cyber risks’ below), model risk (e.g., avoiding bias in models), business continuity (e.g., ensuring continuity of services
provided to clients), legal risk and process risk (ensuring safe, reliable and efficient processes and services for clients);
• from a credit and reputational risk perspective, we use a sectoral Environmental and Social Heatmap within our loan
origination and monitoring processes.
Protection of consumers, investors and policyholders, and data protection involve compliance risks that are in scope of the
Compliance function:
• The following risks are identified as compliance risks: fair marketing practices, observance of the rules regarding provision of
clear, straightforward and accurate information as specified in legislations related to various products, offering products in
line with the client’s needs and profile, protection of the personal data of clients, etc.;
- We continuously follow up on regulatory evolutions, interpret them and define requirements, when necessary. The
compliance function advises on the correct implementation while also first line controls are carefully followed up on and
effective implementation is monitored;
- Checks are installed in the NAPP process as described in the action on NAPP (see below);
• Several initiatives are taken to protect our clients’ data, and governance is in place to ensure that General Data Protection
Regulation (GDPR) is observed and the privacy of our clients is protected. Among others things,
- we perform Data Protection Impact Assessments when required;
- we have established a Cloud Enablement Forum to assess and mitigate risks when data is exchanged with third parties in
the context of cloud services;
- procedures are in place regarding notification and handling of potential data breaches;
- mandatory training for all employees on privacy and data protection is established (general and job-specific).
- within every KBC entity, the necessary information for our clients on how their personal data is handled is publicly available
in our privacy and data protection statements;
- channels are in place via which our clients can exercise their data subject rights;
• We have legal checklists and guidance in place which must be considered when developing a new marketing campaign.
Furthermore, proactive advice of the compliance function is mandatory before the launch of a new campaign (or any
marketing-related documents). In some cases, pre-approval of specific documentation and marketing material by local
supervising authorities is required.

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Managing cyber risks
Information- and cyber-related risks are identified and managed by dedicated teams in the first line of defence (Information
Risk Management (IRM) team). The second line of defence executes several assurance activities regarding cyber threats and
cyber risk-related events (such as setting standards, setting and testing controls, and groupwide reporting on actions and
events). See also the above-mentioned Information Security Policy.
Management of cyber risk is integrated into the Risk Management Framework, including analysis, reporting, registration and
follow-up. This ensures alignment with broader risk oversight and KBC objectives.
The actions implemented to manage cyber risk have a groupwide coverage and are part of a continuous process.
KBC actively identifies cyber risks by:
• monitoring the evolving cyber threat landscape, leveraging cyber threat intelligence from trusted sources, including industry
reports, open and commercial threat information feeds, and government information. This ensures early awareness about
active and emerging cyber threats;
• structured vulnerability management to identify, assess, and address security weaknesses across IT systems and
infrastructure;
• comprehensive attack surface management to identify and map all externally exposed assets, identifying areas at risk for
cyber threats;
• third-party and supply-chain management. A thorough vetting process is in place to assess the cybersecurity practices of
suppliers, contractors and partners before engagement. By maintaining transparency and collaboration with third parties,
KBC mitigates risks associated with external dependencies and ensures a secure and resilient supply chain;
• regular ethical hacks, challenges, tabletop exercises and stress tests to recognise cyber threats;
• targeted training and awareness programmes ensure employees across all levels are equipped to identify and report
suspicious activities. By fostering a culture of vigilance and preparedness, we strengthen our workforce against cyber risks. To
achieve this, we – among other things – regularly conduct internal phishing tests;
• monitoring the evolving cyber fraud landscape to enhance client protection and safeguard stakeholder data and financial
assets. Continuous analysis and adaptation of security measures supports the commitment to stakeholder protection.
By combining cyber threat intelligence with insights and findings from the above activities, we proactively identify, assess and
understand cyber risks that could target our company and stakeholders, enhancing our ability to defend against and respond
to cyber threats effectively. Cyber risks are specifically analysed based on likelihood and impact, enabling risk prioritisation and
mitigation efforts. Mitigation strategies include implementing robust technical controls, and ensuring adherence to best
practices, industry standards and government regulations.

222 Annual Report KBC Group 2024
New and Active Products Process (NAPP) and governance framework to proactively identify, prevent, remedy and manage
potential negative impacts and risks related to consumers and end-users
As specified in section 2.2.2.2, NAPP is an important tool to mitigate several ESG risks (in particular related to consumer protection
and greenwashing). It is a groupwide process for KBC and all its subsidiaries that are active in the financial sector or acting as
intermediaries for financial services (for all of their products, services and client-facing processes which directly impact the
external client). Related to consumers and end-users, it aims to:
• ensure fair treatment of the client;
• safeguard the strategic fit of products/services;
• pro-actively identify and mitigate risks related to products, services and changes to client-facing processes which might
negatively impact the client and/or KBC;
• ensure compliance with regulation.
Within NAPP, all relevant risks need to be assessed. In particular for social risks, the control functions:
• ensure that the launch of any new products or client-facing processes complies with the legal and regulatory provisions in
place, such as MiFID II, the Insurance Distribution Directive (IDD), consumer protection regulations, Mortgage Credits Directive
(MCD), Consumer Credits Directive, Payments Account Directive and other local and EU Regulations;
• assess risks related to data protection and conformity with General Data Protection Regulation (GDPR), ethical considerations
(including non-discrimination of client groups, social inclusion), anti-money laundering and fraud, the use of models (including
AI models), information security and ESG considerations.
Through advice and conditions established in the NAPP process, we determine the actions that need to be implemented to
prevent negative impacts or to mitigate risks. The maturity of the NAPP process is periodically followed up and reported.
Actions regarding opportunities
We pursue material opportunities (i.e. advisory services related to, among other things, subsidies, (emerging) sustainability-
related legislation) linked to consumers and end-users via our advisory services like webinars, third-party services and face-to-
face interactions.
Actions that positively contribute to improved social outcomes for our consumers and end-users
We have additional actions in place that positively contribute to improved social outcomes for our consumers and end-users,
such as:
• allowing access to financial services at fair market conditions;
• providing banking, insurance and asset management products and services that are accessible to everyone in accordance
with their needs;
• enhancing financial literacy in Belgium among young adults to create awareness on debt pitfalls;
• by playing a role in the financial resilience of our consumers by, for example, protecting them from the financial consequences
of healthcare risks with the insurance products we provide;
• by taking up our role in society and organising information sessions and campaigns to create awareness among our clients on
cyber risks.
Resources allocated to the management of material impacts
As highlighted above:
• in first line, a Data Protection Officer (DPO) can be contacted by our consumers for all issues related to the processing of their
personal data. The DPO is supported by colleagues in the Compliance department to adequately and timely address the
reported issues;
• in second line, our material risks in the context of consumers and end-users are managed via the NAPP process. This process
also allows us to address the negative and advance positive impacts. The NAPP process is applied groupwide and involves
several departments within the organisation (such as the Compliance department, Risk department, Legal department,
Business departments, senior managers presiding over the NAPP);
• moreover, our internationally recognised and certified Group Cyber Emergency and Response Team engages in specific
activities related to cyber crisis and incident handling, cyber threat intelligence, cyber resilience and readiness training.

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Consumers and end-users: metrics and targets (3.2.2)
Targets related to managing material negative impacts, advancing positive impacts and managing
material risks and opportunities (3.2.2.1)
We do not have specific time-bound and outcome-oriented targets or indicators related to reducing negative impacts and/or
advancing positive impacts and/or managing material risks and opportunities related to consumers and end-users.
We refer to sections 3.2.1.4 and 3.2.1.1, where we explain the ongoing processes in which we track the effectiveness of our policies
and actions. Our level of ambition is:
• to not cause any material negative impacts on our consumers and end-users;
• to advance positive impacts where possible;
• to manage all our material risks and opportunities related to consumers and end-users.

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Governance information
Business conduct (4.1)
Business conduct: impact, risk and opportunity management (4.1.1)
Business conduct policies and corporate culture (4.1.1.1)
Responsible business conduct is crucial for KBC. It allows us to gain and keep the trust of our stakeholders, which is the
foundation of our existence and our ‘social licence to operate’. Our corporate culture is a key enabler for embedding responsible
and ethical behaviour throughout our organisation. This section lists our policies related to business conduct matters. These
policies underpin the role we have as a financial institution in society and guide our day-to-day decisions and interactions.
In relation to these policies we organise recurrent awareness campaigns and mandatory training (in the form of, e.g., in-class
training, web-based learning courses and webinars) for all employees within KBC. These cover business conduct topics such as
whistleblowing; anti-corruption and anti-bribery; tax strategy; anti-money laundering and countering the financing of terrorism;
group ethics and fraud; integrity and responsible behaviour. We offer specific mandatory training for every new employee and a
three-yearly mandatory update training course for all staff (including top management, the ExCo and employees in functions at
risk), specifically linked to the codes of conduct and the anti-corruption programme. In 2024, 99% of the target group followed
the training. Full awareness and commitment at ExCo and Board level is assured by ExCo and Board approval of the Group
Anti-Corruption and Bribery Policy and an explicit preceding statement about the anti-corruption culture and zero tolerance by
General Environment Social
Governance

225Annual Report KBC Group 2024
the CEO and the Chairman of the Board. This ensures that we create and maintain a satisfying awareness and knowledge level
among all employees that is commensurate with their business activities and position.
More detailed information regarding training on ethics, avoiding conflicts of interest and combating corruption, anti-money
laundering and data protection are provided in the ‘Corporate Governance Statement’ section (not audited).
Sustainability Policy Framework
The Sustainability Policy Framework encompasses all our sustainability-related policies (see section 2.2.2.1). It describes
responsible behaviour and business ethics as the basic layer of sustainability at KBC.
Integrity Policy
The Integrity Policy sets out the KBC principles on ethical behaviour and integrity and the values of KBC linked to its strategy,
which are essential components of sound business practices. It covers the identification and management of compliance risks. A
core topic is ‘conduct risk’, a concept that identifies the risk arising from the inappropriate provision of financial services.
The Integrity Policy focuses primarily on the following areas, for which – where appropriate – specific group-wide compliance
rules have been issued:
• Preventing the financial system from being used for money laundering and terrorism financing (including human trafficking
activities, which are often underlying offences), observing embargoes, and preventing financing of proliferation of weapons of
mass destruction;
• Tax fraud prevention;
• Protecting investors and insurance policyholders;
• Respecting rules on consumer protection, including fair commercial practices in payment and lending services;
• Complaints handling;
• Data protection and privacy, confidentiality of information and the duty of discretion;
• Fostering ethics and responsible behaviour as the foundation on which the strategy is built;
• Coordinating fraud prevention;
• Complying with anti-discrimination legislation;
• Respecting the governance aspects of CRD IV and V, Solvency II and/or local laws, and the provision of advice on outsourcing
and sustainability regulations.
The policy describes the accountabilities within KBC related to the management of compliance risks and the role of the
Compliance function. The Compliance function is preventive when identifying, assessing and analysing risks, and is controlling
when monitoring, investigating and supervising the observance of the Integrity Policy.
Integrity Policy
Scope Applicable to all employees within KBC and its subsidiaries. It sets the minimum requirements
for all these entities, which are required to draft their own local integrity policy, taking into
consideration, where needed, local provisions for the activities performed.
Most senior level accountable This policy is approved by the Board. The ExCo is accountable for its elaboration and
implementation. Top management is responsible for the implementation of the policy and
for the management of the compliance risk.
Consideration key stakeholders Treating our clients and all other stakeholders in a fair, honest and professional manner is a
key consideration in the Integrity Policy.
Disclosure The Integrity Policy is made available to all employees through internal communication
channels. Dedicated awareness campaigns are regularly organised for many topics
addressed by the policy.

226 Annual Report KBC Group 2024
Code of Conduct for employees
The way in which we expect our employees to behave responsibly is outlined in our Code of Conduct for employees (see also
section 3.1.1.1). It stresses the importance of a strong corporate culture that calls for responsible behaviour and explicitly
addresses the following business conduct matters (non-exhaustive):
• Fighting money laundering and terrorism financing;
• Zero tolerance for fraud;
• Protection of investors and capital markets;
• Data protection and confidential information;
• Client focus and avoidance of conduct risk;
• Tax laws and regulations;
• Zero tolerance for corruption;
• Preventing conflicts of interest;
• Strict rules on gifts, entertainment and sponsorship;
• Whistleblowing and general speak-up culture;
• Competition rules.
Anti-Corruption and Bribery Policy
The Anti-Corruption and Bribery Policy provides clarity about KBC’s zero tolerance for all forms of corruption for all employees
and third parties with whom KBC has a contractual relationship and sets out the criteria and principles for avoiding conflicts of
interest. The following aspects are part of this policy:
• Top-level commitment to and governance of the KBC Anti-Corruption Programme;
• Anti-corruption procedures and controls in accounting;
• Investigation of alleged bribery cases by independent investigation units;
• Annual group-wide risk assessment on corruption and bribery risks;
• Internal controls, record-keeping and reporting;
• Ethical and anti-bribery due diligence and anti-corruption clauses in contracts;
• The principles related to ‘Bribery and corruption’ that are embedded in the screening methodology for investment decisions
(including proprietary investments, investments conducted on behalf of clients and for the investment funds managed by
KBC).
The functions that are most at risk in respect of corruption and bribery are in the following departments: Commercial Activities,
Procurement, Sales, Marketing, Sponsorship, Lobbying, ICT and Real Estate, and departments involved in open banking and
contracting third parties.
Anti-Corruption and Bribery Policy
Scope Applicable to all employees of KBC and its subsidiaries as well as third parties with whom
KBC has a contractual relationship (e.g., suppliers, joint ventures, service providers, etc.).
Most senior level accountable This policy is approved by the ExCo and the Board. Top management is responsible for
implementation in every entity.
Reference to third-party agreements The policy is based on principle 10 of the UN Global Compact and the OECD Guidelines for
Multinational Enterprises on corruption.
Consideration key stakeholders The objective of this policy is to protect our clients, our business relationships and society
against bribery and corruption. It aims to ensure that everyone, including all employees, is
aware of their role and KBC’s zero tolerance in this respect.
Disclosure Published externally on www.kbc.com. Available internally for all employees.

227Annual Report KBC Group 2024
Whistleblower Protection Policy and Procedure
Our Whistleblowing Policy outlines the general principles and procedures for reporting concerns related to unethical or illegal
activities within our organisation (see also section 3.1.1.1).
Our goal is to ensure that all employees or other stakeholders, regardless of their location, feel empowered to raise concerns
and feel protected when doing so. By fostering an environment where whistleblowing is encouraged and safeguarded, we aim
to uphold our core values and promote a culture of responsible behaviour throughout the entire group.
KBC has set up specific whistleblowing channels where people can raise their concerns (including in an anonymous manner)
without having to fear retaliation. As a minimum, reports can concern breaches in the 10 areas of Union law enumerated in EU
Directive 2019/1937 on the protection of persons who report breaches of Union law and in the areas added by local legislation. All
reports are investigated by an independent investigation unit, where confidentiality and objectivity are guaranteed. The
compliance officer reports the results of the investigations to the ExCo via the customary reporting lines. Mitigating actions are
taken if necessary.
Beyond the (legally required) procedures for following up on reports by whistleblowers, KBC has broadened the scope of the
Whistleblowing Policy as follows:
• The scope of the content has been broadened to include immoral or unethical conduct and conduct that compromises the
credibility and reputation of the KBC group in general (including corruption and bribery);
• The scope of who can report has been broadened from persons in a work-related environment (being the legal target group
of the whistleblowing channel) to anyone who reports unethical or illegal activities in the area of financial services, products
and markets. They also benefit from the protection against retaliation.
Anti-Money Laundering Policy
The objective of this policy is to establish the general framework for the fight against money laundering and terrorism financing
throughout KBC. We are committed to compliance with high standards of anti-money laundering (AML) and countering the
financing of terrorism (CTF). Accordingly, management and employees are required to adhere to these standards in preventing
the use of our products and services for money laundering or terrorism financing purposes.
To this end, all credit and other financial institutions that are part of KBC are expected to develop a comprehensive AML
programme. It must be based on the Group Compliance Rules, which encompass ‘Know Your Customer’ and ‘Know Your
Transactions’ requirements. The AML programmes are further transposed into local procedures, taking into account local
regulatory requirements and guidelines issued by the European Banking Authority.
In addition, as part of our Compliance Monitoring Programme, we perform recurrent AML/CTF-related quality controls in order to
ensure the effectiveness of our instructions, procedures and processes in this domain.
Group Anti-Money Laundering Policy
Scope Applicable to all credit and other financial institutions within KBC.
Most senior level accountable The ExCo and in particular the Group Chief Risk Officer, who is a member of the ExCo.
Consideration key stakeholders The objective of the policy is to protect our clients, our business relationships and society
against money laundering and to counter the financing of terrorism. KBC complies with
strict regulation and legislation to mitigate these risks.
Disclosure Published externally on www.kbc.com. The Group Compliance Rules, which specify the
associated requirements and instructions, are available internally for all employees.

228 Annual Report KBC Group 2024
Dealing Code
The Dealing Code contains measures to avoid insider dealing and market manipulation. It aims to prevent key employees and
managers from knowingly or unknowingly performing transactions that are viewed as constituting market abuse. The Code
describes prohibited conduct, the corresponding requirements, the duty to report personal transactions to the compliance
officer and the relevant conditions. It further requires a list to be drawn up of key employees, who cannot execute personal
transactions during periods considered sensitive, called blocking periods. Transactions by employees with a managerial
responsibility as well as persons connected with them need to be reported to the Belgian Financial Services and Markets
Authority (FSMA).
Furthermore, the Code describes the duties of the compliance officer, such as keeping a list of key employees and notifying
them of the existence and content of the Dealing Code. The compliance officer also performs regular checks to ensure that the
rules imposed are complied with and takes measures where necessary.
Dealing Code
Scope Applicable to KBC and its subsidiaries and in particular all key employees and managers as
defined in the policy.
Most senior level accountable The ExCo is accountable for the implementation of the policy.
Consideration key stakeholders The objective of this policy is to protect our clients, our business relationships and society
against Insider Trading, Unlawful Disclosure of Inside Information and Market Manipulation.
Disclosure Published externally on www.kbc.com. Every person in scope of the Dealing Code is notified
of its existence and content and needs to confirm that they have read and understood the
Code and have taken action to comply with it.
Ethics and Fraud Policy
This policy aims to ensure that KBC takes all necessary steps to protect the good name, reputation and assets of KBC and its
subsidiaries and of all employees, clients, suppliers and other stakeholders. This includes developing processes and procedures,
monitoring, creating awareness and training to prevent fraud and misconduct.
It outlines the Fraud Risk Management Process, which consists of the following interdependent and mutually reinforcing steps:
• Establishing an anti-fraud culture;
• Performing fraud risk assessments;
• Implementing preventive measures;
• Implementing detection controls;
• Establishing a clear fraud response protocol;
• Establishing monitoring and reporting practices.
Ethics and Fraud Policy
Scope Applicable to KBC and its subsidiaries.
Most senior level accountable Top management of the business units is responsible for the implementation of the policy.
Consideration key stakeholders Integrity of our operations and the protection and interests of our stakeholders and our
clients are placed at the forefront of fraud risk assessments and policy implementation. The
policy has been designed and implemented to provide comprehensive protection for assets
of both KBC and our stakeholders.
Disclosure Published externally on www.kbc.com.

229Annual Report KBC Group 2024
Tax Strategy
The general objective of our Tax Strategy is to ensure that we act as responsible taxpayers based on professionally executed
tax compliance and legitimate tax planning driven by valid business purposes. Consequently, our employees are not allowed to
provide any kind of advice or assistance to clients in terms of tax avoidance or the violation of regulations. Our Tax department
operates independently from the business and is mandatorily involved in the NAPP process. We have proactive tax risk
management and our tax compliance is based on robust systems, tools and procedures. Moreover, there is full transparency
both to the public (e.g., disclosure of country-by-country tax figures (we refer to Note 3.11 in the consolidated income statement),
tax rulings) and to the tax authorities.
Tax Strategy
Scope The KBC tax strategy applies to the entire group.
Most senior level accountable This policy is approved by the ExCo and the Board. The General Manager of Group Tax is
responsible for the implementation of the Tax Strategy.
Consideration key stakeholders Our Tax Strategy has been drafted taking into account the interests and expectations of a
wide base of key stakeholders, including tax administrations and governments, regulators,
investors and shareholders, non-governmental organisations, the media and the general
public, our clients and our employees.
Disclosure Published externally on www.kbc.com and available internally for all employees.
Sustainability Code of Conduct for Suppliers
Our Sustainability Code of Conduct for Suppliers ensures that suppliers pay attention to and comply with social, ethical and
environmental principles. It informs our suppliers that KBC is entitled to conduct interim screenings to evaluate whether suppliers
comply with the agreed sustainability principles. To this end, KBC leverages external and internal databases which provide
signals about suppliers. Signals such as lawsuits and other wrongdoings (e.g., negative media attention) of suppliers are
captured, evaluated and decided upon by Procurement in consultation with the relevant competent departments (such as, e.g.,
Group Corporate Sustainability). If any violations come to light that cannot be fundamentally resolved within a reasonable
period of time, KBC has the right to terminate all contracts with the supplier concerned.
Sustainability Code of Conduct for Suppliers
Scope Applicable to all supplier entities (including parent companies and subsidiaries of KBC’s
contractual counterparties).
Most senior level accountable The Sustainability Code of Conduct for Suppliers is part of our sourcing relationships, which
are largely regulated via contracts. Contract ownership is decentralised at KBC and lies
with the beneficiary of the goods and services. In practice, the key beneficiary is usually
the Senior General Manager of the department receiving the goods or services (i.e. top
management).
Reference to third-party agreements This policy contributes to our commitment to observe the UN Global Compact Principles.
Consideration key stakeholders This policy has been challenged by our ISB, representing the interest of key stakeholders.
Disclosure Published externally on www.kbc.com.
Corporate culture
To grow and maintain the trust of our stakeholders, it is crucial that all our employees always behave responsibly in everything
they do, across all layers of the organisation. Responsible behaviour is a cornerstone of our corporate culture and is strongly
rooted in all the above-mentioned policies, including the related training and awareness programmes. We have developed a
‘Responsible Behaviour Compass’ for our employees, a document that outlines basic principles of common sense around
responsible behaviour and fair decision-making. It addresses the risks, standards, policies, processes and structures involved in
maintaining KBC’s high standards on responsible behaviour.

230 Annual Report KBC Group 2024
The foundations of our corporate culture are our three core values: be respectful, be responsive and be result-driven. These
three attitudes are closely linked to each other and cannot be seen independently from one another. Our corporate culture is
summed up in the acronym ‘PEARL+’ and was established in 2012, when the Strategy was updated. It was decided by the ExCo.
We evaluate our corporate culture by conducting employee engagement surveys every six months (see 3.1.1.2). We refer to the
‘Our business model’ section (which is not subject to external assurance) for more details.
Responsible behaviour is embedded in the whole organisation and is not limited to managers, but is expected from all our
employees. All employees should be aware of the company culture, in which people are encouraged to feel both empowered
and accountable to report unethical behaviour. As there is space for alternative views and even mistakes, without taboos,
speaking up is encouraged at three levels: peer to peer, towards line management and/or via the whistleblowing channels (we
refer to our whistleblowing policy). Observed violations of our Code of Conduct for employees, such as unlawful behaviour, are
sanctioned in line with work regulations.
Management of relationships with suppliers (4.1.1.2)
KBC is committed to meeting the contractual terms that have been agreed with its suppliers. This includes paying each supplier
in a timely manner, i.e. within the contractual payment period. We monitor the timeliness of our payments to suppliers and report
to a steering committee at management level. Cases where timely payment is not possible because of certain circumstances,
such as issues that are to be resolved with the supplier, are closely followed up. In this regard, all suppliers, including SMEs, are
treated equally.
When it comes to managing the risks as well as ESG-related impacts associated with our supplier relationships, we have several
processes in place throughout the selection process and contract lifecycle.
First of all, we have defined a blacklist of suppliers based on ESG factors. In this way, companies that are involved, either directly
or via a subsidiary, in controversial activities such as the production of nuclear weapons or white phosphorus are excluded from
being selected as candidate suppliers. Furthermore, in preparation for a purchase, candidate suppliers are screened as part of
our onboarding process. This screening includes a check on financial health, embargoes, lawsuits and convictions. We also
perform dedicated ESG screening based on a standard questionnaire for all purchases above 250 000 euros and other
purchases when deemed appropriate. KBC encourages suppliers to provide detailed ESG-related information in their product
and service offers. The provision of such information can be considered as a positive criterion during supplier selection.
On concluding a contract, each supplier must agree to comply with the social, ethical and environmental principles in our
Sustainability Code of Conduct for Suppliers (as described in section 4.1.1.1).
During the contract lifecycle, we actively monitor the contractual performance of our suppliers. In addition, we screen active
suppliers on a monthly basis using the KBC internal alerting system, which includes financial health, embargoes, lawsuits and
convictions. The setup for monitoring suppliers’ ESG-related performance is reviewed as part of the wider reviews of our
procurement processes and tooling.
Actions in relation to business conduct policies (4.1.1.3)
In addition to the above-mentioned policies, we have actions in place to manage, assess and follow up the impacts and risks
related to business conduct matters.
Integrating governance topics into the risk management framework and compliance risk management
We refer to section 2.2.2.2, describing the action on ESG integration in our Risk Management Framework (RMF), for an overview of
the continuous efforts that we make to integrate ESG risks (including governance risks) in our RMF and processes.
Specifically with respect to governance risks, we have implemented the following:
• Within our risk appetite, specific objectives are dedicated to promoting strong corporate culture, corporate governance and
risk & compliance management;
• Governance risks are assessed as part of the NAPP (as described in section 2.2.2.2). In particular for business conduct, within
the NAPP process risks and potential negative impacts are assessed and necessary actions defined related to conduct risk
(the risk of offering financial services and products in an inappropriate or unethical way), fraud, sustainability, anti-money
laundering requirements, embargoes, tax fraud and regulatory incompliancy;
• Management quality is assessed for large corporates as part of the loan origination process (in the context of credit risk
management).

231Annual Report KBC Group 2024
Our compliance risk management focuses in particular on integrity, including ethical behaviour and management of conduct
risk. Protection of consumers, investors and insurance policyholders, prevention of money laundering and terrorism financing,
corruption and bribery, fostering ethics and responsible behaviour and aspects of corporate governance are core compliance
domains. While the Executive Committee and top management of business units are primarily accountable for the management
of compliance risks, the compliance function also plays a fundamental role.
Prevention and detection of corruption and bribery (4.1.1.4)
We have established several procedures to prevent, detect and address allegations or incidents of corruption and bribery. They
are mentioned in the Anti-Corruption and Bribery Policy (we refer to section 4.1.1.1) and involve (this list is not exhaustive):
• Conflict of interest policies;
• Policy on Gifts, Entertainment, Donations and Sponsorship;
• Due diligence, pre-employment screening when appointing board members and top management;
• Four-eye principle in our recruitment process;
• Specific anti-corruption procedures and controls in accounting;
• Yearly anti-bribery and corruption risk assessments in each entity, taking into account the country risk, sector risk, transaction
risk, business opportunity risk, business partnership risk and due diligence risk;
• Mandatory training and awareness sessions for all staff;
• Implementation of various first-line controls in the business lines to prevent corruption and bribery, which are additionally
monitored in compliance monitoring programmes by the compliance function;
• Record-keeping of breaches.
Our Whistleblower Protection Policy, our speak-up culture as mentioned in the Code of Conduct for employees, our Anti-Money
Laundering Policy and our Sustainability Code of Conduct for Suppliers (including anti-corruption due diligence procedures and
written commitments and clauses in all contractual agreements) support our approach to corruption and bribery. We refer to
section 4.1.1.1 for further information on these policies.
The investigations related to corruption and bribery are conducted by an independent investigation unit under the supervision
of the compliance function. Incidents and outcomes of corruption- and bribery-related investigations (if any) are reported to
local management or the ExCo, the Group ExCo and the RCC.
For more information on training related to corruption and bribery, we refer to section 4.1.1.1.

232 Annual Report KBC Group 2024
Business conduct: metrics and targets (4.1.2)
Confirmed incidents (4.1.2.1)
KBC has no convictions nor received any fines for violating anti-corruption and anti-bribery laws during the reporting period. This
information is not externally validated by an external body other than the assurance provider.
Payment practices (4.1.2.2)
As mentioned in section 4.1.1.2, KBC is committed to paying all its invoices from suppliers (including suppliers which are SMEs) on
time. At KBC, the most commonly used standard payment term is 30 days after the receipt of a correct invoice. This payment
term is applied to about 88% of our annual invoices by value, and is used across KBC and its subsidiaries and equally for all
suppliers and types of invoices. For invoices related to our leasing activities in Bulgaria, which represent 11% of our annual
invoices, we use a standard payment term of 5 days. We further note that for less than 1% of our annual invoices, the payment
term deviates at the level of local subsidiaries or as a result of negotiations at the level of individual contracts.
In 2024, the average number of days between the payment date and the date of receipt of an invoice was 16 days. This metric is
not externally validated by an external body other than the assurance provider. It was calculated for the first time for the
purpose of this Sustainability Statement. The calculation is based on actual invoice data from KBC and its subsidiaries in our five
core countries and excludes payments to employees, intra-group items and payments to tax authorities. The consolidated
figure at the level of KBC represents a weighted average based on the total number of invoices.
Cases where KBC does not respect the payment period are mostly related to processing issues, such as incorrect invoices
where, for instance, the amount, price or VAT is not in line with the data in our financial systems. The team that resolves these
issues has to report to our Procurement management the number of blocked invoices and the period needed to resolve the
issues.
Additionally, we note that KBC (including all its subsidiaries) does not have any outstanding legal proceedings for late payments.

KPMG Bedrijfsrevisoren - KPMG Réviseurs d'Entreprises, a Belgian BV/SRL and
a member firm of the KPMG global organization of independent member firms
affiliated with KPMG International Limited, a private English company limited by
guarantee. All rights reserved.
Document Classification: KPMG Public
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KPMG Bedrijfsrevisoren - KPMG
Réviseurs d'Entreprises BV/SRL
Ondernemingsnummer / Numéro
d’entreprise 0419.122.548
BTW - TVA BE 0419.122.548
RPR Brussel - RPM Bruxelles
IBAN : BE 95 0018 4771 0358
BIC : GEBABEBB
Independent auditor’s limited assurance report on the consolidated
sustainability information of
KBC Group NV
FREE TRANSLATION OF
A
LIMITED ASSURANCE REPORT
ORIGINALLY PREPARED IN
DUTCH
To the general meeting
In the context of the legal limited assurance engagement on the consolidated
sustainability information of KBC Group NV (“the Company”) and its subsidiaries
(jointly “the Group”), we provide you with our report on this engagement.
We were appointed by the general meeting of May 2, 2024 in accordance with
the proposal of the board of directors on the recommendation of the audit
committee and as presented by the workers’ council of the Company to perform
a limited assurance engagement on the consolidated sustainability information
of the Group included in the section Report of the Board of Directors –
Sustainability statement of the Annual report KBC Group 2024 as of December
31, 2024 and for the year ended on this date (the “sustainability information”).
Our mandate will expire on the date of the general meeting deliberating on the
annual accounts for the year ended December 31, 2024. This is the first year
that we have performed the assurance engagement on the sustainability
information of the Group.
Limited assurance conclusion
We have performed a limited assurance engagement on the sustainability
information of the Group.
Based on the procedures performed and assurance evidence obtained, nothing
has come to our attention to cause us to believe that the sustainability
information of the Group is in all material respects:
• not prepared in accordance with the requirements of article 3:32/2 of the
Companies’ and Associations’ Code, including compliance with the
applicable European standards for sustainability information (European
Sustainability Reporting Standards (ESRS));
• not in compliance with the process carried out by the Group to identify the
sustainability information (“the Process”) in accordance with the European
Standards as disclosed in section ‘Description of the processes to identify
and assess material impact, risks and opportunities (1.4.1)’ of the
sustainability information; and

Independent auditor’s limited assurance report on the consolidated
sustainability information of
KBC Group NV
Document Classification: KPMG Public
2
• not in compliance with article 8 of EU Regulation 2020/852 (the “Taxonomy
Regulation”) regarding the publication of the disclosure included in the
section EU-taxonomy – detailed tables of the Annual report KBC Group
2024.
Our conclusion on the sustainability information does not extend to any other
information that accompanies or contains the sustainability information and our
report.
Basis for conclusion
We conducted our limited assurance engagement in accordance with
International Standard on Assurance Engagements (ISAE) 3000 (Revised),
Assurance Engagements Other Than Audits or Reviews of Historical Financial
Information, issued by the International Auditing and Assurance Standards
Board (IAASB), as adopted in Belgium.
Our responsibilities under this standard are further described in the
“Responsibilities of the independent auditor for the limited assurance
engagement on the sustainability information” section of our report.
We have complied with the ethical requirements that are relevant to our
assurance engagement on the sustainability information in Belgium, including
the independence requirements.
Our firm applies International Standard on Quality Management (ISQM) 1. This
standard requires the firm to design, implement and operate a system of quality
management, including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory
requirements.
We have obtained from the board of directors and the Company’s officials the
explanations and information necessary for our limited assurance engagement.
We believe that the assurance evidence we have obtained is sufficient and
appropriate to provide a basis for our conclusion.
Other matter
The scope of our procedures is limited to our limited assurance engagement on
the sustainability information of the Group. Our limited assurance engagement
does not extend to information relating to the comparative figures.

Independent auditor’s limited assurance report on the consolidated
sustainability information of
KBC Group NV
Document Classification: KPMG Public
3
Interconnectivity between the sustainability information and the
consolidated financial statements
The board of directors is responsible for referencing the sustainability
information to the amounts reported in the consolidated financial statements to
ensure the interconnectivity between the sustainability information and the
consolidated financial statements. Our conclusion included in the section
“Limited assurance conclusion” does not extend to the interconnectivity between
the sustainability information and the consolidated financial statements, and we
do not express any assurance conclusion thereon. In the context of our limited
assurance engagement, we are responsible, as contractually determined, to
verify the referencing from the sustainability information to the amounts reported
in the consolidated financial statements. In the context of the procedures carried
out in this respect, we did not identify any material misstatements that we have
to report to you.
Board of directors’ responsibilities for the preparation of the
sustainability information
The board of directors of the Company is responsible for designing and
implementing the Process and for disclosing this Process in section ‘Description
of the processes to identify and assess material impact, risks and opportunities
(1.4.1)’ of the sustainability information. This responsibility includes:
• understanding the context in which the Group’s activities and business
relationships take place and developing an understanding of its affected
stakeholders;
• identifying the actual and potential impacts (both negative and positive)
related to sustainability matters, as well as risks and opportunities that affect,
or could reasonably be expected to affect, the Group’s financial position,
financial performance, cash flows, access to finance or cost of capital over
the short-, medium-, or long-term;
• assessing the materiality of the identified impacts, risks and opportunities
related to sustainability matters by selecting and applying appropriate
thresholds; and
• making assumptions and estimates that are reasonable in the
circumstances.
The board of directors of the Company is further responsible for the preparation
of the sustainability information, which includes the information determined by
the Process:
• in accordance with the requirements of article 3:32/2 of the Companies’ and
Associations’ Code, including compliance with the applicable European
standards for sustainability information (European Sustainability Reporting
Standards (ESRS)); and

Independent auditor’s limited assurance report on the consolidated
sustainability information of
KBC Group NV
Document Classification: KPMG Public
4
• in compliance with the requirements of Article 8 of EU Regulation 2020/852
(the “Taxonomy Regulation”) regarding the publication of the information
included the section EU-taxonomy – detailed tables of the Annual report KBC
Group 2024.
This responsibility entails:
• designing, implementing and maintaining such internal controls that the
board of directors determines are necessary to enable the preparation of the
sustainability information such that it is free from material misstatement,
whether due to fraud or error; and
• selecting and applying appropriate sustainability reporting methods and
making assumptions and estimates that are reasonable in the
circumstances.
The audit committee is responsible for overseeing the Company’s sustainability
information reporting process.
Inherent limitations in preparing the sustainability information
In reporting forward-looking information in accordance with ESRS, the board of
directors of the Company is required to prepare the forward-looking information
on the basis of disclosed assumptions about events that may occur in the future
and possible future actions by the Group. The actual outcome is likely to be
different since anticipated events frequently do not occur as expected and the
deviations may be material.
Responsibilities of the Independent auditor for the limited assurance
engagement on the sustainability information
It is our responsibility to plan and perform the assurance engagement to obtain
limited assurance about whether the sustainability information is free from
material misstatement, whether due to fraud or error, and to issue a limited
assurance report that includes our conclusion. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence decisions of users taken on the
basis of the sustainability information as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000
(Revised), as adopted in Belgium, we exercise professional judgment and
maintain professional skepticism throughout the engagement. The work carried
out in an engagement with a view to obtaining a limited degree of assurance, for
which we refer to the section "Summary of the work performed", is less in extent
than for a reasonable assurance engagement. We therefore do not express a
reasonable assurance conclusion.

Independent auditor’s limited assurance report on the consolidated
sustainability information of
KBC Group NV
Document Classification: KPMG Public
5
As the forward-looking information contained in the sustainability information
and the assumptions on which it is based, relate to the future, it may be affected
by events that may occur and/or by possible actions of the Group. The actual
outcome is likely to differ from the assumptions, as the anticipated events will
frequently not occur as expected and the deviations may be material. Our
conclusion is therefore not a guarantee that the actual outcomes reported will be
consistent with those included in the forward-looking information included in the
sustainability information.
Our responsibilities in relation to the Process for reporting the sustainability
information, include:
• obtaining an understanding of the Process but not for the purpose of
providing a conclusion on the effectiveness of the Process, including the
outcome of the Process; and
• designing and performing procedures to evaluate whether the Process is
consistent with the Group’s description of its Process, as disclosed in section
‘Description of the processes to identify and assess material impact, risks
and opportunities (1.4.1)’ of the sustainability information.
Our other responsibilities in respect of the sustainability information include:
• obtaining an understanding of the Group’s control environment, relevant
processes and information systems for the preparation of the sustainability
information but not evaluating the design of particular control activities,
obtaining evidence about their implementation or testing their operating
effectiveness;
• identifying areas in the sustainability information where material
misstatements are likely to arise, whether due to fraud or error; and
• designing and performing procedures focused on disclosures in the
sustainability information where material misstatements are likely to arise.
The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal
control.

Independent auditor’s limited assurance report on the consolidated
sustainability information of
KBC Group NV
Document Classification: KPMG Public
6
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain
assurance evidence about the sustainability information. The procedures
performed in a limited assurance engagement vary in nature and timing from,
and are less in extent than for, a reasonable assurance engagement.
Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been
obtained had a reasonable assurance engagement been performed.
The nature, timing and extent of our procedures depend on our professional
judgment, including the identification of disclosures where material
misstatements are likely to arise, whether due to fraud or error, in the
sustainability information.
In conducting our limited assurance engagement with respect to the Process,
we have:
• obtained an understanding of the Process by:
- performing inquiries to understand the sources of the information used by
management (e.g., stakeholder engagement, business plans and
strategy documents); and
- reviewing the Group’s internal documentation of its Process; and
• evaluated whether the assurance evidence obtained from our procedures
about the Process implemented by the Group was consistent with the
description of the Process set out in section ‘Description of the processes to
identify and assess material impact, risks and opportunities (1.4.1)’ of the
sustainability information.
In conducting our limited assurance engagement with respect to the
sustainability information, we have amongst others:
• obtained an understanding of the Group’s reporting processes relevant to the
preparation of its sustainability information by, through the performance of
inquiries, obtaining an understanding of the Group’s control environment,
relevant processes and information systems for the preparation of the
sustainability information;
• evaluated whether material information identified by the Process is included
in the sustainability information;
• evaluated whether the structure and the presentation of the sustainability
information is in accordance with the ESRS;
• performed inquiries of relevant personnel and analytical procedures on
selected disclosures in the sustainability information;

Independent auditor’s limited assurance report on the consolidated
sustainability information of
KBC Group NV
Document Classification: KPMG Public
7
• performed substantive assurance procedures based on the basis of a limited
sample on selected disclosures in the sustainability information;
• obtained assurance evidence on the methods for developing material
estimates and forward-looking information as further described in the
“Responsibilities of the Independent auditor for the limited assurance
engagement on the sustainability information” section of our report;
• obtained an understanding of the process of the Group to identify taxonomy-
eligible and taxonomy-aligned economic activities and the corresponding
disclosures in the sustainability information.
Information about the independence
Our audit firm and our network have not performed any engagement which is
incompatible with the limited assurance engagement and our audit firm remained
independent of the Group during the term of our mandate.
Zaventem, March 28, 2025
KPMG Bedrijfsrevisoren
Independent Auditor
represented by
Kenneth Vermeire
Bedrijfsrevisor
Steven Mulkens
Bedrijfsrevisor

240 Annual Report KBC Group 2024
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241Annual Report KBC Group 2024
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242 Annual Report KBC Group 2024
Consolidated
financial
statements
Abbreviations used
• AC = amortised cost
• BBA = building block approach
• CSM = contractual service margin
• FVO = fair value option (designated upon initial recognition at fair value
through profit or loss)
• FVOCI = fair value through other comprehensive income
• FVPL = fair value through profit or loss
• HFT = held for trading
• IFIE = Insurance finance income and expense
• MFVPL = mandatorily measured at fair value through profit or loss
• OCI = other comprehensive income
• PAA = premium allocation approach
• POCI = purchased or originated credit impaired assets
• VFA = variable fee approach

243Annual Report KBC Group 2024
Consolidated income statement
(in millions of EUR) Note 2024 2023
Net interest income 3.1
5 574 5 473
Interest income 3.1 19 746 20 170
Interest expense 3.1 -14 172 -14 697
Insurance revenues before reinsurance 3.6 2 945 2 679
Non-life 3.6 2 482 2 280
Life 3.6 463 399
Dividend income 3.2 57 59
Net result from financial instruments at fair value through profit or loss and Insurance finance income
and expense (for insurance contracts issued)
3.3
-168 9
Net result from financial instruments at fair value through profit or loss 3.3 173 322
Insurance finance income and expense (for insurance contracts issued) 3.6 -341 -313
Net fee and commission income 3.4 2 578 2 349
Fee and commission income 3.4 3 253 2 991
Fee and commission expense 3.4 -675 -642
Net other income 3.5 181 656
TOTAL INCOME 11 167 11 224
Operating expenses (excluding directly attributable to insurance contracts) 3.7 -4 565 -4 616
Total operating expenses excluding bank and insurance tax 3.7 -4 474 -4 438
Bank and insurance tax 3.7 -623 -687
Less: operating expenses attributed to insurance service expenses 3.7 532 509
Insurance service expenses before reinsurance 3.6 -2 475 -2 120
Of which: insurance commissions paid 3.6 -383 -340
Non-life 3.6 -2 179 -1 870
Of which Non-life claim-related expenses 3.6 -1 414 -1 157
Life 3.6 -296 -251
Net result from reinsurance contracts held 3.6 -17 -90
Impairment 3.9 -248 -215
on financial assets at amortised cost and at fair value through OCI 3.9 -199 16
on goodwill 3.9 0 -109
other 3.9 -49 -122
Share in results of associated companies and joint ventures 3.10 80 -4
RESULT BEFORE TAX 3 941 4 179
Income tax expense 3.11 -527 -778
Net post-tax result from discontinued operations – 0 0
RESULT AFTER TAX – 3 414 3 401
attributable to minority interests – -1 -1
attributable to equity holders of the parent – 3 415 3 402
Earnings per share (in EUR)
Ordinary 3.12 8.33 8.04
Diluted 3.12 8.33 8.04
• We have dealt with the main items in the income statement in the ‘Report of the Board of Directors’ under the ‘Our
financial report’ and ‘Our business units’ sections. The statutory auditor has not audited these sections.
• Since 2024, ‘Net result from financial instruments at fair value through profit or loss’ and ‘Insurance finance income and
expense (for insurance contracts issued)’ are shown on the same line, with retroactive restatement of the 2023 figures
(see Note 3.3 for more details).
• The breakdown of interest income and interest expense on financial instruments calculated using the effective interest
rate method and on other financial instruments (not calculated using the effective interest rate method) is provided in
Note 3.1.
• For a breakdown of the operating expenses by nature, see Note 3.7.
• The impact of the most important acquisitions and disposals made in 2024 and 2023 is set out in Note 6.6.

244 Annual Report KBC Group 2024
Consolidated statement of comprehensive income
(in millions of EUR) 2024 2023
RESULT AFTER TAX
3 414 3 401
attributable to minority interests -1 -1
attributable to equity holders of the parent 3 415 3 402
OCI THAT MAY BE RECYCLED TO PROFIT OR LOSS -370 370
Net change in revaluation reserve (FVOCI debt instruments) -88 499
Fair value adjustments before tax -118 635
Deferred tax on fair value changes 35 -144
Transfer from reserve to net result -5 7
Impairment -2 1
Net gains/losses on disposal -2 7
Deferred taxes on income -1 -1
Net change in hedging reserve (cashflow hedges) 72 358
Fair value adjustments before tax -8 387
Deferred tax on fair value changes 10 -74
Transfer from reserve to net result 70 45
Gross amount 101 61
Deferred taxes on income -30 -15
Net change in translation differences -227 -115
Gross amount -227 -115
Deferred taxes on income 0 0
Hedge of net investments in foreign operations 42 52
Fair value adjustments before tax 48 84
Deferred tax on fair value changes -12 -23
Transfer from reserve to net result 6 -10
Gross amount 8 -13
Deferred taxes on income -2 3
Insurance finance income and expense for (re)insurance contracts issued -166 -428
Present value adjustments before tax
-225 -561
Deferred tax on present value changes 58 134
Transfer from reserve to net result 0 0
Gross amount 0 0
Deferred taxes on income 0 0
Insurance finance income and expense of reinsurance contracts held 0 6
Gross amount 0 7
Deferred taxes on income 0 -2
Net change in respect of associated companies and joint ventures 0 0
Gross amount 0 0
Deferred taxes on income 0 0
Other movements -2 -1
OCI THAT WILL NOT BE RECYCLED TO PROFIT OR LOSS 247 125
Net change in revaluation reserve (FVOCI equity instruments) 178 159
Fair value adjustments before tax 179 161
Deferred tax on fair value changes -1 -2
Net change in defined benefit plans 69 -34
Remeasurements 92 -43
Deferred tax on remeasurements -23 10
Net change in own credit risk 0 0
Fair value adjustments before tax 0 0
Deferred tax on fair value changes 0 0
Net change in respect of associated companies and joint ventures 0 0
Remeasurements 0 0
Deferred tax on remeasurements 0 0
TOTAL COMPREHENSIVE INCOME 3 292 3 896
attributable to minority interests -1 -1
attributable to equity holders of the parent 3 292 3 897

245Annual Report KBC Group 2024
• Revaluation reserves in 2024:
- The net change in the ‘revaluation reserve (FVOCI debt instruments)’ came to -88 million euros, which was mainly
accounted for by the higher interest rates of primarily government bonds in most countries, partly offset by the
unwinding effect of the negative outstanding revaluation reserve.
- The net change in the hedging reserve (cashflow hedge) of +72 million euros was mainly attributable to the unwinding
effect of the negative outstanding hedging reserve.
- The net change in translation differences of -227 million euros was caused primarily by the depreciation of the Czech
koruna and the Hungarian forint against the euro. This was partly offset by the hedge of net investments in foreign
entities (+42 million euros). The hedging policy of foreign exchange participations is aimed at stabilising the group
capital ratio (and not the equity).
- The net change in insurance finance income and expense for (re)insurance contracts issued and held (-166 million
euros) was mainly accounted for by a transfer of Belgian individual pension agreements from the ‘Risk and Savings’
portfolio to the ‘Hybrid products’ portfolio (see Note 5.6), the decrease in the risk-free rate in euro and the unwinding
effect of the outstanding positive insurance finance income and expense through OCI.
- The net change in the ‘revaluation reserve (FVOCI equity instruments)’ came to +178 million euros, which was largely
attributable to positive changes in fair value driven by higher stock markets.
- The net change in defined benefit plans (+69 million euros) was mainly accounted for by the impact of lower inflation
and the positive return on plan assets, partly offset by a slightly lower discount rate applied to the liabilities.
• Revaluation reserves in 2023:
- The net change in the ‘revaluation reserve (FVOCI debt instruments)’ came to +499 million euros, which was mainly
accounted for by the lower interest rates and the unwinding effect of the negative outstanding revaluation reserve.
- The net change in the hedging reserve (cashflow hedge) of +358 million euros was mainly attributable to the unwinding
effect of the negative outstanding hedging reserve and positive mark-to-market on receiver swaps due to lower
interest rates.
- The net change in translation differences of -115 million euros was caused primarily by the depreciation of the Czech
koruna against the euro, partly offset by the appreciation of the Hungarian forint against the euro. This was partly
offset by the hedge of net investments in foreign entities (+52 million euros). The hedging policy of foreign exchange
participations is aimed at stabilising the group capital ratio (and not the equity).
- The net change in insurance finance income and expense for (re)insurance contracts issued and held (-422 million
euros) was mainly accounted for by the lower interest rates and the unwinding effect of the outstanding positive
insurance finance income and expense through OCI.
- The net change in the ‘revaluation reserve (FVOCI equity instruments)’ came to +159 million euros, which was largely
attributable to positive changes in fair value driven by higher stock markets.
- The net change in defined benefit plans of -34 million euros was accounted for by the impact of the lower discount
rate applied to the liabilities, partly offset by the lower expected inflation rate and the positive returns on plan assets.

246 Annual Report KBC Group 2024
Consolidated balance sheet
(in millions of EUR) Note 31-12-2024 31-12-2023
ASSETS
Cash, cash balances with central banks and other demand deposits with credit institutions – 46 834 34 530
Financial assets 4.0 318 540 306 047
Amortised cost 4.0 265 875 263 625
Fair value through OCI 4.0 24 261 18 587
Fair value through profit or loss 4.0 28 132 23 539
of which held for trading 4.0 10 509 8 327
Hedging derivatives 4.0 271 295
Reinsurance assets 5.6 119 64
Profit/loss on positions in portfolios hedged against interest rate risk – -1 930 -2 402
Tax assets 5.2 1 002 900
Current tax assets 5.2 59 176
Deferred tax assets 5.2 942 724
Non-current assets held for sale and disposal groups - 1 4
Investments in associated companies and joint ventures 5.3 116 30
Property and equipment and investment property 5.4 3 981 3 702
Goodwill and other intangible assets 5.5 2 475 2 355
Other assets 5.1 1 911 1 691
TOTAL ASSETS 373 048 346 921
LIABILITIES AND EQUITY
Financial liabilities 4.0 328 723 303 116
Amortised cost 4.0 306 050 280 874
Fair value through profit or loss 4.0 22 356 21 840
of which held for trading 4.0 5 677 7 050
Hedging derivatives 4.0 316 401
Insurance contract liabilities 5.6 17 111 16 784
Non-life 5.6 3 186 2 922
Life 5.6 13 925 13 862
Profit/loss on positions in portfolios hedged against interest rate risk – -386 -505
Tax liabilities 5.2 470 472
Current tax liabilities 5.2 121 99
Deferred tax liabilities 5.2 349 373
Liabilities associated with disposal groups - 0 0
Provisions for risks and charges 5.7 141 183
Other liabilities 5.8 2 678 2 611
TOTAL LIABILITIES 348 737 322 661
Total equity 5.10 24 311 24 260
Parent shareholders’ equity 5.10 22 447 22 010
Additional tier-1 instruments included in equity 5.10 1 864 2 250
Minority interests – 0 0
TOTAL LIABILITIES AND EQUITY 373 048 346 921
• An analysis of the most material items on the balance sheet can be found in the ‘Report of the Board of Directors’ section
under ‘Our financial report’. The statutory auditor has not audited that section.

247Annual Report KBC Group 2024
Consolidated statement of changes in equity
(in millions of EUR)
Issued and
paid up
share
capital
Share
premium
Treasury
shares
Retained
earnings
Total
revaluation
reserves
Parent
sharehol-
ders’
equity
Additional
tier-1
instru-
ments
included
in equity
Minority
interests
Total
equity
2024
Balance at the beginning of the period 1 461 5 548 -497 14 332 1 166 22 010 2 250 0 24 260
Restatement related to previous years - - - -41 - -41 - - -41
Restated balance at the beginning of the period 1 461 5 548 -497 14 290 1 166 21 968 2 250 0 24 219
Net result for the period 0 0 0 3 415 0 3 415 0 -1 3 414
Other comprehensive income for the period 0 0 0 -2 -121 -123 0 0 -123
Subtotal 0 0 0 3 413 -121 3 292 0 -1 3 292
Dividends 0 0 0 -1 942 0 -1 942 0 0 -1 942
Coupon on additional tier-1 instruments 0 0 0 -84 0 -84 0 0 -84
Issue/repurchase of additional tier-1 instruments 0 0 0 -2 0 -2 -386 0 -388
Capital increase 1 16 0 0 0 17 0 0 17
Transfer from revaluation reserves to retained earnings
upon realisation
0 0 0 47 -47 0 0 0 0
Purchase/sale of treasury shares 0 0 -803 0 0 -803 0 0 -803
Change in scope 0 0 0 0 0 0 0 0 0
Change in minority interests 0 0 0 0 0 0 0 1 1
Total change 1 16 -803 1 433 -168 478 -386 0 93
Balance at the end of the period 1 462 5 564 -1 300 15 724 997 22 447 1 864 0 24 311
2023
Balance at the beginning of the period 1 461 5 542 0 12 626 690 20 319 1 500 0 21 819
Net result for the period 0 0 0 3 402 0 3 402 0 -1 3 401
Other comprehensive income for the period 0 0 0 -1 497 495 0 0 495
Subtotal 0 0 0 3 400 497 3 897 0 -1 3 896
Dividends 0 0 0 -1 663 0 -1 663 0 0 -1 663
Coupon on additional tier-1 instruments 0 0 0 -50 0 -50 0 0 -50
Issue/repurchase of additional tier-1 instruments 0 0 0 -3 0 -3 750 0 747
Capital increase 0 6 0 0 0 7 0 0 7
Transfer from revaluation reserves to retained earnings
upon realisation
0 0 0 21 -21 0 0 0 0
Purchase/sale of treasury shares 0 0 -497 0 0 -497 0 0 -497
Change in scope 0 0 0 0 0 0 0 1 1
Change in minority interests 0 0 0 0 0 0 0 0 0
Total change 0 6 -497 1 705 476 1 691 750 0 2 441
Balance at the end of the period 1 461 5 548 -497 14 332 1 166 22 010 2 250 0 24 260
Composition of the ‘Total revaluation reserves’ column in the previous table (in millions of EUR) 31-12-2024 31-12-2023
Total
997 1 166
Revaluation reserve (FVOCI debt instruments) -684 -596
Revaluation reserve (FVOCI equity instruments) 353 222
Hedging reserve (cashflow hedges) -507 -579
Translation differences -468 -240
Hedge of net investments in foreign operations 169 127
Remeasurement of defined benefit plans 503 434
Own credit risk through equity 0 0
Insurance finance income and expense after reinsurance 1 633 1 799

248 Annual Report KBC Group 2024
• An explanation of the changes in the revaluation reserves is provided under ‘Consolidated statement of comprehensive
income’.
• For information on the shareholder structure, see the ‘Report of the Board of Directors’ in the ‘Corporate governance
statement’ section.
• ‘Restatement related to previous years’ involves an adjustment of the tax calculation in the Czech Republic. Given the
relatively limited impact, the balance sheet and income statement were not retroactively restated.
• For information on capital increases, additional tier-1 instruments, treasury share buybacks and the number of shares, see
Note 5.10.
• The ‘Dividends’ item in 2024 (1.9 billion euros) includes the final dividend of 3.15 euros per share and the exceptional interim
dividend of 0.70 euros per share (both paid in May 2024) and the interim dividend of 1.00 euro per share (paid in November
2024). The ‘Dividends’ item in 2023 (1.7 billion euros) includes the final dividend of 3.00 euros per share (paid in May 2023)
and the interim dividend of 1.00 euro per share (paid in November 2023).
• We propose to the General Meeting of Shareholders of 30 April 2025 a total dividend of 4.85 euros per share entitled to
dividend related to 2024. That amount includes 0.70 euros per share already paid in May 2024, reflecting the surplus
capital exceeding the 15% fully loaded CET1 capital threshold at year-end 2023, and 4.15 euros per share, comprising an
interim dividend of 1 euro per share, which was already paid in November 2024, and the remaining 3.15 euros per share,
payable in May 2025. Note that shares repurchased under the share buyback programme completed in 2024 are
excluded from the calculation of the number of shares entitled to dividend (see also ‘Abridged company annual accounts’
elsewhere in this annual report).

249Annual Report KBC Group 2024
Consolidated cashflow statement
(in millions of EUR) Reference
1
2024 2023
OPERATING ACTIVITIES
Result before tax
Cons. income statement
3 941 4 179
Adjustments for: –
Result before tax from discontinued operations
Cons. income statement
0 0
Depreciation, impairment and amortisation of property and equipment, intangible fixed assets,
investment property and securities
3.9, 4.2, 5.4, 5.5
461 650
Profit/Loss on the disposal of investments – -27 -461
Change in impairment on loans and advances
3.9
201 -17
Change in insurance contract liabilities (before reinsurance)
5.6
-129 -246
Changes in reinsurance contracts held
5.6
17 90
Changes in other provisions
5.7
-2 -145
Other unrealised gains/losses – 475 421
Income from associated companies and joint ventures
3.10
-80 4
Cashflows from operating profit before tax and before changes in operating assets and liabilities – 4 858 4 473
Changes in operating assets (excluding cash and cash equivalents) – -20 001 -7 709
Financial assets at amortised cost (excluding debt securities)
4.1
-9 404 -4 990
Financial assets at fair value through OCI
4.1
-5 670 -1 208
Financial assets at fair value through profit or loss
4.1
-4 690 -1 645
of which financial assets held for trading
4.1
-2 196 97
Hedging derivatives
4.1
23 246
Reinsurance assets – -44 -44
Operating assets associated with disposals, and other assets – -217 -68
Changes in operating liabilities (excluding cash and cash equivalents) – 25 691 -16 426
Financial liabilities at amortised cost
4.1
24 486 -16 475
Financial liabilities at fair value through profit or loss
4.1
836 -452
of which financial liabilities held for trading
4.1
-1 355 -2 013
Hedging derivatives
4.1
-92 212
Insurance contract liabilities
5.6
280 302
Operating liabilities associated with disposal groups, and other liabilities – 180 -13
Income taxes paid
3.11
-699 -532
Net cash from or used in operating activities 9 848 -20 194
INVESTING ACTIVITIES
Purchase of debt securities at amortised cost
4.1
-5 796 -11 124
Proceeds from the repayment of debt securities at amortised cost
4.1
6 876 7 620
Acquisition of a subsidiary or a business unit, net of cash acquired (including increases in percentage
interest held)
6.6
0 -4
Proceeds from the disposal of a subsidiary or business unit, net of cash disposed of (including decreases in
percentage interest held)
–
0 6 480
Purchase of shares in associated companies and joint ventures – -6 -1
Proceeds from the disposal of shares in associated companies and joint ventures – 0 23
Dividends received from associated companies and joint ventures – 0 0
Purchase of investment property
5.4
-149 -35
Proceeds from the sale of investment property
5.4
16 87
Purchase of intangible fixed assets (excluding goodwill)
5.5
-387 -370
Proceeds from the sale of intangible fixed assets (excluding goodwill)
5.5
14 3
Purchase of property and equipment
5.4
-995 -988
Proceeds from the sale of property and equipment
5.4
341 290
Net cash from or used in investing activities -86 1 982
FINANCING ACTIVITIES
Purchase or sale of treasury shares
Cons. statement of
changes in equity
-803 -497
Issue or repayment of promissory notes and other debt securities
4.1
1 287 5 958
Proceeds from or repayment of subordinated liabilities
4.1
224 519
Proceeds from the issuance of share capital
Cons. statement of
changes in equity
17 7
Issue of additional tier-1 instruments
Cons. statement of
changes in equity
-388 747
Dividends paid
Cons. statement of
changes in equity
-1 942 -1 663
Coupon on additional tier-1 instruments
Cons. statement of
changes in equity
-84 -50
Net cash from or used in financing activities -1 689 5 021

250 Annual Report KBC Group 2024
CHANGE IN CASH AND CASH EQUIVALENTS
Net increase or decrease in cash and cash equivalents – 8 072 -13 191
Cash and cash equivalents at the beginning of the period – 53 961 67 481
Effects of exchange rate changes on opening cash and cash equivalents – -626 -330
Cash and cash equivalents at the end of the period – 61 407 53 961
ADDITIONAL INFORMATION
Interest paid
2
3.1
-14 172 -14 697
Interest received
2
3.1
19 746 20 170
Dividends received (including equity method)
3.2
57 59
COMPONENTS OF CASH AND CASH EQUIVALENTS
Cash and cash balances with central banks and other demand deposits with credit institutions
Cons. balance sheet
46 834 34 530
Term loans to banks at not more than three months (excluding reverse repos)
4.1
225 222
Reverse repos up to three months with credit institutions and investment firms
4.1
20 804 25 345
Deposits from banks repayable on demand
4.1
-6 456 -6 136
Cash and cash equivalents belonging to disposal groups – 0 0
Total – 61 407 53 961
of which not available – 0 0
1 The notes referred to do not always contain the exact same amounts as those included in the cashflow statement, as – among other things – adjustments have been made to take
account of acquisitions or disposals of subsidiaries, as set out in IAS 7.
2
‘Interest paid’ and ‘Interest received’ in this overview are the equivalent of the ‘Interest expense’ and ‘Interest income’ items in the consolidated income statement. Given the large
number of underlying contracts that generate interest expense and interest income, it would take an exceptional administrative effort to establish actual cashflows. Moreover, it is
reasonable to assume that actual cashflows for a bank-insurance company do not differ much from the accrued interest expense and accrued interest income, as most rate products
pay interest regularly within the year.
• KBC uses the indirect method to report on cashflows from operating activities.
• Net cash from or used in operating activities:
In 2024, this item included growth in customer deposits (related in part to the recovery of the outflow to the Belgian
State Note in 2023) and a strong increase in repos, partly offset by a decrease in deposits from credit institutions
(including the repayment of the remaining 2.6 billion euros borrowed under TLTRO III) and certificates of deposit as well
as an increase in loans and advances to customers and debt instruments;
In 2023, this item included a repayment of part of the amount borrowed under TLTRO III (12.9 billion euros), lower
demand deposits and savings deposits (partly due to the outflow to the Belgian State Note in September 2023), lower
repos and higher mortgage loans and term loans, partly offset by growth in certificates of deposit and time deposits.
• Net cash from or used in investing activities:
In 2024, this item included additional net investments in tangible and intangible fixed assets (-1 160 million euros), partly
offset by a decrease in debt securities at amortised cost (+1 080 million euros);
In 2023, this item included the cash proceeds from the finalisation of the sale in Ireland, partly offset by additional
investments in debt securities at amortised cost.
• Net cash from or used in financing activities:
In 2024, this item included the dividend payout (-1.9 billion euros), treasury share buybacks (-0.8 billion euros) and the
issue or repayment of promissory notes and other debt securities (+1.3 billion euros; KBC IFIMA, KBC Group NV and KBC
Bank NV accounted for the bulk of the figure for 2024, which related primarily to 3.4 billion euros’ worth of these
instruments being issued and 2.4 billion euros being redeemed). Furthermore, net cash related to financing activities
was impacted by the issue of subordinated liabilities (+0.2 billion euros, with 1.5 billion euros’ worth of these instruments
being issued and 1.4 billion euros being redeemed; KBC Group NV accounted for the bulk of the figure), and AT1 (with
+0.75 billion euros’ worth of these instruments being issued and 1.14 billion euros being redeemed);
In 2023, this item included the dividend payout (-1.7 billion euros), treasury share buybacks (-0.5 billion euros) and the
issue or repayment of promissory notes and other debt securities (+6.0 billion euros). KBC IFIMA, KBC Group NV, ČSOB
in the Czech Republic and KBC Bank NV accounted for the bulk of the figure for 2023, which related primarily to 8.6
billion euros’ worth of these instruments being issued and 2.7 billion euros being redeemed. This item also included the
issue or repayment of subordinated liabilities (+0.5 billion euros; KBC Group NV accounted for the bulk of the figure)
and the issue of a new additional tier-1 instrument (+0.75 billion euros).

251Annual Report KBC Group 2024
1.0 Notes on the accounting policies
Note 1.1: Statement of compliance
The consolidated financial statements of KBC Group NV, including all the notes, were authorised for issue on 13 March 2025
by the Board of Directors.
They have been prepared in accordance with the IFRS Accounting Standards as adopted by the
European Union (‘endorsed IFRS’) and present one year of comparative information.
All amounts are shown in millions of euros
and rounded to the million (unless otherwise stated).
The following standards became effective on 1 January 2024:
• The IASB has published several limited amendments to existing IFRSs, the impact of which is negligible for KBC.
The following IFRS standards were issued but not yet effective in 2024. KBC will apply these standards when they become
mandatory.
• IFRS 18 (Presentation and Disclosure in Financial Statements), applicable from 2027, with limited impact on the
presentation and disclosures;
• IFRS 19 (Subsidiaries without public accountability), with no impact expected;
• The IASB has published several limited amendments to existing IFRSs and IFRICs. They will be applied when they become
mandatory, but their impact is currently estimated to be negligible.
As of 1 January 2024, we have revised our multi-tier approach for the assessment of a significant increase in credit risk. The
indicators based on a 12-month probability of default (‘Internal rating’ and ‘Internal rating backstop’) were replaced by an
assessment based on lifetime probability of default (LTPD) and a watch list indicator. KBC applied the revised approach for
the first time in the first quarter of 2024. This resulted in an ECL release of 17 million euros, recognised in ‘Impairment on financial
assets at AC and at FVOCI’. See also under ‘Significant increase in credit risk since initial recognition’ in Note 1.2.
Presentation of the income statement: since 2024, we present ‘Net result from financial instruments at fair value through profit
or loss’ and ‘Insurance finance income and expense (for insurance contracts issued)’ on the same line, with retroactive
restatement of the 2023 figures (also see Note 3.3).
The loan portfolio accounts for the largest share of the financial assets. Based on internal management reports, the
composition and quality of the loan portfolio is set out in detail in the ‘How do we manage our risks?’ section (under ‘Credit
risk’). All parts of that particular section which have been audited by the statutory auditor are specified in that section.
As a bank-insurance group, KBC presents banking and insurance information in its financial statements on an integrated
basis. Information relating specifically to our banking business and to our insurance business is provided separately in the
respective annual reports of KBC Bank and KBC Insurance under ‘Information on KBC Bank’ and ‘Information on KBC
Insurance’ at www.kbc.com > Investor Relations.

252 Annual Report KBC Group 2024
Note 1.2: Summary of material accounting policies
General / Basic principle
The general accounting principles of KBC Group NV (‘KBC’) are based on the IFRS Accounting Standards, as adopted by the
European Union, and on the IFRS Framework.
The financial statements of KBC are prepared based on the going concern
assumption. KBC presents each material class of similar items separately.
Dissimilar items are presented separately unless
they are immaterial, and items are only offset when explicitly required or permitted by the relevant IFRS.
Financial assets
KBC has applied all the requirements of IFRS 9 since 1 January 2018, except for hedge accounting transactions, which
continue to be accounted for in accordance with IAS 39.
Financial assets – recognition and derecognition
Recognition: financial assets and liabilities are recognised in the balance sheet when KBC becomes party to the contractual
provisions of the instruments. Regular-way purchases or sales of financial assets are recognised using settlement date
accounting. All financial assets – except those measured at fair value through profit or loss – are measured initially at fair
value plus transaction costs directly attributable to their acquisition.
Derecognition and modification: KBC derecognises a financial asset when the contractual cashflows from the asset expire
or when KBC transfers its rights to receive contractual cashflows from the financial asset in a transaction in which substantially
all the risks and rewards of ownership are transferred. If the terms and conditions change during the term of a financial asset,
KBC assesses whether the new terms are substantially different from the original ones and whether the changes indicate that
the rights to the cashflows from the instrument have expired. If it is concluded that the terms are substantially different, the
transaction is accounted for as a financial asset derecognition, which means that the existing financial asset is removed from
the balance sheet and that a new financial asset is recognised based on the revised terms. Conversely, when KBC assesses
that the terms are not substantially different, the transaction is accounted for as a financial asset modification.
Write-offs: KBC writes off the gross carrying value of financial assets (or the part of the gross carrying value) it deems
uncollectable. This means that there is no reasonable expectation that KBC will recover any interest or principal in a timely
manner. The timing of write-offs depends on several factors, including the portfolio, the existence and type of collateral, the
settlement process in each jurisdiction, and local legislation. If a loan is uncollectable, the gross carrying value is written off
directly against the corresponding impairment. Recoveries of amounts previously written off are recognised as reversals of
impairments in the income statement. KBC differentiates between write-offs for financial reporting purposes (which are still
subject to credit enforcement activities) and debt forgiveness. The latter entails the forfeiture of the legal right to recover all
or part of the debt outstanding to the client.
Classification of debt instruments and equity instruments
On initial recognition of a financial asset, KBC first assesses the contractual terms of the instrument in order to classify it as
an equity instrument or a debt instrument. An equity instrument is defined as any contract that evidences a residual interest
in another entity’s net assets. To satisfy this condition, KBC checks that the instrument does not include a contractual
obligation requiring the issuer to deliver cash or exchange financial assets or financial liabilities with another entity under
conditions that are potentially unfavourable to the issuer. Any instruments that do not meet the criteria to qualify as equity
instruments are classified as debt instruments by KBC, with the exception of derivatives.

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Classification and measurement – debt instruments
If KBC concludes that a financial asset is a debt instrument, then – upon initial recognition – it can be classified in one of the
following categories:
• Measured at fair value through profit or loss (FVPL);
- Mandatorily measured at fair value through profit or loss (MFVPL) – this category includes held-for-trading instruments
(HFT);
- Designated upon initial recognition at fair value through profit or loss (FVO);
• Measured at fair value through other comprehensive income (FVOCI);
• Measured at amortised cost (AC).
Debt instruments have to be classified in the FVPL category where (i) they are not held within a business model whose
objective is to hold assets in order to collect contractual cashflows or within a business model whose objective is achieved
by both collecting contractual cashflows and selling financial assets or, alternatively, (ii) they are held within a business model
but, on specified dates, the contractual terms of the instrument give rise to cashflows that are not solely payments of principal
and interest on the principal amount outstanding.
Furthermore, KBC may in some cases – on initial recognition – irrevocably designate a financial asset that otherwise meets
the requirements to be measured at AC or at FVOCI as at fair value (FVO) if doing so eliminates or significantly reduces an
accounting mismatch that would otherwise arise.
A debt instrument is measured at FVOCI only if it meets both of the following conditions and is not designated to be measured
at FVO:
• The asset is held within a business model whose objective is achieved by both collecting contractual cashflows and selling
financial assets;
• The contractual terms of the financial asset give rise on specified dates to cashflows that are solely payments of principal
and interest on the principal amount outstanding.
A debt instrument is measured at AC only if it meets both of the following conditions and is not designated to be measured
at FVO:
• The asset is held within a business model whose objective is to hold assets in order to collect contractual cashflows;
• The contractual terms of the financial asset give rise on specified dates to cashflows that are solely payments of principal
and interest on the principal amount outstanding.
Business model assessment
The business model is assessed to determine whether debt instruments should be measured at AC or FVOCI. In performing
the assessment, KBC reviews at portfolio level the objective of the business model in which an asset is held because this best
reflects how the business is managed and how information is provided to management. The information considered includes:
• the stated policies and objectives for the portfolio and how those policies operate in practice (in particular, whether
management’s strategy focuses on earning contractual interest income, maintaining a specific interest rate profile,
matching the duration of the financial assets to that of the liabilities that fund those assets, or realising cashflows through
the sale of the assets);
• how the performance of the portfolio is evaluated and reported to KBC’s Executive Committee and Board of Directors;
• the risks that affect the performance of the business model (and the financial assets held within that model) and how
those risks are managed;
• how managers of the business are rewarded (for instance, whether remuneration is based on the fair value of the assets
managed or the contractual cashflows collected); and
• the frequency, volume and timing of sales in prior periods, the reasons for such sales and KBC’s expectations of future
sales activity. However, information about sales activity is not considered in isolation, but as part of an overall assessment
of how KBC’s stated objective for managing the financial assets is achieved and how cashflows are realised.
Financial assets that are held for trading or whose performance is evaluated on a fair value basis are measured at FVPL,
because they are neither held for collecting contractual cashflows, nor held for both collecting contractual cashflows and
selling financial assets.

254 Annual Report KBC Group 2024
Assessment whether contractual cashflows are solely payments of principal and interest (SPPI)
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’
is defined as consideration for the time value of money and for the credit risk associated with the principal amount
outstanding during a particular period of time and for other basic lending risks and costs (e.g., liquidity risk and administrative
costs), as well as profit margin. In assessing whether contractual cashflows are solely payments of principal and interest, KBC
considers the contractual terms of the instrument, which entails assessing whether the financial asset contains a contractual
term that could change the timing or amount of contractual cashflows such that the instrument would not meet this condition.
In making the assessment, KBC considers:
• contingent events that could change the amount and timing of cashflows;
• leverage features;
• prepayment and extension terms;
• terms that limit KBC’s claim to cashflows from specified assets (e.g., non-recourse asset arrangements); and
• features that modify consideration of the time value of money (e.g., periodic resets of interest rates).
Reclassifications
Financial assets are not reclassified subsequent to their initial recognition except in a period after KBC changes its business
model for managing financial assets, which can occur when KBC begins or ceases to perform an activity that is significant to
its operations (e.g., when KBC acquires, disposes of, or terminates a business line). Reclassification takes place from the start
of the reporting period immediately following the change.
Classification and measurement – equity instruments
Financial equity instruments are classified in one of the following categories:
• Mandatorily measured at fair value through profit or loss (MFVPL) – only includes equity instruments held for trading (HFT);
• Equity instruments elected to be measured at fair value through other comprehensive income (FVOCI).
There is a rebuttable presumption that all equity instruments are to be regarded as FVOCI if held for neither trading nor a
contingent consideration in a business combination to which IFRS 3 applies. The election to include equity instruments in the
FVOCI category is irrevocable on initial recognition and can be done on an investment-by-investment basis, which is
interpreted by KBC as a share-by-share basis. Equity instruments categorised as FVOCI are subsequently measured at fair
value, with all value changes recognised in other comprehensive income and without any recycling to the income statement,
even when the investment is disposed of. The only exception applies to dividend income, which is recognised in the income
statement under ‘Dividend income’.
Classification and measurement – derivatives (trading and hedging)
KBC can recognise derivative instruments either for trading purposes or as hedging derivatives. They can be accounted for
as assets or liabilities depending on their current market value.
Trading derivatives
Derivatives are always measured at fair value and KBC draws distinctions as follows:
• Derivatives that are held with the intent of hedging, but for which hedge accounting cannot be or is not applied (economic
hedges): hedging instruments can be acquired with the intention of economically hedging an external exposure but
without applying hedge accounting. The interest component of these derivatives is recognised under ‘Net interest
income’, while all other fair value changes are recognised under ‘Net result from financial instruments at fair value through
profit or loss’.
• Derivatives held with no intent of hedging (trading derivatives): KBC entities can also contract derivatives without any
intention to hedge a position economically. Such activity can relate to closing or selling an external position in the near
term or for short-term profit-taking purposes. All fair value changes (including interest) on such derivatives are recognised
under ‘Net result from financial instruments at fair value through profit or loss’.
Hedging derivatives
Hedging derivatives are derivatives that are specifically designated in a hedging relationship. The process for accounting for
such derivatives is detailed in ‘Hedge accounting’.

255Annual Report KBC Group 2024
Financial assets – impairment
Definition of default
KBC defines defaulted financial assets in the same way as the definition for internal risk management purposes and in line
with the guidance and standards of financial industry regulators. A financial asset is considered in default if any of the
following conditions is fulfilled:
• There is a significant deterioration in creditworthiness;
• The asset is flagged as non-accrual;
• The asset is forborne and meets the default criteria in accordance with the internal policies for forbearance (for example,
when an additional forbearance measure is extended to a forborne asset that did not reach default status within two
years of the first forbearance measure being granted, or when a forborne asset becomes more than 30 days past due
within the two-year period);
• KBC has filed for the borrower’s bankruptcy;
• The counterparty has filed for bankruptcy or sought similar protection measures;
• The credit facility granted to the client has been terminated.
KBC applies a backstop for facilities whose status is ‘90 days or more past due’. In this context, a backstop is used as a final
control to ensure that all the assets that should have been designated as defaulted are properly identified.
Expected credit loss model (ECL model) – general
The ECL model is used to measure impairment of financial assets.
The scope of the ECL model is based on how financial assets are classified. The model is applicable to the following financial
assets:
• Financial assets measured at AC and at FVOCI;
• Loan commitments and financial guarantees;
• Finance lease receivables;
• Trade and other receivables.
No ECLs are calculated for investments in equity instruments.
Financial assets that are in scope of the ECL model carry impairment in an amount equal to the lifetime ECL if the credit risk
increases significantly after initial recognition. Otherwise, the loss allowance is equal to the 12-month ECL (see below for more
information on the significant increase in credit risk).
To distinguish the various stages with regard to quantifying ECL, KBC uses the internationally accepted terminology for ‘Stage
1’, ‘Stage 2’ and ‘Stage 3’ financial assets. Unless they are already credit impaired, all financial assets are classified in ‘Stage
1’ at the time of initial recognition and 12-month ECL is recognised. Once a significant increase in credit risk occurs after initial
recognition, the asset is moved into ‘Stage 2’ and lifetime ECL is recognised. Once an asset meets the definition of default, it
is moved into ‘Stage 3’.
For trade receivables, IFRS 9 allows for a practical expedient. The ECL for trade receivables can be measured in an amount
equal to their lifetime ECL. KBC applies this practical expedient to trade and other receivables.
Impairment gains and losses on financial assets are recognised under the ‘Impairment’ heading in the income statement.
Financial assets that are measured at AC are presented in the balance sheet at their net carrying value, which is the gross
carrying value less impairment. Debt instruments measured at FVOCI are presented in the balance sheet at their carrying
value, which is their fair value on the reporting date. The adjustment for the ECL is recognised as a reclassification adjustment
between the income statement and OCI.

256 Annual Report KBC Group 2024
Significant increase in credit risk since initial recognition
In accordance with the ECL model, financial assets attract lifetime ECL once their credit risk increases significantly after initial
recognition. Therefore, the assessment of a significant increase in credit risk is important for the staging of financial assets.
The assessment of a significant increase in credit risk is a relative assessment based on the credit risk that was assigned
upon initial recognition. This is a multi-factor assessment and, therefore, KBC has developed a multi-tier approach for both
the bond portfolio and the loan portfolio.
Multi-tier approach (MTA) – bond portfolio
For the bond portfolio, the MTA consists of three tiers:
• Low-credit exception: 12-month ECL is always recognised for bonds if they have a low credit risk on the reporting date
(i.e. ‘Stage 1’). KBC uses this exception for investment grade bonds.
• Lifetime probability of default (LTPD) (only applicable if the first-tier criterion is not met): this is a relative assessment that
compares the lifetime probability of default (LTPD) upon initial recognition to that on the reporting date. The relative
change in LTPD that triggers staging is an increase of 200%.
• Management assessment: lastly, management review and assess the significant increase in credit risk for financial assets
at an individual (i.e. counterparty) and portfolio level, when it is concluded that idiosyncratic events are not adequately
captured in the first two tiers of the MTA. Examples of idiosyncratic events are unexpected developments in the
macroeconomic environment (for example, the coronavirus crisis), uncertainties about geopolitical events (such as a war)
and the secondary impact of material defaults (e.g., on the suppliers, clients and employees of a defaulted company).
If none of these triggers results in a move into ‘Stage 2’, the bond remains in ‘Stage 1’. A financial asset is considered as ‘Stage
3’ as soon as it meets the definition of default. The MTA is symmetrical, i.e. bonds that have been moved into ‘Stage 2’ or
‘Stage 3’ can revert to ‘Stage 1’ or ‘Stage 2’ if the tier criterion that triggered the migration is not met on a subsequent
reporting date.
Loan portfolio
For the loan portfolio, KBC uses a five-tier approach. This MTA is a waterfall approach (i.e. if assessing the first tier does not
result in a move into ‘Stage 2’, the second tier is assessed, and so on). In the end, if all tiers are assessed without triggering a
migration to ‘Stage 2’, the credit remains in ‘Stage 1’.
• Lifetime probability of default (LTPD): the LTPD is used as the main criterion for assessing an increase in credit risk. It is a
relative assessment that compares the lifetime probability of default (LTPD) upon initial recognition to that on the
reporting date. KBC does the assessment at facility level for each reporting period. The relative change in LTPD that
triggers staging is an increase of 200%.
• Forbearance: forborne financial assets are always considered as ‘Stage 2’ unless they are already defaulted, in which
case they are moved into ‘Stage 3’.
• Days past due: KBC uses the backstop defined in the standard. A financial asset that is more than 30 days past due is
moved into ‘Stage 2’.
• Watch list: KBC uses the watch list criterion as a backstop for its loan portfolio to move into ‘Stage 2’. The watch list
includes credit with an increased credit risk but which is not (yet) classified as default/non-performing and which is subject
to enhanced monitoring and review by the bank. KBC does this assessment at client level for each reporting period.
• Management assessment: lastly, management review and assess the significant increase in credit risk for financial assets
at an individual (i.e. counterparty) and portfolio level, when it is concluded that idiosyncratic events are not adequately
captured in the first four tiers of the MTA (see above for a number of examples).
A financial asset in scope of the ECL model is considered as ‘Stage 3’ as soon as it meets the definition of default. The MTA
is symmetrical, i.e. credit that has been moved into ‘Stage 2’ or ‘Stage 3’ can revert to ‘Stage 1’ or ‘Stage 2’ if the tier criterion
that triggered the migration is not met on a subsequent reporting date.

257Annual Report KBC Group 2024
Measurement of ECL
ECL is calculated as the product of probability of default (PD), estimated exposure at default (EAD) and loss given default
(LGD).
ECL is calculated to reflect:
• an unbiased, probability-weighted amount;
• the time value of money; and
• information about past events, current conditions and forecast economic conditions.
Lifetime ECL represents the sum of ECL over the lifetime of the financial asset discounted at the original effective interest
rate.
The 12-month ECL represents the portion of lifetime ECL resulting from a default in the 12-month period after the reporting
date.
KBC uses specific IFRS 9 models for PD, EAD and LGD in order to calculate ECL. As much as possible and to promote efficiency,
KBC uses modelling techniques similar to those developed for prudential purposes (i.e. Basel models). More information on
the credit risk models developed by KBC is provided in the ‘Internal Modelling’ section of the Risk Report at www.kbc.com.
That said, KBC ensures that the Basel models are adapted so they comply with IFRS 9:
• KBC removes the conservatism that is required by the regulator for Basel models;
• KBC adjusts how macroeconomic parameters affect the outcome to ensure that the IFRS 9 models reflect a ‘point-in-
time’ estimate rather than one that is ‘through the cycle’ (as required by the regulator);
• KBC applies forward-looking macroeconomic information in the models.
As regards loans that are in default, the ECL is also calculated as the product of the PD, EAD and LGD. In this specific case,
however, the PD is set at 100%, the EAD is known given the default status and the LGD takes into account the net present
value of the (un)recoverable amount.
KBC uses the IRB and Standardised models to assign the Basel PD, which then serves as input for IFRS 9 ECL calculations and
staging. If there is no Basel PD model with a similar scope to the IFRS 9 model, the long-term observed default rate is used
as the PD for all facilities in the portfolio. For low default portfolios, there may have been no or only a small number of defaults
in the period being considered, in which case the PD is determined based on expert input and external ratings.
KBC considers forward-looking information in the calculation of ECL via macroeconomic variables and based on
management’s assessment of any idiosyncratic events. KBC’s Chief Economist develops three different macroeconomic
scenarios (base-case, up and down) for all the KBC Core Countries and sets a corresponding probability for each scenario.
On a quarterly basis, KBC updates the economic scenarios and attributed weightings to be used for the ECL calculation
based on the input of the Chief Economist. The incorporation of the macroeconomic variables included in these scenarios in
the PD, EAD and LGD components of the ECL calculation is based on statistical correlation in historical datasets.
The maximum period for measurement of ECL is the maximum contractual period (including extensions), except for specific
financial assets that include a drawn and an undrawn amount available on demand, and KBC’s contractual ability to request
repayment of the drawn amount and cancel the undrawn commitment does not limit the exposure to credit risk to the
contractual period. Only for such assets can a measurement period extend beyond the contractual period.
Purchased or originated credit impaired (POCI) assets
KBC defines POCI assets as financial assets in scope of the IFRS 9 impairment standard that are already defaulted at
origination (i.e. they then meet the definition of default). POCI assets are initially recognised at an amount net of impairment
and are measured at amortised cost using a credit-adjusted effective interest rate. In subsequent periods, any changes to
the lifetime ECL are recognised in the income statement. Favourable changes are recognised as an impairment gain, even if
the lifetime ECL on the reporting date is lower than the lifetime ECL at origination.

258 Annual Report KBC Group 2024
Significant judgements and uncertainties
Calculating ECL (and the significant increase in credit risk since initial recognition) requires significant judgement of various
aspects, including the borrowers’ financial position and repayment capabilities, the value and recoverability of collateral,
projections and macroeconomic information. KBC applies a neutral, bias-free approach when dealing with uncertainties and
making decisions based on significant judgements.
Cash, cash balances with central banks and other demand deposits with credit institutions
Cash comprises cash on hand and demand deposits, e.g., cheques, petty cash and cash balances at central and other
banks.
Financial liabilities
Financial instruments or their component parts are classified on initial recognition as liabilities or as equity in accordance with
the substance of the contractual arrangements and the definitions of financial liabilities and equity instruments. A financial
instrument is classified as a liability if:
• KBC has a contractual obligation to deliver cash or another financial asset to the holder or to exchange another financial
instrument with the holder under conditions that are potentially unfavourable to KBC; or
• KBC has a contractual obligation to settle the financial instrument in a variable number of its own shares.
A financial instrument is classified as an equity instrument if neither condition is met. In that case, it is accounted for in the
way set out under ‘Equity’.
Financial liabilities – recognition and derecognition
KBC recognises a financial liability when it becomes party to the contractual provisions of the relevant instrument. This is
typically the date when the consideration in the form of cash or some other financial asset is received. Upon initial recognition,
the financial liability is recognised at fair value less transaction costs directly attributable to issuance of the instrument,
except for financial liabilities at fair value through profit or loss.
Financial liabilities are derecognised when they are extinguished, i.e. the obligation specified in the contract is discharged or
cancelled, or it expires. KBC can also derecognise the financial liability and recognise a new one where an exchange takes
place between KBC and the lenders of the financial liability, each with substantially different terms, or if there are substantial
modifications to the terms of the existing financial liabilities. In assessing whether terms differ, KBC compares the discounted
present value of cashflows under the new terms, including any fees paid net of any fees received and discounted using the
original effective interest rate, and the discounted present value of the remaining cashflows of the original financial liability.
If the difference is 10% or more, KBC derecognises the original financial liability and recognises a new one. Where the
exchange of debt instruments or modification of terms is accounted for as an extinguishment, any costs or fees incurred are
recognised as part of the gain or loss on the extinguishment.
Financial liabilities – classification and measurement
KBC classifies recognised financial liabilities in three different categories, as provided for by IFRS 9:
• Financial liabilities held for trading (HFT). Held-for-trading liabilities are those incurred principally for generating a profit
from short-term fluctuations in price or dealer’s margin. A liability also qualifies as a trading liability if it belongs to a
portfolio of financial instruments held for trading separately by the trading desk and for which there is a recent pattern of
short-term profit-taking. Held-for-trading liabilities can include derivatives, short positions in debt and equity instruments,
time deposits and debt certificates. Derivative liabilities are split by KBC into trading and hedging derivatives as in the
case of derivative assets. Initially, held-for-trading liabilities are measured at fair value. At the end of the reporting period,
derivative liabilities are measured at fair value. Fair value adjustments are always recorded in the income statement.

259Annual Report KBC Group 2024
• Financial liabilities designated by the entity as liabilities at fair value through profit or loss upon initial recognition (FVO).
Under IFRS 9, a financial liability or group of financial liabilities can be measured upon initial recognition at fair value,
whereby fair value changes are recognised in the income statement except for fair value changes related to changes in
own credit risk, which are presented separately in OCI. The fair value designation is used by KBC for the following reasons:
- managed on an FV basis: KBC designates a financial liability or a group of financial liabilities at fair value where it is
managed and its performance is evaluated on a fair value basis. It is used to account for (unbundled) deposit
components (i.e. financial liabilities that do not include a discretionary participation feature);
- Accounting mismatch: the fair value option can be used when doing so eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognising
gains and losses on them on different bases;
- Hybrid instruments: a financial instrument is regarded as hybrid when it contains one or more embedded derivatives
that are not closely related to the host contract. The fair value option can be used when it is not possible to separate
the non-closely-related embedded derivative from the host contract, in which case the entire hybrid instrument can
be designated at fair value. This means that both the embedded derivative and the host contract are measured at
fair value. KBC uses this option when structured products contain non-closely-related embedded derivatives, in which
case both the host contract and the embedded derivative is measured at fair value.
• Financial liabilities measured at amortised cost (AC). KBC classifies most of its financial liabilities under this category,
including those used to fund trading activities where no trading intent is present in them (e.g., issued bonds). These
financial liabilities are initially measured at cost, which is the fair value of the consideration received including transaction
costs. Subsequently, they are measured at amortised cost, which is the amount at which the funding liability was initially
recognised minus principal repayments, plus or minus the cumulative amortisation of any difference between that initial
amount and the maturity amount. The difference between the amount made available and the nominal value is recorded
on an accruals basis as an interest expense. Interest expenses accrued but not yet paid are recorded under accruals and
deferrals.
Financial liabilities – own credit risk
For financial liabilities designated at fair value, IFRS 9 requires the financial liability to be measured at fair value upon initial
recognition. Any changes in fair value are subsequently recognised in the income statement, except for changes in own credit
risk, which are presented separately in OCI.
Accordingly, movements in the fair value of the liability are presented in different places: changes in own credit risk are
presented in OCI and all other fair value changes are presented in the income statement under ‘Net result from financial
instruments at fair value through profit or loss’. Amounts recognised in OCI relating to own credit risk are not recycled to the
income statement even if the liability is derecognised and the amounts are realised. Although recycling is prohibited, KBC
does transfer the amounts in OCI to retained earnings within equity upon derecognition. The only situation in which
presentation of own credit risk in OCI is not applied is where this would create an accounting mismatch in the income
statement. This could arise if there is a close economic relationship between the financial liability designated at fair value (for
which the own credit risk is recognised in OCI), while all changes in fair value of the corresponding financial asset are
measured and recognised at fair value through profit or loss. This is the case with unit-linked investment contracts, where
changes in fair value of the liability position are fully offset by the asset position.
Financial liabilities – financial guarantee contract
A financial guarantee contract is one that requires KBC to make specified payments to reimburse holders for losses they incur
because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt
instrument. A financial guarantee contract is initially recognised at fair value and is subsequently measured at the higher of
(a) the amount determined in accordance with the impairment provisions of IFRS 9 (see ‘Financial assets – impairment’) and
(b) the amount initially recognised less, when appropriate, cumulative amortisation recognised in accordance with the
revenue recognition principle of IFRS 15.
Reverse repos and repos
A reverse repo is a transaction in which KBC purchases a financial asset and simultaneously enters into an agreement to sell
the asset (or a similar asset) at a fixed price on a future date; this agreement is accounted for as a loan or advance, and the
underlying asset is not recognised in the financial statements.
In a repo transaction, KBC sells a security and simultaneously agrees to repurchase it (or a substantially similar asset) at a
fixed price on a future date. KBC continues to recognise the securities in their entirety because it retains substantially all of
the risks and rewards of ownership. The cash consideration received is recognised as a financial asset and the financial
liability is recognised as the obligation to pay the repurchase price.
Offsetting
KBC offsets and presents only a net amount of a financial asset and financial liability in its balance sheet if and only if (i) it
currently has a legally enforceable right to set off the recognised amounts and (ii) it intends either to settle on a net basis or
to realise the asset and settle the liability simultaneously.

260 Annual Report KBC Group 2024
Fair value
KBC defines ‘fair value’ as ‘the price that would be received for sale of an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date’. Fair value is not the amount that an entity would receive
or pay in a forced transaction, involuntary liquidation or distress sale. An imbalance between supply and demand (e.g., fewer
buyers than sellers, thereby forcing prices down) is not the same as a forced transaction or distress sale.
Market value adjustments are recognised on all positions that are measured at fair value, with fair value changes being
reported in the income statement or in OCI. They relate to close-out costs, adjustments for less-liquid positions or markets,
mark-to-model-related valuation adjustments, counterparty risk (credit value adjustment) and funding costs:
• Credit value adjustments (CVAs) are used when measuring derivatives to ensure that their market value is adjusted to
reflect the credit risk of the counterparty. In making this adjustment, both the mark-to-market value of the contract and
its expected future fair value are taken into account. These valuations are weighted based on the counterparty credit
risk that is determined using a quoted Credit Default Swap (CDS) spread, or, if there is no such spread, on the counterparty
credit risk that is derived from bonds whose issuers are similar to the derivative counterparty in terms of rating, sector and
geographical location. A debt value adjustment (DVA) is made for contracts where the counterparty is exposed to KBC.
It is similar to a CVA, but the expected future negative fair value of the contracts is taken into consideration.
• A funding value adjustment (FVA) is a correction made to the fair value of uncollateralised derivatives in order to ensure
that the (future) funding costs or income attached to entering into and hedging such instruments are factored in when
measuring their value.
Hedge accounting
KBC has elected to apply the hedge accounting principles under IAS 39 (EU carve-out version). KBC designates certain
derivatives held for risk management purposes, as well as certain non-derivative financial instruments, as hedging
instruments in qualifying hedging relationships. On initial designation of the hedge, KBC formally documents the relationship
between the hedging instrument(s) and hedged item(s), including the risk management objective and strategy in undertaking
the hedge, together with the method that will be used to assess the effectiveness of the hedging relationship. KBC makes
an assessment, both at inception of the hedging relationship and on an ongoing basis, of whether the hedging instrument(s)
is/are expected to be highly effective in offsetting the changes in the fair value or cashflows of the respective hedged item(s)
during the period for which the hedge is designated, and whether the actual results of each hedge are within a range of 80-
125%. KBC makes an assessment for a cashflow hedge of a forecast transaction of whether it is highly probable to occur and
presents an exposure to variations in cashflows that could ultimately affect the income statement.
KBC uses the following hedge accounting techniques: cashflow hedges, fair value micro-hedges, fair value hedges for a
portfolio of interest rate risk, and hedges of net investments in foreign operations.

261Annual Report KBC Group 2024
Cashflow hedges: if a derivative is designated as the hedging instrument in a hedge of the variability in cashflows attributable
to a particular risk associated with a recognised asset, liability or highly probable forecast transaction that could affect the
income statement, the effective portion of changes in the fair value of the derivative is recognised in OCI and presented in
the hedging reserve (cashflow hedge) within OCI. Any ineffective portion of changes in the fair value of a derivative is
immediately recognised in the income statement under ‘Net result from financial instruments at fair value through profit or
loss’. The amount recognised in OCI is reclassified to the income statement (as a reclassification adjustment in the same
period as the hedged cashflows affect the income statement) under ‘Net interest income’. If the hedging derivative expires
or is sold, terminated or exercised, or the hedge no longer meets the criteria for cashflow hedge accounting, or the hedge
designation is revoked, then hedge accounting is discontinued prospectively. Any cumulative gain or loss existing in OCI at
that time remains in OCI and is recognised under ‘Net result from financial instruments at fair value through profit or loss’
when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer
expected to occur, the cumulative gain or loss that was reported in OCI is immediately recycled to the income statement
under ‘Net result from financial instruments at fair value through profit or loss’.
Fair value micro-hedging: when a derivative is designated as the hedging instrument in a hedge of the change in fair value
of a recognised asset or liability (portfolio of recognised assets or liabilities) or a firm commitment that could affect the income
statement, changes in the fair value of the derivative are immediately recognised in the income statement together with
changes in the fair value of the hedged item that are attributable to the hedged risk (in the same item in the income
statement as the hedged item). However, accrued interest income from interest rate swaps is recognised in ‘Net interest
income’. If the hedging derivative expires or is sold, terminated or exercised, or the hedge no longer meets the criteria for fair
value hedge accounting, or the hedge designation is revoked, then hedge accounting is discontinued prospectively. Any
adjustment up to the point of discontinuation that is made to a hedged item for which the effective interest method is used
is amortised to the income statement as part of the recalculated effective interest rate of the item over its remaining life or
recognised directly when the hedged item is derecognised.
Fair value hedges for a portfolio of interest-rate risk (macro-hedging): the EU’s macro-hedging carve-out means that a group
of derivatives (or proportions of them) can be viewed in combination and jointly designated as a hedging instrument, and
removes some of the limitations on fair value hedge accounting relating to hedging core deposits and underhedging
strategies. Under the EU carve-out, hedge accounting may be applied to core deposits and will be ineffective only when the
revised estimate of the amount of cashflows in scheduled time buckets falls below the designated amount of that bucket.
KBC hedges the interest rate risk of the financial asset portfolios and the financial liability portfolios. Interest rate swaps are
measured at fair value, with fair-value changes being reported in the income statement. Accrued interest income from
interest rate swaps is recognised in ‘Net Interest Income’. The hedged amount of financial assets and liabilities is measured
at fair value as well, with fair value changes being reported in the income statement. For hedged items measured at
amortised cost, the fair value of the hedged amount is presented as a separate item on the assets or liabilities side of the
balance sheet. If a hedge is ineffective, the cumulative fair value change in the hedged amount that was presented as a
separate item on the balance sheet will be amortised to the income statement over the remaining lifetime of the hedged
assets or will be immediately removed from the balance sheet if ineffectiveness is due to derecognition of the corresponding
financial assets and liabilities.
Hedge of net investments in foreign operations: when a derivative instrument or a non-derivative financial instrument is
designated as the hedging instrument in a hedge of a net investment in a foreign operation having a different functional
currency than the direct holding company of the foreign operation, the effective portion of changes in the fair value of the
hedging instrument is recognised in the hedging reserve (investment in foreign operation) in OCI. Any ineffective portion of
the changes in the fair value of the derivative is recognised immediately in the income statement. The amount recognised in
OCI is reclassified to the income statement as a reclassification adjustment on disposal of the foreign operation (which
includes a dividend distribution or capital decrease).

262 Annual Report KBC Group 2024
Insurance contracts
General
Scope
In order to qualify as an insurance contract, the associated insurance risk must be significant even if the insured event is
extremely unlikely to occur, for example catastrophic events such as earthquakes. Whether insurance risk is significant is
assessed on initial recognition of each individual contract on a present value basis.
In general, the following types of contracts within KBC are in scope of IFRS 17: Non-life insurance contracts, reinsurance
contracts (accepted & ceded), Life insurance contracts being the non-unit-linked contracts, the unit-linked contracts, the
hybrid products and investment contracts with discretionary participating features if issued by a KBC insurance entity.
In general, the following types of contracts are out of scope of IFRS 17: investment contracts without discretionary
participating features (IFRS 9), most unit-linked contracts of KBC Insurance Belgium (IFRS 9) as these insurance contracts do
not contain significant insurance risk, credit cards including certain cover issued by a KBC bank entity (IFRS 15), and roadside
assistance contracts (IFRS 15).
Distinct non-insurance components are separated from the insurance components in the contract and thus accounted for
in accordance with the appropriate IFRS.
Level of aggregation
IFRS 17 calculations are performed at an aggregated level, rather than contract by contract, taking into account the following
four dimensions:
• IFRS 17 portfolio (aggregation of contracts subject to similar risks and managed together);
• Annual cohort (year of inception of the policy);
• Profitability of the group of contracts (onerous, profitable, doubtful; assessed at inception);
• Set of contracts (aggregation of contracts with a homogeneous profitability expectation).
Aggregation by IFRS 17 portfolio
IFRS 17 portfolios are country-specific and driven by the local product mix (similar risks) and the way in which the local
insurance business is managed (managed together). As a minimum, the portfolios are broken down as follows:
• Life
Unit-linked
Non-unit-linked
Hybrid products
• Non-life insurance
Personal insurance
Liabilities – MTPL
Liabilities – other than MTPL
Property (including other) other than fully comprehensive
Fully comprehensive
Accepted reinsurance
• Ceded reinsurance
Aggregation by annual cohort
KBC applies annual cohorts (a cohort is a time bucket of contracts issued in the same year), aligned with the start and end
of the financial year of KBC. On 23 November 2021, the EU published a Regulation endorsing IFRS 17 Insurance Contracts,
including the amendments to the original IFRS 17 and a solution for the annual cohort requirement for certain types of
insurance contracts, for use in the European Union. KBC will not apply the European optional exemption from the annual
cohort requirement.

263Annual Report KBC Group 2024
Aggregation by group of contracts: onerous, profitable or doubtful
BBA and VFA – Expected profitability on initial recognition
For contracts measured according to the Building Block Approach (BBA, see below) and the Variable Fee Approach (VFA, see
below), the allocation to the onerous, profitable or doubtful group of contracts (GoC) is determined based on the presence
of a Contractual Service Margin (CSM is the unearned profit in the group of contracts at inception) under different risk
adjustment levels (i.e. compensation for uncertainty in the amount and timing of future cashflows):
• If CSM < 0 when risk adjustment is calculated at a 75% confidence level, onerous group of contracts
• If CSM > 0 when risk adjustment is calculated at a 75% confidence level AND
- if CSM < 0 when the risk adjustment is calculated at a 90% confidence level, doubtful group of contracts
- if CSM > 0 when the risk adjustment is calculated at a 90% confidence level, profitable group of contracts
PAA – Expected profitability on initial recognition
For the Premium Allocation Approach (PAA), facts and circumstances indicating that the group of contracts can be onerous
are assessed by the IFRS 17 expected economic combined ratio of more than 100%. This ratio differs from the externally
published combined ratio. The IFRS 17 expected economic combined ratio is calculated for a set of contracts on an annual
basis. Consequently, the new business of a year is assigned to one specific group of contracts under IFRS 17. In exceptional
cases, when qualitative information reveals facts and circumstances indicating a negative trend in the IFRS 17 expected
economic ratio, a recalculation is performed during the financial year.
Aggregation by set of contracts
A set of contracts is an aggregation of contracts with a homogeneous profitability expectation. A set of contracts (SoC) is
defined such that the conclusion on the expected profitability of the SoC and the associated classification (i.e. profitable,
doubtful or onerous) equals the conclusion that would have been reached if the expected profitability assessment had been
carried out at the level of the individual contract.
Recognition – derecognition
KBC recognises a group of insurance contracts (and accepted reinsurance contracts) it issues from the earliest of the
following:
• The beginning of the coverage period of the group of contracts;
• The date when the first payment from a policyholder in the group becomes due;
• For a group of onerous contracts, when the group becomes onerous.
If there is no contractual due date, the first payment from the policyholder is deemed to be due when it is received.
As time progresses in the cohort, new business can be added to a group of contracts if it meets the initial recognition criteria.
KBC recognises a group of ceded reinsurance contracts held from the earlier of the following:
• The beginning of the coverage period of the group of reinsurance contracts held;
• The date the entity recognises an onerous group of underlying insurance contracts, if the entity entered into the related
ceded reinsurance contract in the group of reinsurance contracts held at or before that date.
KBC delays the recognition of a group of reinsurance contracts held that provide proportionate coverage until the date that
any underlying insurance contract is initially recognised, if that date is later than the beginning of the coverage period of the
group of reinsurance contracts held.
An insurance liability is derecognised from the balance sheet when it is extinguished, i.e. when the obligation specified in the
contract is discharged or cancelled or expires.
Valuation
IFRS 17 applies uniform measurement principles for insurance liabilities that take into account the insurance contract
characteristics.
• The general model, the Building Block Approach (BBA), is applied to most Life products.
• The optional Premium Allocation Approach (PAA) is a simplified measurement model that can be used when meeting the
PAA eligibility criteria and is applied to most Non-life products and reinsurance contracts.
• The Variable Fee Approach (VFA) is an adjusted Building Block Approach for Life insurance contracts where cashflows to
be paid to the policyholder depend significantly (for more than 50%) on the return of the invested assets. This is a
mandatory measurement model when fulfilling the VFA eligibility criteria and is applied to unit-linked products and some
hybrid products of Central European entities.
Only one measurement model can be applied to each IFRS 17 portfolio.
The insurance liabilities represent all rights and obligations arising from insurance contracts issued and consist of two
components, namely a Liability for Remaining Coverage (LRC) and a Liability for Incurred Claims (LIC).
Measurement of Life insurance liabilities
The Life insurance liabilities are mostly valued according to either the BBA or the VFA model:
• Valuation according to the BBA is applied to calculate the liability for non-unit-linked life insurance contracts and for
some hybrid products.

264 Annual Report KBC Group 2024
• Valuation according to the VFA is applied in Central European entities to calculate the liability for unit-linked contracts
and some hybrid products where the cashflows to be paid to the policyholder depend significantly on the return of the
invested assets.
Valuation according to the Building Block Approach (BBA)
The insurance liability consists of the following four blocks:
• Actuarially estimated value of expected future cashflows;
• Discounting to convert the estimation into a present value;
• Risk adjustment as compensation for the uncertainty in the amount and timing of the expected future cashflows;
• Contractual Service Margin (CSM), being the unearned profit that is released from the balance sheet in P&L over the term
of the contract based on services provided, i.e. there are no day one gains.
Estimation of expected future cashflows
The basic principle is that Solvency II cashflows are used to ensure consistency with IFRS 17. The IFRS 17 estimation of future
cashflows deviates from Solvency II on the following points:
• Under Solvency II all expenses are included in the Best Estimate. Under IFRS 17 expenses are divided into directly
attributable costs and non-directly attributable costs. Directly attributable costs are expenses directly related to
insurance contracts. Only these directly attributable costs are included in the estimation of expected future cashflows.
• Under Solvency II contracts where the insurer is at risk, tacit renewals and contracts where the coverage period starts in
the future are within the Solvency II contract boundary. Under IFRS 17 cashflows are within the contract boundary if they
arise from rights and obligations that exist during the reporting period
in which the entity can compel the policyholder to pay the premiums; or
in which the entity has a substantive obligation to provide services.
Contracts under which the insurer provides cover, i.e. under which the insurer is at risk, are within the IFRS 17 contract
boundaries. Tacit renewals for Non-life insurance contracts and contracts with a coverage period starting in the future are
outside the IFRS 17 contract boundaries.
Level of aggregation of projected cashflows: the Solvency II aggregation levels are Lines of Business (LoBs) and risk buckets.
The IFRS 17 unit of account is based on portfolios, cohorts and expected profitability.
Discounting – time value of money
A discount rate is created per currency, in line with the currency of the cashflows. The starting point for the creation of the
curves are observable market prices of a set of assets with multiple durations.
The inflation assumptions for the nominal cashflows and the discount rates are consistent. Inflation is taken into account in
the projection of the cashflows. Notwithstanding the reference to ‘cashflows’, the standard allows the same discount curve
to be applied to all cashflows in the same contract. This simplification is applied at KBC.
For cashflows that vary with underlying items, the discount rate is determined by means of a top-down approach. Cashflows
that vary with underlying items are typically cashflows such as interest-rate guarantees on future premiums that are not fixed
at inception of the contract, future profit sharing, future lapses, etc. A top-down approach is achieved by using a risk-free
rate (i.e. interest rate swap) adjusted with a spread based on a reference portfolio of assets. Such a portfolio is based on the
current asset mix an entity holds. In addition, the discount curve must only reflect the characteristics of the insurance liabilities.
The risk-taking curve is adjusted to exclude the part not related to the insurance liabilities.
Per currency, a Last Liquid Point (LLP) is set at the level of KBC that is consistent for all entities. The LLPs per currency are
defined by taking the last available tenor for the risk-free rate in the relevant currency.

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p. 233
For long-term Life insurance contracts, the cashflows are modelled over a duration of 110 years. The Ultimate Forward Rate
(UFR) is the rate of the 110-year tenor to which the discount curve must converge. This UFR is defined as the sum of an
expected real rate and an expected inflation rate.
For cashflows that do not vary with underlying items, KBC chooses to apply the bottom-up approach. The bottom-up
approach is determined by adding an illiquidity premium on top of a risk-free rate, so that the discount curve reflects the
illiquidity characteristics of the insurance contract liabilities. This approach is used for Non-life liabilities for incurred claims.
The illiquidity premium is the premium demanded by the policyholder because the insurance contract liabilities cannot be
easily converted into cash at fair market value.
Risk adjustment of Life insurance liabilities
The risk adjustment for non-financial risk is the compensation that the entity requires for bearing the uncertainty about the
amount and timing of cashflows that arises from non-financial risk. It is a buffer on top of the Best Estimate future cashflows
which represents a 50% probability of being able to fulfil future obligations and thus also a 50% probability of not being able
to meet future obligations for outstanding contracts.
Life insurance liabilities are characterised by (long-term) cashflows based on biometric parameters. The risk adjustment is
defined as the difference between the Value at Risk (VaR) and the best estimate of future cashflows as part of the fulfilment
cashflows. The VaR is calculated at a 75% confidence level. Non-financial risks included in the VaR model are mortality risk,
longevity risk, morbidity/disability risk, lapse risk, expense risk and revision risk. The correlations between the different risk
types are in line with the correlation matrix of Solvency II.
The diversification benefits between life and non-life insurance contracts are not considered in the calculation, also not at
entity level. The risk adjustment is calculated at the level of a set of contracts. There is no diversification effect at this level
either.
Contractual service margin
The contractual service margin (CSM) represents the unearned profit the insurer will recognise in P&L as services are provided
under the insurance contracts. The CSM is recognised in the balance sheet as part of the insurance liability on initial
recognition in order to avoid a day one gain. The CSM on the balance sheet is released gradually over time, on the basis of
services provided in the period, and should be zero at the end of the coverage period for a group of contracts.
The CSM release pattern is based on coverage units in the GoC. The number of coverage units is the quantity of services
provided by the insurer under the contracts in that GoC, determined by considering for each contract the quantity of the
benefits provided to the policyholder under a contract and its expected coverage period. The CSM amount recognised in
P&L is the amount of coverage units allocated to the current period for the insurance coverage provided in the current period.
The number of coverage units is reassessed at the end of each reporting period to reflect the most up-to-date assumptions
of the contract.
KBC has opted to reflect the time value of money on coverage units. By discounting the coverage units, a more stable
allocation of the CSM to P&L is achieved. For contracts providing multiple services, i.e. insurance coverage, investment return
services and investment management services, KBC works with so-called ‘multivariate coverage units’, taking the following
into consideration:
• Coverage units are determined based on the individual benefit components separately;
• Weights are assigned to each component to reflect an appropriate level of service to be provided.
Such weightings appropriately reflect the release of CSM based on the quantity of the benefits provided for each service.
Analogous to coverage units, these weights are also reassessed at the end of each reporting period.
Coverage units cannot be negative. They have a positive sign and are floored to zero. In case of zero coverage units in a
given period, no CSM is allocated to P&L as no services have been provided in the period. This is possible in some cases, for
instance where contracts provide for ‘waiting periods’. In such cases, the contract has been signed by the policyholder but
there is a mandatory waiting period for the client to be able to benefit from insurance coverage.
Valuation according to the Variable Fee Approach (VFA)
Under the VFA, the CSM mainly reflects the fee that KBC expects to earn on the market value of the Assets under
Management (AUM), also referred to as ‘underlying items’. The CSM is determined as the net of the fair value of the underlying
items and the total entity obligation to the policyholder. The change in the variable fee that impacts the CSM is determined
as the net of:
• the change in the fair value of the underlying items; and
• the change in the total entity obligation to the policyholder.
KBC applies the simplification of a combined amount rather than the different CSM unlocking adjustments separately.
Under the VFA, the difference in measurement from BBA lies in the subsequent measurement of direct participating contracts.
All changes in fulfilment cashflows are absorbed by the CSM, until the CSM becomes negative and a loss is recognised in P&L.
In Belgium, the insurance company has discretion over the amount of profit sharing allocated to policyholders. The
policyholder does not have an ‘enforceable right’ to participate in the returns of the insurance company, which means that
the VFA eligibility criteria are not fulfilled and the BBA is applied.

266 Annual Report KBC Group 2024
Measurement of Non-life insurance liabilities
Valuation according to the PAA is applied for the liability for most Non-life products. The PAA Liability for Remaining Coverage
(LRC) reflects the premium receipts and the acquisition cashflows adjusted for amounts recognised in the income statement
on a pro rata temporis basis. When an insured claim arises, a Liability for Incurred Claims (LIC) is recognised, which is similar
to the BBA LIC (see below). In the case of onerous contracts, an additional liability to cover expected future losses is added
to the LRC on the balance sheet and a loss is recognised immediately in P&L.
Valuation according to the Premium Allocation Approach
The PAA LRC reflects only premiums received and acquisition cashflows. As such, to appropriately present the insurance
liability on a cash basis, an adjustment is performed by netting insurance payables and receivables against the LRC value.
Under the PAA, KBC will not make use of the option to expense acquisition costs when incurred.
At the end of each reporting
period, acquisition cashflows are amortised (i.e. recorded as an insurance service expense) and some of the premium receipts
are earned (i.e. recorded as insurance revenues).
Both components of the LRC are allocated to P&L on the basis of passage
of time or the expected timing of incurred claims and benefits, if that pattern better reflects the release from risk.
Measurement of the Liability for Incurred Claims (LIC) for claims outstanding
The Liability for Incurred Claims is measured separately. A discounted best estimate of future cash outflows subject to a risk
adjustment as a safety margin is provisioned on the balance sheet. No CSM is included in the LIC as there is no future
coverage in scope of the liabilities for incurred claims, i.e. it contains fulfilment cashflows related to past service.
A provision for the internal cost of settling claims is included, which is calculated as a percentage based on past experience.
The risk adjustment for Non-life insurance liabilities is only calculated for claims incurred. Consequently, only reserve risk is
taken into account. Comparable with Life insurance liabilities, a Value at Risk method (VaR) is used, but here it is calculated
at a 90% confidence level.
Subsequent measurement
BBA/VFA – Liability for Remaining Coverage
At the end of each reporting period, subsequent to initial recognition, KBC updates its estimates and assumptions to reflect
the most up-to-date situation. As a result of these updates, the carrying amount of fulfilment cashflows will vary from one
period to another.
Subsequent measurement under BBA/VFA for the LRC is driven by:
• experience adjustments – either absorbed by the CSM (i.e. related to future service) or recorded in the insurance result
(i.e. related to current or past service) – and portfolio rollforward;
• non-economic parameter updates to the fulfilment cashflows;
• economic parameter updates to the fulfilment cashflows;
• CSM release.

267Annual Report KBC Group 2024
p. 23
PAA – Liability for Remaining Coverage
Under the PAA, the LRC is unwound on a pro rata temporis basis to obtain the so-called ‘earned premiums’, i.e. the premium
reserve and the deferred acquisition commission reserve. At the end of each reporting period, acquisition cashflows are
amortised (i.e. recorded as an insurance service expense) and some of the premium receipts are earned (i.e. recorded as
insurance revenues). Both components of the LRC are allocated to P&L on the basis of passage of time or the expected
timing of incurred claims and benefits, if that pattern better reflects the release from risk.
BBA/VFA/PAA – Liability for Incurred Claims
Any changes to the Liability for Incurred Claims are recorded in the income statement. Depending on the driver of such
changes, they are recorded in:
• insurance service expenses. Main drivers: updates of fulfilment cashflows, i.e. higher or lower total expected claim
payments, changes in the statistical percentage of internal claims handling expenses, etc.; or
• insurance finance income and expense. Main drivers: a change in the discount rate, interest from deposits at the ceding
company.
Other matters
KBC has opted for a year-to-date approach, i.e. a recalculation of previously reported quarters, with the impact of the
recalculation being included in the current period.
KBC chooses to disaggregate insurance finance income and expense (IFIE) between P&L and OCI. This means recognising in
P&L the interest expense on the insurance liability over the reporting period, with this interest expense being calculated using
the locked-in rate (i.e. the rate curve applicable at the inception of the IFRS 17 contract) and recognising in OCI the impact
of changes in the market interest rate over the reporting period, with the exception of:
• insurance contracts measured under BBA where changes in financial risk have a significant impact on the amounts due
to policyholders (future interest-rate guarantees, profit-sharing), for which the allocation to the income statement is
derived from the amounts expected to be credited to policyholders (expected crediting rate);
• insurance contracts measured under VFA, for which the current period book yield approach is used. The amount in IFIE
corresponds to the financial result presented in the income statement of the underlying items to ensure that the total net
financial result equals 0 (also referred to as the ‘mirroring approach’).
The liability position of insurance contracts and the asset position of reinsurance contracts is presented in the balance sheet
on a received basis. Ceded reinsurance contracts (i.e. reinsurance contracts held) are required to be accounted for and
presented separately from the underlying contracts to which they relate.
Upon the acquisition of another insurance company or a portfolio transfer, the consideration received or paid partly consists
of the Value of Business In-force (VBI). Insurance contracts acquired in a business combination are measured in the same
way as insurance contracts issued by the entity except that the fulfilment cashflows are recognised at the acquisition date.
Leasing
All leases are required to be classified as either finance leases or operating leases. The classification under IFRS 16 is based
on the extent to which risk and rewards incidental to ownership of leased assets lie with the lessor or the lessee. A finance
lease transfers substantially all the risks and rewards incidental to ownership of an asset.
This classification is crucial for positions as a lessor, but less important for positions as a lessee, since both classifications
result in similar recognition and measurement of the lease on the balance sheet and in the income statement.
Equity
Equity represents the residual interest in KBC’s total assets after deduction of all its liabilities (referred to as ‘net assets’) and
encompasses all shares issued by KBC, reserves attributable to the holders of the shares and minority interests.
KBC classifies all issued financial instruments as equity or as a financial liability based on the substance of the contractual
arrangements. The critical feature that distinguishes a financial liability from a share is whether KBC has an unconditional
right to avoid delivering cash or another financial asset to settle a contractual obligation.
Minority interests represent the equity in a subsidiary that is not attributable to the holders of KBC shares. When the
proportion of the equity held by the minority interests changes, KBC adjusts the carrying value of the controlling and minority
interests to reflect changes in their relative interests in the consolidated companies. KBC recognises in equity any difference
between the amount by which the minority interests are adjusted and the fair value of the consideration paid or received,
and allocates it to its controlling stake.
KBC can buy back its own shares within the legal framework. These treasury shares (ordinary shares) are initially recognised
on the balance sheet on the transaction date under the ‘treasury shares’ heading. The acquisition price (including transaction
costs) is deducted from equity. The dividend income from ‘treasury shares’ is recognised in equity.

268 Annual Report KBC Group 2024
p. 2
Employee benefits
Short-term employee benefits
Short-term employee benefits, such as salaries, paid absences, performance-related cash awards and social security
contributions, are recognised over the period in which the employees provide the corresponding services. The related
expenses are presented in the income statement as ‘Operating expenses’ under the ‘Staff expenses’ heading.
Post-employment benefits
KBC offers its employees pension schemes in the form of defined contribution or defined benefit plans. Under the defined
contribution plans, KBC’s statutory or constructive obligation is limited to the amount that it agrees to contribute to the fund.
The amount of the post-employment benefit to be received by the employee is determined by the amount of the
contributions paid by KBC and the employee into the post-employment benefit plan, as well as by the investment returns
arising from those contributions. The actuarial risk is borne by the employee.
Conversely, under the defined benefit plans, KBC’s obligation is to provide the agreed benefits to current and former
employees and, in substance, the actuarial risk and investment risk fall on KBC. This means that if, from an actuarial or
investment viewpoint, things turn out worse than expected, KBC’s obligation may be increased.
In Belgium, defined contribution plans have a legally guaranteed minimum return and the actual return can be lower than
the legally required return. In addition, these plans have defined benefit plan features and KBC treats them as defined benefit
plans.
Liabilities under the defined benefit plans and the Belgian defined contribution plans (or pension liabilities) are included under
‘Other liabilities’ and relate to the obligations for retirement and survivor’s pensions, early retirement benefits and similar
pensions and annuities.
The pension obligations for employees under the defined benefit plans are calculated using the projected-unit-credit
method, with each period of service granting additional entitlement to pension benefits.
Actuarial valuations are performed every reporting period. The defined benefit liabilities are discounted using rates
equivalent to the yields on high-quality corporate bonds that are denominated in the currency in which the benefits will be
paid and that have a maturity similar to the related pension liabilities.
Changes in the net defined benefit liability/asset, apart from cash movements, are grouped into three main categories and
recognised in operating expenses (service costs), interest expenses (net interest costs) and other comprehensive income
(remeasurements).
Net fee and commission income
Most net fee and commission income falls under the scope of IFRS 15 (Revenue from Contracts with Customers), as it relates
to the services that KBC provides to its clients and is outside the scope of other IFRS standards. For the recognition of revenue,
KBC identifies the contract and defines the promises (performance obligations) in the transaction. Revenue is recognised only
when KBC has satisfied the performance obligation.
The revenue presented under ‘Securities and asset management’ falls under the scope of IFRS 15 and, in principle, entails
KBC keeping assets in a trust for the beneficiary (‘fund’) and being responsible for investing the amounts received from clients
to their benefit. These transactions are straightforward, because KBC provides a series of distinct services which clients use
at the same time when receiving the benefits. In return, KBC receives a monthly or quarterly management fee, which is
calculated as a fixed percentage of the net asset value, or a subscription fee retained from the beneficiary. The fees do not
include a variable component.
Revenue reported as ‘Margin on life insurance investment contracts without DPF’ represents the amount realised on
investment contracts without a discretionary participation feature, i.e. a fixed percentage or fixed amount is withheld from
the client’s payments, enabling the insurance company to cover its expenses.
Payment services, where KBC charges clients for certain current-account transactions, domestic or foreign payments, for
payment services provided through ATMs, etc., are usually settled when the actual transaction is carried out, enabling the
relevant fee to be recognised directly at that time.
Levies
Public authorities can impose various levies on KBC. The size of the levies can depend on the amount of revenue (mainly
interest income) generated by KBC, the amount of deposits accepted from clients, and the total balance sheet volume,
including corrections based on certain, specific ratios. In accordance with IFRIC 21, levies are recognised when the obligating
event that gives rise to recognition of the liability has occurred as stated in the relevant legislation. Depending on the
obligating event, levies can be recognised at a single point in time or over time. Most of the levies imposed on KBC have to
be recognised at a single point in time, which is mainly the beginning of the financial year. KBC recognises levies under
‘Operating expenses’.

269Annual Report KBC Group 2024
Income tax
Income tax consists of three items, namely taxes paid/payable over the reporting period, underprovisioning/overprovisioning
in previous years, and changes in deferred tax assets/deferred tax liabilities. It is accounted for either in the income
statement or in other comprehensive income, depending on where the items that triggered the tax are recorded. Income
taxes that are initially accounted for in other comprehensive income and that relate to gains or losses that are subsequently
recognised in the income statement are recycled to the income statement in the same period in which that item is accounted
for in the income statement.
Deferred and current tax assets and liabilities are offset when there is both a legal right of offset and the intention to settle
on a net basis or to realise the asset and settle the liability simultaneously.
Current tax assets/liabilities
Current tax for the period is measured at the amount expected to be paid to or recovered from the tax authorities, using the
rates of tax in effect during the reporting period.
Deferred tax assets/liabilities
Deferred tax liabilities are recognised for all taxable temporary differences between the carrying value of an asset or liability
and its tax base. They are measured using the tax rates that are substantively enacted at the reporting date and expected
to be in effect on realisation of the assets or settlement of the liabilities to which they relate and that reflect the tax
consequences following from the manner in which the entity expects to recover or settle the carrying value of the underlying
asset or liability at the balance sheet date.
Deferred tax assets are recognised for all deductible temporary differences between the carrying value of assets and
liabilities and their tax base, as well as for the carry forward of unused tax losses and unused tax credits, to the extent that
it is probable that taxable profit will be available against which the deductible temporary differences can be utilised. KBC
calculates deferred tax assets to carry forward unused tax losses. When estimating the period over which tax losses can be
set off against future taxable profits, KBC uses projections for a period of eight to ten years.
Deferred tax assets/liabilities that relate to business combinations are recorded directly in goodwill.
Deferred tax assets/liabilities are not discounted.
Property and equipment
Property and equipment are recognised initially at cost (including directly allocable acquisition costs). KBC subsequently
measures property and equipment at the initial cost less accumulated depreciation and impairment. The rates of
depreciation are determined on the basis of the estimated useful life of the assets and are applied according to the straight-
line method from the moment the assets are available for use. Property and equipment are derecognised upon disposal or
when the relevant asset is permanently withdrawn from use and no future economic benefits are expected from its disposal.
Gains or losses upon derecognition are recognised in the income statement in the period in which derecognition occurs.
Property and equipment are subject to impairment testing when there is an indication that the asset might have been
impaired.
Depreciation charges, impairment losses and gains or losses on disposal are recognised under ‘Operating expenses’ in the
income statement, with the exception of assets that are leased under operating leases (KBC as a lessor), for which the costs
are recognised in ‘Net other income’.
Where a disposal falls within the definition of a discontinued operation, the net results
are reported in a single line in the income statement (see ‘Discontinued operations’ below).

270 Annual Report KBC Group 2024
Investment property
Investment property is defined as a property built, purchased or acquired by KBC under a finance lease and is held to earn
rentals or for the purpose of capital appreciation rather than being used by KBC for the provision of services or for
administrative purposes.
Investment property is initially recognised at cost (including directly attributable costs). KBC subsequently measures it at the
initial cost less accumulated depreciation and impairment.
The depreciation charge is recognised under ‘Net other income’ in the income statement.
Intangible assets
Intangible assets include goodwill, software developed in-house, software developed externally and other intangible assets.
Intangible assets can be (i) acquired as part of a business combination transaction (see ‘Business combinations and goodwill’
below), (ii) acquired separately or (iii) developed internally.
Separately acquired intangible assets (mainly software developed externally) are initially recognised at cost. Internally
developed intangible assets (mainly software developed in-house) are recognised only if they arise from development and
KBC can demonstrate:
• the technical feasibility of completing them;
• an intention to complete for use or sale;
• an ability to use or sell them;
• the way in which the intangible assets will generate future economic benefits;
• the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible assets;
• the possibility to reliably measure the expenditure attributable to the intangible assets during their development.
Internally generated intangible assets are initially measured at the development costs directly attributable to the design and
testing of the unique software controlled by KBC.
Directly attributable costs capitalised as part of the software developed in-house include software development employee
costs and directly attributable overheads.
Research expenses, other development expenditure, costs associated with maintaining software and investment projects
(large-scale projects introducing or replacing an important business objective or model) that do not meet the recognition
criteria are recognised as an expense in the period they are incurred.
Intangible assets are subsequently carried at cost less accumulated amortisation and accumulated impairment losses.
Amortisation begins when the asset is available for use as intended by management. Software is amortised as follows:
• System software (initial purchased software forming an integral part with hardware) is amortised at the same rate as
hardware.
• Standard software and customised software developed by a third party or developed in-house are amortised over five
years according to the straight-line method from the time the software is available for use.
• Core systems (typically including deposit account processing, loan and credit processing, interfaces to the general ledger
and reporting tools) are amortised according to the straight-line method over a minimum period of eight years.
Impairment of non-financial assets
When KBC prepares financial statements, it ensures that the carrying value of the non-financial asset does not exceed the
amount that could be obtained from either using or selling it (‘recoverable amount’). Property and equipment, investment
property and software are subject to the impairment review only when there is objective evidence of impairment. Goodwill
and intangible assets with an indefinite useful life are subject to impairment reviews at least annually and also reviewed for
impairment indicators every quarter.
Indications that an impairment loss is required may stem from either an internal source (e.g., the condition of the asset) or a
n
external source (e.g., new technology or a significant decline in the asset’s market value).

271Annual Report KBC Group 2024
When an impairment indicator is present, KBC reviews the asset’s recoverable amount and the asset is impaired if its
recoverable amount is lower than its carrying value at the reporting date. The recoverable amount is defined as the higher
of the value in use and the fair value less cost to sell.
Value in use is defined as the discounted future cashflows expected to be derived from an asset or a cash-generating unit.
Impairment is borne at individual asset level, but when the individual asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets, the recoverable amount is determined for the so-called ‘cash-
generating unit’ (CGU) to which the asset or group of assets belongs. In forming the CGUs, KBC applies its own judgement to
define the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows
from other assets or groups of assets. This process mainly applies to goodwill that has been recognised in relation to
acquisitions.
Impairment losses are recognised in the income statement for the period in which they occur. An impairment loss can be
reversed if the condition that triggered it is no longer present, except for goodwill, which can never be reversed. Impairment
gains are recognised in the income statement for the period in which they occur.
Provisions, contingent liabilities and contingent assets
Provisions are recognised on the reporting date if and only if the following criteria are met:
• There is a present obligation (legal or constructive) due to a past event;
• It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
• A reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the expenditure required to settle the obligation at the balance
sheet date. When the effect of time is material, the amount recognised as a provision is the net present value of the best
estimate.
Due to its inherent nature, a provision requires management judgement regarding the amount and timing of probable future
economic outflows.
Consolidated financial statements / interim financial statements
All material entities (including structured entities) over which KBC exercises direct or indirect control as defined in IFRS 10 are
consolidated according to the method of full consolidation. Changes in ownership interests (that do not result in a loss of
control) are accounted for as equity transactions. They do not affect goodwill or profit or loss.
Subsidiaries that are not included in the consolidated financial statements because of immateriality are classified as equity
instruments at fair value through other comprehensive income, with all fair value changes being reported in other
comprehensive income, except for dividend income, which is recognised in the income statement. Material companies over
which joint control is directly or indirectly exercised and material investments in associates (companies over which KBC has
significant influence) are all accounted for using the equity method.
Consolidation threshold: subsidiaries are effectively included in the consolidated financial statements using the full
consolidation method if at least two of the following materiality criteria are exceeded:
• Group share in equity is 2 500 000 euros;
• Group share in the result is 1 000 000 euros (absolute value);
• Group share in the balance sheet total is 100 000 000 euros.
In order to prevent too many entities from being excluded, KBC checks that the combined balance sheet total of the entities
excluded from consolidation does not amount to more than 1% of the consolidated balance sheet total.
Business combinations and goodwill
Business combinations are accounted for using the acquisition method. Under this method, the cost of an acquisition is
measured as the aggregate of the consideration transferred (measured at acquisition-date fair value) and the amount of
any minority interests in the acquired entity. For measurement of the minority interests, KBC can decide for each business
combination separately whether to measure the minority interest at fair value or as its proportionate share of the acquired
entity’s net identifiable assets. The way the minority interest is measured on the acquisition date will have an impact on
purchase accounting as a result of the determination of goodwill.
Goodwill is the excess of the cost of the acquisition over the acquirer’s interest in the fair value of the identifiable assets
acquired and liabilities and contingent liabilities assumed at the date of acquisition. In order to complete the acquisition
accounting and determine the goodwill item, KBC applies a measurement period of 12 months. The classification of the
financial assets acquired and financial liabilities assumed in the business combination is based on the facts and
circumstances existing at the acquisition date (except for lease and insurance contracts, which are classified on the basis of
the contractual terms and other factors at the inception of the relevant contract).
Goodwill is presented under ‘Goodwill and other intangible assets’ and is carried at cost less impairment losses. Goodwill is
not amortised, but is tested for impairment at least once a year or when there is objective evidence (external or internal) that
it should be impaired. If the acquisition accounting is not complete because the 12-month measurement period has not
elapsed, the goodwill is not considered as final and is only tested if there is objective evidence that the provisional goodwill
is impaired.

272 Annual Report KBC Group 2024
For the purpose of testing goodwill for impairment, it is allocated to each of KBC’s cash-generating units that are expected
to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquired entity are
assigned to those units. An impairment loss is recognised if the carrying value of the cash-generating unit to which the
goodwill belongs exceeds its recoverable amount. Impairment losses on goodwill cannot be reversed.
Effects of changes in foreign exchange rates
KBC’s functional and presentation currency is the euro. Monetary assets and liabilities denominated in foreign currency are
translated into the functional currency at the spot rate on the balance sheet date.
Negative and positive valuation
differences, except for those relating to the funding of equity instruments and investments of consolidated companies in a
foreign currency, are recognised in the income statement. Non-monetary items measured at historical cost are translated
into the functional currency at the historical exchange rate that existed on the transaction date. Non-monetary items carried
at fair value are translated at the spot rate on the date the fair value was determined. Translation differences are reported
together with changes in fair value. Income and expense items in foreign currency are taken to the income statement at the
exchange rate prevailing when they were recognised.
Valuation differences are accounted for either in the income statement or in other comprehensive income. Valuation
differences that are initially accounted for in other comprehensive income and that relate to gains or losses that are
subsequently recognised in the income statement are recycled to the income statement in the same period in which that
item is accounted for in the income statement. The balance sheets of foreign subsidiaries are translated into the presentation
currency at the spot rate on the reporting date (except for equity, which is translated at the historical rate). The income
statement is translated at the average rate for the financial year as a best estimate of the exchange rate on the transaction
date.
Related-party transactions
A party related to KBC is either a party over which KBC has control or significant influence or a party that has control or
significant influence over KBC. KBC defines its related parties as:
• KBC subsidiaries, KBC associates and joint ventures, KBC Ancora, Cera and MRBB;
• KBC key management staff (i.e. the Board of Directors and the Executive Committee of KBC Group NV).
Transactions with related parties must occur at arm’s length.
Non-current assets held for sale and disposal groups, liabilities associated with disposal groups and discontinued operations
Non-current assets held for sale and disposal groups, liabilities associated with disposal groups
Non-current assets or groups of assets and liabilities held for sale are those where the carrying value will be recovered by
KBC through a sale transaction, which is expected to qualify as a sale within a year, rather than through continued use. Non-
current assets and liabilities held for sale are reported separately from the other assets and liabilities in the balance sheet at
the end of the reporting date.

273Annual Report KBC Group 2024
Discontinued operations
A discontinued operation refers to a part of KBC that has been disposed of or is classified as held for sale and:
• represents a separate major line of business or geographical area of operations; or
• is part of a single, coordinated plan to dispose of a separate major line of business or geographical area of operations;
or
• is a subsidiary acquired exclusively with a view to resale.
Results from discontinued operations are recognised separately in the income statement and in other comprehensive income
and contain:
• the post-tax profit or loss of discontinued operations; and
• the post-tax gain or loss recognised on the measurement to fair value less the costs of the sale or disposal of the assets
or group of assets.
Events after the reporting period
Events after the reporting date are defined as favourable or unfavourable events that occur between the reporting date and
the date on which the financial statements are authorised for issue. There are two types of event after the reporting date:
• Those which provide evidence of conditions that existed on the reporting date (adjusting events);
• Those that are indicative of conditions that arose after the reporting date (non-adjusting events).
The impact of adjusting events has already been reflected in the financial position and financial performance for the current
year. The impact and consequences of non-adjusting events are disclosed in the notes to the financial statements.
Main exchange rates used*
Exchange rate at 31-12-2024 Exchange rate average in 2024 Change relative to Change relative to 31-12-2023 average in 2023 1 EUR = … (positive: appreciation relative to EUR) 1 EUR = … (positive: appreciation relative to EUR) … currency (negative: depreciation relative to EUR) … currency (negative: depreciation relative to EUR) CZK 25.185 -2% 25.137 -5% HUF 411.35 -7% 395.88 -4%
* Rounded figures.
Note 1.3: Critical estimates and significant judgements
When preparing the consolidated financial statements and applying KBC’s accounting policies, management is required to
make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses.
Some degree of uncertainty is inherent in almost all amounts reported. The estimates are based on the experience and
assumptions that KBC’s management believes are reasonable at the time the financial statements are being prepared.
Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods
affected. Significant areas of estimation uncertainty, and critical judgements in applying accounting policies that have the
most significant effect on the amounts recognised in the consolidated financial statements are found in, but not limited to,
notes 1.4, 3.3, 3.6, 3.9, 3.11, 4.2, 4.4–4.8, 5.2, 5.5–5.7, 5.9 and 6.1.

274 Annual Report KBC Group 2024
Note 1.4: Climate-related information
ESG and supporting the transition to a more sustainable and resilient society – including focusing on the climate – are crucial
to our overall business strategy and integrated into our day-to-day operations. We have a solid sustainability governance
structure in place to ensure group-wide integration of our sustainability strategy, which involves responsibility at the highest
level and spans all areas of ESG.
Because sustainability is firmly embedded in our day-to-day operations, it is not relevant to separately consider the financial
impact of sustainability-related investments. We would like to emphasise that:
• KBC integrates sustainability-related opportunities and the related costs in the annual general budget round;
• As a financial institution, KBC is highly regulated in terms of sustainability and we provide the necessary resources to
comply with these regulatory obligations;
• In addition, KBC has made several voluntary commitments for which appropriate efforts are made and resources
deployed;
• KBC applies a strict environmental policy to its loan, investment and insurance portfolios. We have also defined ambitious
climate targets for the most important sectors and products in our loan portfolio as well as in our investment portfolio. We
work together with our clients to achieve these targets, and we actively collaborate with the companies in which we
invest in order to reduce their climate impact.
• As part of our efforts to reduce our own direct footprint, we are taking relevant action in the areas of facilities (buildings)
and mobility in particular, with a view to meeting our greenhouse gas emission reduction target. We are also achieving
net climate neutrality by offsetting our remaining direct emissions.
All notes and other sections in the Annual Report in which direct or indirect reference is made to the climate and/or climate-
related risks or sustainability in general are set out below.
In the ‘Report of the Board of Directors’:
• See ‘How do we create sustainable value?’ in ‘Our business model’
• See ‘What are our main challenges?’ in ‘Our business model’
• See ‘Our role in society’ in ‘Our strategy’
• See ‘Our business units’ for each country under ‘Our role in society’
• Sustainability statement
In the ‘Consolidated financial statements’ (in the notes below each table):
• Note 3.9: Impairment
• Note 4.1: Financial assets and liabilities, breakdown by portfolio and product
• Note 5.4: Property and equipment and investment property
• Note 5.5: Goodwill and other intangible assets
• Note 5.9: Retirement benefit obligations
• Note 6.2: Leasing
When preparing the financial reporting, we considered the financial impact of climate-related risks within the framework of
the IFRS standards. These are mostly indirect risks to which KBC is exposed through, among other things, its loan, investment
and insurance portfolios. These risks are a source of significant uncertainty in the medium and long term when preparing the
financial reports, partly because it is difficult to assess the consequences of climate change for our current portfolios and
also because it is uncertain to what extent the mitigating actions and plans for our (mainly indirect) climate impact have
financial consequences for future portfolios (see the ‘Sustainability statement’ section’). The goals set by KBC may impact
KBC’s financial position and performance. The lending goals (providing loans for renewable energy and reducing the
greenhouse gas intensity of loans) in particular can initially have a negative impact on the interest income realised on loans,
perhaps through impact on margins (but with the loans still meeting the SPPI test) and/or production, which may later be
offset by more limited credit losses given the increased resilience of the portfolio to climate-related risks. In the insurance
business, too, climate-related risks constitute a significant uncertainty in the medium and long term when it comes to
estimating the development of reserves to be maintained, in Non-life insurance in particular.

275Annual Report KBC Group 2024
2.0 Notes on segment reporting
Note 2.1: Segment reporting based on the management structure
Detailed information on the group’s management structure and the results per segment can be found in the ‘Our business
units’ section (which has not been audited by the statutory auditor). Based on IFRS 8, KBC has identified the Executive
Committee and Board of Directors as ‘chief operating decision-makers’, responsible for allocating the resources and
assessing the performance of the different parts of the company. The operating segments are based on the internal financial
reporting to those policy bodies and on the location of the company’s activities, resulting in geographical segmentation.
The three operating segments are (essentially):
• the Belgium Business Unit (all activities in Belgium);
• the Czech Republic Business Unit (all activities in the Czech Republic);
• the International Markets Business Unit (activities in Hungary, Slovakia and Bulgaria, reported together in accordance with
IFRS 8.16).
For reporting purposes, there is also a Group Centre (comprising the results of the holding company, items that have not
been allocated to the other business units, and the results of companies/activities to be divested).
Segment reporting
• The policy bodies analyse the performance of the segments based on a number of criteria, with the ‘Result after tax’
being the most important results indicator. The segment data is based entirely on IFRS data (with no adjustments).
• In principle, we assign a group company in its entirety to one specific segment/business unit. Exceptions are only made
for those items that cannot clearly be allocated to a specific segment, such as charges attached to the subordination of
loans (such items are recognised under Group Centre).
• We allocate the funding cost of participating interests to the Group Centre. Any funding cost in respect of leveraging at
KBC Group NV level is also recognised under Group Centre.
• Transactions among the different segments are reported at arm’s length.
• We recognise ‘Net interest income’ in the segment information without dividing it up into ‘Interest income’ and ‘Interest
expense’. This is permitted under IFRS because the bulk of the business units’ income is in the form of interest, and
management assesses and co-ordinates those business units primarily on the basis of net interest income.
• We do not provide any information on income from sales to external clients per group of products or services, since the
information is prepared at consolidated level chiefly for each business unit, and not per client group or product group.
• For information on acquisitions and disposals, see Note 6.6. As a result of the finalisation of the sale of the Irish deposit
and loan portfolios in February 2023, the results for Ireland have become immaterial and are no longer presented as a
separate column (as part of the Group Centre) as of 2024.

276 Annual Report KBC Group 2024
Note 2.2: Results by segment
Czech International Belgium Republic Markets 2024 (in millions of EUR) Business Unit Business Unit Business Unit Hungary Slovakia Bulgaria Group Centre Total Net interest income 3 305 1 298 1 290 571 276 443 -319 5 574 Insurance revenues before reinsurance 1 805 585 541 203 108 229 14 2 945 Non-life 1 501 485 481 184 87 210 14 2 482 Life 303 100 60 20 21 19 0 463 Dividend income 50 1 1 0 0 1 4 57 Net result from financial instruments at fair value through profit or loss and Insurance finance income and -343 72 55 52 5 -2 48 -168 expense (for insurance contracts issued) Net fee and commission income 1 684 352 546 302 88 156 -4 2 578 Net other income 201 3 -6 -24 9 9 -17 181 TOTAL INCOME 6 702 2 312 2 427 1 104 485 837 -273 11 167 Operating expenses (excluding directly attributable to insurance contracts)a -2 496 -854 -1 041 -493 -267 -280 -175 -4 565 Total operating expenses excluding bank and insurance tax -2 514 -924 -857 -302 -261 -294 -178 -4 474 Bank and insurance tax -285 -40 -300 -245 -34 -21 1 -623 Less: operating expenses attributed to insurance service expenses 303 110 117 54 28 35 2 532 Insurance service expenses before reinsurance -1 449 -531 -493 -206 -113 -175 -2 -2 475 Of which insurance commissions paid -242 -73 -68 -13 -13 -41 -1 -383 Non-life -1 247 -477 -454 -192 -99 -163 -2 -2 179 Of which Non-life claim-related expenses -837 -318 -260 -97 -67 -95 1 -1 414 Life -203 -54 -39 -13 -14 -12 0 -296 Net result from reinsurance contracts held -63 61 1 8 3 -10 -17 -17 Impairment -260 31 -7 -6 17 -18 -12 -248 on financial assets at amortised cost and at fair value through OCI -246 34 25 23 18 -16 -12 -199 Share in results of associated companies and joint ventures 80 0 0 0 0 0 0 80 RESULT BEFORE TAX 2 513 1 019 888 407 125 355 -479 3 941 Income tax expense -667 -161 -137 -62 -24 -51 439 -527 Net post-tax result from discontinued operations 0 0 0 0 0 0 0 0 RESULT AFTER TAX 1 846 858 751 345 101 304 -40 3 414 attributable to minority interests -1 0 0 0 0 0 0 -1 attributable to equity holders of the parent 1 846 858 751 345 101 304 -40 3 415 a Of which non-cash expenses -54 -118 -119 -62 -25 -31 -89 -380 Depreciation and amortisation of fixed assets -53 -120 -119 -62 -25 -32 -90 -382 Other -1 2 0 0 0 0 0 1 Acquisitions of non-current assets* 829 320 225 125 54 45 157 1 530
* Non-current assets held for sale and disposal groups, investment property, property and equipment, investments in associated companies, and goodwill and other intangible assets.

277Annual Report KBC Group 2024
Czech International Belgium Republic Markets Of which 2023 (in millions of EUR) Business Unit Business Unit Business Unit Hungary Slovakia Bulgaria Group Centre Ireland Total Net interest income 3 248 1 271 1 179 529 254 396 -225 64 5 473 Insurance revenues before reinsurance 1 637 555 473 189 96 189 14 0 2 679 Non-life 1 387 459 420 169 79 172 14 0 2 280 Life 250 96 53 20 17 16 0 0 399 Dividend income 53 0 1 0 0 1 4 0 59 Net result from financial instruments at fair value through profit or loss and Insurance finance -198 64 55 52 1 3 88 -4 9 income and expense (for insurance contracts issued) Net fee and commission income 1 537 324 493 260 84 149 -6 -1 2 349 Net other income 235 5 15 -3 11 6 400 409 656 TOTAL INCOME 6 512 2 220 2 216 1 026 446 744 276 467 11 224 Operating expenses (excluding directly attributable to insurance contracts)a -2 532 -865 -962 -463 -229 -270 -256 -112 -4 616 Total operating expenses excluding bank and insurance tax -2 463 -916 -805 -275 -250 -281 -254 -107 -4 438 Bank and insurance tax -361 -60 -262 -238 -4 -20 -4 -4 -687 Less: operating expenses attributed to insurance service expenses 292 111 104 49 25 30 2 0 509 Insurance service expenses before reinsurance -1 285 -420 -414 -186 -90 -139 -1 0 -2 120 Of which insurance commissions paid -220 -65 -55 -12 -10 -33 -1 0 -340 Non-life -1 116 -368 -384 -173 -80 -131 -1 0 -1 870 Of which Non-life claim-related expenses -734 -213 -211 -85 -51 -75 2 0 -1 157 Life -169 -52 -30 -12 -10 -8 0 0 -251 Net result from reinsurance contracts held -63 -16 -15 -3 1 -13 4 0 -90 Impairment -114 -57 -36 -38 6 -4 -7 -2 -215 on financial assets at amortised cost and at fair value through OCI -82 70 19 11 8 0 8 9 16 Share in results of associated companies and joint ventures -3 -1 0 0 0 0 0 0 -4 RESULT BEFORE TAX 2 515 860 789 336 134 318 15 354 4 179 Income tax expense -650 -97 -112 -51 -30 -32 82 -24 -778 Net post-tax result from discontinued operations 0 0 0 0 0 0 0 0 0 RESULT AFTER TAX 1 865 763 676 285 105 286 97 330 3 401 attributable to minority interests -1 0 0 0 0 0 0 0 -1 attributable to equity holders of the parent 1 866 763 676 285 105 286 97 330 3 402 a Of which non-cash expenses -64 -124 -102 -43 -25 -34 -101 -7 -391 Depreciation and amortisation of fixed assets -61 -122 -102 -43 -25 -34 -101 -7 -386 Other -4 -2 0 0 0 0 0 0 -5 Acquisitions of non-current assets* 867 163 216 118 57 42 146 0 1 392
* Non-current assets held for sale and disposal groups, investment property, property and equipment, investments in associated companies, and goodwill and other intangible assets.

278 Annual Report KBC Group 2024
Note 2.3: Balance-sheet information by segment
The table below presents some of the main on-balance-sheet products by segment.
Czech Belgium Republic International Business Business Markets Group (in millions of EUR) Unit Unit Business Unit Hungary Slovakia Bulgaria Centre Total BALANCE SHEET AT 31-12-2024 Deposits from customers and debt securities 164 483 52 709 32 832 9 607 9 360 13 865 21 063 271 087 (excluding repos) Demand deposits (incl. special deposits and other 61 493 24 234 24 363 6 570 5 670 12 123 0 110 090 deposits) Time deposits 27 584 8 821 6 562 2 320 2 499 1 742 0 42 966 Savings accounts 55 297 17 636 1 507 684 823 0 0 74 440 Debt securities (incl. savings certificates) 20 108 2 018 400 33 367 0 21 063 43 590 Loans and advances to customers (excluding reverse 123 887 38 338 29 842 6 857 11 887 11 098 0 192 067 repos) Term loans 65 606 13 433 11 716 3 103 3 499 5 113 0 90 755 Mortgage loans 46 297 20 028 11 735 1 937 6 729 3 068 0 78 059 Other 11 984 4 877 6 391 1 817 1 659 2 916 0 23 253 Liabilities under investment contracts 15 671 0 0 0 0 0 0 15 671 Insurance contract liabilities 14 562 1 248 1 281 428 249 605 19 17 111 Non-life 2 371 413 382 119 75 188 19 3 186 Life 12 191 835 899 308 174 417 0 13 925 BALANCE SHEET AT 31-12-2023 Deposits from customers and debt securities 154 238 52 642 31 687 9 610 8 836 13 241 20 924 259 491 (excluding repos) Demand deposits (incl. special deposits and other 60 531 23 378 23 659 6 645 5 480 11 534 0 107 568 deposits) Time deposits 19 654 12 058 6 333 2 252 2 382 1 699 0 38 044 Savings accounts 54 074 15 220 1 516 636 872 8 0 70 810 Debt securities (incl. savings certificates) 19 979 1 986 179 76 103 0 20 924 43 068 Loans and advances to customers (excluding reverse 119 168 36 470 27 975 6 764 11 589 9 623 0 183 613 repos) Term loans 62 573 11 463 11 658 3 279 3 452 4 927 0 85 694 Mortgage loans 45 394 19 641 10 447 1 818 6 451 2 178 0 75 482 Other 11 200 5 366 5 870 1 667 1 686 2 517 0 22 437 Liabilities under investment contracts 13 461 0 0 0 0 0 0 13 461 Insurance contract liabilities 14 315 1 288 1 162 413 226 524 18 16 784 Non-life 2 204 357 343 114 58 171 18 2 922 Life 12 111 931 820 299 168 353 0 13 862

279Annual Report KBC Group 2024
3.0 Notes to the income statement
Note 3.1: Net interest income
(in millions of EUR) 2024 2023 Total 5 574 5 473 Interest income 19 746 20 170 Interest income on financial instruments calculated using the effective interest rate method Financial assets at amortised cost 9 803 10 233 Financial assets at fair value through OCI 507 384 Hedging derivatives 6 011 5 094 Financial liabilities (negative interest rate) 5 11 Other 1 580 2 143 Interest income on other financial instruments Financial assets MFVPL other than held for trading 70 55 Financial assets held for trading 1 770 2 250 Of which economic hedges 1 566 2 085 Other financial assets at fair value through profit or loss 0 0 Interest expense -14 172 -14 697 Interest expense on financial instruments calculated using the effective interest rate method Financial liabilities at amortised cost -6 565 -6 757 Hedging derivatives -5 903 -5 277 Financial assets (negative interest rate) -1 -1 Other -5 -5 Interest expense on other financial instruments Financial liabilities held for trading -1 641 -2 599 Of which economic hedges -1 596 -2 546 Other financial liabilities at fair value through profit or loss -62 -68 Net interest expense relating to defined benefit plans 5 10
• ‘Interest income on financial instruments calculated using the effective interest rate method, Other’: the decrease in interest
income relates mainly to interest on cash balances with central banks. These cash balances with central banks are mostly
financed using short-term liabilities, such as certificates of deposit and repos. The associated interest expense is recognised
under ‘Interest expense’, under ‘Financial liabilities at amortised cost’. The interest margin on this activity is limited. Over the
past few years, several central banks in our core countries decided to increase the minimum amount of reserves to be
maintained or to lower the compensation paid for these reserves. This had a negative impact on our net interest income of
around 190 million euros in 2024 (126 million euros in 2023).
• At the end of August 2023, the Kingdom of Belgium issued a state note with a term of one year. For KBC, this resulted in a 5.7-
billion-euro outflow of customer deposits in 2023. Thanks to our proactive, multi-phased and multi-product offer, in
September 2024 we managed to attract a total of some 6.5 billion euros in core customer money in Belgium (deposits, savings
certificates, funds, insurance, bonds, etc.), exceeding the 5.7-billion-euro outflow to the state note in September 2023 by 0.8
billion euros.

280 Annual Report KBC Group 2024
Note 3.2: Dividend income
(in millions of EUR) 2024 2023 Total 57 59 Equity instruments MFVPL other than held for trading 2 0 Equity instruments held for trading 15 14 Equity instruments at FVOCI 39 44
Note 3.3: Net result from financial instruments at fair value through profit or loss and Insurance finance income
and expense (for insurance contracts issued)
(in millions of EUR) 2024 2023 Total -168 9 Total broken down by type and IFRS portfolio Net result from financial instruments at fair value through profit or loss 173 322 Financial instruments MFVPL other than held for trading 1 679 1 250 Trading instruments (including interest on non-ALM trading derivatives and fair value changes in all trading derivatives) 202 134 Other financial instruments at fair value through profit or loss -1 598 -1 103 Foreign exchange trading 108 155 Fair value adjustments in hedge accounting -219 -113 Insurance finance income and expense (for insurance contracts issued) -341 -313 Hedge accounting broken down by type of hedge Fair value micro-hedges 11 -2 Changes in the fair value of the hedged items -269 -269 Changes in the fair value of the hedging derivatives 281 267 Cashflow hedges 0 -9 Changes in the fair value of the hedging derivatives, ineffective portion 0 -9 Hedges of net investments in foreign operations, ineffective portion 0 0 Portfolio hedge of interest rate risk 2 7 Changes in the fair value of the hedged items 469 1 029 Changes in the fair value of the hedging derivatives -467 -1 022 Discontinuation of hedge accounting for fair value hedges -131 -58 Discontinuation of hedge accounting in the event of cashflow hedges -101 -52 Total broken down by driver Dealing room 294 288 Change in the value of derivatives used for asset/liability management purposes and other -189 -47 Market value adjustments (xVA) -24 -15 Investment result for unit-linked insurance contracts under IFRS 17 and Insurance finance income and expense -249 -217

281Annual Report KBC Group 2024
• Since 2024, ‘Net result from financial instruments at fair value through profit or loss’ and ‘Insurance finance income and
expense (for insurance contracts issued)’ are shown on the same line, with retroactive restatement of the 2023 figures. This
way, the change in fair value of liabilities of unit-linked contracts under IFRS 17 (variable fee approach) recognised under
‘Insurance finance income and expense’ is offset by the change in fair value of the underlying unit-linked assets, which is
recognised under ‘Net result from financial instruments at fair value through profit or loss’. The remaining amount primarily
comprises interest accretion in ‘Insurance finance income and expense’ (see Note 3.6).
• ALM hedging derivatives (recognised in hedge accounting): the interest component of these derivatives is recognised under
‘Net interest income’. Fair value changes in hedging derivatives, excluding those for which an effective cashflow hedge
relationship exists, are recognised under ‘Net result from financial instruments at fair value through profit or loss’. Under fair
value hedge accounting, changes in the fair value of hedged assets are also recognised under this heading, and offsetting
takes place insofar as the hedge is effective. ALM hedging derivatives not recognised in hedge accounting (and therefore
classified as trading instruments) are treated in the same way, except most of the related assets are not recognised at fair
value (i.e. not marked-to-market).
• Day 1 profit: when the transaction price in a non-active market differs from the fair value of other observable market
transactions in the same instrument or from the fair value based on a valuation technique whose variables include only data
from observable markets, the difference between the transaction price and the fair value (day 1 profit) is taken to profit or
loss. If this is not the case (i.e. the variables do not include only data from observable markets), day 1 profit is reserved and is
released in profit or loss during the life and until the maturity of the financial instrument. This day 1 profit involves limited
amounts.
• Foreign exchange trading includes the realised and unrealised foreign exchange results (when the monetary assets and
liabilities are revalued), regardless of the IFRS portfolio, except for financial assets and liabilities measured at fair value through
profit or loss, for which the revaluation is included in the fair value correction. Note that (unrealised) foreign exchange
gains/losses on insurance contract liabilities are recognised under ‘Insurance finance income and expense (for insurance
contracts issued)’.
• The effectiveness of the hedge is determined according to the following methods:
- For fair value micro-hedging, we use the dollar offset method on a quarterly basis, with changes in the fair value of the
hedged item offsetting changes in the fair value of the hedging instrument within a range of 80%–125%.
- For cashflow hedges, we compare the designated hedging instrument with a perfect hedge of the hedged cashflows on
a prospective (by BPV measurement) and retrospective basis (by comparing the fair value of the designated hedging
instrument with the perfect hedge). The effectiveness of both tests must fall within a range of 80%–125%.
- We use the rules set out in the European version of IAS 39 (carve-out) to assess the effectiveness of fair value hedges for
a portfolio of interest rate risk. IFRS does not permit net positions to be reported as hedged items, but does allow hedging
instruments to be designated as a hedge of a gross asset position (or a gross liabilities position, as the case may be).
Specifically, we make sure that the volume of assets (or liabilities) in each maturity bucket is greater than the volume of
hedging instruments allocated to the same bucket.

282 Annual Report KBC Group 2024
Note 3.4: Net fee and commission income
(in millions of EUR) 2024 2023 Total 2 578 2 349 Fee and commission income 3 253 2 991 Fee and commission expense -675 -642 Breakdown by type Asset management services 1 421 1 247 Fee and commission income 1 478 1 305 Fee and commission expense -57 -59 Banking services 1 108 1 057 Fee and commission income 1 721 1 632 Fee and commission expense -613 -575 Other 49 45 Fee and commission income 54 53 Fee and commission expense -5 -8
• ‘Asset management services’ contains management fees, entry fees and distribution fees for investment funds and unit-linked
life insurance under IFRS 9. ‘Banking services’ contains credit- and guarantee-related fees, payment transaction fees, network
income, securities-related fees, distribution fees paid for banking products and fees for other banking services. Distribution
fees paid for insurance products (Life and Non-life under IFRS 17) are recognised in the income statement under ‘Insurance
service expenses before reinsurance’ (see Note 3.6). ‘Other’ comprises distribution fees of third-party insurers (not under IFRS
17) and platformication income.
• The lion’s share of the fees and commissions related to lending is recognised under ‘Net interest income’ (effective interest
rate calculations).
Note 3.5: Net other income
(in millions of EUR) 2024 2023 Total 181 656 of which gains or losses on Sale of financial assets measured at amortised cost -36 -22 Sale of FVOCI debt instruments 2 -7 Repurchase of financial liabilities measured at amortised cost 0 0 Other, including: 215 685 Income from operational leasing activities 120 101 Income from VAB Group 47 39 Legal disputes -28 -2 Gain on sale of KBC Bank Ireland’s loan and deposit portfolios 0 405 Gain on sale of a participation in Belgium 0 18 Recovery of Belgian bank and insurance tax from 2016 (incl. moratorium interest) 0 48
• For information on the gain on the sale of KBC Bank Ireland’s loan and deposit portfolios in 2023, see Note 6.6.
•
Legal disputes: in 2024, this item mainly concerned Hungary.

283Annual Report KBC Group 2024
Note 3.6: Insurance results
Note 3.6.1: Insurance profitability – P&L
• Unlike the group’s income statement, the figures below include intragroup transactions between bank and insurance entities
of the group (the results for insurance contracts concluded between the group’s bank and insurance entities, interest that
insurance companies receive on their deposits with bank entities, commissions that insurance entities pay to bank branches
for sales of insurance, etc.) in order to give a more accurate view of the profitability of the insurance business.
• Of the items in Note 3.6.1, only ‘Insurance revenues’, ‘Insurance service expenses’, ‘Insurance finance income and expense’ and
‘Net result from reinsurance contracts held’ are presented on separate lines in the income statement (with a minor adjustment
related to intercompany transaction eliminations between bank and insurance entities). As part of our integrated bank-
insurance concept, all the other insurance items – together with the group’s banking activities – are included in the income
statement and related notes.
Of which Life direct participation (in millions of EUR) Life (VFA) Non-life Non-technical Total 2024 Insurance service result 168 10 310 — 478 Insurance revenues before reinsurance 463 24 2 492 — 2 955 Insurance service expenses -296 -14 -2 181 — -2 477 Of which Non-life claim-related expenses — — -1 416 — -1 416 Investment result and insurance finance income and expense 150 2 55 8 213 Investment result 446 92 100 8 554 Net interest income 325 0 91 1 417 Dividend income 22 0 4 7 34 Net result from financial instruments at fair value through profit or loss 92 92 0 0 92 Net other income 4 0 4 1 9 Impairment 2 0 1 0 2 Insurance finance income and expense, before reinsurance -296 -91 -45 — -341 Interest accretion -204 — -46 — -250 Effect of changes in financial assumptions and foreign exchange -2 0 1 — -1 differences Changes in fair value of liabilities of IFRS 17 unit-linked contracts -91 -91 — — -91 Net insurance and investment result before reinsurance 317 12 365 8 691 Net result from reinsurance contracts held -4 — -13 — -17 Premiums paid to the reinsurer -36 — -121 — -157 Fee and commission income 9 — 11 — 20 Amounts recoverable from the reinsurer 23 — 99 — 122 Total reinsurance finance income and expense 0 — -1 — -2 Net insurance and investment result after reinsurance 313 12 352 8 674 Non-directly attributable income or expenses 23 -2 -56 16 -17 Net fee and commission income 75 0 -2 28 102 Net other income — — — 80 80 Operating expenses (incl. bank and insurance tax) -51 -2 -53 -91 -196 Impairment – other -1 0 -1 0 -3 Share in results of associated companies and joint ventures — — — 0 0 Income tax expense — — — -142 -142 Result after tax 336 10 296 -117 515 attributable to minority interests — — — — — attributable to equity holders of the parent — — — — 515

284 Annual Report KBC Group 2024
Of which Life direct participation (in millions of EUR) Life (VFA) Non-life Non-technical Total 2023 Insurance service result 149 12 418 — 567 Insurance revenues before reinsurance 400 25 2 290 — 2 690 Insurance service expenses -251 -12 -1 872 — -2 123 Of which Non-life claim-related expenses — — -1 159 — -1 159 Investment result and insurance finance income and expense 151 0 63 19 233 Investment result 434 96 93 19 546 Net interest income 304 0 87 1 392 Dividend income 22 0 4 14 40 Net result from financial instruments at fair value through profit or loss 100 96 0 6 106 Net other income 10 0 2 -3 10 Impairment -1 0 0 0 -2 Insurance finance income and expense, before reinsurance -283 -96 -30 — -313 Interest accretion -186 — -31 — -217 Effect of changes in financial assumptions and foreign exchange -1 0 1 — -1 differences Changes in fair value of liabilities of IFRS 17 unit-linked contracts -96 -96 — — -96 Net insurance and investment result before reinsurance 300 12 481 19 800 Net result from reinsurance contracts held -3 — -87 — -90 Premiums paid to the reinsurer -30 — -95 — -125 Fee and commission income 7 — 10 — 17 Amounts recoverable from the reinsurer 21 — 0 — 21 Total reinsurance finance income and expense 0 — -2 — -2 Net insurance and investment result after reinsurance 297 12 394 19 710 Non-directly attributable income or expenses 11 -1 -50 8 -31 Net fee and commission income 67 0 -2 24 90 Net other income — — — 68 68 Operating expenses (incl. bank and insurance tax) -48 -1 -48 -83 -179 Impairment – other -9 0 -1 0 -10 Share in results of associated companies and joint ventures — — — 0 0 Income tax expense — — — -152 -152 Result after tax 308 11 344 -124 527 attributable to minority interests — — — — 0 attributable to equity holders of the parent — — — — 527
• The column ‘of which Life direct participation (VFA)’ relates to results of long-term unit-linked contracts in Central and Eastern
Europe, measured under IFRS 17.
• ‘Insurance finance income and expense, before reinsurance’ includes:
- interest accretion on the IFRS 17 insurance liabilities, which is offset by the investment result on the corresponding assets
backing these liabilities;
- changes in the fair value of underlying liabilities of insurance contracts measured under the VFA, which represents the
change in the fair value of unit-linked liabilities, measured under IFRS 17 (Variable Fee Approach), with the offsetting impact
in the change in the fair value of underlying unit-linked assets in ‘Net result from financial instruments at fair value through
P&L’ (see also Note 3.3).
• ‘Non-technical’ includes the results from non-insurance subsidiaries, such as VAB Group and ADD. They have been included
in the note for the ‘insurance business’ given that they are KBC Insurance subsidiaries (but as they cannot be recognised under
‘Life’ or ‘Non-life’, they are included under ‘Non-technical’). ‘Non-technical’ also includes the investment income from equity
(i.e. mainly interest income from bonds) and income tax.
• In 2024, the Non-life insurance service result was negatively impacted by higher Non-life claim-related expenses (-257 million
euros). This was partly due to the impact of inflation, a sector-wide update of claims inflation on bodily injury claims, a higher
level of standard claims and the increased impact of storms, mainly in the Czech Republic (storm Boris) and Belgium, having
an impact of -133 million euros before reinsurance or -72 million euros after reinsurance (-29 million euros and -34 million euros,
respectively, in 2023).

285Annual Report KBC Group 2024
Note 3.6.2: Insurance profitability – other comprehensive income (OCI)
Of which Life direct participation (in millions of EUR) Life (VFA) Non-life Non-technical Total 2024 Investment result (OCI) on financial assets at FVOCI 74 0 -1 30 103 Change in Insurance finance income and expense – OCI, before -199 0 -26 — -225 reinsurance Effect of changes in interest rates and other financial assumptions in OCI, -199 0 -26 — -224 incl. foreign exchange differences Changes in fair value of underlying liabilities of contracts measured under 0 0 — — 0 VFA – OCI Net insurance and investment result before reinsurance – OCI -125 0 -26 30 -122 Change in reinsurance finance income and expense – OCI 0 — 0 — 0 Deferred taxes — — — 75 75 Net insurance and investment result after reinsurance, after tax – OCI -125 0 -26 104 -47 2023 Investment result (OCI) on financial assets at FVOCI 594 1 49 0 644 Change in Insurance finance income and expense – OCI, before -538 -1 -23 — -561 reinsurance Effect of changes in interest rates and other financial assumptions in OCI, -537 0 -23 — -560 incl. foreign exchange differences Changes in fair value of underlying liabilities of contracts measured under -1 -1 — — -1 VFA – OCI Net insurance and investment result before reinsurance – OCI 56 0 25 0 82 Change in reinsurance finance income and expense – OCI 0 — 7 — 7 Deferred taxes — — — 13 13 Net insurance and investment result after reinsurance, after tax – OCI 56 0 33 13 102
• Note that there is a (partial) compensating effect between ‘Investment result (OCI) on financial assets at FVOCI’ and the
‘Effect of changes in interest rates and other financial assumptions in OCI, incl. foreign exchange differences’.
• For more information on the investment result and the change in insurance finance income and expense: see ‘Other
comprehensive income’.
• In addition to the investment result of the financial assets recognised in profit or loss (Note 3.6.1) and in OCI (Note 3.6.2), results
realised on FVOCI equity instruments are recognised directly in equity (see ‘Transfer from revaluation reserves to retained
earnings upon realisation’ in ‘Consolidated statement of changes in equity’). The corresponding figures for 2024 and 2023
were 40 million euros and 24 million euros, respectively, at insurance level of the 47 million euros and 21 million euros at group
level.

286 Annual Report KBC Group 2024
Note 3.6.3: Insurance revenues (Life and Non-life) by component
(in millions of EUR) 2024 2023 Total Life Non-life Total Life Non-life Insurance revenues for BBA and VFA contracts 472 432 39 406 370 36 Amounts related to changes in liabilities for remaining coverage 447 408 38 390 355 35 Expected claims and other insurance service expenses 262 232 29 226 200 25 Change in risk adjustment for risk expired (non-financial risk) 14 13 2 15 11 3 CSM recognised for services provided 170 163 7 150 143 6 Recovery of insurance acquisition cashflows 25 24 1 16 15 1 Insurance revenues for contracts measured using the PAA 2 483 31 2 452 2 284 30 2 255 Total insurance revenues 2 955 463 2 492 2 690 400 2 290
Note 3.6.4: Life insurance sales
(in millions of EUR) 2024 2023 Total 2 906 2 328 IFRS 17 – non-unit-linked 1 214 975 IFRS 17 – unit-linked 158 171 IFRS 17 – hybrid 197 131 Non-IFRS 17 1 337 1 051
• Non-IFRS 17 sales figures mainly refer to investment contracts without discretionary participation features (DPF), measured
under IFRS 9. They concern the unit-linked insurance contracts in Belgium, for which margins are reported under ‘Net fee and
commission income’.
• Hybrid products: see Note 5.6.1.
• Sales of life insurance products in 2024 went up by 25% compared to 2023, largely driven by unit-linked insurance contracts
in Belgium (non-IFRS 17) as well as by further growth in non-unit-linked insurance contracts (mainly in Belgium).
Note 3.6.5: Non-life insurance profitability by product (P&L)
Insurance finance income and Net result expense from Insurance before Total reinsurance Total Insurance service reinsurance before contracts after (in millions of EUR) revenues expenses in P&L reinsurance held reinsurance 2024 Personal insurance 308 -243 -8 57 — — Motor Third-Party Liability (MTPL) 594 -578 -19 -3 — — Liabilities other than MTPL 154 -139 -6 9 — — Casco 467 -430 -2 35 — — Property incl. other than casco 952 -789 -11 152 — — Total primary business 2 474 -2 179 -46 249 -7 242 Accepted reinsurance 18 -3 1 16 -6 10 Total 2 492 -2 181 -45 265 -13 252 2023 Personal insurance 274 -211 -4 59 — — Motor Third-Party Liability (MTPL) 562 -542 -13 7 — — Liabilities other than MTPL 144 -88 -4 53 — — Casco 409 -371 -2 35 — — Property incl. other than casco 883 -658 -8 217 — — Total primary business 2 272 -1 870 -31 371 -33 338 Accepted reinsurance 18 -2 0 17 -54 -38 Total 2 290 -1 872 -30 388 -87 301

287Annual Report KBC Group 2024
Note 3.7: Operating expenses
(in millions of EUR) 2024 2023 Total -5 097 -5 125 Staff expenses -2 708 -2 677 General administrative expenses ICT -641 -634 Facility expenses -250 -265 Marketing and communications -111 -108 Professional service fees -142 -144 Bank and insurance tax -623 -687 Other -240 -224 Depreciation and amortisation of fixed assets -382 -386
• The table above contains the sum of ‘Total operating expenses excluding bank and insurance tax’ and ‘Bank and insurance
tax’ from the income statement.
• The total expenses went down by 1% in 2024 compared to 2023.
- This amount includes 623 million euros in bank and insurance tax, a 9% decrease year-on-year. This was partly due to
lower contributions to the resolution fund (after reaching the target level of 1% of the covered deposits for the Single
Resolution Fund in 2023, no contributions were made by euro area countries and only limited contributions were made by
non-euro area countries), a lower contribution to the deposit guarantee schemes (mainly in Belgium, due to a lower-than-
anticipated volume of covered deposits), partly offset by additional national bank taxes in a number of countries (primarily
in Belgium and Slovakia).
- Expenses excluding bank and insurance tax increased by 1% to 4 474 million euros. This was mainly attributable to inflation-
related pressure on wages and higher ICT and regulatory expenses, and was only partly offset by, among other things,
the positive impact of the sale of the Irish portfolios and lower facility expenses.
• Under ‘Insurance service expenses’, operating expenses are also allocated as ‘directly attributable to insurance contracts’.
For 2024, the operating expenses that are ‘directly attributable to insurance contracts’ are comprised of approximately 39%
staff expenses, 57% general administrative expenses and 4% depreciation and amortisation of fixed assets.
• For information on the average number of persons employed, see Note 3.8; information on the remuneration of members of
the Executive Committee and the Board of Directors is provided under ‘Remuneration report’ in the ‘Corporate governance
statement’ section; details of the statutory auditor’s remuneration (PwC) are provided in Note 6.4.
• Information on the capital increase reserved for KBC group employees can be found in the ‘Company annual accounts and
additional information’ section. In 2024, this resulted in the recognition of a limited employee benefit (3 million euros) as the
issue price in 2024 was lower than the market price. Information regarding the price of the KBC share can be found in the
‘Report of the Board of Directors’ section.
Note 3.8: Personnel
(number) 2024 2023 Total average number of persons employed (in full-time equivalents) 38 074 38 609 By legal entity KBC Bank 27 872 28 708 KBC Insurance 4 120 4 067 KBC Group NV (holding company) and KBC Global Services NV (cost-sharing structure) 6 082 5 834 By employee classification Blue-collar staff 417 389 White-collar staff 37 400 37 960 Senior management 257 260
• The figures in the table are annual averages, which – in terms of scope – may differ from year-end figures that are provided
elsewhere.

288 Annual Report KBC Group 2024
p. 2
Note 3.9: Impairment (income statement)
(in millions of EUR*) 2024 2023 Total -248 -215 Impairment on financial assets at AC and at FVOCI -199 16 (impairment on loans) By IFRS category Financial assets at amortised cost -201 17 Financial assets at fair value through OCI 2 -1 By product Loans and advances -224 -5 Debt securities 4 6 Off-balance-sheet commitments and financial guarantees 21 15 By type Stage 1 (12-month ECL) -30 -41 Stage 2 (lifetime ECL) 162 160 Stage 3 (lifetime ECL) -283 -92 Purchased or originated credit impaired assets -49 -11 By business unit/country Belgium -246 -82 Czech Republic 34 70 International Markets 25 19 Slovakia 18 8 Hungary 23 11 Bulgaria -16 0 Group Centre -12 8 Impairment on goodwill 0 -109 Impairment on other -49 -122 Intangible fixed assets (other than goodwill) -36 -77 Property and equipment (including investment property) -2 -15 Associated companies and joint ventures 0 0 Other -11 -30
* Positive figures indicate a reversal and hence a positive impact on results
• Impairment on loans:
- In 2024, this item included a partial reversal of 134 million euros related to the reserve for geopolitical and macroeconomic
uncertainties (see below) and a net increase of 333 million euros for loans in the loan portfolio (of which a 72-million-euro
reduction of the backstop shortfall for old non-performing loans in Belgium – see also the ‘How do we manage our
capital?’ section);
- In 2023, this item included a partial reversal of 155 million euros related to the reserve for geopolitical and macroeconomic
uncertainties (see below) and a net increase of 139 million euros for loans in the loan portfolio;
- The impact of the extreme weather conditions, including flooding and storms, in 2024 and 2023 on (impairment on) loans
was insignificant.
• Impairment on goodwill:
- In 2023, this item included 109 million euros related to ČSOB Stavební spořitelna (see below).
• Impairment on other:
- In 2024, this item included impairment of software and modification losses related to the extension of the interest cap
regulation in Hungary;
- In 2023, this item included impairment of fixed assets (partly relating to the sale in Ireland) and software, and modification
losses related to the extension/expansion of the interest cap regulation in Hungary;
• The loan portfolio accounts for the largest share of the financial assets. Based on internal management reports, the
composition and quality of the loan portfolio is set out in detail in the ‘How do we manage our risks?’ section (under ‘Credit
risk’). All parts of that particular section which have been audited by the statutory auditor are specified in that section. Among
other things, this section also provides more information on impaired loans (Stage 3).
• For information on total impairment recognised in the balance sheet, see Note 4.2.
• More background information and methodology for KBC’s ECL model is provided in the accounting policies under ‘Financial
assets – impairment’ in Note 1.2.

289Annual Report KBC Group 2024
• In order to calculate ECL, KBC uses specific models for probability of default (PD), exposure at default (EAD) and loss given
default (LGD). It is essential to take account of historical observations and forward-looking projections in this respect.
- PD represents the probability of a counterparty defaulting in the next 12 months or during the entire term of the facility
(depending on which IFRS 9 ‘Stage’ the facility is in). The PD is determined by the counterparty’s internal (and, if applicable,
external) credit rating. Variables used in PD models include financial ratios and behavioural parameters (arrears).
- EAD represents the estimated outstanding debt at the time of default and depends on the existing outstanding debt and
any changes permitted under the contract and normal repayments. Variables used in these models include product types
and repayment schedules.
- LGD is the estimated size of the loss relative to the outstanding debt at the time of default. LGD is presented as a
percentage of the outstanding debt and is determined by historical amounts recovered on similar claims. Variables used
in these models include collateral types and financial ratios.
• On 31 December 2024, there were around 80 different IFRS 9 models. In addition to several group-wide models, we have
separate PD, EAD and LGD models for each of our core countries. In accordance with the Basel grouping approach, we use
the type of counterparty (private individuals, SMEs, companies, governments, etc.) to determine the scope of an IFRS 9 model.
Each model allows for differentiation in terms of facility type (term loans, revolving facilities, etc.) and collateral type
(mortgages, pledges on business assets, guarantees, etc.). Examples of IFRS 9 models include ‘Banks’, ‘Belgian private persons
– home loans’, ‘Czech corporates’, ‘Bulgarian corporates and SMEs’ and ‘Central governments’. Detailed documentation is
available for each PD, EAD and LGD model. These models are periodically back-tested and, if necessary, redesigned. There
was no material net impact on ECL from redesigned models in 2024. The main models are subject to review by external
auditors. The Basel models, which the IFRS 9 models are based on, are subject to external control performed by the supervisory
authorities.
• We create the models for the various portfolios using typical PD, EAD and LGD inputs, as well as macro- and microeconomic
variables to the extent that there is a statistical relationship. The macroeconomic variables are GDP growth, the
unemployment rate, policy interest rates, the exchange rate, government bond yields, house prices and inflation.
Microeconomic variables include, for example, confidence indicators, the harmonised consumer price index (HICP), the
producer price index (PPI), and so on. As a result of regular back-testing, models may change and economic variables may
be reassessed. The following table gives the base-case scenario for the three key indicators (GDP growth, unemployment
rate and house price index) for each of our core countries for the coming years. After that, we take into account a gradual
linear transition towards a stable situation.
Macroeconomic base-case scenario – key indicators (used for situation at year-end 2024)* 2024 2025 2026 Real GDP growth Belgium 1.0% 0.6% 0.9% Czech Republic 1.0% 2.3% 2.3% Hungary 0.4% 2.1% 3.1% Slovakia 2.2% 2.0% 2.6% Bulgaria 2.2% 2.1% 2.4% Unemployment rate Belgium 5.8% 6.0% 5.9% Czech Republic 2.9% 3.2% 3.1% Hungary 4.6% 4.3% 3.9% Slovakia 5.5% 5.5% 5.5% Bulgaria 4.2% 4.2% 4.0% House price index Belgium 2.9% 3.0% 3.0% Czech Republic 3.9% 4.2% 3.5% Hungary 7.0% 4.5% 4.0% Slovakia 3.0% 3.0% 3.5% Bulgaria 12.2% 5.0% 3.5%
* This deviates from the (more recent) estimates provided in the ‘Report of the Board of Directors’, under the ‘Market conditions in our core markets in 2024’ and ‘Our business units’ sections.

290 Annual Report KBC Group 2024
• We use three different forward-looking macroeconomic scenarios (with different probability weightings) to measure ECL. The
weightings at year-end 2024 were 60% for the ‘base’ scenario, 20% for the optimistic ‘up’ scenario and 20% for the pessimistic
‘down’ scenario. The forecast horizon is 30 years. A sensitivity analysis of the impact of these multiple economic scenarios on
the collectively assessed ECL (i.e. without the ECL for individually assessed loans of 1.65 billion euros at the end of 2024 and
1.56 billion euros at the end of 2023) shows that the ‘base’ scenario generates an ECL of 0.81 billion euros (0.91 billion euros in
2023), which is 0.02 billion euros lower than for the ‘down’ scenario (0.07 billion euros in 2023) and 0.01 billion euros higher than
for the ‘up’ scenario (0.03 billion euros in 2023). The assessed scenario-weighted collective ECL results (that were recognised)
amounted to 0.81 billion euros (0.93 billion euros in 2023). These amounts include the ECL related to geopolitical and
macroeconomic uncertainties.
100% 100% 100% Collectively assessed ECL by country (2024, in billions of EUR) base-case scenario optimistic scenario pessimistic scenario Total 0.81 0.79 0.83 Belgium 0.26 0.26 0.27 Czech Republic 0.27 0.27 0.27 Slovakia 0.08 0.08 0.08 Hungary 0.04 0.04 0.05 Bulgaria 0.15 0.14 0.15
• The management of ESG risks is an integral part of the Credit Risk Management Framework (CRMF; see ‘How do we manage
our risks?’ (under ‘Credit risk’)). Dedicated processes have been developed focusing on the risk management of ESG-related
credit risks, and in particular on identification measurement, risk appetite and follow-up. A detailed explanation of the Credit
Risk Management Framework is provided in the ‘ESG in credit risk management’ section of the Risk Report, which is available
at www.kbc.com. The main elements of this management framework are as follows:
- In order to identify ESG-related credit risks, we use the Environmental Risk Impact Map (ERIM) to assess the impact of
various climate and environmental risk drivers on the credit risk profile. Additionally, regular thematic analyses are also
carried out (so-called ‘White Papers’). In the loan origination and review process, a sector-based environmental and social
(E&S) heat map is used. This is a screening tool to identify the risks involved in the portfolio of loans to corporate entities
and SMEs. For material credit files in scope of high E&S Risk sectors, an ESG assessment is performed at counterparty level.
- In the context of risk quantification, specific measurement techniques are being developed to assess the impact of ESG
risks on our loan portfolio. For example, KBC is exploring the possibility of assessing sectoral climate impacts on Probability
of Default (PD) based on climate scenarios from the Network for Greening the Financial System (NGFS). The quantifiability
of ESG-related risks will gradually increase with the improved availability of data and measurement methodologies.
- As regards risk appetite, KBC aims to limit the adverse impact of its activities on the environment and society and to
encourage a positive impact, based on a responsible lending culture, the principles of which are laid out in a group-wide
sustainability policy. KBC’s commitment to consider climate and environmental risks is reflected in standards and policies
addressing credit risk. These standards and policies apply in every step of the credit process, including, for instance, in
loan pricing and collateral valuation. Furthermore, climate-related Key Risk Indicators (KRIs) were introduced in the Risk
Appetite Process. These KRI’s are monitored on a semi-annual basis by the Group Lending Committee and integrated in
the Climate Risk Dashboard.
• KBC is gradually incorporating climate-related risks in the ECL process. This is reflected in our commitment, as described
above, to consider climate-related risks in our collateral valuation process and in the ESG assessment of the relevant
counterparty. KBC is also looking into the possibilities of a portfolio approach, which involves studying new methods to
determine any relationship between the expected evolution of the climate and credit risk. As stated above, KBC is
investigating whether a practicable model can be built to assess sectoral climate impacts based on climate scenarios
developed by the NGFS. At this stage of the investigation, it is too early to include any impacts in the accounting policies.
Management has the ability to overrule the expected credit losses and to capture the growing insights into ESG and climate-
related risks.

291Annual Report KBC Group 2024
• Impairment on goodwill in 2023: ČSOB Stavební spořitelna (a subsidiary of ČSOB Czech Republic) is facing the impact of the
reduction of the building saving state subsidy in the Czech Republic, which has a significant negative impact on future
projected earnings. This created an impairment of 109 million euros on the total goodwill outstanding of 175 million euros
(based on the exchange rate as at 31 December 2023). This goodwill was created in June 2019 during the full acquisition of
ČSOB Stavební (the former ČMSS), partially through the revaluation of the group’s existing 55% stake in ČMSS at that time,
which resulted in a one-off gain of 82 million euros.
• Reserve for geopolitical and macroeconomic uncertainties (referred to as the ‘reserve for geopolitical and emerging risks’ up
until year-end 2023): the outstanding balance of the ECL for geopolitical and macroeconomic uncertainties came to 117 million
euros at year-end 2024; the corresponding figure at year-end 2023 was 256 million euros. This ECL is determined based on
individual counterparties and sectors in our portfolio which are deemed to have incurred an increase in credit risk because
they are either (°) exposed to the macroeconomic risks (e.g., high(er) inflation and interest rates, high(er) energy prices) or (°)
indirectly exposed to ongoing military conflict, such as the one in Ukraine. The decline is largely attributable to the improved
micro- and macroeconomic outlook and the reversal of a collective migration of ‘Stage 1’ positions to ‘Stage 2’ for positions
whose credit risk has increased significantly, which are included in the standard staging assessment since the fourth quarter
of 2024. At year-end 2023, 12 billion euros’ worth of ‘Stage 1’ positions were collectively migrated to ‘Stage 2’.
Note 3.10: Share in results of associated companies and joint ventures
(in millions of EUR) 2024 2023 Total 80 -4 Of which IGLUU s.r.o. 0 -1 Bancontact Payconiq Company NV 1 1 Isabel NV 78 3 Payconiq International SA - -3 Batopin NV 1 -3
• Impairment on (goodwill on) associated companies and joint ventures is included in ‘Impairment’ (see Note 3.9). The share in
results of associated companies and joint ventures does not therefore take this impairment into account.
• The results in 2024 are mainly due to a one-off gain of 79 million euros related to Isabel NV.

292 Annual Report KBC Group 2024
Note 3.11: Income tax expense
(in millions of EUR) 2024 2023 Total -527 -778 By type Current taxes on income -699 -532 Deferred taxes on income 173 -246 Tax components Result before tax 3 941 4 179 Income tax at the Belgian statutory rate 25.00% 25.00% Income tax calculated -985 -1 045 Plus/minus tax effects attributable to differences in tax rates, Belgium – abroad 168 234 tax-free income 64 117 adjustments related to prior years -8 4 adjustments to deferred taxes due to change in tax rate 0 4 unused tax losses and unused tax credits to reduce current tax expense 4 9 unused tax losses and unused tax credits to reduce deferred tax expense 3 25 reversal of previously recognised deferred tax assets due to tax losses -13 0 liquidation of Exicon (formerly KBC Bank Ireland) 318 - other (including non-deductible expenses) -78 -126
• For information on tax assets and tax liabilities, see Note 5.2.
• Taxes in 2024 were positively impacted by the imminent liquidation of Exicon (formerly KBC Bank Ireland) (see below), partly
offset by an updated estimate of future taxable profits of the London branch (-9 million euros). Taxes in 2023 were positively
impacted by an updated estimate of future taxable profits of the London branch (15 million euros).
• In 2023, income tax expense was negatively impacted by 36 million euros as the deductibility of the Belgian bank and
insurance tax was reduced by 80%. The remainder of the tax deductibility (20%) has also been abolished as of 2024 (having
an additional impact of 11 million euros in 2024).
• The government of the Czech Republic introduced a windfall tax, which will also apply to major banks and will be in force for
the period 2023-2025. Any excess profits will be taxed at 79% (19% standard business tax, 60% windfall tax). As ČSOB in the
Czech Republic did not make any excess profit in 2024 and 2023, no Czech windfall tax was due.
• On 14 December 2023, Belgium, where ultimate parent company KBC Group NV has its registered office, laid down the Pillar
Two global minimum tax in statute and declared that it would take effect on 1 January 2024. Under these rules, KBC is required
to pay top-up tax (in Belgium or abroad) on the profits of its subsidiaries and permanent establishments, which are taxed at
an effective tax rate of less than 15%. Based on the 2024 results, the additional top-up tax will be around 20 million euros
(mainly in the Czech Republic and in Bulgaria). The group has applied the temporary exception issued by the IASB in May 2023
relating to the accounting requirements for deferred taxes in IAS 12. The group will continue to monitor the effect of the Pillar
Two legislation on its future financial performance.
• Liquidation of Exicon (formerly KBC Bank Ireland): following approval from the Irish Ministry of Finance in September 2023, the
remaining positions of KBC Bank Ireland were transferred to KBC Bank’s Dublin branch, which means the main hurdles to
commencing the legal process of liquidating Exicon (formerly KBC Bank Ireland) were overcome. In the fourth quarter of 2024,
the imminent liquidation resulted in the recognition of a deferred tax asset for KBC Bank NV of 318 million euros.
• The table on the next page shows the country-by-country reporting.

293Annual Report KBC Group 2024
Revenues Tangible from intra- assets group other than Revenues transactions cash and Govern- Average from third- with other Income tax Income taxes cash ment number of party tax Result accrued – paid on a Retained equiva- grants (in millions of EUR) FTEs sales1 jurisdictions2 before tax current year cash basis earnings lents3 received 2024 KBC core countries Belgium 14 053 6 230 510 1 822 -364 -338 12 680 2 559 0 Czech Republic 10 276 2 382 -412 1 062 -165 -114 2 200 637 0 Slovakia 3 002 451 -180 125 -24 -21 28 165 0 Hungary 3 887 1 070 -77 394 -62 -46 1 261 157 0 Bulgaria 6 479 808 -31 358 -51 -31 432 197 0 Other countries China 29 1 0 0 0 0 0 3 0 Germany 22 3 0 4 -2 -2 0 0 0 France 46 7 -13 5 -1 0 2 0 0 Great Britain 37 34 25 17 -11 -11 567 1 0 Hong Kong 28 1 0 0 0 1 0 1 0 Ireland 65 137 135 128 -18 -17 -1 593 4 0 Italy 8 0 0 0 0 0 0 1 0 Luxembourg 39 27 44 15 -1 0 118 172 0 The Netherlands 29 7 0 3 -1 -1 1 37 0 Romania 0 4 0 4 -1 -1 27 30 0 Singapore 32 2 0 1 0 2 0 1 0 USA 43 4 0 3 0 0 0 17 0 Total 38 074 11 167 0 3 941 -699 -579 15 724 3 981 0 2023 KBC core countries Belgium 14 184 6 101 753 1 889 -338 -303 12 254 2 385 0 Czech Republic 10 189 2 215 -732 890 -65 -52 2 044 522 0 Slovakia 3 011 408 -162 134 -25 1 -104 178 0 Hungary 3 810 994 -79 336 -54 -39 929 164 0 Bulgaria 6 519 715 -1 321 -34 -33 146 201 0 Other countries China 34 1 0 0 0 0 0 2 0 Germany 22 2 0 2 -3 -3 0 0 0 France 53 6 -7 1 0 0 1 0 0 Great Britain 38 29 24 18 13 13 547 0 0 Hong Kong 33 1 0 1 0 0 0 2 0 Ireland 560 619 180 515 -14 -13 -1 598 0 0 Italy 7 0 0 0 0 0 0 1 0 Luxembourg 38 117 25 58 -6 -2 86 156 0 The Netherlands 27 6 0 9 -3 -2 2 38 0 Romania 0 4 0 4 0 0 24 32 0 Singapore 40 2 0 1 0 2 0 1 0 USA 45 3 0 1 -2 -2 0 18 0 Total 38 609 11 224 0 4 179 -532 -433 14 332 3 702 0
Countries with zero FTEs and whose figures are below 0.5 million euros (i.e. rounded to zero in the table) have been excluded.
1 Corresponds to ‘Total income’ in the income statement.
2 If this column contains a positive figure for a particular jurisdiction, it means that all group entities in that jurisdiction combined had more intra-group income than intra-group expenses
compared with other tax jurisdictions. If the figure is negative, it means that all group entities in this jurisdiction combined had less intra-group income than intra-group expenses arising
compared with other tax jurisdictions.
3 Corresponds to ‘Property and equipment and investment property’ in the balance sheet.

294 Annual Report KBC Group 2024
Note 3.12: Earnings per share
(in millions of EUR) 2024 2023 Result after tax, attributable to equity holders of the parent 3 415 3 402 Coupon on AT1 instruments -84 -64 Net result used to determine basic earnings per share 3 332 3 338 Weighted average number of ordinary shares outstanding (millions of units) 400 415 Basic earnings per share (EUR) 8.33 8.04
• Diluted earnings per share are currently almost the same as basic earnings per share.
• Number of ordinary shares outstanding is after deduction of shares repurchased (see 2023-2024 share buyback programme).

295Annual Report KBC Group 2024
4.0 Notes on the financial assets and liabilities on the balance sheet
Note 4.1: Financial assets and liabilities, breakdown by portfolio and product
Measu- Manda- red at torily fair measured value at fair through value Measu- other through Desig- red at compre- profit or nated at amor- hensive loss Held for fair Hedging tised income (MFVPL) trading value1 deriva- (in millions of EUR) cost (AC) (FVOCI) excl. HFT (HFT) (FVO) tives Total FINANCIAL ASSETS, 31-12-2024 Loans and advances to credit institutions and investment firms (excl. reverse 2 438 0 0 1 0 0 2 439 repos) of which loans and advances to banks repayable on demand and term loans to banks at not 225 more than three months Loans and advances to customers (excluding reverse repos) 191 124 0 943 0 0 0 192 067 Trade receivables 2 887 0 0 0 0 0 2 887 Consumer credit 6 316 0 633 0 0 0 6 949 Mortgage loans 77 750 0 309 0 0 0 78 059 Term loans 90 754 0 1 0 0 0 90 755 Finance lease 7 919 0 0 0 0 0 7 919 Current account advances 4 790 0 0 0 0 0 4 790 Other 708 0 0 0 0 0 708 Reverse repos2 21 083 0 0 0 0 0 21 083 with credit institutions and investment firms 20 922 0 0 0 0 0 20 922 with customers 162 0 0 0 0 0 162 Equity instruments 0 1 722 10 902 0 0 2 633 Investment contracts (insurance)3 0 0 16 602 0 0 0 16 602 Debt securities issued by 50 075 22 539 70 5 021 0 0 77 705 Public bodies 41 955 18 165 0 3 360 0 0 63 480 Credit institutions and investment firms 5 982 2 510 0 1 593 0 0 10 085 Corporates 2 139 1 864 70 68 0 0 4 140 Derivatives 0 0 0 4 584 0 271 4 856 Other4 1 154 0 0 0 0 0 1 154 Total 265 875 24 261 17 624 10 509 0 271 318 540 FINANCIAL ASSETS, 31-12-2023 Loans and advances to credit institutions and investment firms (excl. reverse 2 779 0 0 1 0 0 2 779 repos) of which loans and advances to banks repayable on demand and term loans to banks at not 222 more than three months Loans and advances to customers (excluding reverse repos) 182 777 0 836 0 0 0 183 613 Trade receivables 2 680 0 0 0 0 0 2 680 Consumer credit 6 604 0 608 0 0 0 7 211 Mortgage loans 75 254 0 228 0 0 0 75 482 Term loans 85 694 0 0 0 0 0 85 694 Finance lease 7 197 0 0 0 0 0 7 197 Current account advances 4 626 0 0 0 0 0 4 626 Other 723 0 0 0 0 0 723 Reverse repos2 25 501 0 0 0 0 0 25 501 with credit institutions and investment firms 25 356 0 0 0 0 0 25 356 with customers 144 0 0 0 0 0 144 Equity instruments 0 1 695 14 570 0 0 2 279 Investment contracts (insurance)3 0 0 14 348 0 0 0 14 348 Debt securities issued by 51 372 16 892 14 3 138 0 0 71 417 Public bodies 43 337 13 206 0 2 966 0 0 59 509 Credit institutions and investment firms 5 658 1 826 0 12 0 0 7 496 Corporates 2 377 1 861 14 160 0 0 4 412 Derivatives 0 0 0 4 618 0 295 4 914 Other4 1 196 0 0 0 0 0 1 196 Total 263 625 18 587 15 212 8 327 0 295 306 047

296 Annual Report KBC Group 2024
Measured at amortised Designated cost Held for at fair value Hedging (in millions of EUR) (AC) trading (HFT) (FVO) derivatives Total FINANCIAL LIABILITIES, 31-12-2024 Deposits from credit institutions and investment firms (excl. repos) 12 852 0 0 0 12 852 of which deposits from banks repayable on demand 6 456 Deposits from customers and debt securities (excl. repos) 270 030 22 1 035 0 271 087 Demand deposits (incl. special deposits and other deposits) 110 090 0 0 0 110 090 Time deposits 42 781 22 163 0 42 966 Savings accounts 74 440 0 0 0 74 440 Savings certificates 1 250 0 0 0 1 250 Subtotal deposits from customers 228 562 22 163 0 228 747 Certificates of deposit 14 376 0 5 0 14 382 Non-convertible bonds 24 185 0 745 0 24 930 Non-convertible subordinated liabilities 2 907 0 121 0 3 028 Repos5 20 985 94 0 0 21 079 with credit institutions and investment firms 18 587 94 0 0 18 681 with customers 2 398 0 0 0 2 398 Liabilities under investment contracts3 27 0 15 644 0 15 671 Derivatives 0 4 679 0 316 4 995 Short positions 0 882 0 0 882 In equity instruments 0 9 0 0 9 In debt securities 0 872 0 0 872 Other6 2 157 0 0 0 2 157 Total 306 050 5 677 16 680 316 328 723 FINANCIAL LIABILITIES, 31-12-2023 Deposits from credit institutions and investment firms (excl. repos) 15 013 0 0 0 15 013 of which deposits from banks repayable on demand 6 136 Deposits from customers and debt securities (excl. repos) 258 051 81 1 359 0 259 491 Demand deposits (incl. special deposits and other deposits) 107 568 0 0 0 107 568 Time deposits 37 770 81 194 0 38 044 Savings accounts 70 810 0 0 0 70 810 Savings certificates 79 0 0 0 79 Subtotal deposits from customers 216 227 81 194 0 216 501 Certificates of deposit 16 840 0 6 0 16 846 Non-convertible bonds 22 294 0 1 045 0 23 339 Non-convertible subordinated liabilities 2 690 0 114 0 2 804 Repos5 5 235 40 0 0 5 275 with credit institutions and investment firms 3 259 40 0 0 3 298 with customers 1 976 0 0 0 1 976 Liabilities under investment contracts3 29 0 13 432 0 13 461 Derivatives 0 5 501 0 401 5 902 Short positions 0 1 428 0 0 1 428 In equity instruments 0 6 0 0 6 In debt securities 0 1 421 0 0 1 421 Other6 2 546 0 0 0 2 547 Total 280 874 7 050 14 791 401 303 116
1 The carrying value comes close to the maximum credit exposure.
2 The amount of the reverse repos (before offsetting) is virtually identical to the amount of the underlying assets (that have been lent out).
3 The difference between ‘Investment contracts (insurance)’ and ‘Liabilities under investment contracts’ is accounted for by the presentation of non-unbundled investment contracts that are
included under ‘Investment contracts (insurance)’ on the financial assets side, but are included under ‘Insurance contract liabilities’ on the liabilities side.
4 Financial assets not included under ‘Loans and advances to customers’ as they are not directly related to commercial lending.
5 The amount of the repos (before offsetting) is virtually identical to the amount of the underlying assets (that have been lent out), with the assets being partly reflected on the balance sheet
and partly obtained through reverse repo transactions.
6 Financial liabilities not included under deposits from customers as they are not directly related to commercial deposit acquisition.

297Annual Report KBC Group 2024
p. 2
• ‘Loans and advances to customers’ also includes loans whose interest payments are linked to ESG targets of the client
(‘Sustainability-linked loans’). These are described in our 2024 Sustainability Report, in table 5.4 (this has not been audited).
The contractual cashflows of these loans are deemed to be solely payments of principal and interest on the principal amount
(SPPI), since the variability in interest payments resulting from the ESG component reflects the instrument’s credit risk. For
these loans, the margin on interest payments depends on whether or not the borrower meets the contractual ESG targets.
These may be climate-related, environmental or social targets. This item also includes loans provided to clients which
contribute to ESG targets. These are loans that fully or partially meet the EU Taxonomy criteria or the criteria of sustainability
frameworks of other external parties, such as the European Investment Bank, the Loan Market Association (LMA) or local
governments. These amounts are also described in our 2024 Sustainability Report, in table 5.5 (this has not been audited).
The ‘Debt securities’ item also includes bonds purchased by KBC that were issued to finance investments containing a
sustainability component. These bonds comply with the ICMA Green Bond Principles, the Social Bond Principles or the
Sustainability Bond Guidelines. These amounts are also described in our 2024 Sustainability Report, in table 5.6 (this has not
been audited).
• ‘Deposits from credit institutions and investment firms’ include the (remaining) funding obtained from the ECB’s TLTRO
programme. While this item still included an amount of 2.6 billion euros at year-end 2023, the remaining sum reached maturity
in the first half of 2024.
• ‘Non-convertible bonds’ comprise mainly KBC Bank, KBC Group, ČSOB (Czech Republic) and KBC IFIMA issues. They are
usually recognised under ‘Measured at amortised cost’. However, if they contain closely related embedded derivatives, they
are recorded under ‘Designated at fair value’ (see accounting policies). In 2024, these items also include three green bonds
issued by KBC (for 500, 750 and 750 million euros each) and two social bonds (for 750 and 750 million euros each), which have
been recognised at amortised cost. The purpose of these bonds is to fund loans to our clients intended for green or social
projects; however, the cashflows of these bonds themselves are not linked to any ESG targets. More information on our Green
Bond Framework and our Social Bond Framework is available at www.kbc.com.
• More information on major new debt issues or redemptions is provided under the ‘Consolidated cashflow statement’.
• The state note issued by the Kingdom of Belgium, with a term of one year and totalling 22 billion euros, matured in September
2024. This temporarily resulted in exceptional promotions offered by various banks in Belgium to secure the money invested
in the state note. KBC managed to attract around 6.5 billion euros in core client money in September 2024 (6.0 billion euros in
time deposits, 1.2 billion euros in savings certificates and 0.9 billion euros in other client money (investment funds, life insurance,
etc.), partly offset by a shift of -1.6 billion euros in demand deposits and savings accounts), exceeding the 5.7-billion-euro
outflow to the state note in September 2023. Please note that the relaunch of the savings certificate in Belgium means that
this product is now part of ‘Subtotal deposits from customers’ with retrospective effect.
• Transferred financial assets that continue to be recognised in their entirety: KBC regularly lends and/or sells securities with
the commitment to buy them back at a later date (repo transactions). Securities lent or sold with such a commitment are
transferred to the counterparty, and, in exchange, KBC receives cash or other financial assets. However, KBC retains the main
risks and income relating to these securities, and, therefore, continues to recognise them on its balance sheet. In addition, a
financial liability is recognised equalling the cash or other financial assets received.
Transferred financial assets that continue to be recognised in their entirety (carrying value, in millions of EUR) 31-12-2024 31-12-2023 Transferred financial assets that continue to be recognised in their entirety: repo transactions and securities lent out 27 079 19 065 Held for trading 1 549 622 Fair value through OCI 4 866 1 172 Amortised cost 20 664 17 271 Associated financial liability 18 623 3 214 Held for trading 1 147 126 Fair value through OCI 3 439 183 Amortised cost 14 037 2 905
• KBC has more transferred financial assets on its balance sheet than repo transactions, due to the fact that the cash legs of
certain repo transactions are offset against reverse repo transactions if they are carried out with the same counterparty, in
the same currency and with the same maturity date. Moreover, there is a legally enforceable right, and an intention, to settle
the transactions on a net basis or to realise the financial asset and settle the financial liability simultaneously.
• The loan portfolio accounts for the largest share of the financial assets. We report on estimated greenhouse gas emissions
associated with lending and other activities and have defined objectives for reducing the greenhouse gas intensity of loans
we have provided to, among others, electricity producers and the real estate sector, mortgage loans and loans provided for
commercial residential real estate, as well as loans provided to the automotive industry and car leasing (see Note 6.2), the
agricultural sector, and cement and steel producers. See ‘Sustainability statement’ in the ‘Report of the Board of Directors’
section for a more detailed explanation.

298 Annual Report KBC Group 2024
p. 2
Note 4.2: Financial assets and liabilities, breakdown by portfolio and quality
Note 4.2.1: Impaired financial assets
Carrying value before Carrying value after (in millions of EUR) impairment Impairment impairment 31-12-2024 Financial assets at amortised cost: Loans and advances* 217 093 -2 448 214 645 Stage 1 (12-month ECL) 197 031 -176 196 855 Stage 2 (lifetime ECL) 16 177 -331 15 847 Stage 3 (lifetime ECL) 3 472 -1 803 1 669 Purchased or originated credit impaired assets (POCI) 414 -138 276 Financial assets at amortised cost: Debt securities 50 084 -8 50 075 Stage 1 (12-month ECL) 49 979 -6 49 973 Stage 2 (lifetime ECL) 100 -1 99 Stage 3 (lifetime ECL) 5 -2 3 Purchased or originated credit impaired assets (POCI) 0 0 0 Financial assets at fair value through OCI: Debt securities 22 543 -4 22 539 Stage 1 (12-month ECL) 22 543 -4 22 539 Stage 2 (lifetime ECL) 0 0 0 Stage 3 (lifetime ECL) 0 0 0 Purchased or originated credit impaired assets (POCI) 0 0 0 31-12-2023 Financial assets at amortised cost: Loans and advances* 213 531 -2 474 211 057 Stage 1 (12-month ECL) 175 853 -146 175 708 Stage 2 (lifetime ECL) 33 571 -490 33 081 Stage 3 (lifetime ECL) 3 694 -1 750 1 944 Purchased or originated credit impaired assets (POCI) 412 -88 324 Financial assets at amortised cost: Debt securities 51 384 -12 51 372 Stage 1 (12-month ECL) 51 300 -6 51 294 Stage 2 (lifetime ECL) 80 -4 76 Stage 3 (lifetime ECL) 5 -2 3 Purchased or originated credit impaired assets (POCI) 0 0 0 Financial assets at fair value through OCI: Debt securities 16 897 -5 16 892 Stage 1 (12-month ECL) 16 864 -4 16 861 Stage 2 (lifetime ECL) 33 -1 32 Stage 3 (lifetime ECL) 0 0 0 Purchased or originated credit impaired assets (POCI) 0 0 0
* The carrying value after impairment in this note corresponds to the sum of the ‘Loans and advances to credit institutions and investment firms (excl. reverse repos)’, ‘Loans and advances to
customers (excl. reverse repos)’ and ‘Reverse repos’ in Note 4.1 (in the ‘Measured at amortised cost’ column).

299Annual Report KBC Group 2024
• Carrying value (before impairment) of loans and advances at amortised cost: increase of 3.6 billion euros in 2024, due primarily
to:
- an organic net increase in the loan portfolio (mainly mortgage loans and term loans);
- a decrease in the carrying value of the reverse repos to credit institutions and investment firms.
• Carrying value (before impairment) of loans and advances at amortised cost in ‘Stage 2’: decrease of 17.4 billion euros in 2024,
due primarily to:
- the release of the migration to ‘Stage 2’ based on a collective approach of ‘Stage 1’ loans (see also Note 3.9) that have
indirect exposure to military conflict, such as the one in Ukraine, and/or are vulnerable to geopolitical and macroeconomic
risks (12.0 billion euros at year-end 2023).
- In the first quarter of 2024, we initiated a combined net migration from ‘Stage 2’ to ‘Stage 1’ of loans with a gross carrying
value of roughly 8.5 billion euros, resulting in a net release of 17 million euros in impairment. This was largely attributable to
the introduction of the new multi-tier approach for assessing a significant increase in credit risk (see Note 1.2) and to a
lesser extent to a migration of KBC Commercial Finance loans where the assessment of a significant increase in credit risk
was updated based on the very low historical credit losses in this portfolio and the very short term of this type of loan. The
aim of both adjustments is to better reflect the underlying credit risk after initial recognition.
- Other factors explaining the decrease are mostly related to the continuous changes in staging of loans that have indirect
exposure to military conflict, such as the one in Ukraine, and/or are vulnerable to geopolitical and macroeconomic risks,
which are included in the standard staging assessment since the fourth quarter of 2024.
• Carrying value (before impairment) of debt securities at amortised cost: decrease of 1.3 billion euros in 2024, almost entirely in
‘Stage 1’. This involves a movement of -1.4 billion euros in (issues by) public bodies and -0.2 billion euros for corporates, partly
offset by +0.3 billion euros for credit institutions and related primarily to reinvestments of securities at maturity in the ‘Financial
assets at fair value through OCI’ (FVOCI) category.
• Impairment: stable in 2024 compared to 2023:
- due to derecognised financial assets, partly offset by changes in risk parameters (see Note 4.2.2).
• In 2024, ‘Stage 2’ and ‘Stage 3’ financial assets with a net carrying value of 474 million euros have been subject to
modifications in 2024 that did not result in derecognition. The gross carrying value of financial assets moved back into ‘Stage
1’ this year that have been subject to modifications in the past that did not result in derecognition came to 683 million euros
in 2024. The corresponding figures for 2023 were 579 million euros and 1 001 million euros, respectively. Modification gains or
losses are recognised under impairment (see Note 3.9).
• In 2024, financial assets at amortised cost with a gross carrying value of 55 million euros were written off, but were still subject
to enforcement activities; the corresponding figure for 2023 was 59 million euros.

300 Annual Report KBC Group 2024
Note 4.2.2: Impairment details for loans and advances at amortised cost
Subject to lifetime ECL Stage 1 Stage 2 Stage 3 (purchased or Subject to Subject to Subject to originated credit (in millions of EUR) 12-month ECL lifetime ECL lifetime ECL impaired) Total 2024 Impairment on 1 January 146 490 1 750 88 2 474 Movements with an impact on results1 31 -154 334 49 260 Transfer of financial assets Stage 1 (12-month ECL) -11 76 43 0 108 Stage 2 (lifetime ECL) 19 -112 98 0 4 Stage 3 ‘non-performing’ (lifetime ECL) 0 12 -31 -1 -20 New financial assets2 56 14 6 0 76 Changes in risk parameters during the reporting period -23 -81 242 50 188 Changes in the model or methodology 1 -35 -1 0 -35 Derecognised financial assets3 -11 -28 -35 -1 -75 Other 0 0 12 1 13 Movements without an impact on results -1 -6 -280 1 -286 Derecognised financial assets3 -1 -2 -234 -1 -238 Changes in the scope of consolidation 1 -1 0 0 0 Transfers under IFRS 5 0 0 0 0 0 Other -1 -3 -46 2 -48 Impairment on 31 December 176 331 1 803 138 2 448 2023 Impairment on 1 January 110 635 1 796 77 2 619 Movements with an impact on results1 37 -144 141 11 46 Transfer of financial assets Stage 1 (12-month ECL) -12 86 41 0 115 Stage 2 (lifetime ECL) 14 -125 95 0 -16 Stage 3 ‘non-performing’ (lifetime ECL) 0 17 -34 -1 -18 New financial assets2 60 22 7 0 89 Changes in risk parameters during the reporting period -10 -98 76 15 -17 Changes in the model or methodology 0 0 0 0 0 Derecognised financial assets3 -15 -45 -58 -2 -121 Other 0 0 14 0 14 Movements without an impact on results -2 -1 -187 -1 -191 Derecognised financial assets3 -2 -1 -207 -1 -211 Changes in the scope of consolidation 0 0 0 0 0 Transfers under IFRS 5 0 0 0 0 0 Other 0 0 19 1 20 Impairment on 31 December 146 490 1 750 88 2 474
1 Amounts recovered in respect of loans that have already been written off are recycled to the income statement and recorded as ‘Impairment on financial assets at amortised cost and at
fair value through OCI’. However, they have not been included in this table since they do not have any impact on impairment losses on the balance sheet.
2 Also includes impairment related to new financial assets resulting from off-balance-sheet commitments and financial guarantees already given being called.
3 Derecognition without an impact on results occurs when the impairment adjustment has already been made upfront (for example, at the moment of the sale agreement (disposals) or
before the write-off). Derecognition with an impact on results occurs when the impairment adjustment takes place at the same time (for instance, in the case of debt forgiveness).
• The table is limited to impairment on loans and advances at amortised cost, as impairment and the movements in impairment
on debt securities at amortised cost (from 12 million euros at year-end 2023 to 8 million euros at year-end 2024) and on debt
securities at fair value through OCI (from 5 million euros at year-end 2023 to 4 million euros at year-end 2024) are very limited.
• For information on provisions for commitments and financial guarantees, see Note 5.7.2.
• For information regarding the impact of changes in impairment on the income statement, see Note 3.9.
• The loan portfolio accounts for the largest share of the financial assets. Based on internal management reports, the
composition and quality of the loan portfolio is set out in detail in the ‘How do we manage our risks?’ section (under ‘Credit
risk’). All parts of that particular section which have been audited by the statutory auditor are specified in that section.

301Annual Report KBC Group 2024
p. 2
Note 4.3: Maximum credit exposure and offsetting
Collateral and other Maximum credit credit enhancements (in millions of EUR) exposure (A) received (B) Net (A-B) 31-12-2024 Subject to impairment 349 640 139 298 210 342 of which Stage 3 ‘non-performing’ (AC and FVOCI) 1 981 1 467 514 Debt securities 72 615 32 72 583 Loans and advances (excl. reverse repos) 193 562 106 128 87 434 Reverse repos 21 083 21 054 29 Other financial assets 1 154 0 1 154 Off-balance-sheet liabilities 61 226 12 085 49 142 Irrevocable 41 578 7 006 34 572 Revocable 19 648 5 078 14 570 Not subject to impairment 10 890 4 871 6 019 Debt securities 5 090 0 5 090 Loans and advances (excl. reverse repos) 943 840 103 of which designated upon initial recognition at fair value through profit or loss (FVO) 0 0 0 Reverse repos 0 0 0 Derivatives 4 856 4 031 825 Other financial assets 0 0 0 Off-balance-sheet liabilities 0 0 0 Total 360 530 144 169 216 361 31-12-2023 Subject to impairment 341 106 141 604 199 502 of which Stage 3 ‘non-performing’ (AC and FVOCI) 2 261 1 721 540 Debt securities 68 265 56 68 209 Loans and advances (excl. reverse repos) 185 556 103 556 82 000 Reverse repos 25 501 25 476 24 Other financial assets 1 196 0 1 196 Off-balance-sheet liabilities 60 589 12 515 48 073 Irrevocable 40 149 7 179 32 970 Revocable 20 440 5 337 15 103 Not subject to impairment 8 902 2 400 6 502 Debt securities 3 152 0 3 152 Loans and advances (excl. reverse repos) 836 796 40 of which designated upon initial recognition at fair value through profit or loss (FVO) 0 0 0 Reverse repos 0 0 0 Derivatives 4 914 1 604 3 310 Other financial assets 0 0 0 Off-balance-sheet liabilities 0 0 0 Total 350 009 144 004 206 004
• Maximum credit exposure for a financial asset is the net carrying value. Besides the amounts on the balance sheet, maximum
credit exposure also includes the undrawn portion of credit lines, financial guarantees granted and other irrevocable
commitments.
• The main types of collateral and other credit enhancements received relate to mortgages on real estate (mainly collateral for
mortgage loans), securities lent out (mainly as a collateral for reverse repos), off-balance-sheet financial guarantees received
and collateral of movable property. Mortgage loans with an LTV (loan-to-value) greater than 100% are limited to 0.5 billion
euros or 0.6% of the entire mortgage loan portfolio at year-end 2024.
• The loan portfolio accounts for the largest share of the financial assets. Based on internal management reports, the
composition and quality of the loan portfolio is set out in detail in the ‘How do we manage our risks?’ section (under ‘Credit
risk’). All parts of that particular section which have been audited by the statutory auditor are specified in that section.
• Collateral and credit enhancements received are recognised at market value and limited to the outstanding amount of the
relevant loans.
•

302 Annual Report KBC Group 2024
p. 2
Net amounts of Gross Gross amounts financial amounts of of recognised instruments recognised financial presented in Financial instruments subject to offsetting, enforceable master financial instruments set the balance Net netting agreements and similar arrangements instruments off sheet Amounts not set off in the balance sheet amount Financial Cash Securities (in millions of EUR) instruments collateral collateral 31-12-2024 FINANCIAL ASSETS Derivatives 20 538 15 682 4 856 2 459 1 797 0 600 Derivatives (excluding central clearing houses) 4 812 0 4 812 2 459 1 797 0 557 Derivatives with central clearing houses* 15 725 15 682 44 0 0 0 44 Reverse repos, securities borrowing and similar arrangements 29 933 8 850 21 083 14 0 21 067 3 Reverse repos 29 933 8 850 21 083 14 0 21 067 3 Securities borrowing 0 0 0 0 0 0 0 Other financial instruments 0 0 0 0 0 0 0 Total 50 471 24 531 25 939 2 472 1 797 21 067 603 FINANCIAL LIABILITIES Derivatives 19 214 14 219 4 995 2 459 540 78 1 918 Derivatives (excluding central clearing houses) 4 943 0 4 943 2 459 540 78 1 865 Derivatives with central clearing houses* 14 271 14 219 52 0 0 0 52 Repos, securities lending and similar arrangements 29 934 8 855 21 079 14 0 21 055 11 Repos 29 934 8 855 21 079 14 0 21 055 11 Securities lending 0 0 0 0 0 0 0 Other financial instruments 0 0 0 0 0 0 0 Total 49 148 23 074 26 074 2 473 540 21 133 1 928 31-12-2023 FINANCIAL ASSETS Derivatives 24 076 19 163 4 914 3 162 1 123 6 623 Derivatives (excluding central clearing houses) 4 821 0 4 821 3 162 1 123 6 531 Derivatives with central clearing houses* 19 255 19 163 93 0 0 0 93 Reverse repos, securities borrowing and similar arrangements 38 919 13 418 25 501 120 0 25 361 19 Reverse repos 38 919 13 418 25 501 120 0 25 361 19 Securities borrowing 0 0 0 0 0 0 0 Other financial instruments 0 0 0 0 0 0 0 Total 62 996 32 581 30 415 3 282 1 123 25 367 643 FINANCIAL LIABILITIES Derivatives 23 223 17 321 5 902 3 166 809 576 1 352 Derivatives (excluding central clearing houses) 5 796 0 5 796 3 166 809 576 1 245 Derivatives with central clearing houses* 17 427 17 321 106 0 0 0 106 Repos, securities lending and similar arrangements 18 693 13 418 5 275 120 0 5 112 43 Repos 18 693 13 418 5 275 120 0 5 112 43 Securities lending 0 0 0 0 0 0 0 Other financial instruments 0 0 0 0 0 0 0 Total 41 916 30 739 11 177 3 286 809 5 688 1 394
* For central clearing houses, the offsetting procedure refers to the amount of offsetting between derivatives and related cash collateral. Cash collateral with central clearing houses
amounted to 1 462 million euros at year-end 2024 and 1 842 million euros at year-end 2023.
• The criteria for offsetting are met if KBC currently has a legally enforceable right to set off the recognised financial assets and
financial liabilities and intends either to settle the transactions on a net basis, or to realise the financial asset and settle the
financial liability simultaneously. Financial assets and financial liabilities that are set off relate to financial instruments that
were traded on (central) clearing houses.
• The amounts presented in the ‘Financial instruments’ column under the ‘Amounts not set off in the balance sheet’ heading are
for financial instruments entered into under an enforceable master netting agreement or similar arrangement that does not
meet the criteria defined in IAS 32. These amounts refer to situations in which offsetting can only be applied if one of the
counterparties defaults, becomes insolvent or goes bankrupt. The same principle applies for financial instruments given or
received as collateral. The value given in the table for non-cash collateral received (in the ‘Securities collateral’ column under
the ‘Amounts not set off in the balance sheet’ heading) is the market value. This is the value that is used if one of the
counterparties defaults, becomes insolvent or goes bankrupt.

303Annual Report KBC Group 2024
Note 4.4: Fair value of financial assets and liabilities – general
Fair value of financial instruments that are not measured at fair value Financial assets at amortised Financial liabilities at amortised in the balance sheet cost cost Carrying (in millions of EUR) value Fair value Carrying value Fair value 31-12-2024 FINANCIAL ASSETS Loans and advances to credit institutions and investment firms (incl. reverse repos) 23 360 23 635 – – Loans and advances to customers (incl. reverse repos) 191 285 186 569 – – Debt securities 50 075 48 205 – – Other 1 154 1 154 – – Adjustment for fair value hedges for a portfolio of interest rate risk -1 930 – – – Total 263 945 259 564 – – Level 1 – 44 892 – – Level 2 – 25 400 – – Level 3 – 189 272 – – FINANCIAL LIABILITIES Deposits from credit institutions and investment firms (incl. repos) – – 31 439 31 263 Deposits from customers and debt securities (incl. repos) – – 272 428 272 595 Liabilities under investment contracts – – 27 27 Other – – 2 157 2 153 Total – – 306 050 306 038 Level 1 – – – 16 Level 2 – – – 101 305 Level 3 – – – 204 717 31-12-2023 FINANCIAL ASSETS Loans and advances to credit institutions and investment firms (incl. reverse repos) 28 135 28 100 – – Loans and advances to customers (incl. reverse repos) 182 921 175 381 – – Debt securities 51 372 48 976 – – Other 1 196 1 196 – – Adjustment for fair value hedges for a portfolio of interest rate risk -2 402 – – – Total 261 223 253 653 – – Level 1 – 45 992 – – Level 2 – 31 953 – – Level 3 – 175 708 – – FINANCIAL LIABILITIES Deposits from credit institutions and investment firms (incl. repos) – – 18 272 18 142 Deposits from customers and debt securities (incl. repos) – – 260 028 259 713 Liabilities under investment contracts – – 29 29 Other – – 2 546 2 533 Total – – 280 874 280 417 Level 1 – – – 119 Level 2 – – – 99 879 Level 3 – – – 180 418

304 Annual Report KBC Group 2024
• The difference between the fair value and the carrying value of the financial instruments at amortised cost (the unrealised
losses, mainly on the debt securities portfolio) was caused by interest rate movements in 2024, 2023 and 2022. As a hold-to-
collect business model is applied on the assets side, interim changes in fair value are less relevant. Taking into account i) KBC’s
large stock of high-quality liquid assets (approximately 101 billion euros on average in 2024), which consist of cash and bonds
which can be repoed in the private market and at the central banks, ii) the fact that 56% of total customer deposits at KBC
are covered by the Deposit Guarantee and iii) the fact that 86% of total customer deposits consist of more stable retail and
SME clients, the unrealised losses on the debt securities portfolio at amortised cost do not need to be realised for liquidity
purposes and are therefore irrelevant from a capital perspective.
• Also see the paragraph on the outlier stress test under ‘Market risk in non-trading activities’ in the ‘How do we manage our
risks?’ section.
• All internal valuation models are validated by an independent Risk Validation Unit. In addition, the Executive Committee has
appointed a Group Valuation Committee (GVC) to ensure that KBC meets all the legal requirements for measuring financial
assets and liabilities at fair value. The GVC monitors consistent implementation of the KBC Valuation Framework, which
consists of various guidelines, including the Group Valuation Policy, the Group Market Value Adjustments Policy and the Group
Parameter Review Policy. The GVC meets at least twice a quarter to approve significant changes in valuation methods
(including, but not limited to, models, market data and inputs) or deviations from group policies for financial assets and
liabilities measured at fair value. The committee is made up of members from Finance, Risk Management and the Middle
Office. Valuation uncertainty measurements are made and reported to the GVC every three months. Certain fair values
generated by valuation models are challenged by a team set up specifically for this purpose.
• The fair value of mortgage and term loans not measured at fair value on the balance sheet (see table) is calculated by
discounting contractual cashflows at the risk-free rate. This calculation is then adjusted for credit risk by taking account of
margins obtained on similar, but recently issued, loans or by using a spread derived from the listed-bond spread. The fair
value of the main portfolios takes account of prepayment risks and cap options. The fair value of time deposits is calculated
by discounting contractual cashflows at the risk-free rate. The fair value of demand and savings deposits is presumed to be
equal to their carrying value.
• As a result of the first-time adoption of IFRS 9 on 1 January 2018, debt instruments with a total carrying value of 15 060 million
euros have been reclassified from ‘Available-for-sale assets’ to ‘Financial assets held at amortised cost’. Due to this
reclassification, changes in fair value (before tax) totalling 20 million euros were not recorded in the revaluation reserve in 2024
(35 million euros in 2023). The fair value of this reclassified portfolio (after redemptions) amounted to 1 761 million euros at year-
end 2024 (2 808 million euros at year-end 2023).

305Annual Report KBC Group 2024
Note 4.5: Financial assets and liabilities measured at fair value – fair value hierarchy
Fair value hierarchy 31-12-2024 31-12-2023 (in millions of EUR) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total FINANCIAL ASSETS AT FAIR VALUE Mandatorily measured at fair value through profit or loss other than held for trading Loans and advances to credit institutions and investment firms (incl. 0 0 0 0 0 0 0 0 reverse repos) Loans and advances to customers (incl. reverse repos) 0 0 943 943 0 0 836 836 Equity instruments 0 0 10 10 0 0 14 14 Investment contracts (insurance) 16 527 75 0 16 602 14 241 107 0 14 348 Debt securities 13 0 57 70 13 0 1 14 of which sovereign bonds 0 0 0 0 0 0 0 0 Held for trading Loans and advances to credit institutions and investment firms (incl. 0 1 0 1 0 1 0 1 reverse repos) Loans and advances to customers (incl. reverse repos) 0 0 0 0 0 0 0 0 Equity instruments 902 0 0 902 567 0 2 570 Debt securities 2 451 2 570 0 5 021 2 420 717 1 3 138 of which sovereign bonds 2 397 963 0 3 360 2 364 602 0 2 966 Derivatives 1 3 527 1 057 4 584 3 3 908 708 4 618 At fair value through OCI Equity instruments 1 219 1 501 1 722 1 212 1 483 1 695 Debt securities 20 190 2 199 150 22 539 14 079 2 628 186 16 892 of which sovereign bonds 16 892 1 273 0 18 165 11 679 1 501 26 13 206 Hedging derivatives Derivatives 0 271 0 271 0 295 0 295 Total Total financial assets at fair value 41 303 8 644 2 717 52 665 32 534 7 656 2 231 42 422 FINANCIAL LIABILITIES AT FAIR VALUE Held for trading Deposits from credit institutions and investment firms (incl. repos) 0 94 0 94 0 40 0 40 Deposits from customers and debt securities (incl. repos) 0 22 0 22 0 81 0 81 Derivatives 1 3 271 1 406 4 679 2 4 460 1 039 5 501 Short positions 882 0 0 882 1 428 0 0 1 428 Designated upon initial recognition at fair value through profit or loss (FVO) Deposits from credit institutions and investment firms (incl. repos) 0 0 0 0 0 0 0 0 Deposits from customers and debt securities (incl. repos) 0 186 850 1 035 0 202 1 157 1 359 Liabilities under investment contracts 15 644 0 0 15 644 13 432 0 0 13 432 Hedging derivatives Derivatives 0 265 51 316 0 306 95 401 Total Total financial liabilities at fair value 16 527 3 838 2 307 22 673 14 862 5 090 2 290 22 242

306 Annual Report KBC Group 2024
• The fair value hierarchy prioritises the valuation techniques and the respective inputs into three levels:
- The fair value hierarchy gives the highest priority to ‘level 1 inputs’. This means that, when there is an active market, quoted
prices have to be used to measure the financial assets or liabilities at fair value. Level 1 inputs are prices that are readily
and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency (and that
are quoted in active markets accessible to KBC). They represent actual and regularly occurring market transactions on an
arm’s length basis. The fair value is then based on a mark-to-market valuation derived from currently available transaction
prices. No valuation technique (model) is involved.
- If there are no price quotations available, the reporting entity establishes fair value using a model based on observable
or unobservable inputs. The use of observable inputs must be maximised. Observable inputs are also referred to as ‘level
2 inputs’ and reflect the assumptions market participants would use in pricing the asset or liability based on market data
obtained from sources independent of the reporting entity. Examples of observable inputs are the risk-free rate, exchange
rates, stock prices and implied volatility. Valuation techniques based on observable inputs include discounted cashflow
analysis, or reference to the current or recent fair value of a similar instrument.
- Unobservable inputs are also referred to as ‘level 3 inputs’ and reflect the reporting entity’s own assumptions about the
assumptions that market participants would use in pricing the asset or liability (including assumptions regarding the risks
involved). Unobservable inputs reflect a market that is not active. For example, proxies and correlation factors can be
considered to be unobservable in the market.
• When the inputs used to measure the fair value of an asset or a liability can be categorised into different levels of the fair
value hierarchy, the fair value measurement is classified in its entirety into the same level as the lowest level input that is
significant to the entire fair value measurement. For example, if a fair value measurement uses observable inputs that require
significant adjustment based on unobservable inputs, that measurement is a level 3 measurement.
• The valuation methodology and the corresponding classification in the fair value hierarchy of the most commonly used
financial instruments are summarised in the table. Whereas the majority of instruments of a certain type are within the level
indicated in the table, a small portion may actually be classified in another level.
• KBC follows the principle that transfers into and out of levels of the fair value hierarchy are made at the end of the reporting
period. Transfers between the various levels are dealt with in more detail in Note 4.6 and Note 4.7.

307Annual Report KBC Group 2024
Instrument type Products Valuation technique Liquid financial instruments FX spots, exchange traded financial futures, exchange traded options, Mark-to-market (quoted prices in active Level 1 for which quoted prices are exchange traded stocks, exchange traded funds, liquid government markets), for bonds: BVAL or vendor data regularly available bonds, other liquid bonds, liquid asset backed securities (ABS) in active markets Plain vanilla/liquid (Cross-currency) interest rate swaps (IRS), FX swaps, FX forwards, forward Discounted cashflow analysis based on derivatives rate agreements (FRA), inflation swaps, dividend swaps and futures, discount and estimation curves (derived reverse floaters, bond future options, interest rate future options, overnight from quoted deposit rates, FX swaps and index swaps (OIS), FX resets (CC)IRS) Caps & floors, interest rate options, European stock options, European & Option pricing model based on American FX options, forward starting options, digital FX options, FX strips observable inputs (e.g., volatilities) of simple options, European swaptions, European cancellable IRS Linear financial liabilities Deposits, simple cashflows, repo transactions Discounted cashflow analysis based on (without optional features) – discount and estimation curves (derived cash instruments from quoted deposit rates, FX swaps and Level 2 (CC)IRS) Semi-liquid bonds/asset Semi-liquid bonds/asset backed securities BVAL, prices corroborated by alternative backed securities observable market data, or using comparable spread method Debt instruments KBC IFIMA own issues (liabilities) Discounted cashflow analysis and valuation of related derivatives based on observable inputs Linear financial assets (cash Loans, commercial paper Discounted cashflow analysis based on instruments) discount and estimation curves (derived from quoted deposit rates, FX swaps and (CC)IRS) Exotic derivatives Target profit forwards, flexible forwards, American & Asian stock options, Option pricing model based unobservable Bermudan swaptions, digital interest rate options, quanto interest rate inputs (e.g., correlation) options, digital stock options, composite stock options, barrier stock options, quanto digital FX options, FX Asian options, FX European barrier options, FX simple digital barrier options, FX touch rebates, inflation options, Bermudan cancellable IRS, constant maturity swaps (CMS), CMS spread swaps, CMS spread options, CMS interest rate caps/floors, Level 3 (callable) range accruals, auto-callable options, lookback options, commodity swaps and forwards Illiquid credit-linked Collateralised debt obligations (notes) Valuation model based on correlation of instruments probability of default of underlying assets Private equity investments Private equity and non-quoted participations Based on the valuation guidelines of the European Private Equity & Venture Capital Association Illiquid bonds/asset backed Illiquid (mortgage) bonds/asset backed securities that are indicatively BVAL, third-party pricing (e.g., lead securities priced by a single pricing provider in an inactive market manager), where prices cannot be corroborated due to a lack of available/reliable alternative market data Debt instruments KBC own issues (KBC IFIMA ), mortgage bonds held by ČSOB Discounted cashflow analysis and valuation of related derivatives based on unobservable inputs (indicative pricing by third parties for derivatives) Structured loans Government-regulated loans with leveraged interest rates and exotic Discounted cashflow analysis and early repayment options (K&H) valuation of related derivatives based on unobservable inputs

308 Annual Report KBC Group 2024
Note 4.6: Financial assets and liabilities measured at fair value – transfers between levels 1 and 2
• In 2024, KBC transferred 201 million euros’ worth of financial assets and liabilities out of level 1 and into level 2, and 445 million
euros’ worth of financial assets and liabilities out of level 2 and into level 1 (176 million euros and 286 million euros, respectively,
in 2023). Most of these reclassifications were carried out due to a change in the liquidity of government bonds and corporate
bonds.
Note 4.7: Financial assets and liabilities measured at fair value – focus on level 3
• In 2024, significant movements in financial assets and liabilities classified in level 3 of the fair value hierarchy included the
following:
- Financial assets measured at fair value through profit or loss (not held for trading): the fair value of loans and advances
increased by 107 million euros, primarily on account of new transactions and changes in market inputs, partly offset by
instruments that had reached maturity. The fair value of debt instruments rose by 55 million euros, due primarily to new
purchases.
- Financial assets at fair value through OCI: the fair value of debt instruments decreased by 36 million euros, primarily on
account of shifts from level 3, partly offset by new purchases. The fair value of the equity instruments rose by 19 million
euros, due mainly to new purchases, partly offset by the sale of existing positions.
- Financial assets held for trading: the fair value of derivatives increased by 349 million euros, due mainly to changes in
market inputs and new purchases, partly offset by the sale of existing positions.
- Financial liabilities held for trading: the fair value of derivatives rose by 367 million euros, mainly on account of changes in
market inputs and new transactions, partly offset by the settlement of existing positions.
- Financial liabilities measured at fair value through profit or loss: the fair value of issued debt instruments decreased by
307 million euros, primarily on account of transactions that had reached maturity and the sale of existing positions, partly
offset by new transactions and changes in market inputs.
- Financial liabilities relating to hedging derivatives: the fair value of derivatives decreased by 43 million euros due to
changes in market inputs.
• In 2023, significant movements in financial assets and liabilities classified in level 3 of the fair value hierarchy included the
following:
- Financial assets measured at fair value through profit or loss (not held for trading): the fair value of loans and advances
increased by 210 million euros, primarily on account of new transactions and changes in market inputs, partly offset by
instruments that had reached maturity.
- Financial assets at fair value through OCI: the fair value of debt instruments decreased by 33 million euros, primarily on
account of instruments reaching maturity and the sale of existing positions. The fair value of the equity instruments rose
by 80 million euros, due primarily to purchases.
- Financial assets held for trading: the fair value of derivatives decreased by 22 million euros, due mainly to the sale of
existing positions, only partly offset by new purchases and changes in market inputs.
- Financial liabilities held for trading: the fair value of derivatives decreased by 86 million euros, due mainly to the sale of
existing positions and changes in market inputs, only partly offset by new transactions.
- Financial liabilities measured at fair value through profit or loss: the fair value of issued debt instruments rose by 26 million
euros, primarily on account of purchases and changes in market inputs, only partly offset by transactions reaching maturity
and the sale of existing positions.
• Some level 3 assets are associated or economically hedged with identical level 3 liabilities, which means that KBC’s exposure
to unobservable inputs is lower than would appear from the gross figures. Most of the level 3 instruments are also valued using
third-party pricing sources, with KBC not developing any unobservable inputs itself. The main unobservable inputs applied by
KBC to the valuation of exotic derivatives include: mean reversion parameter on Bermudan swaptions, equity cross-
correlations and volatilities for certain stock options, interest-rate correlations for CMS spread options, and the funding costs
used to determine the forward equity prices as part of the valuation of certain equity derivatives. The change in fair value
resulting from a change in these inputs to reflect reasonably possible alternative assumptions is insignificant.

309Annual Report KBC Group 2024
Note 4.8: Derivatives
• In terms of volume of the notional amounts of the derivatives, approximately 75% are trading derivatives and approximately
25% are hedging derivatives at year-end 2024 (the same as at year-end 2023).
• The majority of trading derivatives are effectively included in the trading book but are largely economically hedged (limited
open positions) by other trading derivatives (such as derivative transactions initiated by commercial clients that are
economically hedged) or by balance sheet positions (such as currency positions), which leads to large volumes of notional
amounts but also to result-neutral revaluations on a net basis.
• A limited number of trading derivatives are ALM derivatives included in the banking book, which are used to hedge economic
risk. These are not subject to hedge accounting. Hedge accounting is applied to most of the ALM interest rate contracts. Only
a limited number of the ALM derivatives for foreign currencies are included in hedge accounting.
Note 4.8.1: Trading derivatives
(in millions of EUR) 31-12-2024 31-12-2023 Carrying value Notional amounts* Carrying value Notional amounts* Assets Liabilities Purchased Sold Assets Liabilities Purchased Sold Total 4 584 4 679 616 452 615 520 4 618 5 501 598 880 591 923 Interest rate contracts 1 589 1 781 429 232 426 678 1 821 2 252 403 723 395 170 of which interest rate swaps and futures 1 510 1 740 421 656 422 160 1 684 2 169 394 018 389 184 of which options 80 41 7 576 4 518 137 83 9 705 5 986 Foreign exchange contracts 2 193 1 784 172 410 174 374 2 318 2 481 180 438 182 719 of which currency and interest rate swaps, forward 2 101 1 720 167 819 167 306 2 246 2 409 176 708 176 829 foreign exchange transactions and futures of which options 92 64 4 592 7 067 72 72 3 730 5 890 Equity contracts 799 1 110 14 530 14 191 471 761 14 381 13 698 of which equity swaps 646 692 11 348 10 995 385 393 11 314 11 031 of which options 153 418 3 181 3 196 85 368 3 067 2 667 Credit contracts 0 0 0 0 0 0 0 0 of which credit default swaps 0 0 0 0 0 0 0 0 Commodity and other contracts 4 3 280 277 8 7 338 336
* In this table, both legs of the derivatives are reported in the notional amounts.

310 Annual Report KBC Group 2024
Note 4.8.2: Hedging derivatives
31-12-2024 (in millions of EUR) Hedging instrument Hedged item Impact on equity Change in fair Change in fair value of hedged value of hedging instruments used instruments used as basis for as basis for recognising Ineffective Effective recognising hedge hedge portion portion ineffectiveness for ineffectiveness recognised in recognised in Notional amounts1 Carrying value the period2 Type for the period2 profit or loss OCI Of which Total (including accumulated fair value fair value Hedging strategy Purchased Sold Assets Liabilities changes) adjustments Fair value micro hedge Interest rate swaps 37 727 37 727 96 63 281 Debt securities held at AC 8 050 -252 17 Currency and 0 0 0 0 0 Loans and advances at AC 569 33 -45 interest rate swaps Debt securities held at FVOCI 7 254 64 80 Debt securities issued at AC 21 802 -226 -334 Deposits at AC 102 -11 13 Total 37 727 37 727 96 63 281 Total -269 11 - Portfolio hedge of interest rate risk Interest rate swaps 141 341 141 341 67 95 -464 Debt securities held at AC 831 -31 -23 Currency and 1 214 0 48 0 -3 Loans and advances at AC 121 621 -1 988 622 interest rate options Debt securities held at FVOCI 76 0 -3 Debt securities issued at AC 0 0 0 Deposits at AC 17 471 -379 -121 Insurance contract liabilities, Life 161 6 -6 Total 142 555 141 341 115 95 -467 Total 469 2 - Cashflow hedge (micro hedge and portfolio hedge) Interest rate swaps 17 376 17 376 5 120 22 Currency and 1 830 1 790 19 17 -30 interest rate swaps Total 19 206 19 166 24 137 -8 Total 8 0 -486 Hedge of net investments in foreign operations Total3 2 826 2 806 35 518 54 Total -54 0 147
1 In this table, both legs of the derivatives are reported in the notional amounts.
2 Ineffectiveness is recognised in ‘Net result from financial instruments at fair value through profit or loss’ (also see Note 3.3).
3 Carrying value liabilities: hedging instruments mostly in the form of foreign currency deposits.

311Annual Report KBC Group 2024
31-12-2023 (in millions of EUR) Hedging instrument Hedged item Impact on equity Change in fair Change in fair value of hedged value of hedging instruments used instruments used as basis for as basis for recognising Ineffective Effective recognising hedge hedge portion portion ineffectiveness for ineffectiveness recognised in recognised in Notional amounts1 Carrying value the period2 Type for the period2 profit or loss OCI Of which Total (including accumulated fair value fair value Hedging strategy Purchased Sold Assets Liabilities changes) adjustments Fair value micro hedge Interest rate swaps 31 864 31 864 97 112 267 Debt securities held at AC 6 547 -300 377 Currency and 0 0 0 0 0 Loans and advances at AC 601 75 3 interest rate swaps Debt securities held at FVOCI 2 999 -25 124 Debt securities issued at AC 21 285 -560 -774 Deposits at AC 0 0 0 Total 31 864 31 864 97 112 267 Total -269 -2 – Portfolio hedge of interest rate risk Interest rate swaps 143 932 143 932 93 123 -995 Debt securities held at AC 937 -7 115 Currency and 1 618 0 70 0 -27 Loans and advances at AC 125 541 -2 473 1 841 interest rate options Debt securities held at FVOCI 85 3 9 Debt securities issued at AC 0 0 0 Deposits at AC 15 938 -507 -936 Total 145 550 143 932 163 123 -1 022 Total 1 029 7 – Cashflow hedge (micro hedge and portfolio hedge) Interest rate swaps 19 603 19 603 15 127 401 Currency and 1 181 1 205 1 22 -14 interest rate swaps Total 20 784 20 808 17 149 387 Total -395 -9 -611 Hedge of net investments in foreign operations Total3 2 579 2 570 19 460 77 Total -77 0 92
1 In this table, both legs of the derivatives are reported in the notional amounts.
2 Ineffectiveness is recognised in ‘Net result from financial instruments at fair value through profit or loss’ (also see Note 3.3).
3 Carrying value liabilities: hedging instruments mostly in the form of foreign currency deposits.

312 Annual Report KBC Group 2024
• The Treasury departments of the various entities manage the interest rate risk. To prevent rate movements from having a
negative impact, the maturities of assets and liabilities are adjusted on the balance sheet using interest rate swaps and other
derivatives.
• As regards the relationship between risk management and hedge accounting policy, ‘economic’ management takes priority
and risks are hedged in accordance with the general ALM framework. Only then is a decision made on which, if any, of these
techniques will be used to limit any resulting accounting mismatch.
• The balances remaining in the cashflow hedge reserve from any hedging relationships for which hedge accounting is no longer
applied came to -187 million euros in 2024 (-322 million euros in 2023). The accumulated amount of fair value hedge
adjustments remaining on the balance sheet for any hedged items that have ceased to be adjusted for hedging gains and
losses amounted to -99 million euros in 2024 (-82 million euros in 2023). These adjustments are amortised to profit or loss.
• The difference between the ‘Profit/loss on positions in portfolios hedged against interest rate risk’ balance sheet item and
accumulated fair value adjustments following portfolio hedges of interest rate risk as included in Note 4.8.2 is attributable to
accumulated fair value adjustments regarding discontinued fair value hedges not included in Note 4.8.2 but included in the
balance sheet.
• The accumulated fair value adjustments of the hedged assets involved in portfolio hedges of interest rate risk were less
negative in 2024 due to the decrease in the risk-free rate and the unwinding effect of the negative accumulated fair value
adjustment. The ‘Profit/loss on positions in portfolios hedged against interest rate risk’ balance sheet item on the liabilities
side of the balance sheet was also less negative for the same reasons.
• Also see the paragraph on hedge accounting in the ‘How do we manage our risks?’ section and Note 3.3.
Estimated cashflows from cashflow hedging derivatives per time bucket (in millions of EUR) Inflow Outflow Not more than three months 21 -38 More than three but not more than six months 46 -54 More than six months but not more than one year 103 -177 More than one but not more than two years 183 -325 More than two but not more than five years 533 -770 More than five years 1 321 -1 572

313Annual Report KBC Group 2024
5.0 Notes on other balance sheet items
Note 5.1: Other assets
(in millions of EUR) 31-12-2024 31-12-2023 Total 1 911 1 691 Prepaid charges and accrued income 592 627 Other 1 320 1 064
Note 5.2: Tax assets and tax liabilities
(in millions of EUR) 31-12-2024 31-12-2023 CURRENT TAXES Current tax assets 59 176 Current tax liabilities 121 99 DEFERRED TAXES 593 351 Deferred tax assets by type of temporary difference 1 382 1 134 Employee benefits 80 85 Losses carried forward 366 103 Tangible and intangible fixed assets 98 80 Provisions for risks and charges 18 19 Impairment for losses on loans and advances 212 207 Financial instruments at fair value through profit or loss and fair value hedges 86 92 Fair value changes, financial instruments at FVOCI, cashflow hedges and hedges of net investments in foreign operations 426 445 Insurance contract liabilities 33 36 Other, incl. reinsurance contracts 64 68 Deferred tax liabilities by type of temporary difference 789 784 Employee benefits 113 95 Losses carried forward 0 0 Tangible and intangible fixed assets 57 43 Provisions for risks and charges 9 9 Impairment for losses on loans and advances 3 3 Financial instruments at fair value through profit or loss and fair value hedges 85 76 Fair value changes, financial instruments at FVOCI, cashflow hedges and hedges of net investments in foreign operations 21 41 Insurance contract liabilities 452 467 Other, incl. reinsurance contracts 50 50 Recognised as a net amount in the balance sheet as follows: Deferred tax assets 942 724 Deferred tax liabilities 349 373 Unused tax losses and unused tax credits 95 117

314 Annual Report KBC Group 2024
• Deferred tax assets are recognised to the extent that it is probable that, on the basis of realistic financial projections, taxable
profit will be available against which the deductible temporary differences can be utilised in the foreseeable future (limited to
a period of eight to ten years).
• Unused tax losses and unused tax credits concern tax losses of group companies which are not capitalised due to insufficient
proof of future taxable profit. Most tax losses and tax credits can be carried forward for 20 years or more.
• The net change in deferred taxes (+242 million euros in 2024) breaks down as follows:
- The change in deferred tax assets of +248 million euros was primarily due to:
- an increase in deferred tax assets via the income statement (+235 million euros), due mainly to losses carried forward
(+263 million euros). This increase includes the recognition of a deferred tax asset for KBC Bank NV of 318 million euros
relating to the imminent liquidation of Exicon (formerly KBC Bank Ireland) in the fourth quarter of 2024, partly offset by
using deferred tax assets previously created due to taxable profits;
- a decrease in deferred tax assets on account of changes in the revaluation reserve for financial instruments measured
at fair value through OCI, cashflow hedges and hedges of net investments in foreign operations (-19 million euros).
- The change in deferred tax liabilities of +6 million euros was accounted for chiefly by:
- an increase in deferred tax liabilities for employee benefit liabilities mainly recorded through OCI (+17 million euros),
tangible and intangible fixed assets (+14 million euros) and reinforced by financial instruments at fair value through
profit or loss and fair value hedges (+9 million euros);
- a decrease in deferred tax liabilities on account of changes in the revaluation reserve for financial instruments
measured at fair value through OCI, cashflow hedges and hedges of net investments in foreign operations (-19 million
euros);
- a decrease in deferred tax liabilities for insurance contract liabilities (-15 million euros), with an amount of +64 million
euros being recorded through OCI and -49 million euros being recorded via the income statement.
• The deferred tax assets presented in the balance sheet are attributable primarily to KBC Bank and ČSOB in the Czech
Republic.
Note 5.3: Investments in associated companies and joint ventures
(in millions of EUR) 31-12-2024 31-12-2023 Total 116 30 Overview of investments, including goodwill IGLUU s.r.o. 3 2 Immoscoop 2.0 BV - 0 Isabel NV 94 15 Bancontact Payconiq Company NV 8 7 Batopin NV 8 3 Other 3 2 Goodwill on associated companies and joint ventures Gross amount 0 0 Accumulated impairment 0 0 Breakdown by type Unlisted 116 30 Listed 0 0 Fair value of investments in listed associated companies and joint ventures 0 0
• Associated companies are companies on whose management KBC exerts significant influence, without having direct or
indirect full or joint control. In general, KBC has a 20% to 50% shareholding in such companies. Joint ventures are companies
over which KBC exercises joint control.
• Goodwill paid on associated companies and joint ventures is included in the nominal value of ‘Investments in associated
companies and joint ventures’ shown on the balance sheet. An impairment test is performed and, if required, the necessary
impairment losses on goodwill are recognised (see table).
• For information on Isabel NV, see Note 3.10.

315Annual Report KBC Group 2024
Note 5.4: Property and equipment and investment property
(in millions of EUR) 31-12-2024 31-12-2023 Property and equipment 3 396 3 216 Investment property 585 485 Rental income 55 53 Direct operating expenses from investments generating rental income 16 15 Direct operating expenses from investments not generating rental income 1 1
Land and IT Other Total property MOVEMENTS TABLE buildings equipment equipment and equipment Investment property 2024 Opening balance 1 306 122 1 789 3 216 485 Acquisitions 109 83 803 995 149 Disposals -44 -2 -271 -317 -13 Depreciation -102 -62 -30 -194 -33 Other movements 3 -6 -300 -304 -2 Closing balance 1 271 135 1 990 3 396 585 Accumulated depreciation and impairment 1 609 484 882 2 975 324 Fair value 839 2023 Opening balance 1 373 130 1 486 2 989 571 Acquisitions 106 53 830 988 34 Disposals -24 0 -242 -266 -82 Depreciation -119 -62 -25 -206 -31 Other movements -30 1 -260 -289 -7 Closing balance 1 306 122 1 789 3 216 485 Accumulated depreciation and impairment 1 585 479 915 2 979 308 Fair value 733
• Annual rates of depreciation: mainly 3% for buildings (including investment property), 33% for IT equipment, between 5% and
33% for other equipment. No depreciation is charged for land.
• There was a small amount (around 0.2 billion euros) for commitments for the acquisition of property and equipment. There are
no material restrictions on title, or on property and equipment pledged as security for liabilities.
basis, based primarily on the capitalisation of the estimated rental value and on unit prices of similar real property. Account
building and construction, state of repair, use, etc.).
• Certain other investment property is valued annually by in-house specialists based on the current annual rental per building
and expected rental movements and on an individual capitalisation rate per building.
• The impact of the heavy flooding and other extreme weather conditions in 2024 and 2023 on property and equipment and
regarding climate-related and other ESG risks, see the ‘Sustainability statement’ section.
• The impact of our own activities as a bank-insurer on the environment is very limited, especially when compared to industrial
(commuting). We nevertheless also calculate our own direct greenhouse gas impact and apply certain targets in that regard.
can also be found in our Climate Report and our Sustainability Report at www.kbc.com.
income statement.
• Most investment property is valued by an independent expert on a regular basis and by in-house specialists on an annual
is taken of all the market inputs available on the date of the assessment (including location and market situation, type of
investment property (in this case, our branch network) and on the associated impairment was insignificant. For information
companies and our indirect impact through lending and other activities, and stems mainly from our buildings and vehicles
See ‘Sustainability statement’ in the ‘Report of the Board of Directors’ section for a more detailed explanation. More details
• ‘Other equipment’ mostly comprises full service vehicle leases (mainly cars and bicycles) under operating leases. The other
movements in ‘Other equipment’ mainly concern depreciation of these assets, recognised under ‘Net other income’ in the

316 Annual Report KBC Group 2024
Note 5.5: Goodwill and other intangible assets
Software Software developed developed (in millions of EUR) Goodwill in-house externally Other Total 2024 Opening balance 1 240 829 266 20 2 355 Acquisitions 0 311 69 7 387 Disposals 0 0 -7 -6 -14 Amortisation - -124 -63 -2 -188 Other movements -18 -44 2 -4 -65 Closing balance 1 221 972 266 15 2 475 Accumulated amortisation and impairment 369 1 006 886 24 2 286 2023 Opening balance 1 346 719 250 16 2 331 Acquisitions 0 271 87 11 370 Disposals 0 0 0 -2 -2 Amortisation - -113 -64 -2 -179 Other movements -106 -48 -7 -3 -164 Closing balance 1 240 829 266 20 2 355 Accumulated amortisation and impairment 369 806 909 31 2 115
• Goodwill: includes the goodwill paid on companies included in the scope of consolidation and relating to the acquisition of
activities. Goodwill paid on associated companies: included in the nominal value of ‘Investments in associated companies’
shown on the balance sheet.
• Impairment testing: a test was carried out to establish whether impairment on goodwill had to be recognised (see table and
Note 3.9). This impairment test is performed at least once a year. We also carry out a high-level assessment on a quarterly
basis to see whether there is an indication of impairment. In the test, each entity is regarded as a separate cash-generating
unit. This is because each entity has a specific risk profile and it is rare to have different profiles within a single entity.
• Impairment on goodwill under IAS 36: recognised in profit or loss if the recoverable amount of an investment is lower than its
carrying value. The recoverable amount is defined as the higher of the value in use (calculated based on discounted cashflow
analysis) and the fair value (calculated based on multiple analysis, etc.) less costs to sell.
• The main group companies to which goodwill relates are listed in the table. All of these companies have been valued using
the discounted cashflow method. The discounted cashflow method calculates the recoverable amount of an investment as
the present value of all future free cashflows of the business. This method is based on long-term projections about the
company’s business and the resulting cashflows (i.e. projections for a number of years ahead and the residual value of the
business at the end of the specific projection period). These long-term projections are the result of an assessment of past
and present performances combined with external sources of information on future performances in the respective markets
and the global macroeconomic environment. Consequently, in cases where sustainability aspects and products/projects
have been factored into the underlying financial projections, this will also affect the valuation. The ultimate growth rate is
determined using a long-term average market growth rate. The present value of these future cashflows is calculated using a
compound discount rate which is based on the capital asset pricing model (CAPM). A country-specific risk-free rate and a
market-risk premium (multiplied by an activity beta) are also used in the calculation. KBC has developed two distinct
discounted cashflow models, viz. a bank model and an insurance model. Free cashflows in both cases are the dividends that
can be paid out to the company’s shareholders, account taken of the minimum capital requirements.

317Annual Report KBC Group 2024
p. 2
Discount rates throughout the specific period Goodwill outstanding of cashflow projections (in millions of EUR) 31-12-2024 31-12-2023 31-12-2024 31-12-2023 K&H Bank 169 181 14.7% – 13.5% 15.2% – 13.7% ČSOB (Czech Republic) 248 252 12.7% – 12.6% 13.0% – 12.8% ČSOB Stavební sporitelna 65 66 12.7% – 12.6% 13.0% – 12.8% United Bulgarian Bank 546 546 12.4% – 12.3% 13.3% – 12.5% DZI Insurance 75 75 10.1% 11.2% – 10.4% KBC Commercial Finance 21 21 11.6% – 12.2% 12.0% Pension Insurance Company UBB 56 56 7.3% – 7.8% 8.3% – 8.4% Rest 42 42 – – Total 1 221 1 240 – –
• The period to which the cashflow budgets and projections relate is 10 years in most cases. This longer period is used to take
account of current strong growth in the Central and Eastern European countries, where the growth rate is expected to
develop towards a more moderate level in the longer term.
• The growth rate used to extrapolate the cashflow projections after that period is equal to the expected long-term growth
rate of the gross domestic product. This rate depends on the country and varied between 3.2% and 4.7% in 2024 (between
3.2% and 4.7% in 2023).
• For all entities, at year-end 2024 the recoverable amount exceeded the carrying value to such a large extent that no
reasonably possible change in the key assumptions would result in the recoverable amount being less than or equal to the
carrying value.

318 Annual Report KBC Group 2024
p. 2
Note 5.6: Insurance – balance sheet
Note 5.6.1: Breakdown of (re)insurance contract assets and liabilities
(in millions of EUR) 2024 2023 Total PAA BBA VFA Total PAA BBA VFA Life Reinsurance assets 20 20 — — 0 0 — — Insurance contract liabilities 13 925 57 12 899 969 13 862 55 12 878 928 LRC (liability for remaining coverage) 13 718 2 12 769 948 13 674 2 12 762 910 Unit-linked 823 0 — 823 798 0 — 798 Non-unit-linked 11 931 2 11 929 — 12 651 2 12 650 — Hybrid 964 0 840 125 225 0 112 112 Accepted reinsurance 0 0 0 0 0 0 0 0 LIC (liability for incurred claims) 207 55 130 22 188 53 116 18 Unit-linked 19 0 — 19 13 0 — 13 Non-unit-linked 168 55 112 — 153 53 99 — Hybrid 21 0 18 3 21 0 17 4 Accepted reinsurance 0 0 0 0 0 0 0 0 Assets for acquisition cost 0 0 0 0 0 0 0 0 Non-life Reinsurance assets 98 98 — — 64 64 — — Insurance contract liabilities 3 186 2 971 214 — 2 922 2 716 206 — LRC (liability for remaining coverage) 744 547 196 — 701 512 190 — Personal insurance 211 14 196 — 205 16 190 — Motor Third-Party Liability (MTPL) 156 156 — — 160 160 — — Liabilities other than MTPL 25 25 — — 25 25 — — Casco 118 118 — — 96 96 — — Property other than casco 234 234 — — 216 216 — — Accepted reinsurance -1 -1 0 — 0 0 0 — LIC (liability for incurred claims) 2 442 2 424 18 — 2 220 2 204 16 — Personal insurance 656 638 18 — 610 594 16 — Motor Third-Party Liability (MTPL) 935 935 — — 863 863 — — Liabilities other than MTPL 401 401 — — 357 357 — — Casco 66 66 — — 53 53 — — Property other than casco 364 364 — — 319 319 — — Accepted reinsurance 20 20 0 — 18 18 0 — Assets for acquisition cost 0 0 0 — 0 0 0 —
• Insurance contract liabilities relate to insurance contracts and investment contracts with a discretionary participation feature
(DPF). Liabilities under investment contracts without DPF are measured at fair value. They concern unit-linked contracts, which
are recognised under financial liabilities (see Note 4.1).
• LRC (except PAA) is calculated using various assumptions. Judgement is required when making these assumptions and they
are based on various internal and external sources of information. These liabilities are generally calculated using assumptions
that were applicable at the inception of the insurance contracts and as such determine the CSM at initial recognition. The
key assumptions are:
- Lapse and dormancy rates at both contract and premium level, as well as mortality and morbidity rates, based on
standard mortality tables and adapted where necessary to reflect the group’s own experience.
- Operating expense assumptions which reflect the projected costs of maintaining and servicing in-force policies and
associated overhead expenses which are considered directly attributable. Expenses are considered directly attributable
if they are incurred as a consequence of performing insurance activities for in-force contracts;
- Assumptions may vary depending on the type of insurance, the generation of contracts (mainly the time when the contract
is entered into and the applicable terms and conditions) and the country, making it impossible to quantify these
assumptions for the entire group.
• Assumptions for LIC are based on past claims experience relating to claim numbers, claim payments and claims handling
costs, and adjusted to take account of such factors as anticipated market experience, claims inflation and external factors
such as court awards, legislation and discounting.

319Annual Report KBC Group 2024
• For contracts providing multiple services, i.e. insurance coverage, investment return services and investment management
services, ‘multivariate coverage units’ are used, taking into consideration that (a) coverage units are determined based on
the individual benefit components separately and (b) weights are assigned to each component to reflect an appropriate
level of service to be provided. Such weightings appropriately reflect the release of CSM based on the quantity of the benefits
provided for each service. Analogous to coverage units, these weights are also reassessed at the end of each reporting
period.
• Coverage units have a positive value and are floored to zero. In case of zero coverage units in a given period, no CSM is
allocated to P&L as no services have been provided in the period. This is possible, for instance, where contracts provide for
‘waiting periods’. In such cases, the contract has been signed by the policyholder but there is a mandatory waiting period for
the client to be able to benefit from insurance coverage.
• Defining IFRS 17 portfolios is a local decision, made by each insurance entity of KBC Group. It is country-specific, driven by the
local product mix and the way in which the insurance business is managed locally. The table presents a high-level breakdown
by product.
• Within hybrid products, the policyholder can switch within the same contract, containing the coverage of significant insurance
risk, from the unit-linked to the non-unit-linked component and vice versa.
• Non-life LRC BBA (196 million euros in 2024, 190 million euros in 2023) represents the LRC health insurance (as part of personal
insurance) as they are mostly long-term contracts and are therefore measured according to the BBA. Non-life LIC PAA for
personal insurance (638 million euros in 2024, 594 million euros in 2023) represents the incurred claims under personal insurance
with regard to ‘workmen’s compensation’ insurance, which are typically settled over a long period.
• Most reinsurance programmes protect against the impact of exceptionally large loss events or accumulation of losses.
Therefore, the reinsurance result is not in the same order of magnitude as the direct insurance result, which means the
movements in reinsurance contract assets are limited.
• Current account transactions with intermediaries and reinsurers are not included in the measurement of insurance liabilities
but treated as a separate asset measured under IFRS 9.
• The following yield curves are used to discount cashflows that do not vary based on the returns of underlying items. As these
bottom-up discount curves are not entity-specific but currency-dependent, two curves are included for each currency, one
with Solvency II volatility adjustment and one without (the latter is used for VFA liabilities; the former is used for all other
liabilities for which bottom-up curves are used).
Yield curve used to discount cashflows not varying based on underlying items; bottom-up method (forward rates) Currency Illiquidity premium Portfolio duration 1 year 5 years 10 years 20 years 2024 EUR with volatility adjustment 1.91% 2.61% 2.84% 2.14% without volatility adjustment 1.67% 2.37% 2.60% 1.91% CZK with volatility adjustment 4.01% 3.93% 4.30% 4.20% without volatility adjustment 3.84% 3.76% 4.12% 4.03% HUF with volatility adjustment 6.92% 6.93% 7.39% 6.55% without volatility adjustment 6.84% 6.85% 7.30% 6.48% BGN with volatility adjustment 1.94% 2.58% 2.83% 2.19% without volatility adjustment 1.78% 2.42% 2.67% 2.03% 2023 EUR with volatility adjustment 3.14% 2.51% 2.96% 2.34% without volatility adjustment 2.92% 2.29% 2.74% 2.13% CZK with volatility adjustment 4.83% 3.19% 3.70% 3.98% without volatility adjustment 4.67% 3.03% 3.54% 3.82% HUF with volatility adjustment 5.55% 5.25% 6.29% 5.49% without volatility adjustment 5.44% 5.14% 6.18% 5.38% BGN with volatility adjustment 3.16% 2.50% 3.00% 2.43% without volatility adjustment 2.84% 2.18% 2.68% 2.11%

320 Annual Report KBC Group 2024
Note 5.6.2: Movements in Life insurance contract liabilities
(in millions of EUR) Liabilities for remaining coverage Liabilities for incurred claims Total Excl. loss Contracts not Contracts measured under component Loss component measured PAA under PAA Present value Risk of future adjustment cashflows 2024 Opening balance 13 667 7 134 50 3 13 862 Insurance service result -435 24 225 19 0 -168 Insurance revenues -463 — — — — -463 BBA + VFA by transition method -432 — — — — -432 Modified retrospective approach -9 — — — — -9 Fair value approach -280 — — — — -280 Other -143 — — — — -143 PAA -31 — — — — -31 Insurance service expenses 28 24 225 19 0 296 Incurred claims (excl. repayments of investment components) — -2 156 14 1 169 Incurred costs other than claims 0 -2 99 3 0 100 Amortised acquisition expenses 28 — — — — 28 Changes in fulfilment cashflows that relate to future service – loss on — 28 — — — 28 and reversal of loss on onerous contracts Changes in fulfilment cashflows that relate to past service — — -29 1 -1 -29 Investment components -2 591 — 2 591 — — 0 Investment result 6 0 — — — 6 Net result from financial instruments at fair value through profit or loss 6 0 — — — 6 Insurance finance income and expense 490 1 2 2 0 495 In P&L 292 1 2 1 0 296 In OCI 198 0 0 1 0 199 Total changes in comprehensive income -2 529 25 2 818 20 0 334 Total cashflows 2 585 — -2 798 -19 — -232 Premiums received 2 712 — — — — 2 712 Claims paid — — -2 699 -16 — -2 715 Costs other than claims paid — — -99 -3 — -102 Acquisition costs paid -127 — — — — -127 Other -37 0 -2 0 0 -39 Closing balance 13 686 32 152 52 4 13 925 2023 Opening balance 13 258 10 126 47 3 13 444 Insurance service result -381 -2 218 16 1 -149 Insurance revenues -399 – – – – -399 BBA + VFA by transition method -370 – – – – -370 Modified retrospective approach -10 – – – – -10 Fair value approach -267 – – – – -267 Other -93 – – – – -93 PAA -30 – – – – -30 Insurance service expenses 19 -2 218 16 1 251 Incurred claims (excl. repayments of investment components) – -1 156 13 1 169 Incurred costs other than claims 0 -7 92 2 – 87 Amortised acquisition expenses 19 – – – – 19 Changes in fulfilment cashflows that relate to future service – loss on – 6 – – – 6 and reversal of loss on onerous contracts Changes in fulfilment cashflows that relate to past service – – -30 1 1 -30 Investment components -1 284 – 1 284 – – 0 Investment result 0 0 — — — 0 Net result from financial instruments at fair value through profit or loss 0 0 — — — 0 Insurance finance income and expense 815 0 3 3 0 821 In P&L 281 0 1 0 0 283 In OCI 534 0 2 3 0 538 Total changes in comprehensive income -850 -2 1 505 19 1 672 Total cashflows 1 271 – -1 497 -16 – -242 Premiums received 1 401 – – – – 1 401 Claims paid – – -1 404 -14 – -1 419 Costs other than claims paid – – -92 -2 – -94 Acquisition costs paid -130 – – – – -130 Other -12 0 0 0 0 -13 Closing balance 13 667 7 134 50 3 13 862

321Annual Report KBC Group 2024
p. 2
• In the transition from IFRS 4 to IFRS 17 on 1 January 2022, KBC applied the Full Retrospective Approach (FRA) for recent years.
Applying the FRA for non-recent years was impracticable due to either a lack of historical data (data and hypotheses) or high
costs associated with making information from the past available for FRA transition calculations. Where the FRA was
impracticable, the Fair Value Approach (FVA) was predominantly used to determine the CSM on the transition date. The
Modified Retrospective Approach (MRA) was rarely applied as this transition approach was overly complex and the costs did
not outweigh the benefits. KBC calculated a fair value according to IFRS 13 based on the IFRS 17 cashflows and subsequently
adjusted a few assumptions or parameters. The adjustments related to the inclusion in the IFRS 13 fair value of total expenses,
i.e. including non-directly attributable expenses, and to the inclusion of a risk premium that covers not only non-financial risk,
but also system and integration expenses and capital funding costs. All past years were combined into a single cohort for the
FVA transition calculations. The FVA CSM ensued from cost and risk margin differences under IFRS 17 and IFRS 13 measurement
approaches. Due to the application of the FVA on the transition date in accordance with the transition exemptions provided
in IFRS 17, the OCI amount was set at nil.
• Movement in insurance liabilities in 2024:
- Due to the further decrease in market interest rates during 2024, an expense in OCI of 199 million euros before tax is
recognised as KBC made the accounting policy choice for all portfolios within the group to disaggregate insurance finance
income and expense between P&L and OCI.
- The movement in the investment component of 2 591 million euros from LRC to LIC indicates the amounts of contracts
coming at maturity or lapsed and includes 866 million euros resulting from the surrender in 2024 of individual pension
agreements from the ‘Risk and Savings’ portfolio in order to migrate them to the ‘Hybrid products’ portfolio as the
policyholders of the relevant contracts were given the opportunity to invest in unit-linked products.
• Movement in insurance liabilities in 2023:
- Due to the decrease in market interest rates during 2023, an expense in OCI of 538 million euros before tax is recognised
as KBC made the accounting policy choice for all portfolios within the group to disaggregate insurance finance income
and expense between P&L and OCI.
- The movement in the investment component of 1 284 million euros from LRC to LIC indicates the amounts of contracts
coming at maturity or lapsed.
• On transitioning to IFRS 17, KBC applied mainly the fair value approach. Therefore, the amortised acquisition costs are low as
they are not estimated under the fair value approach (i.e. the prospective approach).
• The Life insurance contracts are typically long-term contracts and are therefore measured according to the BBA or VFA. The
latter is only applied within Central and Eastern European entities for unit-linked contracts or hybrid products as these sold
contracts mandatorily contain insurance risk cover.
• Some insurance contracts may specify amounts that are payable when no insured event occurs, and are repayable under all
circumstances and as such include an investment component. For defining the investment component, an investigation based
on the contract’s characteristics needs to be conducted. Within KBC, only investment components are identified within Life
insurance, such as life-long death cover. When an insurance contract allows surrender, the gross surrender value is considered
an investment component. Any associated surrender fees resulting from surrender are considered insurance components.

322 Annual Report KBC Group 2024
p. 2
Note 5.6.3: Movements in Non-life insurance contract liabilities
(in millions of EUR) Liabilities for remaining coverage Liabilities for incurred claims Total Excl. loss Contracts not Contracts measured under component Loss component measured under PAA PAA Present value Risk of future adjustment cashflows 2024 Opening balance 700 1 16 1 964 240 2 922 Insurance service result -1 952 3 31 1 606 10 -303 Insurance revenues -2 482 — — — — -2 482 BBA by transition method -39 — — — — -39 Modified retrospective approach 0 — — — — 0 Fair value approach -29 — — — — -29 Other -11 — — — — -11 PAA -2 443 — — — — -2 443 Insurance service expenses 530 3 31 1 606 10 2 179 Incurred claims (excl. repayments of investment components) — -1 28 1 251 65 1 343 Incurred costs other than claims 0 0 3 232 0 236 Amortised acquisition expenses 529 — — — — 529 Changes in fulfilment cashflows that relate to future service – loss — 4 — — — 4 on and reversal of loss on onerous contracts Changes in fulfilment cashflows that relate to past service — — 0 122 -55 66 Investment components 0 — 0 — — 0 Insurance finance income and expense 7 0 0 58 7 72 In P&L 1 0 0 39 5 45 In OCI 6 0 0 18 2 26 Total changes in comprehensive income -1 945 3 31 1 664 17 -231 Total cashflows 1 991 — -29 -1 453 — 509 Premiums received 2 532 — — — — 2 532 Claims paid — — -26 -1 222 — -1 248 Costs other than claims paid — — -3 -231 — -234 Acquisition costs paid -540 — — — — -540 Other -6 0 0 -6 -1 -14 Closing balance 740 4 18 2 168 256 3 186 2023 Opening balance 675 1 14 1 802 222 2 714 Insurance service result -1 789 0 28 1 343 7 -410 Insurance revenues -2 280 – – – – -2 280 BBA by transition method -36 – – – – -36 Modified retrospective approach 0 – – – – 0 Fair value approach -29 – – – – -29 Other -7 – – – – -7 PAA -2 244 – – – – -2 244 Insurance service expenses 491 0 28 1 343 7 1 869 Incurred claims (excl. repayments of investment components) 0 -1 26 1 091 62 1 178 Incurred costs other than claims 1 0 3 219 0 223 Amortised acquisition expenses 490 – – – – 490 Changes in fulfilment cashflows that relate to future service – loss – 1 – – – 1 on and reversal of loss on onerous contracts Changes in fulfilment cashflows that relate to past service – – 0 33 -55 -22 Investment components 0 – 0 – – 0 Insurance finance income and expense -48 0 1 89 12 54 In P&L 0 0 0 27 4 30 In OCI -48 0 0 63 8 24 Total changes in comprehensive income -1 837 0 29 1 433 19 -356 Total cashflows 1 862 – -27 -1 288 – 547 Premiums received 2 357 – – – – 2 357 Claims paid – – -24 -1 070 – -1 094 Costs other than claims paid – – -3 -218 – -221 Acquisition costs paid -496 – – – – -496 Other 1 0 0 17 0 18 Closing balance 700 1 16 1 964 240 2 922

323Annual Report KBC Group 2024
• In Non-life, KBC applies mostly the PAA, as the coverage period is 1 year or less.
• The cost of outstanding claims is based on the past claims development experience to project future claims development.
These methods extrapolate the development of paid and incurred losses, average costs per claim (including claims handling
costs) and claim numbers based on the observed claim development of earlier years and expected loss ratio. Historical claims
are mainly analysed per accident year. Large claims are separately addressed.
• Estimates of salvage recoveries and subrogation reimbursement are considered in the measurement of the ultimate claim
costs.
• No asset for insurance acquisition cashflows is currently recognised.

324 Annual Report KBC Group 2024
p. 2 2
Note 5.6.4: Movements in Life insurance contract liability components (BBA, VFA)
Present value of future Risk Total insurance cashflows adjustment contract (in millions of EUR) (incl. LIC) (incl. LIC) Contractual service margin liabilities Insurance contracts that Insurance existed at the contracts that transition date, existed at the modified transition date, Other retrospective fair value insurance approach approach contracts 2024 Opening balance 11 538 152 47 1 387 683 13 807 Insurance service result -212 41 -2 -125 138 -159 Changes that relate to future service -201 53 4 -11 182 28 New business -245 29 – – 230 14 Changes in estimates reflected in the CSM 32 23 4 -11 -48 0 Changes in estimates that result in onerous contract 13 1 – – – 14 losses and reversals Changes that relate to current service 16 -9 -5 -114 -44 -157 CSM recognised in P&L 0 - -5 -114 -44 -163 Changes in the risk adjustment (expected) 0 -9 – – – -9 Experience adjustments 16 - – – – 16 Changes to liabilities for incurred claims related to past -27 -3 – – – -29 service Investment result 6 - – – – 6 Net result from financial instruments at fair value through P&L 6 - – – – 6 Insurance finance income and expense 466 4 1 10 13 493 In P&L 269 3 1 10 13 295 In OCI 197 1 - - - 198 Total changes in comprehensive income 260 44 -1 -115 151 341 Total cashflows -241 – – – – -241 Premiums received 2 681 – – – – 2 681 Claims paid -2 699 – – – – -2 699 Costs other than claims paid -99 – – – – -99 Acquisition costs paid -124 – – – – -124 Other changes -28 -1 -3 -4 -3 -39 Closing balance 11 529 195 43 1 268 832 13 868 2023 Opening balance 11 378 112 45 1 377 480 13 393 Insurance service result -390 47 -1 8 198 -139 Changes that relate to future service -399 56 4 120 224 5 New business -161 17 – – 150 6 Changes in estimates reflected in the CSM -238 39 4 120 74 -1 Changes in estimates that result in onerous contract 0 0 – – – 0 losses and reversals Changes that relate to current service 38 -8 -5 -113 -26 -113 CSM recognised in P&L 0 – -5 -113 -26 -143 Changes in the risk adjustment (expected) 0 -8 – – – -8 Experience adjustments 38 – – – – 38 Changes to liabilities for incurred claims related to past -29 -2 – – – -30 service Investment result 0 – – – – 0 Net result from financial instruments at fair value through P&L 0 – – – – 0 Insurance finance income and expense 809 -7 1 9 7 818 In P&L 264 2 1 9 7 283 In OCI 544 -9 – – – 535 Total changes in comprehensive income 418 40 0 16 205 679 Total cashflows -252 – – – – -252 Premiums received 1 371 – – – – 1 371 Claims paid -1 404 – – – – -1 404 Costs other than claims paid -92 – – – – -92 Acquisition costs paid -126 – – – – -126 Other changes -7 -1 2 -6 -1 -14 Closing balance 11 538 152 47 1 387 683 13 807

325Annual Report KBC Group 2024
• The amount recognised in P&L as release of the CSM is determined by:
- Identifying the coverage units in the group. The number of coverage units in a group is the quantity of service provided by
the insurer under the contracts in that Group of Contracts (GoC), determined by considering for each contract the quantity
of the benefits provided to the policyholder under a contract and its expected coverage period.
- Allocating the CSM at the end of the period equally to each coverage unit provided in the current period and expected
to be provided in the future, and recognising in P&L the amount allocated to coverage units allocated to the current
period.
• Main movements in 2024 and 2023: the 43-million-euro increase in the risk adjustment in 2024 is mostly related to a model
change to take into account the risk that clients stop paying premiums for long-term life insurance contracts. The movement
of the contractual service margin in 2024, under ‘New business’, includes a 96-million-euro increase related to the migration
of individual pension agreements from the ‘Risk and Savings’ portfolio to the ‘Hybrid products’ portfolio (see also Note 5.6.2).
There were no material changes in 2023.

326 Annual Report KBC Group 2024
p. 2
Note 5.6.5: Movements in Non-life insurance contract liability components (BBA)
Present value of future Risk cashflows adjustment Total insurance (in millions of EUR) (incl. LIC) (incl. LIC) Contractual service margin contract liabilities Insurance contracts that existed at the transition Other insurance date, fair value approach contracts 2024 Opening balance 8 71 52 74 206 Insurance service result -72 60 -21 26 -7 Changes that relate to future service -74 62 -19 31 0 New business -21 3 — 18 0 Changes in estimates reflected in the CSM -52 58 -19 13 0 Changes in estimates that result in onerous contract 0 0 — — 0 losses and reversals Changes that relate to current service 1 -1 -2 -5 -7 CSM recognised in P&L — — -2 -5 -7 Changes in the risk adjustment (expected) — -1 — — -1 Experience adjustments 1 — — — 1 Changes to liabilities for incurred claims related to past 0 0 — — 0 service Insurance finance income and expense 15 -9 0 1 7 In P&L -1 1 0 1 1 In OCI 16 -10 — — 6 Total changes in comprehensive income -57 51 -21 27 -1 Total cashflows 9 — — — 9 Premiums received 46 — — — 46 Claims paid -26 — — — -26 Costs other than claims paid -3 — — — -3 Acquisition costs paid -8 — — — -8 Other changes 0 0 0 0 0 Closing balance -40 122 31 101 214 2023 Opening balance 17 75 93 67 252 Insurance service result 11 16 -41 7 -7 Changes that relate to future service 9 19 -38 10 0 New business -18 1 – 17 0 Changes in estimates reflected in the CSM 27 17 -38 -7 0 Changes in estimates that result in onerous contract 0 0 – – 0 losses and reversals Changes that relate to current service 2 -3 -3 -4 -7 CSM recognised in P&L – – -3 -4 -6 Changes in the risk adjustment (expected) – -3 – – -3 Experience adjustments 2 – – – 2 Changes to liabilities for incurred claims related to past 0 0 – – 0 service Insurance finance income and expense -29 -19 0 1 -48 In P&L 0 0 0 1 0 In OCI -28 -19 – – -48 Total changes in comprehensive income -17 -4 -41 7 -54 Total cashflows 8 – – – 8 Premiums received 43 – – – 43 Claims paid -24 – – – -24 Costs other than claims paid -3 – – – -3 Acquisition costs paid -7 – – – -7 Other changes 0 0 0 0 0 Closing balance 8 71 52 74 206
• In Non-life, the BBA is applied to ‘individual health insurance’.
• The decline recognised in insurance finance income and expense through OCI of 48 million euros in 2023 is accounted for by
the increase in the discount curve in the long term (more than 20 years). The 6-million-euro increase in 2024 is attributable to

327Annual Report KBC Group 2024
a slight decline in the yield curve. A typical feature of the hospitalisation portfolio is that interest rate movements have a
greater impact on the cash outflows than on the cash inflows. Hospitalisation premiums are levelled (constant ‘cash in’ during
the lifetime of the contract) and claims increase as the insured person ages (‘cash out’ more towards the end of the contract).
• The 52-million-euro drop in the present value of future cashflows for changes in estimates reflected in the CSM in 2024 is due
to a model update in which expected higher claims result in higher premiums. A higher premium volume generates more future
profit and, as a result, lower fulfilment cashflows. The 58-million-euro increase in changes in estimates reflected in the CSM in
the risk adjustment in 2024 was accounted for by a model change involving a more conservative estimate of the uncertainty
of claim costs related to hospitalisation.
Note 5.6.6: New business (BBA/VFA)
(in millions of EUR) (Re)insurance contracts issued (Re)insurance contracts acquired Total Not onerous Onerous Not onerous Onerous 2024 Estimates of present value of cash outflows 2 942 625 0 0 3 567 Expected claims 2 645 593 0 0 3 238 Expected other insurance service expenses 151 19 0 0 170 Insurance acquisition cashflows 145 13 0 0 159 Estimates of present value of cash inflows -3 218 -614 0 0 -3 833 Risk adjustment for non-financial risk 29 3 0 0 32 Contractual service margin 248 — 0 — 248 Increase in insurance contract liabilities: loss component — 14 — 0 14 2023 Estimates of present value of cash outflows 1 194 212 0 0 1 406 Expected claims 1 034 171 0 0 1 205 Expected other insurance service expenses 63 19 0 0 82 Insurance acquisition cashflows 97 22 0 0 119 Estimates of present value of cash inflows -1 378 -207 0 0 -1 585 Risk adjustment for non-financial risk 16 2 0 0 18 Contractual service margin 166 - 0 0 166 Increase in insurance contract liabilities: loss component – 7 – 0 7
• ‘Estimates of present value of cash outflows’ includes 866 million euros resulting from the surrender in 2024 of individual pension
agreements from the ‘Risk and Savings’ portfolio in order to migrate them to the ‘Hybrid products’ portfolio as the
policyholders of the relevant contracts were given the opportunity to invest in unit-linked products. The net impact of this
migration on the CSM is a 96-million-euro increase (see also Note 5.6.2).
• The sale of business with a loss component in 2024 was largely attributable to commercial campaigns in response to the
Belgian state note maturing in September 2024. This new business was created with a market-driven competitive guaranteed
interest rate (see also Note 4.1).
Note 5.6.7: Future CSM recognition in profit and loss on insurance contracts (at the end of the reporting period) (BBA/VFA)
CSM recognition in P&L in the … following reporting year (in millions of EUR) 1st year 2nd year 3rd year 4th year 5th year 6-10th year +10th year 2024 Life 153 145 138 132 126 548 1 023 Non-life 7 7 7 6 6 27 57 2023 Life 149 142 135 129 122 529 973 Non-life 6 6 6 6 5 24 51
• The table shows the future CSM recognition for the next 25 years.

328 Annual Report KBC Group 2024
Note 5.6.8: Fair value of assets backing insurance and investment contracts
Of which Life direct participation (in millions of EUR) Life (VFA) Non-life Non-technical Total 2024 Total (underlying) assets 30 414 967 4 204 1 845 36 463 At amortised cost 1 886 0 2 887 1 047 5 819 At FVOCI 11 753 15 1 221 593 13 568 Debt securities 10 698 15 993 373 12 064 Equity instruments 1 055 0 228 220 1 504 At FVPL (excl. derivatives) 16 666 951 0 8 16 673 Instruments backing unit-linked contracts 16 602 951 — — 16 602 Other 64 0 0 8 71 At FVO 0 0 0 0 0 Property and equipment and investment property 109 0 97 198 403 2023 Total (underlying) assets 27 930 928 4 152 1 686 33 769 At amortised cost 1 949 0 2 926 882 5 757 At FVOCI 11 490 15 1 158 590 13 238 Debt securities 10 441 15 933 386 11 759 Equity instruments 1 050 0 225 204 1 479 At FVPL (excl. derivatives) 14 364 913 0 8 14 372 Instruments backing unit-linked contracts 14 348 912 – – 14 348 Other 16 1 0 8 24 At FVO 0 0 0 0 0 Property and equipment and investment property 127 0 68 207 401
• The table also includes the assets backing the liabilities under investment contracts (IFRS 9).
Note 5.6.9: Changes in accumulated OCI for FVOCI assets related to insurance contracts for which the fair value transition
approach is used
(in millions of EUR) 2024 2023 OCI that may be recycled to P&L -26 340 Net change in revaluation reserve (FVOCI debt instruments) -26 340 Fair value adjustments before tax -33 446 Deferred tax on fair value changes 9 -108 Transfer from reserve to net result -1 2 Impairment -2 2 Net gains/losses on disposal 0 0 Deferred taxes 0 -1 OCI that will not be recycled to P&L 101 110 Net change in revaluation reserve (FVOCI equity instruments) 101 110 Fair value adjustments before tax 101 110 Deferred tax on fair value changes 0 0
• IFRS 17 allows simplifications to set the accumulated OCI for the insurance liabilities at nil at the transition date while
maintaining the accumulated OCI for the covering financial assets. This disclosure gives insight into the mismatch between
covering financial assets and insurance liabilities as it distorts classification within equity at transition date and subsequently
the years thereafter until the portfolio subject to the transition approach reaches maturity.
• See also ‘Consolidated statement of comprehensive income’.

329Annual Report KBC Group 2024
Note 5.7: Provisions for risks and charges
Note 5.7.1: Overview
(in millions of EUR) 31-12-2024 31-12-2023 Total provisions for risks and charges 141 183 Provisions for off-balance-sheet commitments and financial guarantees 73 91 Provisions for other risks and charges 69 92 Provisions for restructuring 22 37 Provisions for taxes and pending legal disputes 31 37 Other 17 18
Note 5.7.2: Details of off-balance-sheet commitments and financial guarantees
Subject to Subject to 12- Subject to lifetime ECL – (in millions of EUR) month ECL lifetime ECL non-performing Total 31-12-2024 Provisions on 1 January 22 20 49 91 Movements with an impact on results Transfer of financial assets Stage 1 (12-month ECL) -1 5 2 6 Stage 2 (lifetime ECL) 1 -9 3 -5 Stage 3 ‘non-performing’ (lifetime ECL) 0 1 -5 -4 New financial assets 5 1 1 8 Changes in risk parameters during the reporting period -6 -1 -13 -21 Changes in the model or methodology 2 0 -1 1 Derecognised financial assets -3 -1 -2 -6 Other 0 0 0 0 Movements without an impact on results Derecognised financial assets 0 0 0 0 Changes in the scope of consolidation 0 -1 0 -1 Other 2 0 1 3 Provisions on 31 December 22 15 36 73 31-12-2023 Provisions on 1 January 19 35 60 114 Movements with an impact on results Transfer of financial assets Stage 1 (12-month ECL) -2 3 1 2 Stage 2 (lifetime ECL) 1 -13 9 -3 Stage 3 ‘non-performing’ (lifetime ECL) 0 1 -2 -2 New financial assets 10 4 2 16 Changes in risk parameters during the reporting period -3 -6 -12 -21 Changes in the model or methodology 0 0 0 0 Derecognised financial assets -3 -3 -3 -9 Other 0 0 2 2 Movements without an impact on results Derecognised financial assets 0 0 0 0 Changes in the scope of consolidation 0 -1 0 -1 Other 0 1 -7 -7 Provisions on 31 December 22 20 49 91
• Also see Note 6.1.

330 Annual Report KBC Group 2024
Note 5.7.3: Details of provisions for other risks and charges
Provisions for Provisions for taxes and (in millions of EUR) restructuring pending legal disputes Other Total 2024 Opening balance 37 37 18 92 Movements with an impact on results Amounts allocated 3 2 4 9 Amounts used -20 -5 -3 -27 Unused amounts reversed 0 -1 -2 -4 Transfers out of/into liabilities associated 0 0 0 0 with disposal groups Changes in the scope of consolidation 0 0 0 0 Other 2 -2 -1 -1 Closing balance 22 31 17 69 2023 Opening balance 92 192 20 305 Movements with an impact on results Amounts allocated 11 10 5 26 Amounts used -65 -163 -5 -233 Unused amounts reversed -1 -3 -2 -6 Transfers out of/into liabilities associated 0 0 0 0 with disposal groups Changes in the scope of consolidation 0 0 0 0 Other 0 1 0 1 Closing balance 37 37 18 92
• For most of the provisions recorded, no reasonable estimate can be made of when they will be used.
• Other provisions include those set aside for miscellaneous risks.
• Information relating to the main legal disputes pending: claims filed against KBC group companies are – in keeping with IFRS
rules – treated on the basis of an assessment of whether they will lead to an outflow of resources (i.e. ‘probable outflow’,
‘possible outflow’ or ‘remotely probable outflow’). Provisions are set aside for ‘probable outflow’ cases (see ‘Notes on the
accounting policies’). No provisions are constituted for ‘possible outflow’ cases, but information is provided in the financial
statements if such cases might have a material impact on the balance sheet (i.e. when the claim could lead to a possible
outflow of more than 50 million euros). All other claims (‘remotely probable outflow’), of whatever magnitude, that represent a
minor or no risk at all do not have to be reported. The most important cases are listed below. The information provided is
limited in order not to prejudice the position of the group in ongoing litigation.
- Possible outflow: on 6 October 2011, Irving H. Picard, trustee (the ‘trustee’) for the liquidation of Bernard L. Madoff
Investments Securities LLC (& Bernard L. Madoff), sued KBC Investments Ltd (a full subsidiary of KBC Bank) before the
bankruptcy court in New York to claw back approximately 110 million US dollars’ worth of transfers made to KBC entities
by Madoff (through a feeder fund that KBC had lent to Harley International). This claim is just one of a whole set made by
the trustee against several banks, hedge funds, feeder funds and investors (‘joint defense group’). A lengthy litigation
process was conducted on the basis of preliminary objections in respect of the applicability of the Bankruptcy Code’s
‘safe harbor’ and ‘good defenses’ rules, as well as prudential limitations on U.S. courts’ powers in international cases, to
subsequent transferees (as is the case for KBC Investments Ltd), as detailed in previous disclosures. In June 2015, the
Trustee stated his intention to amend the original claim which led to increase the amount claimed to USD 196 000 000. A
court ruling dismissing the claim of the Trustee was issued on 3 March 2017. The Trustee appealed and the appellate court
(Court of Appeals for the Second Circuit) reversed the dismissal on 28 February 2019. A certiorari petition filed on 30 August
2019 was dismissed by the US Supreme Court on 2 June 2020. As a consequence the merits of the case are handled by
the Bankruptcy Court. On 30 August 2021, in two other appeals by other defendants, the Court of Appeals for the Second
Circuit reversed the burden of proof from an initial burden on the Trustee to adequately demonstrate the defendant’s lack
of good faith to a burden on the defendant to prove its good faith. On 1 August 2022, the Bankruptcy Court issued a
decision determining the structure of the proceedings. In this context, on 5 August 2022 the Trustee amended his complaint
by reducing his claim to a principal of USD 86 million. On 18 November 2022, KBC submitted a motion to dismiss the
amended complaint for lack of specific jurisdiction of the US court. On 26 April 2023, the court dismissed this motion
contesting jurisdiction. The proceedings on the merits will therefore continue. On 28 June 2023, KBC filed an answer to the
amended complaint. An investigation of the facts will be concluded on 22 September 2025. Despite the increased burden
of proof, KBC still believes it has good and credible defenses, including demonstrating its good faith. The procedure may
still take several years.

331Annual Report KBC Group 2024
Note 5.8: Other liabilities
(in millions of EUR) 31-12-2024 31-12-2023 Total 2 678 2 611 Retirement benefit obligations or other employee benefits 41 93 Accrued charges and deferred income 437 385 Salaries and social security charges 540 531 Lease liabilities 5 63 Other 1 656 1 539
• For more information on retirement benefit obligations, see Note 5.9 (note that the amount recognised under ‘Retirement
benefit obligations or other employee benefits’ in Note 5.8 relates to a broader scope than the amounts presented in Note
5.9).

332 Annual Report KBC Group 2024
Note 5.9: Retirement benefit obligations
(in millions of EUR) 31-12-2024 31-12-2023 DEFINED BENEFIT PLANS Reconciliation of defined benefit obligations Defined benefit obligations at the beginning of the period 2 724 2 580 Current service cost 105 95 Interest cost 89 104 Actuarial gain or loss resulting from changes in demographic assumptions 0 -3 Actuarial gain or loss resulting from changes in financial assumptions -76 152 Experience adjustments 29 -56 Past-service cost 0 0 Benefits paid -190 -149 Other 3 0 Defined benefit obligations at the end of the period 2 684 2 724 Reconciliation of the fair value of plan assets Fair value of plan assets at the beginning of the period 2 936 2 746 Actual return on plan assets 198 222 Expected interest income on plan assets, calculated based on market yields on high quality corporate bonds 96 115 Employer contributions 97 93 Plan participant contributions 20 20 Benefits paid -190 -149 Other 9 5 Fair value of plan assets at the end of the period 3 070 2 936 of which financial instruments issued by the group 0 0 of which property occupied by KBC 2 2 Funded status Plan assets in excess of defined benefit obligations 386 212 Reimbursement rights 0 0 Asset ceiling limit -131 -70 Unfunded accrued/prepaid pension cost 255 142 Movement in net liabilities or net assets Unfunded accrued/prepaid pension cost at the beginning of the period 142 153 Amounts recognised in the income statement -82 -65 Amounts recognised in other comprehensive income 92 -43 Employer contributions 97 93 Other 6 4 Unfunded accrued/prepaid pension cost at the end of the period 255 142 Amounts recognised in the income statement -82 -65 Current service cost -105 -95 Interest cost 5 10 Plan participant contributions 20 20 Other -2 0 Changes to the amounts recognised in other comprehensive income 92 -43 Actuarial gain or loss resulting from changes in demographic assumptions 0 3 Actuarial gain or loss resulting from changes in financial assumptions 76 -152 Actuarial result on plan assets 102 107 Experience adjustments -29 56 Adjustments to asset ceiling limits -59 1 Other 1 -58 DEFINED CONTRIBUTION PLANS Expenses for defined contribution plans -14 -18

333Annual Report KBC Group 2024
p. 3 1
• Retirement benefits that are actively accrued for the Belgium-based staff of KBC Bank, KBC Insurance and most of their
Belgian subsidiaries are accrued exclusively through the KBC pension fund. Up until year-end 2018, employer-funded
retirement benefits had accrued primarily through a defined benefit plan, where the benefit is calculated based on the final
salary of employees before they retire, the number of years they had been in the plan and a formula that applies a progressive
rate scale. A defined contribution plan was introduced on 1 January 2014 for all new employees and any employees who had
chosen to switch to it. In this plan, a contribution is deposited based on the current monthly salary and the amounts deposited
are paid out together with the (guaranteed) return on retirement. Both types of pension plan are managed by the KBC pension
fund, which uses the services of KBC Asset Management for the investment strategy. In addition, there are a number of smaller,
closed group insurance schemes from the past that will continue to be funded and are managed by the KBC pension fund.
On 1 January 2019, a new defined contribution plan was introduced to replace the one introduced in 2014. All employees were
again given the one-time option of switching from the defined benefit plan to the new defined contribution plan. At year-end
2024, 48% of employees were active participants in the defined benefit plan and 52% in the defined contribution plan (the
corresponding figures at year-end 2023 were 52% and 48%).
• The expected age of retirement of each employee and the expected wage inflation based on an inflation curve derived from
the market value of inflation-linked bonds are taken into account in the calculation of the gross defined benefit obligations.
• Since 1 January 2020, the insurance risks related to death and disability are fully reinsured through an external reinsurance
programme.
• The KBC Pension Fund believes in a balanced ESG approach that allows improvement of the greenhouse gas intensity but
also considers other environmental themes such as biodiversity and social and governance-related issues. As regards the
management of the assets, the share of responsible investments came to around 89% at year-end 2024 (89% at year-end
2023). The aim is for the KBC Pension Fund investment portfolio to be carbon-neutral by 2050.
At the end of September 2024, the greenhouse gas intensity of the shares held in portfolio was roughly 37% of the MSCI World
AC benchmark, for the corporate bonds held in portfolio it was roughly 42% of the Iboxx Euro Corporates benchmark and for
the government bonds held in portfolio it was roughly 114% of the JPM EMU Government Bond benchmark, a decrease from
2019 of 62%, 43% and 27%, respectively.
• As a result of the higher average interest rates, the pension reserves of participants are often higher than the retirement
benefit obligations calculated as the present value of the guaranteed minimum pension capital under the defined
contribution plan. In 2023, the net asset was therefore reduced by the difference between the retirement benefit obligations
calculated in this way and the higher guaranteed minimum reserves and/or the pension reserves calculated using the
assigned fund return. The difference at the end of 2024 was 75 million euros and has been added to ‘Adjustments to asset
ceiling limits’, resulting in the net asset being reduced by this amount.
• There are no significant defined benefit plans in the group’s other core countries.
Additional information on retirement benefit obligations (in millions of EUR) 2024 2023 2022 2021 2020 Changes in main headings in the main table Defined benefit obligations 2 684 2 724 2 580 3 335 3 387 Fair value of plan assets 3 070 2 936 2 746 3 244 2 849 Unfunded accrued/prepaid pension cost 255 142 153 -128 -537 Impact of changes in the assumptions used in the actuarial calculation of plan assets and retirement benefit obligations Impact on plan assets 0 0 0 0 0 Impact on retirement benefit obligations* -77 149 -825 -35 253
* Arising from defined benefit plans. A plus sign indicates an increase in the (absolute value of) the obligation, a minus sign a decrease.
Additional information on retirement benefit obligations: DEFINED BENEFIT PLANS, KBC pension fund Composition (31-12-2024) Equity instruments 33% Bonds 53% Real estate 13% Cash 0% of which illiquid assets 17% Composition (31-12-2023) Equity instruments 31% Bonds 55% Real estate 13% Cash 1% of which illiquid assets 17%

334 Annual Report KBC Group 2024
p. 3 2
Contributions expected in 2025 (in millions of EUR) 34 Regulatory framework Pension plans are registered in collective labour agreements and incorporated into a set of regulations. Annual reporting of funding levels to supervisory authorities (FSMA/NBB). Any underfunding must be reported immediately to the supervisory authorities. Risks for KBC Investment risk and inflation risk. ALM policy The hedging portfolio hedges against interest rate risk and inflation risk using interest rate swaps. The return portfolio aims to generate an extra return. Plan amendments A new version of the employer-funded defined contribution plan was introduced on 1 January 2019. All employees who had been signed up to the defined benefit plan were given the one-time option of switching to this new plan. New employees are signed up to the employer-funded defined contribution plan. Curtailments and settlements Not applicable. Discounting method Based on quotes for various time buckets of AA-rated corporate bonds. The derived bond yields are converted into a zero coupon curve. Key actuarial assumptions xAverage discount rate 3.10% xExpected rate of salary increase 2.47% xExpected inflation rate 2.16% xExpected rate of increase in pensions – xWeighted average duration of the obligations 10 years Impact of changes in the assumptions used in the actuarial calculation of the retirement benefit obligations Increase in the retirement benefit obligations on 31-12-2024 consequent on: xa decrease of 1% in the discount rate 10.98% xan increase of 1% in the expected inflation rate 8.69% xan increase that is 1% higher than the expected real 11.54% increase in salary xan increase of one year in life expectancy – The impact of the following assumptions has not been Decreasing mortality rates. Pension benefits are paid out calculated: in capital, so longevity risk is immaterial. Staff turnover rates: the impact of the changes remains limited. Additional information on retirement benefit obligations: DEFINED CONTRIBUTION PLANS, KBC pension fund Contributions expected in 2025 (in millions of EUR) 51 Regulatory framework Pursuant to the Belgian Supplementary Pensions Act, the employer must guarantee a minimum return of 2.50% on employee and employer contributions in 2025. Risks for KBC Investment risk. Valuation Retirement benefit obligations are measured on the basis of the accrued benefits on the reporting date, making a projection of these benefits (at the rate of interest guaranteed by law) until the expected age of retirement, and discounting the resulting benefits. KBC offers two types of defined contribution plan: one that is financed through employee contributions and one through employer contributions. The valuation of retirement benefit obligations for the employer-funded defined contribution plan takes account of future contributions. However, it is not taken into account for the valuation of the employee-funded defined contribution plan, because the employer’s obligation for that plan only relates to the guaranteed minimum interest rate. Discounting method Based on quotes for various time buckets of AA-rated corporate bonds. The derived bond yields are converted into a zero coupon curve. Key actuarial assumptions xAverage discount rate 3.30% xWeighted average duration of the obligations 15 years Impact of changes in the assumptions used in the actuarial calculation of the retirement benefit obligations Increase in the retirement benefit obligations on 31-12-2024 consequent on: xa decrease of 1% in the discount rate 17.99%

335Annual Report KBC Group 2024
p. 3 3
Note 5.10: Parent shareholders’ equity and additional tier-1 instruments
Quantities 31-12-2024 31-12-2023 Ordinary shares 417 544 151 417 305 876 of which ordinary shares that entitle the holder to a dividend payment 396 563 328 408 508 807 of which treasury shares 20 980 825 8 801 316 Additional information Par value per share (in EUR) 3.51 3.51 Number of shares issued but not fully paid up 0 0
• Ordinary shares: ordinary shares of no nominal value. All ordinary shares carry voting rights and each share represents one
vote. No participation certificates or non-voting shares have been issued. The shares are listed on Euronext Brussels.
• Capital increases: the number of KBC Group NV shares went up by 238 275 in 2024 and by 136 462 in 2023, due to new shares
being issued following the capital increases reserved for staff. For more information, see the ‘Company annual accounts and
additional information’ section.
• Treasury shares:
- On 10 August 2023, KBC Group NV announced a treasury share buyback programme with a view to dividing excess capital,
for which it obtained the required permission from the ECB. An agent was mandated to repurchase KBC shares on the
regulated market of NYSE Euronext Brussels on behalf of KBC Group NV until 31 July 2024, for a maximum of 1.3 billion euros.
The shares were repurchased subject to the conditions stated in the authorisation granted by the General Meeting of 5
May 2022. Under this authorisation, the Board of Directors is authorised to repurchase a maximum of 10% of the treasury
shares under specific conditions and at a price that may not be lower than 1 euro or higher than 110% of the last closing
price on Euronext Brussels preceding the date of acquisition. Up to and including 31 July 2024, a total of 20 980 823 treasury
shares were repurchased in several transactions for a total amount of 1 299 999 960 euros. The voting rights attached to
these shares are suspended.
- On 31 December 2023, KBC group companies also held 4 247 KBC shares in portfolio, 4 245 of which were intended to
hedge outstanding derivatives on indices that include KBC Group shares. The 4 245 shares were sold in 2024 as there was
no longer any need for this hedge.
• Additional tier-1 (AT1) instruments (these securities are classified as equity instruments under IAS 32 and the coupon is treated
as a dividend):
- In February 2019, KBC issued 500 million euros in AT1 securities (a perpetual AT1 instrument with a five year first-call date
and a temporary write-down trigger should the common equity ratio fall below 5.125% and an initial coupon of 4.75% per
annum, which is payable every six months). Under CRR Article 78(1)(a), KBC asked the ECB for permission to call this
instrument in March 2024. Under agreement EBA Q&A 2023_6791 of 15 September 2023, the instrument is disqualified as
tier-1 capital in the solvency calculations as soon as the replacement instrument is issued (this placement occurred in early
September; see below). The instrument was called on 5 March 2024.
- In September 2023, KBC issued 750 million euros in AT1 securities (a perpetual AT1 instrument with a five year first-call date,
a temporary write-down trigger should the common equity ratio fall below 5.125% and an initial coupon of 8.00% per
annum, which is payable every six months).
- In September 2024, KBC issued 750 million euros in AT1 securities (a perpetual AT1 instrument with a seven year first-call
date, a temporary write-down trigger should the common equity ratio fall below 5.125% and an initial coupon of 6.25% per
annum, which is payable every six months).
- In April 2018, KBC issued 1 billion euros in AT1 securities (a perpetual AT1 instrument with a seven year first-call date and a
temporary write-down trigger should the common equity ratio fall below 5.125% and an initial coupon of 4.25% per annum,
which is payable every six months). In September 2024, KBC made the holders of those securities a capped purchase offer.
Following the placement of new AT1 securities in the amount of 750 million euros in September 2024 (see above), KBC
announced that the maximum acceptance amount for the AT1 securities issued in April 2018 was set at 750 million euros;
on 18 September, KBC announced that 636 million euros had ultimately been repurchased.

336 Annual Report KBC Group 2024
p. 3
6.0 Other notes
Note 6.1: Off-balance-sheet commitments and financial guarantees given and received
(in millions of EUR) 31-12-2024 31-12-2023 Nominal Provision Net exposure Nominal Provision Net exposure amount amount Undrawn portion of credit lines granted Stage 1 45 481 18 45 463 41 551 20 41 531 Stage 2 3 314 9 3 305 6 683 14 6 670 Stage 3 52 2 50 79 5 73 Total 48 848 30 48 818 48 313 39 48 274 of which irrevocable credit lines 29 180 10 29 170 27 856 23 27 833 Financial guarantees given Stage 1 10 245 3 10 242 7 860 2 7 859 Stage 2 992 5 987 2 952 6 2 947 Stage 3 113 32 80 133 44 90 Total 11 350 41 11 309 10 946 51 10 895 Other commitments given Total 1 101 2 1 099 1 421 1 1 420 Off-balance-sheet commitments and financial guarantees Total 61 299 73 61 226 60 680 91 60 589
• Fair value of financial guarantees: based on the available market value.
• The carrying value of financial assets pledged by KBC as collateral came to 40 924 million euros for liabilities and
1 667 million euros for contingent liabilities (36 842 million euros and 4 489 million euros in 2023). At year-end 2024, some
21.8 billion euros’ worth of residential mortgage loans and cash collections were entered in the cover asset register for the
special estate of the covered bond programme (18.9 billion euros at year-end 2023).
• There is an obligation to return collateral received (which may be sold or repledged in the absence of default by the owner;
see table) in its original form, or possibly in cash. Collateral can be called in if loans are terminated for various reasons such
as default or bankruptcy. In the event of bankruptcy, the collateral will be sold by the receiver. In other cases, the bank will
organise the foreclosure itself or take possession of the collateral. Collateral received that relates to OTC derivatives is
primarily cash, which is recognised by KBC on the balance sheet (and is not included in the table). More details are provided
in Note 4.3.
• Collateral acquired through foreclosure came to 3 million euros in 2024 (3 million euros in 2023).
Collateral received (which may be sold or repledged Fair value of collateral sold or in the absence of default by the owner) (in millions of EUR) Fair value of collateral received repledged 31-12-2024 31-12-2023 31-12-2024 31-12-2023 Financial assets 32 091 42 215 12 279 5 267 Equity instruments 30 21 2 2 Debt securities 31 809 41 959 12 277 5 265 Loans and advances 252 235 0 0 Cash 0 0 0 0 Other 0 0 0 0
• In the years 2016-2022, KBC contributed to the Single Resolution Fund (SRF) by means of irrevocable payment commitments
(IPCs) in the amount of 90 million euros, which are fully covered by cash collateral. In line with industry practice, the following
accounting treatment is applied to IPCs: i) the amount of cash collateral is recognised as a financial asset and
ii) the hypothetical fund call in case of a resolution is reported as a contingent liability. The recognition of the cash collateral
as a financial asset is based on the consideration that, in any scenario, the collateral should be returned to the bank and that
interest is received on the amount outstanding. In its 2023 decision, the General Court of the EU ruled that in a scenario in
which a bank loses its banking license, it has no claim on the cash collateral. KBC decided to await the outcome of the appeal
in this case at the European Court of Justice before considering the potential implications on the accounting treatment of
IPCs. The amount of 90 million euros is deducted in the calculation of the common equity capital.

337Annual Report KBC Group 2024
Note 6.2: Leasing
(in millions of EUR) 31-12-2024 31-12-2023 Finance lease receivables Gross investment in finance leases, receivable 8 607 7 824 At not more than one year 2 132 1 925 At more than one but not more than five years 5 001 4 551 At more than five years 1 475 1 349 Unearned future finance income on finance leases 689 627 Net investment in finance leases 7 919 7 198 At not more than one year 1 948 1 766 At more than one but not more than five years 4 596 4 178 At more than five years 1 375 1 254 Of which unguaranteed residual values accruing to the benefit of the lessor 43 41 Accumulated impairment for uncollectable lease payments receivable 40 31 Contingent rents recognised in the income statement 107 110 Operating lease receivables Future aggregate minimum rentals receivable under non-cancellable operating leases 773 694 Contingent rents recognised in the income statement 1 1
• KBC acts only to a limited extent as a lessee in operational and financial leasing.
• Finance leases: KBC offers finance lease products ranging from equipment and vehicle leasing to real estate leasing. In
Belgium, finance leases are typically sold through KBC group’s branch network. That channel is becoming increasingly
important in Central Europe, too.
• Operating leases: involve primarily full service vehicle leases (mainly cars and bicycles). These are sold through the KBC Bank
and CBC Banque branch network and through an internal sales team. Full service car leasing activities are being further
developed in Central Europe, too. The increased importance of leasing hybrid and all-electric vehicles supports the transition
to green mobility, and the segment of electric company bicycles also continued to grow.
• We report on estimated greenhouse gas emissions associated with lending, leasing and other activities and, in that context,
have defined objectives for reducing the greenhouse gas intensity of our financial and operational car leasing. See
‘Sustainability statement’ in the ‘Report of the Board of Directors’ section for a more detailed explanation.

338 Annual Report KBC Group 2024
Note 6.3: Related-party transactions
2024 2023 Transactions with related parties, excluding key management Subsi- Associated Joint Subsi- Associated Joint (in millions of EUR) diaries companies ventures Other Total diaries companies ventures Other Total Assets 125 202 9 0 337 161 100 25 0 287 Loans and advances 8 72 0 0 80 15 81 0 0 96 Equity instruments (including investments in associated companies and joint 117 130 9 0 256 146 19 25 0 191 ventures) Other 0 0 0 0 0 0 0 0 0 0 Liabilities 66 92 1 716 875 45 80 0 677 803 Deposits 63 40 1 713 817 41 23 0 674 738 Other financial liabilities 0 0 0 0 0 0 0 0 0 0 Other 3 52 0 3 58 4 58 0 3 65 Income statement -38 2 0 -21 -56 7 -3 0 1 6 Net interest income -1 2 0 -22 -21 0 1 0 0 1 Interest income 0 3 0 0 4 0 2 0 0 2 Interest expense -1 -2 0 -22 -25 -1 -1 0 0 -2 Insurance revenues before reinsurance 0 0 0 0 0 0 0 0 0 0 Insurance service expenses before 0 0 0 0 0 0 0 0 0 0 reinsurance Dividend income 4 3 0 4 11 10 0 0 4 14 Net fee and commission income 0 0 0 3 3 0 0 0 2 2 Fee and commission income 0 0 0 3 3 0 0 0 2 2 Fee and commission expense 0 0 0 0 0 0 0 0 0 0 Net other income 1 0 0 0 1 0 -1 0 0 -1 Total operating expenses excluding bank -42 -3 0 -5 -50 -3 -2 0 -5 -10 and insurance tax Undrawn portion of loan commitments, financial guarantees and other commitments Given by the group 0 1 0 50 51 0 1 0 150 151 Received by the group 0 0 0 0 0 0 0 0 0 0
Transactions with key management (members of the Board of Directors and Executive Committee of KBC Group NV) (in millions of EUR)* 2024 2023 Total* 16 15 Breakdown by type of remuneration Short-term employee benefits 13 12 Post-employment benefits 3 2 Defined benefit plans 0 0 Defined contribution plans 3 2 Other long-term employee benefits 0 0 Termination benefits 0 0 Share-based payments 0 0 Stock options (units) At the beginning of the period 0 0 Granted 0 0 Exercised 0 0 Composition-related changes 0 0 At the end of the period 0 0 Advances and loans granted to key management and partners 3 1
* Remuneration to key management or partners of the consolidating company on the basis of their activity in that company, its subsidiaries and associated companies, including the
amount of retirement pensions granted to former key management staff on that basis.

339Annual Report KBC Group 2024
• The ‘Subsidiaries’ heading in the first table includes transactions with unconsolidated subsidiaries (transactions with
consolidated subsidiaries have already been eliminated from the consolidated financial statements).
• The ‘Other’ heading in the first table includes KBC Ancora, Cera and MRBB.
• All related-party transactions occur at arm’s length.
• Key management comprises the members of the Board of Directors and Executive Committee of KBC Group NV. More detailed
information on remuneration paid to key management staff is provided in the ‘Corporate governance statement’ section.
• There were no significant impairment charges vis-à-vis related parties.
Note 6.4: Statutory auditor’s remuneration
Statutory auditor’s remuneration (in EUR) 2024 2023 PWC KBC Group NV and its subsidiaries Standard audit services 8 425 513 8 547 038 Other services Other certifications 1 116 295 1 007 482 Tax advice 0 0 Other non-audit assignments 5 279 1 351 KBC Group NV (alone) Standard audit services 218 335 237 914 Other services 403 751 440 228

340 Annual Report KBC Group 2024
Note 6.5: Subsidiaries, joint ventures and associated companies
KBC Group: main companies included in the scope of consolidation at year-end 2024
Company Share of capital held Business Company Registered office number at group level (in %) unit* Activity KBC Bank (group) KBC Bank NV Brussels – BE 0462.920.226 100.00 BEL/GRP credit institution CBC BANQUE SA Namur – BE 0403.211.380 100.00 BEL credit institution Československá Obchodná Banka a.s. Bratislava – SK -- 100.00 IMA credit institution Československá Obchodní Banka a.s. Prague – CZ -- 100.00 CZR credit institution KBC Asset Management NV Brussels – BE 0469.444.267 100.00 BEL asset management KBC Autolease NV Leuven – BE 0422.562.385 100.00 BEL leasing KBC Commercial Finance NV Brussels – BE 0403.278.488 100.00 BEL factoring KBC IFIMA SA Luxembourg – LU -- 100.00 GRP Finance KBC Securities NV Brussels – BE 0437.060.521 100.00 BEL stockbroker K&H Bank Zrt. Budapest – HU -- 100.00 IMA credit institution Loan Invest NV Brussels – BE 0889.054.884 100.00 BEL securitisation United Bulgarian Bank AD Sofia – BG -- 99.96 IMA credit institution KBC Insurance (group) KBC Insurance NV Leuven – BE 0403.552.563 100.00 BEL/GRP insurance company ADD NV Heverlee – BE 0406.080.305 100.00 BEL insurance broker KBC Group Re SA Luxembourg – LU -- 100.00 GRP reinsurance company ČSOB Pojišt’ovna a.s. Pardubice – CZ -- 100.00 CZR insurance company ČSOB Poist’ovňa a.s. Bratislava – SK -- 100.00 IMA insurance company DZI (group) Sofia – BG -- 100.00 IMA insurance company Groep VAB NV Zwijndrecht – BE 0456.920.676 100.00 BEL driving school/roadside assistance K&H Biztosító Zrt. Budapest – HU -- 100.00 IMA insurance company KBC group DISCAI NV Brussels – BE 0773.435.537 100.00 GRP software company KBC Group NV Brussels – BE 0403.227.515 100.00 GRP bank-insurance holding company KBC Bank (group) various locations -- 100.00 various credit institution KBC Global Services NV Brussels – BE 0772.332.707 100.00 GRP cost-sharing structure KBC Insurance (group) various locations -- 100.00 various insurance company
* BEL: Belgium Business Unit; CZR: Czech Republic Business Unit; IMA: International Markets Business Unit; GRP: Group Centre.

341Annual Report KBC Group 2024
• The KBC group’s legal structure has one single entity – KBC Group NV – in control of two underlying companies, viz. KBC Bank
NV and KBC Insurance NV, as well as companies such as DISCAI NV and KBC Global Services NV. KBC Bank and KBC Insurance
have several subsidiaries and sub-subsidiaries. A complete list of group companies (included in or excluded from the scope
of consolidation) is provided at www.kbc.com > About us > Our structure.
• All (material) entities (including structured entities (SPVs)) over which the consolidating entity exercises, directly or indirectly,
exclusive control are consolidated according the method of full consolidation. To assess whether or not structured entities
have to be consolidated, KBC uses the principles set out in IFRS 10, as well as thresholds for inclusion in consolidation.
• Disclosures of interests in other entities (IFRS 12)
- Significant judgements and assumptions:
- In general, funds managed by KBC are not included in the scope of consolidation, as they do not meet the three criteria
of control (power, exposure to a variable return and ability to use such power to affect those returns).
- Joint entities in which KBC does not hold 50% of the share capital are classified as joint ventures, since it has joint
control over these entities based on shareholder agreements. Based on the Articles of Association and/or shareholder
agreements, voting rights in (and therefore the control of) the joint venture are spread evenly across the different
shareholders and decisions may only be taken by unanimity.
- Interests in subsidiaries:
- For the vast majority of the entities, the voting rights are materially equal to the ownership rights.
- Pursuant to the joint capital decision, specific Pillar-II levels have been set to ensure that certain minimum capital ratios
are respected, which impose certain restrictions on the repatriation of capital and distribution of dividends.
- With regard to Loan Invest NV, KBC is exposed to loan losses on the mortgage portfolio and, therefore, recognises
impairment losses on them where necessary.
- Interests in unconsolidated structured entities:
- KBC Bank NV is arranger and dealer of a number of 40-billion-euro medium term notes programmes issued by 19
unconsolidated structured entities established for that purpose. These entities were established between 2006 and
2016 under the Irish Companies Act 2014 as an Irish public limited company or an Irish private limited company. Their
primary business is to raise money by issuing notes in order to buy financial assets (such as securities, bonds and
deposits) and to enter into related derivative and other contracts. They provide investment opportunities for clients by
providing economies of scale, a diversification of credit risk and a high level of granularity. Each structured entity has
a prospectus that was approved by the Central Bank of Ireland (available at www.kbc.be/prospectus/spv). However,
the structured entities are not consolidated because they fail to meet the three criteria for consolidation (power,
exposure to a variable return and ability to use such power to affect those returns). At year-end 2024, the assets under
management at these entities amounted to 4.8 billion euros.
- Sponsored unconsolidated structured entities are defined as structured entities where KBC or one of its subsidiaries
acts as arranger of the issuance programme, but where the decision-making power of the entities does not reside with
KBC or one of its subsidiaries. As a result, these entities are not consolidated.
- In 2024, KBC had received income from unconsolidated structured entities in the form of management fees (11 million
euros) and accounting fees (1 million euros).
- At year-end 2024, KBC held 1.5 billion euros’ worth of notes issued by the unconsolidated structured entities. Its
liabilities towards the unconsolidated structured entities amounted to 0.5 billion euros and comprised mainly time
deposits (0.5 billion euros).
- Any potential decrease in the value of the notes is passed on to the end-client, which means it will have no impact on
KBC.
• At year-end 2024, no group companies were active in the extractive industry. As a result, no consolidated report on payments
to governments has been prepared (see Art.3:8 § 1 of the Companies and Associations Code).

342 Annual Report KBC Group 2024
Note 6.6: Main changes in the scope of consolidation
• Sale of activities in Ireland (2022, 2023 and 2024)
- At the end of August 2021, KBC Bank Ireland reached agreement on the disposal of a non-performing mortgage loan
portfolio of roughly 1.1 billion euros in a transaction that was financed by funds that were managed by CarVal Investors.
The deal was finalised in early February 2022. The loans will be managed by Pepper Finance Corporation (Ireland) DAC as
the legal title holder of the loans. Pepper is supervised by the Central Bank of Ireland.
- In October 2021, KBC Bank Ireland also confirmed that it had entered into a legally binding agreement with Bank of Ireland
relating to the sale of substantially all of KBC Bank Ireland’s performing loan assets and its deposit book to Bank of Ireland
Group. The latter also acquired a small non-performing mortgage loan (and credit card balances) portfolio. The
transaction was finalised on 3 February 2023. The acquisition, initially totalling approximately 6.5 billion euros, included
approximately 7.6 billion euros in performing mortgage loans, approximately 0.1 billion euros in mainly performing
commercial and consumer loans, approximately 0.1 billion euros in non-performing mortgage loans and approximately 1.8
billion euros in deposits. The transaction had an impact on the income statement of +365 million euros in 2023 (of which
+408 million euros in ‘Net other income’). Once finalised, the transaction also positively impacted the common equity ratio
by approximately 0.9 percentage points in the first quarter of 2023 (partly due to a reduction in risk-weighted assets).
- On 1 December 2023, KBC Bank Ireland transferred the vast majority of the remaining assets and liabilities to KBC Bank
Dublin branch. On 30 April 2024, KBC Bank Ireland (currently Exicon DAC) returned its banking licence to the Central Bank
of Ireland.
- See also Note 3.11.
• There were no other material changes in 2024.
Note 6.7: Risk management and capital adequacy
Capital management is a key management process relating to all decisions on the level and composition of our capital, both for
banking and for insurance. It covers all instruments that are positioned to absorb losses in going concern and/or gone concern
situations. Capital management aims to achieve the best possible balance between regulatory requirements, investor
expectations, rating agencies’ views and management ambitions. Ultimate accountability for capital management lies with the
Board of Directors. Capital management entails a broad scope of activities covering strategic topics (such as defining policies,
targets, etc.), frameworks and models (e.g., for regulatory capital, internal capital, cost of equity, measuring performance, etc.),
planning and allocation (e.g., allocating capital to business, planning capital instrument issuances, forecasting capital ratios,
etc.), implementation (e.g., dividends, capital transactions) and monitoring (including current solvency positions at various levels,
compliance with group policies and regulatory requirements). ICAAP (Internal Capital Adequacy Assessment Process) consists of
numerous business and risk processes that together contribute to the aim of being adequately capitalised at all times in view of
our risk profile and the quality of our risk management and control environment. In addition to the integrated approach at group
level, KBC Insurance and its insurance and reinsurance subsidiaries conduct an Own Risk and Solvency Assessment (ORSA) on a
regular basis, in accordance with Solvency II requirements.
We report the solvency based on IFRS data and according to the rules imposed by the regulator.
• For the KBC group and KBC Bank, this implies that we calculate the solvency ratios based on CRR/CRD. KBC began applying
the transitional provisions for IFRS 9 and certain tier-2 instruments on 30 June 2020. KBC has received authorisation from the
regulator to apply a risk weighting to the participation in KBC Insurance (Danish compromise method) at KBC group level. The
KBC group and KBC Bank are subject to minimum solvency ratios.
• In accordance with the regulatory requirement, the common equity ratio of the KBC group must be 10.88% (fully loaded) at
year-end 2024. This includes the Pillar 1 minimum requirement (4.5%), the Pillar 2 requirement (1.09% set by the ECB following its
supervisory review and evaluation process) and the buffer requirements (5.28% set by the local competent authorities in KBC’s
core markets). At year-end 2024, the fully loaded common equity ratio came to 15.0% (see the ‘How do we manage our
capital?’ section). At year-end 2024, the transitional common equity ratio came to 13.9%, which represented a capital buffer
of 2.4% relative to the minimum requirement of 11.4%.
• In accordance with the regulatory requirement, the common equity ratio of KBC Bank must be 11.1% (transitional) at year-end
2024. At year-end 2024, the transitional common equity ratio was 13.2%.
• The solvency of KBC Insurance is calculated on the basis of Solvency II. At year-end 2024, the Solvency II ratio came to 200%
relative to the minimum requirement of 100%.

343Annual Report KBC Group 2024
KBC group KBC Bank (consolidated) (consolidated) KBC Insurance Key solvency figures for the KBC group, CRR/CRD CRR/CRD (consolidated) KBC Bank and KBC Insurance (in millions of EUR) transitional transitional Solvency II 31-12-2024 31-12-2023 31-12-2024 31-12-2023 31-12-2024 31-12-2023 Total regulatory capital, after profit appropriation 21 048 19 768 18 981 17 952 4 392 4 130 Tier-1 capital 18 485 17 389 16 440 15 573 3 891 3 629 Common equity 16 621 15 639 14 576 13 823 – – Parent shareholders’ equity (after deconsolidating KBC 18 932 18 209 16 665 15 450 3 331 3 302 Insurance for the KBC group) Solvency adjustments -2 311 -2 571 -2 088 -1 627 560 327 Additional going concern capital1 1 864 1 750 1 864 1 750 – – Tier-2 capital2 2 563 2 379 2 541 2 379 501 501 Total weighted risk volume (RWA)3 119 950 113 029 110 087 103 192 – – Credit risks 94 218 88 042 94 218 88 042 – – Market risks 2 026 2 116 2 026 2 116 – – Operational risks 13 843 13 034 13 843 13 034 – – Insurance risks 9 133 9 133 – – – – Holding-company activities and elimination of intragroup 729 704 – – – – transactions Solvency capital requirement (insurance) – – – – 2 196 2 005 Common equity ratio (group, bank) 13.9% 13.8% 13.2% 13.4% – – Solvency II ratio (insurance) – – – – 200% 206%
1 Includes perpetual subordinated loans with fully discretionary, non-cumulative interest payments (included in ‘Total equity’ under IFRS). The securities also have a loss absorption mechanism
(i.e. a temporary write-down trigger should the common equity tier-1 ratio fall below 5.125%). Also see Note 5.10.
2 Includes subordinated loans with a fixed maturity date where principal and interest payments cannot be cancelled in a going concern.
3 Supervision of the RWA internal models’ compliance with the approval criteria as provided for in the standards imposed by the regulator does not come under the responsibility of the
statutory auditor.
• More detailed information is provided in the ‘How do we manage our capital?’ section of this report and in KBC’s Risk Report.
• The loan portfolio accounts for the largest share of the financial assets. Based on internal management reports, the
composition and quality of the loan portfolio is set out in detail in the ‘How do we manage our risks?’ section (under ‘Credit
risk’). The information required in relation to risks is provided in those parts of the ‘How do we manage our risks?’ section which
have been audited by the statutory auditor and which constitute part of the financial statements.
Note 6.8: Post-balance-sheet events
There were no significant non-adjusting events between the balance sheet date and the date on which the financial statements
were approved for publication by the Board of Directors (13 March 2025).

344 Annual Report KBC Group 2024
Note 6.9: General information on the company
• Name KBC Group.
• Incorporated: 9 February 1935 as the Kredietbank; the present name dates from 2 March 2005.
• Country of incorporation: Belgium.
• Registered office: Havenlaan 2, 1080 Brussels, Belgium.
• VAT: BE 0403.227.515.
• RLP: Brussels.
• Website: https://www.kbc.com
• E-mail address reserved for shareholders and bondholders: IR4U@kbc.be
• Legal form:
genoteerde naamloze vennootschap (listed company with limited liability) under Belgian law. The company is a
mixed financial holding company that is subject to the prudential supervision of the National Bank of Belgium and the
European Central Bank.
• Life: undefined.
• Object (Article 2 of the Articles of Association, which are available at www.kbc.com):
The company has as its object the direct or indirect ownership and management of shareholdings in other companies,
including but not restricted to credit institutions, insurance companies and other financial institutions.
The company also has as object to provide services to third parties, either for its own account or for the account of others,
including to companies in which the company has an interest – either directly or indirectly – and to (potential) clients of those
companies.
The object of the company is also to acquire in the broadest sense of the word (including by means of purchase, hire and
lease), to maintain and to operate resources, and to make these resources available in the broadest sense of the word
(including through letting and granting rights of use) to the beneficiaries referred to in the second paragraph.
In addition, the company may function as an intellectual property company responsible for, among other things, the
development, acquisition, management, protection and maintenance of intellectual property rights, as well as for making
these rights available, granting rights of use in respect of these rights and/or transferring these rights.
The company may also perform all commercial, financial and industrial transactions that may be useful or expedient for
achieving the object of the company and that are directly or indirectly related to this object. The company may also by means
of subscription, contribution, participation or in any other form whatsoever participate in all companies, businesses or
institutions that have a similar, related or complementary activity.
In general, the company may, both in Belgium and abroad, perform all acts which may contribute to the achievement of its
object.
• Documents open to public inspection: the Articles of Association of the company can be found at the Registry of the Dutch-
speaking division of the Brussels Business Court and at www.kbc.com and www.notaris.be/statuten. The financial statements,
the annual report and the statutory auditor’s reports regarding the financial statements are filed with the National Bank of
Belgium and are available at www.kbc.com. The annual report can also be obtained from the company’s registered office
and will be sent to those requesting it. Extracts of minutes concerning decisions on the appointment and the termination of
the offices of members of the Executive Committee and the Board of Directors are published in the appendices to the Belgian
Official Gazette. Financial reports about the company are published in the financial press and/or on www.kbc.com.
Convening notices of general meetings of shareholders are published in the Belgian Official Gazette, in at least one national
newspaper, in the media and on www.kbc.com.
• For information on the general meeting of shareholders and the right of shareholders to take part in such meetings, see Article
23 et seq. of the Articles of Association, which are available at www.kbc.com.

FREE TRANSLATION FROM THE DUTCH ORIGINAL
STATUTORY AUDITOR'S REPORT TO THE GENERAL SHAREHOLDERS’ MEETING OF KBC
GROUP NV ON THE CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024
We present to you our statutory auditor’s report in the context of our statutory audit of the consolidated
accounts of KBC Group NV (the “Company”) and its subsidiaries (jointly “the Group”). This report
includes our report on the consolidated accounts, as well as the other legal and regulatory
requirements. This forms part of an integrated whole and is indivisible.
We have been appointed as statutory auditor by the general meeting of 5 May 2022, following the
proposal formulated by the board of directors and following the recommendation by the audit
committee and the proposal formulated by the works’ council. Our mandate will expire on the date of
the general meeting which will deliberate on the annual accounts for the year ended
31 December 2024. We have performed the statutory audit of the Group’s consolidated accounts for
nine consecutive years.
Report on the consolidated accounts
Unqualified opinion
We have performed the statutory audit of the Group’s consolidated accounts, which comprise the
consolidated balance sheet as at 31 December 2024, the consolidated income statement, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity
and the consolidated cashflow statement for the year then ended, and notes to the consolidated
financial statements, including a summary of significant accounting policies and other explanatory
information, and which is characterised by a consolidated balance sheet total of EUR 373.048 million
and a
a profit for the year (attributable to equity holders of the parent) for the year of
EUR 3.415 million.
In our opinion, the consolidated accounts give a true and fair view of the Group’s net equity and
consolidated financial position as at 31 December 2024, and of its consolidated financial performance
and its consolidated cash flows for the year then ended, in accordance with IFRS Accounting
Standards as adopted by the European Union and with the legal and regulatory requirements
applicable in Belgium.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISA) as applicable in
Belgium. Furthermore, we have applied the International Standards on Auditing as approved by the
IAASB which are applicable to the year-end and which are not yet approved at the national level. Our
responsibilities under those standards are further described in the “Statutory auditor’s responsibilities
for the audit of the consolidated accounts” section of our report. We have fulfilled our ethical
responsibilities in accordance with the ethical requirements that are relevant to our audit of the
consolidated accounts in Belgium, including the requirements related to independence.
We have obtained from the board of directors and Company officials the explanations and information
necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services
Maatschappelijke zetel/Siège social: Culliganlaan 5, 1831 Diegem
T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com
BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB /
BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
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FREE TRANSLATION FROM THE DUTCH ORIGINAL
Key audit matters
Key audit matters are those matters
that, in our professional judgment, were of most significance in
our audit of the consolidated accounts of the current period. These matters were addressed in the
context of our audit of the consolidated accounts as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Estimation uncertainty with respect to impairment allowances for loans and advances
Description of the Key Audit Matter
The appropriateness of impairment allowances for loans and advances measured at amortised cost
requires significant management judgement. Measuring impairment allowances for loans and
advances measured at amortised cost under IFRS 9 requires an assessment of the 12-month or the
lifetime expected credit losses and the assessment of significant increases in credit risk or whether
loans and advances measured at amortised cost have defaulted.
The geopolitical and macroeconomic uncertainties continue to impact the determination of the
expected credit loss provisions produced by the models.
Information regarding impairment allowances for loans and advances measured at amortised cost,
including information concerning the impact of the geopolitical and emerging risks, is included in
Notes 3.9 and 4.2 to the consolidated accounts, in application of the policies as described in Note 1.2
“Summary of material accounting policies”.
At year-end 31 December 2024, the carrying value before impairment of loans and advances
measured at amortised cost amounts to EUR 217.093 million, the total corresponding impairment at
that date amounts to EUR 2.448 million.
The assessment of significant increases in credit risk, the assessment of whether loans and advances
at amortised cost are in default and the measurement of 12-month or lifetime expected credit losses
are part of the estimation process of the Group and are, amongst others, based on macroeconomic
scenarios and microeconomic parameters (as defined by the Group), credit risk models, triggers
indicating a significant increase in credit risk and default triggers, the financial condition of the
counterparty and the expected future cash flows or the value of collateral.
The use of different modelling techniques, scenarios and assumptions, including in the determination
of the expected credit loss provisions related to the geopolitical and macroeconomic uncertainties,
could lead to different estimates of impairment allowances on loans and advances measured at
amortised cost.
As the loans and advances measured at amortised cost represent the majority of the Group’s
balance sheet and given the related estimation uncertainty on impairment allowances we consider
this as a key audit matter.
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FREE TRANSLATION FROM THE DUTCH ORIGINAL
How our Audit addressed the Key Audit Matter
Our audit procedures comprised an assessment of the overall governance of the credit and
impairment process of the Group, including the 12-month and lifetime expected loss modelling
processes and the determination of the expected credit loss provisions related to the geopolitical and
macroeconomic uncertainties. We have assessed and tested the design and operating effectiveness
of the controls within the loan origination process, risk management process and the estimation
process for determining impairment allowances. For loan impairment allowances determined on an
individual basis, we have performed, for a sample of corporate and SME credit files, a detailed
review; we challenged the default triggers and the quantification including forecasts of future cash
flows, valuation of underlying collateral and estimates of recovery on default.
For the 12-month and lifetime expected credit loss impairment allowances, we challenged the
adequacy of significant increase in credit risk triggers and the macroeconomic scenarios and
microeconomic parameters (as defined by the Group) and, together with our experts, we tested the
underlying models including the Group’s model approval and independent validation process.
We also assessed the completeness of the factors considered by management in their determination
of the expected credit loss provisions related to the geopolitical and macroeconomic uncertainties and
tested the mathematical accuracy of the calculations to determine these adjustments and assessed
their reasonableness.
Finally, we assessed the completeness and accuracy of the disclosure and whether the disclosures
are in compliance with the IFRS Accounting Standards as adopted by the European Union.
In our view, the impairments estimated by management, including the expected credit loss provisions
related to the geopolitical and macroeconomic uncertainties, are within a reasonable range of
outcomes in view of the overall loans and advances and of the related uncertainties as disclosed in
the consolidated accounts.
Estimation uncertainty on impairment of goodwill
Description of the Key Audit Matter
As described in Note 5.5 to the consolidated accounts, in application of the policies as described in
Note 1.2 “Summary of material accounting policies”, the Group has recorded an outstanding goodwill
balance amounting to EUR 1.221 million as at 31 December 2024. Impairment analyses are
performed annually, or whenever a triggering event has occurred, in order to determine whether the
recoverable amount exceeds the carrying amount.
Taking into consideration the significant management judgement and the related estimation
uncertainty involved in determining the recoverable amount at the level of the respective cash
generating units, we consider this as a key audit matter.
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How our Audit addressed the Key Audit Matter
We obtained an understanding of the internal control framework related to goodwill impairment. Next
to that, we assessed, together with our experts, the appropriateness of the discounted cash flow
models developed by management, the evaluation of the significant assumptions used by
management related to the free cash flow projections, the discount rates and the terminal growth
rates of the respective cash generating units, as well as the completeness and accuracy of the
underlying data used in the models.
Finally, we assessed the completeness and accuracy of the disclosures and whether the disclosures
are in compliance with the IFRS Accounting Standards as adopted by the European Union.
In our view, the resulting outcomes of management’s goodwill impairment assessment are within a
reasonable range of outcomes in view of the overall outstanding goodwill and of the related
uncertainties as disclosed in the consolidated accounts.
Estimation uncertainty with respect to valuation of insurance contract liabilities
Description of the Key Audit Matter
The LRC of contracts measured using the BBA (EUR 12.965 million) or the VFA (EUR 948 million)
includes the PVFCF relating to future insurance services, as well as the CSM and the RA.
The assumptions used for the projections of the said cash flows relate, mainly, to mortality, longevity,
lapse, profitability, dormancy and the defining of directly attributable expenses. The actuarial
calculation of the cash flows arising from such insurance contracts is complex and highly judgmental
as it is based on assumptions which are affected by future economic and political conditions and
government regulations. Furthermore, the determination of the appropriate discounting of the said
cash flows using the top-down approach is considered complex and highly judgemental, leading us to
consider this as a key audit matter.
The LIC of contracts measured using the PAA (EUR 2.479 million) accounts for the estimated cost of
claims occurring up to the reporting date. The actuarial projection methods of the present value of
expected future cash flows related to past insurance services arising from such insurance contracts
are complex and highly judgmental as they are based on a number of key assumptions derived from
historical information, mainly relating to the amount of the claim and claim payment patterns including
expected future development. Furthermore, the determination of the appropriate discounting of the
said cash flows using the bottom-up approach is considered complex and highly judgemental, leading
us to consider this as a key audit matter.
Information on the valuation of insurance contract liabilities is included in Note 5.6.1 to the
consolidated accounts, in application of the policies as described in Note 1.2 “Summary of
material accounting policies”.
How our Audit addressed the Key Audit Matter
We performed procedures on the design and operating effectiveness of the Group’s controls to
ascertain that the data used in the valuation and measurement of the insurance contract liabilities are
adequate and complete. We performed testing of the Group’s procedures to determine the
aforementioned assumptions, testing of the assumptions based on market observable data and
actuarial analysis through backtesting of the assumptions used.
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Our substantive procedures on the LRC for insurance contracts measured under the BBA or the VFA
mainly consisted of the following procedures:
● Assessing the accounting policies, the methodology and reasonableness of the actuarial models
and assumptions used in the calculations of the PVFCF;
● Testing the completeness and accuracy of the data used in determining the assumptions, as well
as data used in actuarial calculations;
● Verifying the accuracy of the fulfilment cash flows on a sample basis resulting from our risk
assessment;
● Verifying the methodology and reasonableness of the RA;
● Performing a recalculation of the CSM for a sample of selected cohorts, including new business;
● Reviewing the analysis of change and recalculation of the release of the CSM based on
coverage units, for a selected sample of units of account; and
● Verifying the locked-in and current discount rates (top-down).
Our substantive procedures on the LIC for insurance contracts measured under the PAA mainly
consisted of the following procedures:
● Assessing the accounting policies, the methodology and reasonableness of the actuarial models
and assumptions used in the calculations of the present value of fulfilment cash flows;
● Testing the completeness and accuracy of the data used in actuarial calculations;
● Independently assessing the actuarial models for a risk based sample of a group of contracts;
and
● Verifying the locked-in and current discount rates (bottom-up).
Finally, we assessed the completeness and accuracy of the disclosures regarding insurance contracts
to assess compliance with disclosure requirements included in the IFRS Accounting Standards as
adopted by the European Union.
Our internal actuarial experts assisted us in performing our audit procedures.
We discussed the outcome of our actuarial analysis with the actuarial function holder of the Group.
In our view, the insurance contract liabilities estimated by management including the assumptions
used for projecting cash flows, are within a reasonable range of outcomes in view of the overall
insurance contract liabilities and of the related uncertainties as disclosed in the consolidated
accounts.
Responsibilities of the board of directors for the preparation of the consolidated accounts
The board of directors is responsible for the preparation of consolidated accounts that give a true and
fair view in accordance with IFRS Accounting Standards as adopted by the European Union and with
the legal and regulatory requirements applicable in Belgium, and for such internal control as the board
of directors determines is necessary to enable the preparation of consolidated accounts that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated accounts, the board of directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the board of directors
either intends to liquidate
the Group or to cease operations, or have no realistic alternative but to do so.
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Statutory auditor’s responsibilities for the audit of the consolidated accounts
Our objectives are to obtain reasonable assurance about whether the consolidated accounts as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISA will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated accounts.
In performing our audit, we comply with the legal, regulatory and normative framework applicable to
the audit of the consolidated accounts in Belgium. A statutory audit does not provide any assurance as
to the Group’s future viability nor as to the efficiency or effectiveness of the board of directors’ current
or future business management at Group level. Our responsibilities in respect of the use of the going
concern basis of accounting by the board of directors are described below.
As part of an audit in accordance with ISA, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the consolidated accounts, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
● Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the Group as a basis for forming an
opinion on the consolidated financial statements. We are responsible for the direction,
supervision and review of the audit work performed for purposes of the group audit. We remain
solely responsible for our audit opinion.
● Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the board of directors.
● Conclude on the appropriateness of the board of directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our statutory auditor’s report to the related disclosures in the consolidated accounts
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our statutory auditor’s report. However, future events or
conditions may cause the Group to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the consolidated accounts, including
the disclosures, and whether the consolidated accounts represent the underlying transactions
and events in a manner that achieves fair presentation.
● Obtain sufficient and appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the Group
audit. We remain solely responsible for our audit opinion.
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We communicate with the audit committee regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the audit committee, we determine those matters that were of
most significance in the audit of the consolidated accounts of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter.
Other legal and regulatory requirements
Responsibilities of the board of directors
The board of directors is responsible for the preparation and the content of the directors’ report on the
consolidated accounts, including the sustainability information, and the other information included in
the annual report on the consolidated accounts.
Statutory auditor’s responsibilities
In the context of our engagement and in accordance with the Belgian standard which is
complementary to the International Standards on Auditing (ISA) as applicable in Belgium, our
responsibility is to verify, in all material respects, the directors’ report on the consolidated accounts and
the other information included in the annual report on the consolidated accounts and to report on these
matters.
This responsibility does not include performing the assurance engagement on the consolidated
sustainability statement included in the directors’ report on the consolidated accounts, as the
Company has appointed another registered auditor for this assurance engagement. This section does
not concern the assurance on the consolidated sustainability information included in the directors’
report on the consolidated accounts.
Aspects related to the directors’ report on the consolidated accounts and to the other
information included in the annual report on the consolidated accounts
The directors’ report on the consolidated accounts includes the consolidated sustainability information
that is the subject of a separate auditor’s report, which contains an “Unqualified conclusion” on the
limited level of assurance with regard to this sustainability information, issued by KPMG
Bedrijfsrevisoren BV on 28 March 2025.
In our opinion, after having performed specific procedures in relation to the directors’ report on the
consolidated accounts, this directors’ report is consistent with the consolidated accounts for the year
under audit and is prepared in accordance with article 3:32 of the Companies' and Associations' Code.
In the context of our audit of the consolidated accounts, we are also responsible for considering, in
particular based on the knowledge acquired resulting from the audit, whether the directors’ report on
the consolidated accounts and the other information included in the annual report on the consolidated
accounts, containing the sections:
● “Abridged company annual accounts”;
● “Glossary of financial ratios and terms”; and
● “EU taxonomy - detailed tables”.
is materially misstated or contains information which is inadequately disclosed or otherwise
misleading. In light of the procedures we have performed, there are no material misstatements we
have to report to you.
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Statements related to independence
● Our registered audit firm and our network did not provide services which are incompatible with the
statutory audit of the consolidated accounts, and our registered audit firm remained independent
of the Group in the course of our mandate.
● The fees for additional services which are compatible with the statutory audit of the consolidated
accounts referred to in article 3:65 of the Companies' and Associations' Code are correctly
disclosed and itemized in the notes to the consolidated accounts.
European Uniform Electronic Format (ESEF)
We have also verified, in accordance with the draft standard on the verification of the compliance of
the annual report with the European Uniform Electronic Format (hereinafter “ESEF”), the compliance
of the ESEF format with the regulatory technical standards established by the European Delegate
Regulation No. 2019/815 of 17 December 2018 (hereinafter: “Delegated Regulation”) and with the
Royal Decree of 14 November 2007 concerning the obligations of issuers of financial instruments
admitted to trading on a regulated market.
The board of directors is responsible for the preparation of an annual report, in accordance with ESEF
requirements, including the consolidated accounts in the form of an electronic file in ESEF format
(hereinafter “digital consolidated accounts”).
Our responsibility is to obtain sufficient appropriate evidence to conclude that the format and marking
language of the digital consolidated financial accounts comply in all material respects with the ESEF
requirements under the Delegated Regulation.
Based on our procedures performed, we believe that the format of the annual report and marking of
information in the digital consolidated accounts included in the annual report of KBC Group NV per
31 December 2024, and which will be available in the Belgian official mechanism for the storage of
regulated information (STORI) of the FSMA, are, in all material respects, in compliance with the ESEF
requirements under the Delegated Regulation and the Royal Decree of 14 November 2007.
Other statement
This report is consistent with the additional report to the audit committee referred to in article 11 of the
Regulation (EU) N° 537/2014.
Diegem, 28 March 2025
The statutory auditor
PwC Bedrijfsrevisoren BV/PwC Reviseurs d'Entreprises SRL
represented by
Damien Walgrave* Jeroen Bockaert**
Bedrijfsrevisor/Réviseur d'entreprises Bedrijfsrevisor/Réviseur d'entreprises
*Acting on behalf of Damien Walgrave BV **Acting on behalf of Jeroen Bockaert BV
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353Annual Report KBC Group 2024
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Additional
information

355Annual Report KBC Group 2024
Abridged company annual accounts
The company annual accounts of KBC Group NV are presented here in abridged form. A full set of these accounts will be submitted for approval
to the General Meeting of Shareholders of 30 April 2025. The company annual accounts, the report of the Board of Directors and the statutory
auditor’s report are filed with the National Bank of Belgium. These documents are available free of charge from KBC Global Services NV, Investor
Relations Office, IRO, Havenlaan 2, 1080 Brussels, Belgium. They can also be viewed at www.kbc.com. The statutory auditor has delivered an
unqualified audit opinion on the company annual accounts of KBC Group NV.
The company annual accounts have been prepared according to Belgian accounting standards (B-GAAP) and are, therefore, not comparable
with the figures prepared in accordance with IFRS in the other sections of this report.
Balance sheet after profit appropriation (B-GAAP)
(in millions of EUR) 31-12-2024 31-12-2023
Fixed assets 37 330 38 678
Intangible fixed assets
0
0
Property and equipment
0
0
Financial fixed assets
37 330 38 678
Affiliated companies
37 329
38 677
Participating interests
16 363
16 368
Amounts receivable
20 966
22 309
Other companies linked by participating interests
1
1
Participating interests
1
1
Other financial assets
0
0
Current assets 1 787 1 573
Amounts receivable at more than one year
0
0
Stocks and contracts in progress
00
Amounts receivable within one year
12
9
Trade receivables
9
8
Other amounts receivable
3
1
Current investments
1 300
1 017
Own shares
1 300
476
Other investments
0
542
Cash at bank and in hand
106
220
Accrued charges and deferred income
370
326
Total assets 39 117 40 251
Equity 16 470 16 133
Capital
1 462
1 461
Issued capital
1 462
1 461
Share premium account
5 529
5 516
Reserves
1 638
1 287
Legal reserves
146
146
Share buybacks
1 300
476
Other reserves not available for distribution
1
1
Untaxed reserves
190
190
Reserves available for distribution
0
473
Profit (Loss (-)) carried forward
7 841
7 869
Provisions and deferred taxes 11
Provisions for liabilities and charges 10
Amounts payable 22 646 24 117
Amounts payable at more than one year
17 368
19 828
Financial debt
17 368
19 828
Subordinated loans
4 347
4 431
Non-subordinated bonds
13 021
15 397
Amounts payable within one year
4 952
4 012
Amounts payable at more than one year falling due within the year
3 623
1 500
Financial debt
40 1 202
Trade debt
1
1
Taxes, remuneration and social security charges
16
16
Income tax expense
0
0
Remuneration and social security charges
16
16
Other amounts payable
1 271
1 293
Accrued charges and deferred income
326
277
Total liabilities 39 117 40 251

356 Annual Report KBC Group 2024
Income statement (B-GAAP)
(in millions of EUR) 31-12-2024 31-12-2023
Operating income 107 101
Turnover 106 100
Increase (decrease (-)) in stocks of finished goods, work and contracts in progress 0 0
Own construction capitalised 00
Other operating income 11
Non-recurring operating income 00
Operating charges 120 114
Goods for resale, raw materials and consumables 00
Services and other goods 34 30
Remuneration, social security charges and pensions 85 83
Depreciation of and amounts written off formation expenses and intangible and tangible fixed assets 0 0
Provisions for liabilities and charges: amounts set aside and amounts reversed 0 1
Other operating charges 10
Non-recurring operating charges 00
Operating profit (loss (-)) -13 -13
Financial income 3 053 2 861
Recurring financial income 3 053 2 861
Income from financial fixed assets 2 243 2 291
Income from current assets 31 26
Other financial income 779 544
Non-recurring financial income 00
Financial charges 795 543
Recurring financial charges 789 543
Debt charges 756 519
Amounts written down on current assets: increase and decrease 00
Other financial charges 33 24
Non-recurring financial charges 60
Profit (Loss (-)) for the period, before tax 2 245 2 305
Transfers from deferred taxes 00
Transfers to deferred taxes 00
Income tax 14
Profit (Loss (-)) for the period 2 244 2 302
Profit (Loss (-)) for the period available for appropriation 2 244 2 302
Profit appropriation (B-GAAP)
(in millions of EUR) 31-12-2024 31-12-2023
Profit (Loss (-)) to be appropriated 10 113 9 557
Profit (Loss (-)) for the period available for appropriation 2 244 2 302
Profit (Loss (-)) carried forward from the previous period 7 869 7 255
Transfers to equity 351 0
To the legal reserves 00
To other reserves 351 0
Profit (Loss (-)) to be carried forward 7 841 7 869
Profit to be distributed 1 920 1 688
Dividends 1 917 1 685
Directors’ entitlements 00
Employees/other allocations 33
Dividend
In mid-May 2024 we paid the final dividend for 2023 (3.15 euros per share entitled to dividend), at the end of May 2024 we paid an exceptional
interim dividend (0.70 euros per share) for 2023 and in November 2024 we paid an interim dividend (1 euro per share) as an advance on the
dividend for 2024. We propose to the General Meeting of Shareholders of 30 April 2025 a gross final dividend of 3.15 euros per share, bringing
the total gross dividend to 4.85 euros per share (of which 1.00 euro and 0.70 euros were already paid in 2024). The dividend payout ratio
(dividend for 2024 and coupon on AT1 instruments, divided by consolidated net profit) will then be 51% for 2024.

357Annual Report KBC Group 2024
Note 1: Financial fixed assets
(in millions of EUR)
Participating interests in
affiliated companies
Amounts receivable
from affiliated
companies
Participating interests
in companies linked by
participating interests
Carrying value at 31-12-2023 16 368 22 309 1
Acquisitions in 2024 13 868 0
Disposals in 2024 0 -5 211 0
Other changes in 2024 -6 0 0
Carrying value at 31-12-2024
16 363 20 966 1
• Participating interests in affiliated companies are mainly the shareholdings in KBC Bank NV and KBC Insurance NV, as well as in KBC Global
Services NV and DISCAI.
• The amounts receivable from affiliated companies related to loans to KBC Bank NV in the form of additional tier-1 capital (1.9 billion euros in
total), tier-2 capital (2.4 billion euros), tier-3 capital (16.2 billion euros) and a subordinated loan of 0.5 billion euros to KBC Insurance NV.
• The main changes in 2024 related to new loans to KBC Bank NV (3.9 billion euros). In addition, 5.2 billion euros reached maturity.
Note 2: Changes in equity
(in millions of EUR) 31-12-2023
Capital increase
for staff Appropriation 31-12-2024
Capital 1 461 1 – 1 462
Share premium account 5 516 13
–
5 529
Reserves 1 287 –
351
1 638
Profit (Loss) carried forward 7 869 –
-28
7 841
Equity
16 133 14 323 16 470
• At year-end 2024, the company’s issued capital amounted to 1 461 854 095.51 euros, represented by 417 544 151 shares of no nominal value.
The capital is fully paid up.
• A capital increase under the authorisation to increase capital carried out on 13 December 2024 and reserved exclusively for employees of
KBC Group NV and certain of its Belgian subsidiaries resulted in 238 275 shares being issued at a price of 56.75 euros per share. By carrying out
this capital increase, the group aims to strengthen ties with its staff and the staff of its Belgian subsidiaries. Given the limited extent of the
capital increase, the financial ramifications for existing shareholders are minor. All of the shares issued in 2024 will also be entitled to dividend
from the 2024 financial year (with the exception of the interim dividend and the exceptional interim dividend paid by the company in
November and May 2024).
• The authorisation to increase capital may still be exercised up to and including 22 May 2028 for an amount of 698 684 673.13 euros, with
suspension of the preferential subscription rights of existing shareholders being restricted to a maximum of 144 684 673.13 euros. Based on an
accounting par value of 3.51 euros a share, a maximum of 199 055 462 new KBC Group NV shares can therefore be issued, with the possibility
to suspend the preferential subscription rights attached to a maximum of 41 220 704 of these shares.
Note 3: Shareholder notifications and share buybacks
• Notifications received: we received a number of notifications in 2024 pursuant to the Belgian Act of 2 May 2007 concerning the disclosure of
significant participations. All notifications we receive are published in detail on www.kbc.com.
Notifications received in 2024
(percentages as stated in
the notifications) and other
shareholding updates Situation as at Shares/voting securities
Financial instruments
treated as shares/
voting securities Total
KBC Group1 4 March 2024 3.01% - 3.01%
KBC Group1 30 July 2024 5.02% - 5.02%
BlackRock, Inc
1 October 2024 4.27% 0.10% 4.37%
Core shareholders
(shareholder syndicate)2
1 December 2024 41.75% - 41.75%
1 Under the 1.3-billion-euro share buyback programme. The voting rights attached to these shares are suspended.
2 See the press release of 24 December 2024, which is published at www.kbc.com
• The average accounting par value of the KBC share came to 3.51 euros in 2024.
• For information on the repurchase and disposal of treasury shares, see Note 5.10 in the ‘Consolidated financial statements’ section.

358 Annual Report KBC Group 2024
Note 4: Balance sheet at 31-12-2024
• The balance sheet total amounted to 39 117 million euros, compared to 40 251 million euros at year-end 2023.
• ‘Financial fixed assets’ are discussed in Note 1.
• ‘Current assets’ amounted to 1 787 million euros, whereas the year-earlier figure was 1 573 million euros. The change was largely attributable to
share buybacks in the amount of 824 million euros in 2024 and the decrease in cash at bank and in hand and other investments (656 million
euros combined).
• ‘Equity’ is dealt with in Note 2.
• ‘Amounts payable’ totalled 22 646 million euros, compared with 24 117 million euros at year-end 2023. The change is attributable in part to the
1.1-billion decrease in amounts payable within one year (financial debt – Commercial Paper).
Note 5: 2024 result:
• Net profit totalled 2 244 million euros, as opposed to 2 302 million euros a year earlier.
• The most important change in the financial result is the lower amount (49 million euros) of dividends received.
Note 6: Additional information
• For more information on the statutory auditor’s remuneration, see Note 6.4 in the ‘Consolidated financial statements’ section.
• At year-end 2024, KBC Group NV had two branch offices.
• KBC Group NV uses financial instruments to hedge interest rate risks. At year-end 2024, the outstanding notional amount of interest rate
swaps used for hedging such risks was 500 million euros.
• KBC Group NV is the issuing entity for all loss absorbing instruments (shareholders’ capital, AT1, T2 and MREL-eligible instruments). In principle,
the financial resources are transferred to KBC Bank and KBC Insurance in the same or a similar format and with a similar term. Consequently,
the maturity of the liability issued by KBC Group matches that of the loans to its subsidiaries. Dividends payable by KBC Group are financed
by dividends receivable from KBC Bank and KBC Insurance. Any temporary liquidity shortfalls can be covered by issuing short-term debt
securities under the Short Term Certificate of Deposit Programme.
• The information required in accordance with Article 3:6 of the Belgian Companies and Associations Code that has not been provided above
appears in the ‘Report of the Board of Directors’ section.

359Annual Report KBC Group 2024
Besides the ratios and terms required by law or IFRS, we also use our own ratios and definitions, known as ‘alternative performance measures’.
We identify them by including ‘APM’ in the heading.
(amounts are stated in millions of EUR,
unless otherwise stated)
Reference Calculation 2024 2023
Basic and diluted earnings per share
A detailed calculation can be found in Note 3.12. –
Combined ratio (non-life insurance) (APM)
1
The technical profitability of the non-life insurance
business in the short-term, more particularly the extent
to which insurance premiums adequately cover claim
payments and expenses.
Note 3.6
A: Non-life PAA: claims and claim-
related costs net of reinsurance
1 362 1 204
B: Costs other than claims and
commissions
729 676
C: Non-life PAA: net earned
expected premiums received
2 331 2 160
(A+B)/C 90% 87%
Common equity ratio
A detailed description/calculation can be found in the ‘How do we manage our capital? section. – –
Cost/income ratio excluding bank and insurance tax (APM)
1
The relative cost efficiency (costs relative to income
excluding bank and insurance tax) of the group.
Consolidated income statement A: Total operating expenses ex-
cluding bank and insurance tax
4 474 4 438
B: Insurance commissions paid 383 340
C: Total income 11 167 11 224
(A+B)/C 43% 43%
Cost/income ratio including bank and insurance tax but excluding exceptional or non-operating items (APM)
1
Where relevant, we also include bank and insurance tax
but exclude exceptional or non-operating items when
calculating the cost/income ratio. This calculation aims to
give a better idea of the relative cost efficiency of the pure
business activities.
Consolidated income statement
A breakdown of the exceptional/
non-operational items (per quar-
ter) can be found in our General
Investor Presentations at
www.kbc.com.
A: Total operating expenses ex-
cluding bank and insurance tax
4 474 4 438
B: Bank and insurance tax 623 687
C: Insurance commissions paid 383 340
D: Exceptional and/or non-
operational costs
2
-92 -124
E: Total income 11 167 11 224
F: Exceptional and/or non-
operational income
2
232 -429
(A+B+C-D)/(E-F) 47% 49%
Coverage ratio (APM)
The proportion of impaired loans covered by stage 3 im-
pairment charges. Where appropriate, the numerator and
denominator may be limited to impaired loans that are
more than 90 days past due.
‘Loan and investment portfolio’
table in ‘How do we manage our
risks?’
A: Stage 3 impairment on loans 1 979 1 888
B: Impaired loans 4 171 4 221
A/B 47% 45%
Credit cost ratio (APM)
1,3
Loan impairment charges for a specific period, relative to
the total loan portfolio (see ‘Loan portfolio’ for definition).
In the longer term, this ratio can provide an indication of
the credit quality of the portfolio.
Consolidated income statement
and ‘Loan and investment portfo-
lio’ table in ‘How do we manage
our risks?’
A: Net changes in loan loss
impairment charges
207 -9
B: Average outstanding loan
portfolio
206 928 200 270
A/B 0.10% 0.00%
Impaired loans ratio (APM)
1
The proportion of impaired loans in the loan portfolio (see
‘Loan portfolio’ for definition), thus reflecting the credit-
worthiness of the portfolio. Impaired loans are loans where
it is unlikely that the full contractual principal and interest
will be repaid/paid (KBC default status of PD 10, PD 11 or
PD 12). The numerator in the formula may be limited to
impaired loans that are more than 90 days past due (PD
11 + PD 12).
‘Loan and investment portfolio’
table in ‘How do we manage our
risks?’
A: Impaired loans 4 171 4 221
B: Total loan portfolio 210 903 202 953
A/B 2.0% 2.1%
Glossary of financial ratios and terms

360 Annual Report KBC Group 2024
Leverage ratio
A detailed description/calculation can be found in the ‘How do we manage our capital?’ section. - –
Liquidity coverage ratio (LCR)
The bank’s liquidity position in the short term, more
specifically the extent to which the group is able to
overcome liquidity difficulties over a one-month period.
It is the average of 12 end-of-month LCR figures.
The European Commission’s
Delegated Act on LCR and the
European Banking Authority’s
guidelines for LCR disclosure
A: Stock of high-quality liquid
assets
100 631 101 555
B: Total net cash outflows over
the next 30 calendar days
63 588 63 805
A/B 158% 159%
Loan portfolio (APM)
Gives an idea of the magnitude of (what are mainly
traditional) lending activities.
Notes 4.1, 4.2 and 6.1 and ‘Loan
and investment portfolio’ table
in ‘How do we manage our
risks?’
A: Loans and advances to
customers
192 067 183 613
B: Reverse repos (not with
central banks)
424 763
C: Debt instruments issued by
corporates and by credit
institutions and investment
firms (banking)
5 690 6 681
D: Other exposures to credit
institutions
3 207 3 301
E: Financial guarantees
granted to clients and other
commitments
10 476 10 263
F: Impairment on loans 2 455 2 483
G: Insurance entities (-) -1 847 -1 927
H: Non-loan-related
receivables (-)
-499 -528
I: Other -1 071 -1 694
A+B+C+D+E+F+H+G+H+I 210 903 202 953
Market capitalisation
Stock market value of the KBC group. Note 5.10
A: Closing price of KBC share
(in EUR)
74.5 58.7
B: Number of shares (in millions) 417.5 417.3
AxB (in billions of EUR) 31.1 24.5
Minimum requirement for own funds and eligible liabilities (MREL)
A detailed description/calculation can be found in the ‘How do we manage our capital? section. - –
Net interest margin (APM)
1
The net interest income of the banking activities (one
of the most important sources of revenue for the group)
relative to the average total interest-bearing assets of
the banking activities. The net interest income of the
banking activities excludes dealing rooms and the net
interest impact of ALM FX swaps and repos.
Consolidated income state-
ment and Consolidated
balance sheet
A: Net interest income of the
banking activities
5 063 4 812
B: Average interest-bearing
assets of the banking activi-
ties
238 600 231 869
A/B x 360/number of calendar
days
2.09% 2.05%
Net stable funding ratio (NSFR)
The bank’s structural liquidity position in the long term,
more specifically the extent to which the group is able
to overcome liquidity difficulties over a one-year period.
Regulation (EU) 2019/876 of
20-05-2019
A: Available amount of stable
funding
221 939 208 412
B: Required amount of stable
funding
159 835 153 372
A/B 139% 136%
Parent shareholders’ equity per share (APM)
The carrying value of a KBC share, i.e. the value in
euros represented by each share in the parent
shareholders’ equity of KBC.
Consolidated balance sheet
and Note 5.10
A: Parent shareholders’ equity 22 447 22 010
B: Number of ordinary shares
less treasury shares (in mil-
lions)
397 409
A/B (in EUR) 56.6 53.9
Return on equity (APM)
The relative profitability of the group, more specifically
the ratio of the net result to equity.
Consolidated income state-
ment and Consolidated state-
ment of changes in equity
A: Result after tax, attributable
to equity holders of the par-
ent
3 415 3 402
B: Coupon on AT1 instruments
(-)
-84 -64
C: Average parent shareholders’
equity
22 228 21 164
(A+B)/C 15% 16%

361Annual Report KBC Group 2024
Total assets under management (APM, in billions of EUR)
These consist of direct client money (Assets under
Distribution for retail, private banking and institutional
clients), group assets (including pension funds), funds-
of-funds assets and assets under advisory manage-
ment. They comprise assets managed by the group’s
various asset management companies and assets un-
der advisory management at KBC Bank. The size and
development of total assets under management are
major factors behind net fee and commission income
(generating entry and management fees). Amounts are
stated in billions of EUR.
–
A: Belgium Business Unit 245.3 217.9
B: Czech Republic Business Unit 19.4 17.4
C: International Markets
Business Unit
10.9 9.1
A+B+C (in billions of EUR) 275.6 244.4
Of which
Direct client money (Assets
under Distribution)
115.3 100.4
Investment advice 62.4 55.2
Funds of funds 76.7 68.3
Group assets, including
pension funds
21.2 20.6
1 We also use the same methodology to calculate these ratios for each business unit.
2 The exceptional and/or non-operational costs in 2024 included the integration expenses and euro adoption costs connected with the acquisition of Raiffeisenbank Bulgaria, and the exceptional
bank and insurance taxes in Hungary (in 2023, this included costs relating to the exceptional bank taxes in Hungary, the integration expenses and euro adoption costs connected with the acquisition
of Raiffeisenbank Bulgaria, and costs relating to the sale transactions in Ireland). The exceptional and/or non-operational income in 2024 included the mark-to-market valuation of ALM derivatives,
and a one-off item in Hungary (in 2023, this included income relating to the gain on the finalisation of the sale transactions in Ireland, recovery of past bank taxes in Belgium, various smaller items,
and the mark-to-market valuation of ALM derivatives).
3 We also calculated a ratio excluding the (changes in the) reserve for geopolitical and macroeconomic uncertainties, which came to 0.16% in 2024 and 0.07% in 2023.

362 Annual Report KBC Group 2024
EU Taxonomy– detailed tables
The mandatory EU Taxonomy reporting tables are provided on the next few pages.
In addition, voluntary reporting tables are provided in our Sustainability Report.
Abbreviations used:
• Capex: capital expenditure
• GAR: green assets ratio
• UoP: use of proceeds
• NFC: non-financial counterparties
• N/A: not applicable

363Annual Report KBC Group 2024
KBC as a credit institution – summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation
31-12-2024
(in millions of EUR or %)
Total environmentally
sustainable assets
KPI
(Turnover based)
KPI
(Capex based)
% coverage
(over total assets)
% of assets
excluded from
the numerator of the GAR
(Article 7(2) and (3) and
Section 1.1.2 of Annex V)****
% of assets
excluded from
the denominator of the GAR
(Article 7 (1) and Section 1.2.4
of Annex V)
Main KPI Green asset ratio (GAR) stock 1 028 0.5% 0.4% 61.8% 35.3% 38.2%
Additional KPIs GAR (flow)* 390 0.9% 0.6% 75.0% 49.9% 25.0%
Trading book** N/A N/A N/A N/A N/A N/A
Financial guarantees 159 1.4% 2.2% N/A N/A N/A
Assets under management*** N/A N/A N/A N/A N/A N/A
Fees and Commission income** N/A N/A N/A N/A N/A N/A
* The EU Taxonomy flow figures for our Belgian portfolio were estimated on a pro rata basis, starting from the KPI stock templates. This approximation leads to an overestimation of the figures in the range of 10% - 20% for certain asset classes.
**
Additional KPIs related to Trading book and Fees and Commission income only apply starting 2026
*** Assets under management are as from 2025 reported in the specific templates foreseen for asset managers
**** The numerator does not take into account assets excluded from taxonomy calculation (updated interpretation vs the annual report of 2023)

364 Annual Report KBC Group 2024
p. 32
KBC as a credit institution – assets for the calculation of GAR (Turnover based) – PART 1
a b c d e f
g h i j k
l
m n o p q r
Total
(gross)
carrying
amount
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Of which towards taxonomy relevant sectors (Taxonomy-eligible) Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
31-12-2024
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
(in millions of EUR)
Of which
Use of
proceeds
Of which
transitional
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not Hft eligible for GAR
calculation
89 797 85 721 1 008 41 548 200 34 21 0 17 0 N/A N/A N/A 2 N/A N/A N/A
2
Financial undertakings
1 078 451 36 0 10 1 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
3 Credit institutions 1 065 442 36 0 10 1 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
4 Loans and advances 167 87 7 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
5 Debt securities, including UoP 897 354 29 0 10 1 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
6 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
7 Other financial corporations 13 9 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
8 Of which investment firms 13 9 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
9 Loans and advances 13 9 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
10 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
11 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
12 Of which management companies 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
13 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
14 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
15 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
16 Of which insurance companies 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
17 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
18 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
19 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
20
Non-financial undertakings
5 558 2 109 972 41 538 199 34 21 0 17 0 N/A N/A N/A 2 N/A N/A N/A
21 Loans and advances 5 021 1 900 947 41 537 187 21 10 0 9 0 N/A N/A N/A 0 N/A N/A N/A
22 Debt securities, including UoP 502 205 25 0 1 12 13 11 0 8 0 N/A N/A N/A 2 N/A N/A N/A
23 Equity instruments 35 5 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
24 Households 82 285 82 285 0 0 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
77 994 77 994 0 0 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
26 Of which building renovation loans 4 473 4 473 0 0 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
27 Of which motor vehicle loans 888 888 0 0 0 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
28 Local government financing 876 876 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
29 Housing financing 862 862 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
30 Other local government financing 14 14 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
20 20 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
119 251 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
33 Financial and non-financial undertakings 95 987 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
34
SMEs and NFCs (other than SMEs) not subject
to CSRD disclosure obligations
88 896 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
35 Loans and advances 86 768 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
36
Of which loans collateralised by
commercial immovable property
23 084 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
37 Of which building renovation loans 1 870 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
38 Debt securities 1 931 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
39 Equity instruments 197 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
40
Non-EU country counterparties not subject to
CSRD disclosure obligations
7 091 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
41 Loans and advances 4 935 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
42 Debt securities 2 125 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
43 Equity instruments 31 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
44 Derivatives -1 666 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
45 On demand interbank loans 504 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
46 Cash and cash-related assets 1 419 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

365Annual Report KBC Group 2024
47
Other categories of assets (e.g. goodwill,
commodities etc.)
23 008 N/A N/A N/А N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
48 Total GAR assets 209 068 85 741 1 008 41 548 200 34 21 0 17 0 N/A N/A N/A 2 N/A N/A N/A
49
Assets not covered for GAR calculation
129 017 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
50
Central governments and Supranational
issuers
51 324 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
51 Central banks exposure 67 170 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
52 Trading book 10 523 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
53 Total assets 338 085 85 741 1 008 41 548 200 34 21 0 17 0 N/A N/A N/A 2 N/A N/A N/A
Off-balance sheet exposures – Undertakings
subject to CSRD disclosure obligations
54 Financial guarantees 1 135 313 159 0 2 33 0 0 0 0 2 N/A N/A N/A 0 N/A N/A N/A
55 Assets under management* N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
56 Of which debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
57 Of which equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Assets under management are as from 2025 reported in the specific templates foreseen for asset managers

366 Annual Report KBC Group 2024
p. 32
KBC as a credit institution – assets for the calculation of GAR (Turnover based) – PART 2
s t u v w x z aa ab ac ad ae af
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
31-12-2024
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
(in millions of EUR)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not Hft eligible for GAR
calculation
0 N/A N/A N/A 0 N/A N/A N/A 85 758 1 028 41 548 217
2
Financial undertakings
0 N/A N/A N/A 0 N/A N/A N/A 451 36 0 10 1
3 Credit institutions 0 N/A N/A N/A 0 N/A N/A N/A 442 36 0 10 1
4 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 87 7 0 0 0
5 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 354 29 0 10 1
6 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
7 Other financial corporations 0 N/A N/A N/A 0 N/A N/A N/A 9 0 0 0 0
8 Of which investment firms 0 N/A N/A N/A 0 N/A N/A N/A 9 0 0 0 0
9 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 9 0 0 0 0
10 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
11 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
12 Of which management companies 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
13 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
14 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
15 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
16 Of which insurance companies 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
17 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
18 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
19 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
20
Non-financial undertakings
0 N/A N/A N/A 0 N/A N/A N/A 2 146 993 41 538 216
21 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 1 921 956 41 537 196
22 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 220 36 0 1 20
23 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 5 0 N/A 0 0
24 Households N/A N/A N/A N/A N/A N/A N/A N/A 82 285 0 0 0 0
25
Of which loans collateralised by residential
immovable property
N/A N/A N/A N/A N/A N/A N/A N/A 77 994 0 0 0 0
26 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A 4 473 0 0 0 0
27 Of which motor vehicle loans N/A N/A N/A N/A N/A N/A N/A N/A 888 0 0 0 0
28 Local government financing 0 N/A N/A N/A 0 N/A N/A N/A 876 0 0 0 0
29 Housing financing 0 N/A N/A N/A 0 N/A N/A N/A 862 0 0 0 0
30 Other local government financing 0 N/A N/A N/A 0 N/A N/A N/A 14 0 0 0 0
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0 N/A N/A N/A 0 N/A N/A N/A 20 0 0 0 0
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
33 Financial and non-financial undertakings N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
34
SMEs and NFCs (other than SMEs) not subject
to CSRD disclosure obligations
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
35 Loans and advances N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
36
Of which loans collateralised by
commercial immovable property
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
37 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
38 Debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
39 Equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
40
Non-EU country counterparties not subject to
CSRD disclosure obligations
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
41 Loans and advances N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
42 Debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
43 Equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
44 Derivatives N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
45 On demand interbank loans N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
46 Cash and cash-related assets N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

367Annual Report KBC Group 2024
47
Other categories of assets (e.g. goodwill,
commodities etc.)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
48 Total GAR assets 0 N/A N/A N/A 0 N/A N/A N/A 85 778 1 028 41 548 217
49
Assets not covered for GAR calculation
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
50
Central governments and Supranational
issuers
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
51 Central banks exposure N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
52 Trading book N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
53 Total assets 0 N/A N/A N/A 0 N/A N/A N/A 85 778 1 028 41 548 217
Off-balance sheet exposures – Undertakings
subject to CSRD disclosure obligations
54 Financial guarantees 1 N/A N/A N/A 0 N/A N/A N/A 317 159 0 2 33
55 Assets under management* N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
56 Of which debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
57 Of which equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Assets under management are as from 2025 reported in the specific templates foreseen for asset managers

368 Annual Report KBC Group 2024
p. 32
KBC as a credit institution – assets for the calculation of GAR (Turnover based) – PART 3
a b c d e f
g h i j k
l
m n o p q r
Total
(gross)
carrying
amount
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Of which towards taxonomy relevant sectors (Taxonomy-eligible) Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
31-12-2023
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
(in millions of EUR)
Of which
Use of
proceeds
Of which
transitional
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not Hft eligible for GAR
calculation*
86 045 81 860 396 1 45 168 11 10 0 10 0 N/A N/A N/A 0 N/A N/A N/A
2
Financial undertakings
602 141 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
3 Credit institutions 590 135 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
4 Loans and advances 199 57 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
5 Debt securities, including UoP 391 79 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
6 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
7 Other financial corporations 12 6 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
8 Of which investment firms 12 6 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
9 Loans and advances 12 6 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
10 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
11 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
12 Of which management companies 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
13 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
14 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
15 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
16 Of which insurance companies 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
17 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
18 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
19 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
20
Non-financial undertakings
4 364 871 395 0 45 168 11 10 0 10 0 N/A N/A N/A 0 N/A N/A N/A
21 Loans and advances 3 977 785 391 0 45 165 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
22 Debt securities, including UoP 357 86 3 0 1 3 11 10 0 10 0 N/A N/A N/A 0 N/A N/A N/A
23 Equity instruments 30 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
24 Households 79 825 79 825 1 1 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
75 607 75 607 1 1 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
26 Of which building renovation loans 4 627 4 627 0 0 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
27 Of which motor vehicle loans 609 609 0 0 0 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
28 Local government financing 1 254 1 023 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
29 Housing financing 1 004 1 004 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
30 Other local government financing 250 19 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
33 33 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
114 697 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
33 Financial and non-financial undertakings 93 921 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
34
SMEs and NFCs (other than SMEs) not subject
to CSRD disclosure obligations
86 875 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
35 Loans and advances 84 073 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
36
Of which loans collateralised by
commercial immovable property
22 559 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
37 Of which building renovation loans 1 925 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
38 Debt securities 2 626 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
39 Equity instruments 176 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
40
Non-EU country counterparties not subject to
CSRD disclosure obligations
7 047 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
41 Loans and advances 4 539 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
42 Debt securities 2 458 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
43 Equity instruments 49 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
44 Derivatives -2 115 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
45 On demand interbank loans 717 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
46 Cash and cash-related assets 1 418 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

369Annual Report KBC Group 2024
47
Other categories of assets (e.g. goodwill,
commodities etc.)
20 756 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
48 Total GAR assets 200 776 81 893 396 1 45 168 11 10 0 10 0 N/A N/A N/A 0 N/A N/A N/A
49
Assets not covered for GAR calculation
114 042 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
50
Central governments and Supranational
issuers
47 916 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
51 Central banks exposure 57 783 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
52 Trading book 8 343 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
53 Total assets 314 818 81 893 396 1 45 168 11 10 0 10 0 N/A N/A N/A 0 N/A N/A N/A
Off-balance sheet exposures – Undertakings
subject to CSRD disclosure obligations
54 Financial guarantees 601 110 40 0 2 10 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
55 Assets under management 30 431 1 520 660 0 10 376 48 39 0 2 0 N/A N/A N/A 0 N/A N/A N/A
56 Of which debt securities 20 685 636 290 0 2 99 31 22 0 0 0 N/A N/A N/A 0 N/A N/A N/A
57 Of which equity instruments 9 746 884 369 0 8 277 18 17 0 2 0 N/A N/A N/A 0 N/A N/A N/A
* Summation does not longer include line 31 as in the annual report of 2023

370 Annual Report KBC Group 2024
p. 33
KBC as a credit institution – assets for the calculation of GAR (Turnover based) – PART 4
s t u v w x z aa ab ac ad ae af
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
31-12-2023
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
(in millions of EUR)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not Hft eligible for GAR
calculation*
0 N/A N/A N/A 0 N/A N/A N/A 81 871 406 1 45 178
2
Financial undertakings
0 N/A N/A N/A 0 N/A N/A N/A 141 0 0 0 0
3 Credit institutions 0 N/A N/A N/A 0 N/A N/A N/A 135 0 0 0 0
4 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 57 0 0 0 0
5 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 79 0 0 0 0
6 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
7 Other financial corporations 0 N/A N/A N/A 0 N/A N/A N/A 6 0 0 0 0
8 Of which investment firms 0 N/A N/A N/A 0 N/A N/A N/A 6 0 0 0 0
9 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 6 0 0 0 0
10 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
11 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
12 Of which management companies 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
13 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
14 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
15 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
16 Of which insurance companies 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
17 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
18 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
19 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
20
Non-financial undertakings
0 N/A N/A N/A 0 N/A N/A N/A 882 405 0 45 178
21 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 785 391 0 45 165
22 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 97 13 0 1 13
23 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
24 Households N/A N/A N/A N/A N/A N/A N/A N/A 79 825 1 1 0 0
25
Of which loans collateralised by residential
immovable property
N/A N/A N/A N/A N/A N/A N/A N/A 75 607 1 1 0 0
26 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A 4 627 0 0 0 0
27 Of which motor vehicle loans N/A N/A N/A N/A N/A N/A N/A N/A 609 0 0 0 0
28 Local government financing 0 N/A N/A N/A 0 N/A N/A N/A 1 023 0 0 0 0
29 Housing financing 0 N/A N/A N/A 0 N/A N/A N/A 1 004 0 0 0 0
30 Other local government financing 0 N/A N/A N/A 0 N/A N/A N/A 19 0 0 0 0
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0 N/A N/A N/A 0 N/A N/A N/A 33 0 0 0 0
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
33 Financial and non-financial undertakings N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
34
SMEs and NFCs (other than SMEs) not subject
to CSRD disclosure obligations
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
35 Loans and advances N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
36
Of which loans collateralised by
commercial immovable property
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
37 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
38 Debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
39 Equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
40
Non-EU country counterparties not subject to
CSRD disclosure obligations
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
41 Loans and advances N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
42 Debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
43 Equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
44 Derivatives N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
45 On demand interbank loans N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
46 Cash and cash-related assets N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

371Annual Report KBC Group 2024
47
Other categories of assets (e.g. goodwill,
commodities etc.)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
48 Total GAR assets 0 N/A N/A N/A 0 N/A N/A N/A 81 904 406 1 45 178
49
Assets not covered for GAR calculation
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
50
Central governments and Supranational
issuers
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
51 Central banks exposure N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
52 Trading book N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
53 Total assets 0 N/A N/A N/A 0 N/A N/A N/A 81 904 406 1 45 178
Off-balance sheet exposures – Undertakings
subject to CSRD disclosure obligations
54 Financial guarantees 0 N/A N/A N/A 0 N/A N/A N/A 110 40 0 2 10
55 Assets under management 0 N/A N/A N/A 0 N/A N/A N/A 1 569 698 0 10 378
56 Of which debt securities 0 N/A N/A N/A 0 N/A N/A N/A 667 313 0 2 100
57 Of which equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 902 386 0 8 278
* Summation does not longer include line 31 as in the annual report of 2023

372 Annual Report KBC Group 2024
p. 332
KBC as a credit institution – assets for the calculation of GAR (Capex based) – PART 1
a b c d e f
g h i j k
l
m n o p q r
Total (gross)
carrying
amount
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Of which towards taxonomy relevant sectors (Taxonomy-eligible) Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
31-12-2024
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
(in millions of EUR)
Of which
Use of
proceeds
Of which
transitional
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not Hft eligible for GAR
calculation
89 797 85 902 859 41 238 310 65 31 0 20 0 N/A N/A N/A 2 N/A N/A N/A
2 Financial undertakings 1 078 469 36 0 10 2 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
3 Credit institutions 1 065 460 36 0 10 2 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
4 Loans and advances 167 88 6 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
5 Debt securities, including UoP 897 371 30 0 10 1 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
6 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
7 Other financial corporations 13 9 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
8 Of which investment firms 13 9 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
9 Loans and advances 13 9 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
10 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
11 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
12 Of which management companies 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
13 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
14 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
15 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
16 Of which insurance companies 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
17 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
18 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
19 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
20 Non-financial undertakings 5 558 2 273 823 41 228 309 65 31 0 20 0 N/A N/A N/A 2 N/A N/A N/A
21 Loans and advances 5 021 2 046 773 41 226 290 45 19 0 10 0 N/A N/A N/A 0 N/A N/A N/A
22 Debt securities, including UoP 502 226 50 0 2 19 20 12 0 9 0 N/A N/A N/A 2 N/A N/A N/A
23 Equity instruments 35 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
24 Households 82 285 82 285 0 0 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
77 994 77 994 0 0 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
26 Of which building renovation loans 4 473 4 473 0 0 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
27 Of which motor vehicle loans 888 888 0 0 0 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
28
Local government financing
876 876 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
29 Housing financing 862 862 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
30 Other local government financing 14 14 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
20 20 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
119 251 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
33 Financial and non-financial undertakings 95 987 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
34
SMEs and NFCs (other than SMEs) not subject
to CSRD disclosure obligations
88 896 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
35 Loans and advances 86 768 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
36
Of which loans collateralised by
commercial immovable property
23 084 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
37 Of which building renovation loans 1 870 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
38 Debt securities 1 931 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
39 Equity instruments 197 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
40
Non-EU country counterparties not subject to
CSRD disclosure obligations
7 091 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
41 Loans and advances 4 935 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
42 Debt securities 2 125 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
43 Equity instruments 31 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
44
Derivatives
-1 666 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

373Annual Report KBC Group 2024
45 On demand interbank loans 504 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
46
Cash and cash-related assets
1 419 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
47
Other categories of assets (e.g. goodwill,
commodities etc.)
23 008 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
48 Total GAR assets 209 068 85 922 859 41 238 310 65 31 0 20 0 N/A N/A N/A 2 N/A N/A N/A
49 Assets not covered for GAR calculation 129 017 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
50
Central governments and Supranational
issuers
51 324 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
51 Central banks exposure 67 170 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
52 Trading book 10 523 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
53 Total assets 338 085 85 922 859 41 238 310 65 31 0 20 0 N/A N/A N/A 2 N/A N/A N/A
Off-balance sheet exposures – Undertakings
subject to CSRD disclosure obligations
54 Financial guarantees 1 135 475 251 0 9 42 0 0 0 0 2 N/A N/A N/A 0 N/A N/A N/A
55 Assets under management* N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
56 Of which debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
57 Of which equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Assets under management are as from 2025 reported in the specific templates foreseen for asset managers

374 Annual Report KBC Group 2024
p. 33
KBC as a credit institution – assets for the calculation of GAR (Capex based) – PART 2
s t u v w x z aa ab ac ad ae af
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
31-12-2024
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
(in millions of EUR)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not Hft eligible for GAR
calculation
0 N/A N/A N/A 0 N/A N/A N/A 85 970 890 41 238 330
2
Financial undertakings
0 N/A N/A N/A 0 N/A N/A N/A 469 36 0 10 2
3 Credit institutions 0 N/A N/A N/A 0 N/A N/A N/A 460 37 0 10 2
4 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 88 6 0 0 0
5 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 371 30 0 10 1
6 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
7 Other financial corporations 0 N/A N/A N/A 0 N/A N/A N/A 9 0 0 0 0
8 Of which investment firms 0 N/A N/A N/A 0 N/A N/A N/A 9 0 0 0 0
9 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 9 0 0 0 0
10 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
11 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
12 Of which management companies 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
13 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
14 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
15 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
16 Of which insurance companies 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
17 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
18 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
19 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
20
Non-financial undertakings
0 N/A N/A N/A 0 N/A N/A N/A 2 340 854 41 228 329
21 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 2 092 792 41 226 301
22 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 248 62 0 2 28
23 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
24 Households N/A N/A N/A N/A N/A N/A N/A N/A 82 285 0 0 0 0
25
Of which loans collateralised by residential
immovable property
N/A N/A N/A N/A N/A N/A N/A N/A 77 994 0 0 0 0
26 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A 4 473 0 0 0 0
27 Of which motor vehicle loans N/A N/A N/A N/A N/A N/A N/A N/A 888 0 0 0 0
28 Local government financing 0 N/A N/A N/A 0 N/A N/A N/A 876 0 0 0 0
29 Housing financing 0 N/A N/A N/A 0 N/A N/A N/A 862 0 0 0 0
30 Other local government financing 0 N/A N/A N/A 0 N/A N/A N/A 14 0 0 0 0
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0 N/A N/A N/A 0 N/A N/A N/A 20 0 0 0 0
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
33 Financial and non-financial undertakings N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
34
SMEs and NFCs (other than SMEs) not subject
to CSRD disclosure obligations
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
35 Loans and advances N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
36
Of which loans collateralised by
commercial immovable property
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
37 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
38 Debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
39 Equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
40
Non-EU country counterparties not subject to
CSRD disclosure obligations
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
41 Loans and advances N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
42 Debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
43 Equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
44 Derivatives N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
45 On demand interbank loans N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
46 Cash and cash-related assets N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

375Annual Report KBC Group 2024
47
Other categories of assets (e.g. goodwill,
commodities etc.)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
48 Total GAR assets 0 N/A N/A N/A 0 N/A N/A N/A 85 990 890 41 238 330
49
Assets not covered for GAR calculation
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
50
Central governments and Supranational
issuers
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
51 Central banks exposure N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
52 Trading book N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
53 Total assets 0 N/A N/A N/A 0 N/A N/A N/A 85 990 890 41 238 330
Off-balance sheet exposures – Undertakings
subject to CSRD disclosure obligations
54 Financial guarantees 1 N/A N/A N/A 0 N/A N/A N/A 478 251 0 9 42
55 Assets under management* N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
56 Of which debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
57 Of which equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Assets under management are as from 2025 reported in the specific templates foreseen for asset managers

376 Annual Report KBC Group 2024
p. 33
KBC as a credit institution – assets for the calculation of GAR (Capex based) – PART 3
a b c d e f
g h i j k
l
m n o p q r
Total
(gross)
carrying
amount
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Of which towards taxonomy relevant sectors (Taxonomy-eligible) Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
31-12-2023
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
(in millions of EUR)
Of which
Use of
proceeds
Of which
transitional
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not Hft eligible for GAR
calculation*
86 045 81 990 536 1 112 137 17 10 0 5 0 N/A N/A N/A 0 N/A N/A N/A
2 Financial undertakings 602 68 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
3 Credit institutions 590 62 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
4 Loans and advances 199 20 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
5 Debt securities, including UoP 391 42 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
6 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
7 Other financial corporations 12 6 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
8 Of which investment firms 12 6 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
9 Loans and advances 12 6 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
10 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
11 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
12 Of which management companies 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
13 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
14 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
15 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
16 Of which insurance companies 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
17 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
18 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
19 Equity instruments 0 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
20 Non-financial undertakings 4 364 1 073 535 0 112 137 17 10 0 5 0 N/A N/A N/A 0 N/A N/A N/A
21 Loans and advances 3 977 1 060 526 0 111 133 4 4 0 0 0 N/A N/A N/A 0 N/A N/A N/A
22 Debt securities, including UoP 357 13 9 0 1 4 13 5 0 5 0 N/A N/A N/A 0 N/A N/A N/A
23 Equity instruments 30 0 0 N/A 0 0 0 0 N/A 0 0 N/A N/A N/A 0 N/A N/A N/A
24 Households 79 825 79 825 1 1 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
75 607 75 607 1 1 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
26 Of which building renovation loans 4 627 4 627 0 0 0 0 0 0 0 0 N/A N/A N/A N/A 0 N/A N/A N/A
27 Of which motor vehicle loans 609 609 0 0 0 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
28
Local government financing
1 254 1 023 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
29 Housing financing 1 004 1 004 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
30 Other local government financing 250 19 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
33 33 0 0 0 0 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
114 697 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
33 Financial and non-financial undertakings 93 921 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
34
SMEs and NFCs (other than SMEs) not subject
to CSRD disclosure obligations
86 875 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
35 Loans and advances 84 073 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
36
Of which loans collateralised by
commercial immovable property
22 559 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
37 Of which building renovation loans 1 925 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
38 Debt securities 2 626 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
39 Equity instruments 176 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
40
Non-EU country counterparties not subject to
CSRD disclosure obligations
7 047 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
41 Loans and advances 4 539 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
42 Debt securities 2 458 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
43 Equity instruments 49 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
44
Derivatives
-2 115 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

377Annual Report KBC Group 2024
p. 33
45 On demand interbank loans 717 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
46
Cash and cash-related assets
1 418 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
47
Other categories of assets (e.g. goodwill,
commodities etc.)
20 756 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
48 Total GAR assets 200 776 82 023 536 1 112 137 17 10 0 5 0 N/A N/A N/A 0 N/A N/A N/A
49 Assets not covered for GAR calculation 114 042 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
50
Central governments and Supranational
issuers
47 916 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
51 Central banks exposure 57 783 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
52 Trading book 8 343 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
53 Total assets 314 818 82 023 536 1 112 137 17 10 0 5 0 N/A N/A N/A 0 N/A N/A N/A
Off-balance sheet exposures – Undertakings
subject to CSRD disclosure obligations
54 Financial guarantees 601 190 119 0 2 24 0 0 0 0 0 N/A N/A N/A 0 N/A N/A N/A
55 Assets under management 30 431 2 440 981 0 48 457 88 44 0 1 0 N/A N/A N/A 0 N/A N/A N/A
56 Of which debt securities 20 685 837 366 0 12 119 44 13 0 0 0 N/A N/A N/A 0 N/A N/A N/A
57 Of which equity instruments 9 746 1 602 615 0 36 338 45 31 0 1 0 N/A N/A N/A 0 N/A N/A N/A
* Summation does not longer include line 31 as in the annual report of 2023

378 Annual Report KBC Group 2024
p. 33
KBC as a credit institution – assets for the calculation of GAR (Capex based) – PART 4
s t u v w x z aa ab ac ad ae af
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors
(Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
31-12-2023
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
(in millions of EUR)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not Hft eligible for GAR
calculation*
0 N/A N/A N/A 0 N/A N/A N/A 82 007 546 1 112 143
2
Financial undertakings
0 N/A N/A N/A 0 N/A N/A N/A 68 0 0 0 0
3 Credit institutions 0 N/A N/A N/A 0 N/A N/A N/A 62 0 0 0 0
4 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 20 0 0 0 0
5 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 42 0 0 0 0
6 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
7 Other financial corporations 0 N/A N/A N/A 0 N/A N/A N/A 6 0 0 0 0
8 Of which investment firms 0 N/A N/A N/A 0 N/A N/A N/A 6 0 0 0 0
9 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 6 0 0 0 0
10 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
11 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
12 Of which management companies 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
13 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
14 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
15 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
16 Of which insurance companies 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
17 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
18 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 0 0 0 0 0
19 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
20
Non-financial undertakings
0 N/A N/A N/A 0 N/A N/A N/A 1 090 545 0 112 143
21 Loans and advances 0 N/A N/A N/A 0 N/A N/A N/A 1 064 530 0 111 133
22 Debt securities, including UoP 0 N/A N/A N/A 0 N/A N/A N/A 25 14 0 1 10
23 Equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A 0 0
24 Households N/A N/A N/A N/A N/A N/A N/A N/A 79 825 1 1 0 0
25
Of which loans collateralised by residential
immovable property
N/A N/A N/A N/A N/A N/A N/A N/A 75 607 1 1 0 0
26 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A 4 627 0 0 0 0
27 Of which motor vehicle loans N/A N/A N/A N/A N/A N/A N/A N/A 609 0 0 0 0
28 Local government financing 0 N/A N/A N/A 0 N/A N/A N/A 1 023 0 0 0 0
29 Housing financing 0 N/A N/A N/A 0 N/A N/A N/A 1 004 0 0 0 0
30 Other local government financing 0 N/A N/A N/A 0 N/A N/A N/A 19 0 0 0 0
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0 N/A N/A N/A 0 N/A N/A N/A 33 0 0 0 0
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
33 Financial and non-financial undertakings N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
34
SMEs and NFCs (other than SMEs) not subject
to CSRD disclosure obligations
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
35 Loans and advances N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
36
Of which loans collateralised by
commercial immovable property
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
37 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
38 Debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
39 Equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
40
Non-EU country counterparties not subject to
CSRD disclosure obligations
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
41 Loans and advances N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
42 Debt securities N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
43 Equity instruments N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
44 Derivatives N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
45 On demand interbank loans N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
46 Cash and cash-related assets N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

379Annual Report KBC Group 2024
47
Other categories of assets (e.g. goodwill,
commodities etc.)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
48 Total GAR assets 0 N/A N/A N/A 0 N/A N/A N/A 82 040 546 1 112 143
49
Assets not covered for GAR calculation
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
50
Central governments and Supranational
issuers
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
51 Central banks exposure N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
52 Trading book N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
53 Total assets 0 N/A N/A N/A 0 N/A N/A N/A 82 040 546 1 112 143
Off-balance sheet exposures – Undertakings
subject to CSRD disclosure obligations
54 Financial guarantees 0 N/A N/A N/A 0 N/A N/A N/A 190 119 0 2 24
55 Assets under management 0 N/A N/A N/A 0 N/A N/A N/A 2 528 1 025 0 48 458
56 Of which debt securities 0 N/A N/A N/A 0 N/A N/A N/A 881 379 0 12 119
57 Of which equity instruments 0 N/A N/A N/A 0 N/A N/A N/A 1 647 646 0 36 339
* Summation does not longer include line 31 as in the annual report of 2023

380 Annual Report KBC Group 2024
p. 3
KBC as a credit institution – GAR sector information (Turnover based) – PART 1
a b c d
e f g h i j k L m n o P
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
31-12-2024; Breakdown by sector – NACE 4 digits level (code and label)
(Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount*
(in millions of EUR)
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
1 A – Agriculture, forestry and fishing 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
2 B – Mining and quarrying 4 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
3 B.05 – Mining of coal and lignite 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
4 B.06 – Extraction of crude petroleum and natural gas 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
5 B.07 – Mining of metal ores 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
6 B.08 – Other mining and quarrying 4 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
7 B.09 – Mining support service activities 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
8 C- Manufacturing 228 78 N/A N/A 11 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
9 C.10 – Manufacture of food products 2 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
10 C.11 – Manufacture of beverages 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
11 C.12 – Manufacture of tobacco products 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
12 C.13 – Manufacture of textiles 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
13 C.14 – Manufacture of wearing apparel 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
14 C.15 – Manufacture of leather and related products 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
15
C.16 – Manufacture of wood and of products of wood and cork, except
furniture; manufacture of articles of straw and plaiting materials
0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
16 C.17 – Manufacture of paper and paper products 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
17 C.18 – Printing and reproduction of recorded media 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
18 C.19 – Manufacture of coke and refined petroleum products 2 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
19 C.20 – Manufacture of chemicals and chemical products 46 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
20
C.21 – Manufacture of basic pharmaceutical products and
pharmaceutical preparations
54 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
21 C.22 – Manufacture of rubber products 13 5 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
22 C.23 – Manufacture of other non-metallic mineral products 3 2 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
23 C.24 – Manufacture of basic metals 68 37 N/A N/A 11 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
24
C.25 – Manufacture of fabricated metal products, except machinery and
equipment
10 8 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 2 N/A N/A N/A
25 C.26 – Manufacture of computer, electronic and optical products 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
26 C.27 – Manufacture of electrical equipment 27 25 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
27 C.28 – Manufacture of machinery and equipment n.e.c.. 4 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
28 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
29 C.30 – Manufacture of other transport equipment 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
30 C.31 – Manufacture of furniture 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
31 C.32 – Other manufacturing 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
32 C.33 – Repair and installation of machinery and equipment 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
33 D – Electricity, gas, steam and air conditioning supply 563 513 N/A N/A 1 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
34 D35.1 – Electric power generation, transmission and distribution 212 165 N/A N/A 1 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
35 D.35.11 – Production of electricity 62 16 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
36 D.35.2 – Manufacture of gas, distribution of gaseous fuels through mains 348 348 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
37 D.35.3 – Steam and air conditioning supply 3 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
38 E – Water supply; sewerage, waste management and remediation activities 3 3 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
39 F – Construction 69 52 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
40 F.41 – Construction of buildings 42 36 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
41 F.42 – Civil engineering 3 1 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
42 F.43 – Specialised construction activities 24 16 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
43 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 58 56 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
44 H – Transportation and storage 533 75 N/A N/A 9 9 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
45 H.49 – Land transport and transport via pipelines 497 54 N/A N/A 9 9 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
46 H.50 – Water transport 3 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
47 H. 51 – Air transport 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
48 H. 52 – Warehousing and support activities for transportation 26 20 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
49 H.35 – Postal and courier activities 8 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
50 I – Accommodation and food service activities 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
51 K- Financial and insurance services 292 39 N/A N/A 5 3 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
52 L – Real estate activities 181 17 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
53 Exposures to other sectors (NACE codes J, M-U) 179 139 N/A N/A 8 8 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
54 TOTAL 2 109 972 N/A N/A 34 21 N/A N/A 0 N/A N/A N/A 2 N/A N/A N/A
* Includes the taxonomy eligible amounts (updated interpretation vs the annual report of 2023)

381Annual Report KBC Group 2024
p. 31
KBC as a credit institution – GAR sector information (Turnover based) – PART 2
q r s t
u v w x y z aa ab
Pollution (PPC) Biodiversity and Ecosystems (BIO)
TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
31-12-2024; Breakdown by sector – NACE 4 digits level (code and label)
(Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount*
(in millions of EUR)
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
1 A – Agriculture, forestry and fishing 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
2 B – Mining and quarrying 0 N/A N/A N/A 0 N/A N/A N/A 4 0 N/A N/A
3 B.05 – Mining of coal and lignite 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
4 B.06 – Extraction of crude petroleum and natural gas 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
5 B.07 – Mining of metal ores 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
6 B.08 – Other mining and quarrying 0 N/A N/A N/A 0 N/A N/A N/A 4 0 N/A N/A
7 B.09 – Mining support service activities 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
8 C- Manufacturing 0 N/A N/A N/A 0 N/A N/A N/A 239 78 N/A N/A
9 C.10 – Manufacture of food products 0 N/A N/A N/A 0 N/A N/A N/A 2 0 N/A N/A
10 C.11 – Manufacture of beverages 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
11 C.12 – Manufacture of tobacco products 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
12 C.13 – Manufacture of textiles 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
13 C.14 – Manufacture of wearing apparel 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
14 C.15 – Manufacture of leather and related products 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
15
C.16 – Manufacture of wood and of products of wood and cork, except
furniture; manufacture of articles of straw and plaiting materials
0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
16 C.17 – Manufacture of paper and paper products 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
17 C.18 – Printing and reproduction of recorded media 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
18 C.19 – Manufacture of coke and refined petroleum products 0 N/A N/A N/A 0 N/A N/A N/A 2 0 N/A N/A
19 C.20 – Manufacture of chemicals and chemical products 0 N/A N/A N/A 0 N/A N/A N/A 46 0 N/A N/A
20
C.21 – Manufacture of basic pharmaceutical products and
pharmaceutical preparations
0 N/A N/A N/A 0 N/A N/A N/A 54 0 N/A N/A
21 C.22 – Manufacture of rubber products 0 N/A N/A N/A 0 N/A N/A N/A 13 5 N/A N/A
22 C.23 – Manufacture of other non-metallic mineral products 0 N/A N/A N/A 0 N/A N/A N/A 3 2 N/A N/A
23 C.24 – Manufacture of basic metals 0 N/A N/A N/A 0 N/A N/A N/A 79 37 N/A N/A
24
C.25 – Manufacture of fabricated metal products, except machinery and
equipment
0 N/A N/A N/A 0 N/A N/A N/A 12 8 N/A N/A
25 C.26 – Manufacture of computer, electronic and optical products 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
26 C.27 – Manufacture of electrical equipment 0 N/A N/A N/A 0 N/A N/A N/A 27 25 N/A N/A
27 C.28 – Manufacture of machinery and equipment n.e.c.. 0 N/A N/A N/A 0 N/A N/A N/A 4 0 N/A N/A
28 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
29 C.30 – Manufacture of other transport equipment 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
30 C.31 – Manufacture of furniture 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
31 C.32 – Other manufacturing 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
32 C.33 – Repair and installation of machinery and equipment 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
33 D – Electricity, gas, steam and air conditioning supply 0 N/A N/A N/A 0 N/A N/A N/A 563 514 N/A N/A
34 D35.1 – Electric power generation, transmission and distribution 0 N/A N/A N/A 0 N/A N/A N/A 212 166 N/A N/A
35 D.35.11 – Production of electricity 0 N/A N/A N/A 0 N/A N/A N/A 63 16 N/A N/A
36 D.35.2 – Manufacture of gas, distribution of gaseous fuels through mains 0 N/A N/A N/A 0 N/A N/A N/A 348 348 N/A N/A
37 D.35.3 – Steam and air conditioning supply 0 N/A N/A N/A 0 N/A N/A N/A 3 0 N/A N/A
38 E – Water supply; sewerage, waste management and remediation activities 0 N/A N/A N/A 0 N/A N/A N/A 3 3 N/A N/A
39 F – Construction 0 N/A N/A N/A 0 N/A N/A N/A 69 52 N/A N/A
40 F.41 – Construction of buildings 0 N/A N/A N/A 0 N/A N/A N/A 42 36 N/A N/A
41 F.42 – Civil engineering 0 N/A N/A N/A 0 N/A N/A N/A 3 1 N/A N/A
42 F.43 – Specialised construction activities 0 N/A N/A N/A 0 N/A N/A N/A 24 16 N/A N/A
43 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 0 N/A N/A N/A 0 N/A N/A N/A 58 56 N/A N/A
44 H – Transportation and storage 0 N/A N/A N/A 0 N/A N/A N/A 542 84 N/A N/A
45 H.49 – Land transport and transport via pipelines 0 N/A N/A N/A 0 N/A N/A N/A 506 64 N/A N/A
46 H.50 – Water transport 0 N/A N/A N/A 0 N/A N/A N/A 3 0 N/A N/A
47 H. 51 – Air transport 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
48 H. 52 – Warehousing and support activities for transportation 0 N/A N/A N/A 0 N/A N/A N/A 26 20 N/A N/A
49 H.35 – Postal and courier activities 0 N/A N/A N/A 0 N/A N/A N/A 8 0 N/A N/A
50 I – Accommodation and food service activities 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
51 K- Financial and insurance services 0 N/A N/A N/A 0 N/A N/A N/A 297 42 N/A N/A
52 L – Real estate activities 0 N/A N/A N/A 0 N/A N/A N/A 181 17 N/A N/A
53 Exposures to other sectors (NACE codes J, M-U) 0 N/A N/A N/A 0 N/A N/A N/A 188 147 N/A N/A
54 TOTAL 0 N/A N/A N/A 0 N/A N/A N/A 2 146 993 N/A N/A
* Includes the taxonomy eligible amounts (updated interpretation vs the annual report of 2023)

382 Annual Report KBC Group 2024
p. 32
KBC as a credit institution – GAR sector information (Capex based) – PART 1
a b c d
e f g h i j k L m n o P
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
31-12-2024; Breakdown by sector – NACE 4 digits level (code and label)
(Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount*
(in millions of EUR)
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
1 A – Agriculture, forestry and fishing 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
2 B – Mining and quarrying 3 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
3 B.05 – Mining of coal and lignite 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
4 B.06 – Extraction of crude petroleum and natural gas 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
5 B.07 – Mining of metal ores 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
6 B.08 – Other mining and quarrying 3 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
7 B.09 – Mining support service activities 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
8 C- Manufacturing 317 98 N/A N/A 11 4 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
9 C.10 – Manufacture of food products 40 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
10 C.11 – Manufacture of beverages 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
11 C.12 – Manufacture of tobacco products 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
12 C.13 – Manufacture of textiles 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
13 C.14 – Manufacture of wearing apparel 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
14 C.15 – Manufacture of leather and related products 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
15
C.16 – Manufacture of wood and of products of wood and cork, except
furniture; manufacture of articles of straw and plaiting materials
0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
16 C.17 – Manufacture of paper and paper products 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
17 C.18 – Printing and reproduction of recorded media 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
18 C.19 – Manufacture of coke and refined petroleum products 3 2 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
19 C.20 – Manufacture of chemicals and chemical products 68 0 N/A N/A 4 4 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
20
C.21 – Manufacture of basic pharmaceutical products and
pharmaceutical preparations
47 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
21 C.22 – Manufacture of rubber products 17 6 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
22 C.23 – Manufacture of other non-metallic mineral products 3 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
23 C.24 – Manufacture of basic metals 103 68 N/A N/A 6 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
24
C.25 – Manufacture of fabricated metal products, except machinery and
equipment
8 5 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 2 N/A N/A N/A
25 C.26 – Manufacture of computer, electronic and optical products 1 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
26 C.27 – Manufacture of electrical equipment 23 16 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
27 C.28 – Manufacture of machinery and equipment n.e.c.. 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
28 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 4 1 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
29 C.30 – Manufacture of other transport equipment 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
30 C.31 – Manufacture of furniture 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
31 C.32 – Other manufacturing 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
32 C.33 – Repair and installation of machinery and equipment 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
33 D – Electricity, gas, steam and air conditioning supply 450 235 N/A N/A 2 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
34 D35.1 – Electric power generation, transmission and distribution 222 136 N/A N/A 2 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
35 D.35.11 – Production of electricity 99 52 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
36 D.35.2 – Manufacture of gas, distribution of gaseous fuels through mains 224 97 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
37 D.35.3 – Steam and air conditioning supply 4 2 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
38 E – Water supply; sewerage, waste management and remediation activities 2 4 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
39 F – Construction 67 43 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
40 F.41 – Construction of buildings 43 36 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
41 F.42 – Civil engineering 3 1 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
42 F.43 – Specialised construction activities 22 7 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
43 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 199 80 N/A N/A 1 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
44 H – Transportation and storage 515 126 N/A N/A 16 10 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
45 H.49 – Land transport and transport via pipelines 484 104 N/A N/A 16 10 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
46 H.50 – Water transport 5 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
47 H. 51 – Air transport 0 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
48 H. 52 – Warehousing and support activities for transportation 24 22 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
49 H.35 – Postal and courier activities 1 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
50 I – Accommodation and food service activities 3 0 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
51 K- Financial and insurance services 367 40 N/A N/A 5 3 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
52 L – Real estate activities 117 24 N/A N/A 0 0 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
53 Exposures to other sectors (NACE codes J, M-U) 231 172 N/A N/A 30 13 N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A
54 TOTAL 2 273 823 N/A N/A 65 31 N/A N/A 0 N/A N/A N/A 2 N/A N/A N/A
* Includes the taxonomy eligible amounts (updated interpretation vs the annual report of 2023)

383Annual Report KBC Group 2024
p. 33
KBC as a credit institution – GAR sector information (Capex based) – PART 2
q r s t
u v w x y z aa ab
Pollution (PPC) Biodiversity and Ecosystems (BIO)
TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
Non-financial corporates
(subject to CSRD)
SMEs and other NFC not
subject to CSRD
31-12-2024; Breakdown by sector – NACE 4 digits level (code and label)
(Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount* (Gross) Carrying amount*
(in millions of EUR)
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
Of which
environ-
mentally
sustainable
1 A – Agriculture, forestry and fishing 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
2 B – Mining and quarrying 0 N/A N/A N/A 0 N/A N/A N/A 3 0 N/A N/A
3 B.05 – Mining of coal and lignite 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
4 B.06 – Extraction of crude petroleum and natural gas 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
5 B.07 – Mining of metal ores 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
6 B.08 – Other mining and quarrying 0 N/A N/A N/A 0 N/A N/A N/A 3 0 N/A N/A
7 B.09 – Mining support service activities 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
8 C- Manufacturing 0 N/A N/A N/A 0 N/A N/A N/A 328 103 N/A N/A
9 C.10 – Manufacture of food products 0 N/A N/A N/A 0 N/A N/A N/A 40 0 N/A N/A
10 C.11 – Manufacture of beverages 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
11 C.12 – Manufacture of tobacco products 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
12 C.13 – Manufacture of textiles 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
13 C.14 – Manufacture of wearing apparel 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
14 C.15 – Manufacture of leather and related products 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
15
C.16 – Manufacture of wood and of products of wood and cork, except
furniture; manufacture of articles of straw and plaiting materials
0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
16 C.17 – Manufacture of paper and paper products 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
17 C.18 – Printing and reproduction of recorded media 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
18 C.19 – Manufacture of coke and refined petroleum products 0 N/A N/A N/A 0 N/A N/A N/A 3 2 N/A N/A
19 C.20 – Manufacture of chemicals and chemical products 0 N/A N/A N/A 0 N/A N/A N/A 72 5 N/A N/A
20
C.21 – Manufacture of basic pharmaceutical products and
pharmaceutical preparations
0 N/A N/A N/A 0 N/A N/A N/A 47 0 N/A N/A
21 C.22 – Manufacture of rubber products 0 N/A N/A N/A 0 N/A N/A N/A 17 6 N/A N/A
22 C.23 – Manufacture of other non-metallic mineral products 0 N/A N/A N/A 0 N/A N/A N/A 3 0 N/A N/A
23 C.24 – Manufacture of basic metals 0 N/A N/A N/A 0 N/A N/A N/A 110 68 N/A N/A
24
C.25 – Manufacture of fabricated metal products, except machinery and
equipment
0 N/A N/A N/A 0 N/A N/A N/A 10 5 N/A N/A
25 C.26 – Manufacture of computer, electronic and optical products 0 N/A N/A N/A 0 N/A N/A N/A 1 0 N/A N/A
26 C.27 – Manufacture of electrical equipment 0 N/A N/A N/A 0 N/A N/A N/A 23 16 N/A N/A
27 C.28 – Manufacture of machinery and equipment n.e.c.. 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
28 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 0 N/A N/A N/A 0 N/A N/A N/A 4 1 N/A N/A
29 C.30 – Manufacture of other transport equipment 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
30 C.31 – Manufacture of furniture 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
31 C.32 – Other manufacturing 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
32 C.33 – Repair and installation of machinery and equipment 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
33 D – Electricity, gas, steam and air conditioning supply 0 N/A N/A N/A 0 N/A N/A N/A 452 236 N/A N/A
34 D35.1 – Electric power generation, transmission and distribution 0 N/A N/A N/A 0 N/A N/A N/A 224 137 N/A N/A
35 D.35.11 – Production of electricity 0 N/A N/A N/A 0 N/A N/A N/A 99 53 N/A N/A
36 D.35.2 – Manufacture of gas, distribution of gaseous fuels through mains 0 N/A N/A N/A 0 N/A N/A N/A 224 97 N/A N/A
37 D.35.3 – Steam and air conditioning supply 0 N/A N/A N/A 0 N/A N/A N/A 4 2 N/A N/A
38 E – Water supply; sewerage, waste management and remediation activities 0 N/A N/A N/A 0 N/A N/A N/A 2 4 N/A N/A
39 F – Construction 0 N/A N/A N/A 0 N/A N/A N/A 67 43 N/A N/A
40 F.41 – Construction of buildings 0 N/A N/A N/A 0 N/A N/A N/A 43 36 N/A N/A
41 F.42 – Civil engineering 0 N/A N/A N/A 0 N/A N/A N/A 3 1 N/A N/A
42 F.43 – Specialised construction activities 0 N/A N/A N/A 0 N/A N/A N/A 22 7 N/A N/A
43 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 0 N/A N/A N/A 0 N/A N/A N/A 200 80 N/A N/A
44 H – Transportation and storage 0 N/A N/A N/A 0 N/A N/A N/A 531 136 N/A N/A
45 H.49 – Land transport and transport via pipelines 0 N/A N/A N/A 0 N/A N/A N/A 501 114 N/A N/A
46 H.50 – Water transport 0 N/A N/A N/A 0 N/A N/A N/A 5 0 N/A N/A
47 H. 51 – Air transport 0 N/A N/A N/A 0 N/A N/A N/A 0 0 N/A N/A
48 H. 52 – Warehousing and support activities for transportation 0 N/A N/A N/A 0 N/A N/A N/A 24 22 N/A N/A
49 H.35 – Postal and courier activities 0 N/A N/A N/A 0 N/A N/A N/A 1 0 N/A N/A
50 I – Accommodation and food service activities 0 N/A N/A N/A 0 N/A N/A N/A 3 0 N/A N/A
51 K- Financial and insurance services 0 N/A N/A N/A 0 N/A N/A N/A 372 43 N/A N/A
52 L – Real estate activities 0 N/A N/A N/A 0 N/A N/A N/A 117 24 N/A N/A
53 Exposures to other sectors (NACE codes J, M-U) 0 N/A N/A N/A 0 N/A N/A N/A 262 186 N/A N/A
54 TOTAL 0 N/A N/A N/A 0 N/A N/A N/A 2 340 854 N/A N/A
* Includes the taxonomy eligible amounts (updated interpretation vs the annual report of 2023)

384 Annual Report KBC Group 2024
KBC as a credit institution – GAR KPI stock (Turnover based) – PART 1
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2024
% (compared to total covered assets in the
denominator)*
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
95.5% 1.1% 0.0% 0.6% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Financial undertakings 41.8% 3.3% 0.0% 1.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
3 Credit institutions 41.5% 3.4% 0.0% 1.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
4 Loans and advances 52.2% 4.1% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
5 Debt securities, including UoP 39.5% 3.2% 0.0% 1.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
6 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
7 Other financial corporations 69.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
8 Of which investment firms 69.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
9 Loans and advances 71.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
10 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
11 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
12 Of which management companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
13 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
14 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
15 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
16 Of which insurance companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
17 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
18 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
19 Equity instruments 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
20 Non-Financial undertakings 38.0% 17.5% 0.7% 9.7% 3.6% 0.6% 0.4% 0.0% 0.3% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
21 Loans and advances 37.8% 18.9% 0.8% 10.7% 3.7% 0.4% 0.2% 0.0% 0.2% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
22 Debt securities, including UoP 40.9% 5.0% 0.0% 0.1% 2.3% 2.6% 2.2% 0.0% 1.6% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
23 Equity instruments 13.2% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
24
Households
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
26 Of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
27 Of which motor vehicle loans 100.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A N/A N/A N/A N/A N/A 0.0% N/A N/A N/A
28 Local government financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
29 Housing financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
30 Other local government financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
31
Collateral obtained by taking possession: residential
and commercial immovable properties
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
32
Total GAR assets
41.0% 0.5% 0.0% 0.3% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
* Denominator per line item except for proportion of assets covered (vs total assets)

385Annual Report KBC Group 2024
KBC as a credit institution – GAR KPI stock (Turnover based) – PART 2
r s t u
v w x z aa ab ac ad ae af
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
31-12-2024
% (compared to total covered assets in the
denominator)*
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.0% N/A N/A N/A 0.0% N/A N/A N/A 95.5% 1.1% 0.0% 0.6% 0.2% 26.6%
2 Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 41.8% 3.3% 0.0% 1.0% 0.1% 0.3%
3 Credit institutions 0.0% N/A N/A N/A 0.0% N/A N/A N/A 41.5% 3.4% 0.0% 1.0% 0.1% 0.3%
4 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 52.2% 4.1% 0.0% 0.1% 0.1% 0.0%
5 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 39.5% 3.2% 0.0% 1.1% 0.1% 0.3%
6 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
7 Other financial corporations 0.0% N/A N/A N/A 0.0% N/A N/A N/A 69.2% 0.0% 0.0% 0.0% 0.0% 0.0%
8 Of which investment firms 0.0% N/A N/A N/A 0.0% N/A N/A N/A 69.2% 0.0% 0.0% 0.0% 0.0% 0.0%
9 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 71.9% 0.0% 0.0% 0.0% 0.0% 0.0%
10 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
11 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
12 Of which management companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
13 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
14 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
15 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
16 Of which insurance companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
17 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
18 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
19 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
20 Non-Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 38.6% 17.9% 0.7% 9.7% 3.9% 1.6%
21 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 38.3% 19.1% 0.8% 10.7% 3.9% 1.5%
22 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 43.9% 7.2% 0.0% 0.1% 4.0% 0.1%
23 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 13.2% 0.0% N/A 0.0% 0.0% 0.0%
24
Households
0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 24.3%
25
Of which loans collateralised by residential
immovable property
N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 23.1%
26 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 1.3%
27 Of which motor vehicle loans N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.3%
28 Local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.3%
29 Housing financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.3%
30 Other local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
31
Collateral obtained by taking possession: residential
and commercial immovable properties
0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
32
Total GAR assets
0.0% N/A N/A N/A 0.0% N/A N/A N/A 41.0% 0.5% 0.0% 0.3% 0.1% 61.8%
* Denominator per line item except for proportion of assets covered (vs total assets)

386 Annual Report KBC Group 2024
KBC as a credit institution – GAR KPI stock (Turnover based) – PART 3
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2023
% (compared to total covered assets in the
denominator)*
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
40.8% 0.2% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Financial undertakings 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
3 Credit institutions 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
4 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
5 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
6 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
7 Other financial corporations 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
8 Of which investment firms 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
9 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
10 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
11 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
12 Of which management companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
13 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
14 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
15 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
16 Of which insurance companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
17 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
18 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
19 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
20 Non-Financial undertakings 0.4% 0.2% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
21 Loans and advances 0.4% 0.2% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
22 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
23 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
24
Households
39.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
37.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
26 Of which building renovation loans 2.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
27 Of which motor vehicle loans 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
28 Local government financing 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
29 Housing financing 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
30 Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
31
Collateral obtained by taking possession: residential
and commercial immovable properties
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
32
Total GAR assets
40.8% 0.2% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
* Former interpretation in the annual report of 2023 having only one denominator for all reported percentages

387Annual Report KBC Group 2024
KBC as a credit institution – GAR KPI stock (Turnover based) – PART 4
r s t u
v w x z aa ab ac ad ae af
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
31-12-2023
% (compared to total covered assets in the
denominator)*
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.0% N/A N/A N/A 0.0% N/A N/A N/A 40.8% 0.2% 0,0% 0.0% 0.1% 42.9%
2 Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.1% 0.0% 0,0% 0.0% 0.0% 0.3%
3 Credit institutions 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.1% 0.0% 0,0% 0.0% 0.0% 0.3%
4 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.1%
5 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.2%
6 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
7 Other financial corporations 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
8 Of which investment firms 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
9 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
10 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
11 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
12 Of which management companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
13 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
14 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
15 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
16 Of which insurance companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
17 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
18 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.0%
19 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
20 Non-Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.4% 0.2% 0,0% 0.0% 0.1% 2.2%
21 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.4% 0.2% 0,0% 0.0% 0.1% 2.0%
22 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.2%
23 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
24
Households
0.0% N/A N/A N/A 0.0% N/A N/A N/A 39.8% 0.0% 0,0% 0.0% 0.0% 39.8%
25
Of which loans collateralised by residential
immovable property
0.0% N/A N/A N/A 0.0% N/A N/A N/A 37.7% 0.0% 0.0% 0.0% 0.0% 37.7%
26 Of which building renovation loans 0.0% N/A N/A N/A 0.0% N/A N/A N/A 2.3% 0.0% 0,0% 0.0% 0.0% 2.3%
27 Of which motor vehicle loans 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.3% 0.0% 0,0% 0.0% 0.0% 0.3%
28 Local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.5% 0.0% 0,0% 0.0% 0.0% 0.6%
29 Housing financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.5% 0.0% 0,0% 0.0% 0.0% 0.5%
30 Other local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0,0% 0.0% 0.0% 0.1%
31
Collateral obtained by taking possession: residential
and commercial immovable properties
0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
32
Total GAR assets
0.0% N/A N/A N/A 0.0% N/A N/A N/A 40.8% 0.2% 0,0% 0.0% 0.1% 42,9%
* Former interpretation in the annual report of 2023 having only one denominator for all reported percentages

388 Annual Report KBC Group 2024
KBC as a credit institution – GAR-KPI stock (Capex based) – PART 1
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2024
% (compared to total covered assets in the
denominator)*
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
95.7% 1.0% 0.0% 0.3% 0.3% 0.1% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Financial undertakings 43.5% 3.3% 0.0% 1.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
3 Credit institutions 43.2% 3.4% 0.0% 1.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
4 Loans and advances 52.9% 3.6% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
5 Debt securities, including UoP 41.4% 3.3% 0.0% 1.1% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
6 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
7 Other financial corporations 69.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
8 Of which investment firms 69.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
9 Loans and advances 71.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
10 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
11 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
12 Of which management companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
13 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
14 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
15 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
16 Of which insurance companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
17 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
18 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
19 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
20 Non-Financial undertakings 40.9% 14.8% 0.7% 4.1% 5.6% 1.2% 0.6% 0.0% 0.4% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
21 Loans and advances 40.8% 15.4% 0.8% 4.5% 5.8% 0.9% 0.4% 0.0% 0.2% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
22 Debt securities, including UoP 45.1% 10.0% 0.0% 0.4% 3.7% 3.9% 2.4% 0.0% 1.9% 0.0% N/A N/A N/A 0.4% N/A N/A N/A
23 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
24
Households
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A N/A 0.0% N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
26 Of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A N/A 0.0% N/A N/A N/A
27 Of which motor vehicle loans 100.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
28 Local government financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
29 Housing financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
30 Other local government financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
31
Collateral obtained by taking possession: residential
and commercial immovable properties
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
32
Total GAR assets
41.1% 0.4% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
* Denominator per line item except for proportion of assets covered (vs total assets)

389Annual Report KBC Group 2024
KBC as a credit institution – GAR-KPI stock (Capex based) – PART 2
r s t u
v w x z aa ab ac ad ae af
Pollution (PPC)) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
31-12-2024
% (compared to total covered assets in the
denominator)*
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.0% N/A N/A N/A 0.0% N/A N/A N/A 95.7% 1.0% 0.0% 0.3% 0.4% 26.6%
2 Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 43.5% 3.3% 0.0% 1.0% 0.1% 0.3%
3 Credit institutions 0.0% N/A N/A N/A 0.0% N/A N/A N/A 43.2% 3.4% 0.0% 1.0% 0.1% 0.3%
4 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 52.9% 3.6% 0.0% 0.1% 0.0% 0.0%
5 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 41.4% 3.3% 0.0% 1.1% 0.2% 0.3%
6 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
7 Other financial corporations 0.0% N/A N/A N/A 0.0% N/A N/A N/A 69.2% 0.0% 0.0% 0.0% 0.0% 0.0%
8 Of which investment firms 0.0% N/A N/A N/A 0.0% N/A N/A N/A 69.2% 0.0% 0.0% 0.0% 0.0% 0.0%
9 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 71.9% 0.0% 0.0% 0.0% 0.0% 0.0%
10 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
11 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
12 Of which management companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
13 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
14 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
15 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
16 Of which insurance companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
17 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
18 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
19 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
20 Non-Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 42.1% 15.4% 0.7% 4.1% 5.9% 1.6%
21 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 41.7% 15.8% 0.8% 4.5% 6.0% 1.5%
22 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 49.4% 12.4% 0.0% 0.4% 5.6% 0.1%
23 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
24
Households
N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 24.3%
25
Of which loans collateralised by residential
immovable property
N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 23.1%
26 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 1.3%
27 Of which motor vehicle loans N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.3%
28 Local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.3%
29 Housing financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.3%
30 Other local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
31
Collateral obtained by taking possession: residential
and commercial immovable properties
0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
32
Total GAR assets
0.0% N/A N/A N/A 0.0% N/A N/A N/A 41.1% 0.4% 0.0% 0.1% 0.2% 61.8%
* Denominator per line item except for proportion of assets covered (vs total assets)

390 Annual Report KBC Group 2024
KBC as a credit institution – GAR-KPI stock (Capex based) – PART 3
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2023
% (compared to total covered assets in the
denominator)*
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
40.9% 0.3% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Financial undertakings 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
3 Credit institutions 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
4 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
5 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
6 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
7 Other financial corporations 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
8 Of which investment firms 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
9 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
10 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
11 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
12 Of which management companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
13 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
14 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
15 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
16 Of which insurance companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
17 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
18 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
19 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
20 Non-Financial undertakings 0.5% 0.3% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
21 Loans and advances 0.5% 0.3% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
22 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
23 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
24
Households
39.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
37.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
26 Of which building renovation loans 2.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
27 Of which motor vehicle loans 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
28 Local government financing 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
29 Housing financing 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
30 Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
31
Collateral obtained by taking possession: residential
and commercial immovable properties
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
32
Total GAR assets
40.9% 0.3% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
* Former interpretation in the annual report of 2023 having only one denominator for all reported percentages

391Annual Report KBC Group 2024
KBC as a credit institution – GAR-KPI stock (Capex based) – PART 4
r s t u
v w x z aa ab ac ad ae af
Pollution (PPC)) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
31-12-2023
% (compared to total covered assets in the
denominator)*
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.0% N/A N/A N/A 0.0% N/A N/A N/A 40.9% 0.3% 0.0% 0.1% 0.1% 42.9%
2 Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.3%
3 Credit institutions 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.3%
4 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.1%
5 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.2%
6 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
7 Other financial corporations 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
8 Of which investment firms 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
9 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
10 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
11 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
12 Of which management companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
13 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
14 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
15 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
16 Of which insurance companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
17 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
18 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
19 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
20 Non-Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.5% 0.3% 0.0% 0.1% 0.1% 2.2%
21 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.5% 0.3% 0.0% 0.1% 0.1% 2.0%
22 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.2%
23 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
24
Households
0.0% N/A N/A N/A 0.0% N/A N/A N/A 39.8% 0.0% 0.0% 0.0% 0.0% 39.8%
25
Of which loans collateralised by residential
immovable property
0.0% N/A N/A N/A 0.0% N/A N/A N/A 37.7% 0.0% 0.0% 0.0% 0.0% 37.7%
26 Of which building renovation loans 0.0% N/A N/A N/A 0.0% N/A N/A N/A 2.3% 0.0% 0.0% 0.0% 0.0% 2.3%
27 Of which motor vehicle loans 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.3% 0.0% 0.0% 0.0% 0.0% 0.3%
28 Local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.5% 0.0% 0.0% 0.0% 0.0% 0.6%
29 Housing financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.5% 0.0% 0.0% 0.0% 0.0% 0.5%
30 Other local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.1%
31
Collateral obtained by taking possession: residential
and commercial immovable properties
0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
32
Total GAR assets
0.0% N/A N/A N/A 0.0% N/A N/A N/A 40.9% 0.3% 0.0% 0.1% 0.1% 42,9%
* Former interpretation in the annual report of 2023 having only one denominator for all reported percentages

392 Annual Report KBC Group 2024
KBC as a credit institution – GAR KPI flow (Turnover based) – PART 1
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2024
% (compared to flow of total eligible assets)*
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
89.7% 3.0% 0.0% 1.9% 0.7% 0.2% 0.1% 0.0% 0.1% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Financial undertakings 44.3% 3.9% 0.0% 0.8% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
3 Credit institutions 44.3% 3.9% 0.0% 0.8% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
4 Loans and advances 46.2% 4.0% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
5 Debt securities, including UoP 42.2% 3.9% 0.0% 1.5% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
6 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
7 Other financial corporations 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
8 Of which investment firms 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
9 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
10 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
11 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
12 Of which management companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
13 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
14 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
15 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
16 Of which insurance companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
17 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
18 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
19 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
20 Non-Financial undertakings 35.7% 20.7% 0.0% 13.1% 4.6% 1.1% 0.5% 0.0% 0.5% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
21 Loans and advances 35.3% 21.5% 0.0% 13.7% 4.9% 1.2% 0.5% 0.0% 0.5% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
22 Debt securities, including UoP 45.3% 4.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
23 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
24
Households
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
26 Of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
27 Of which motor vehicle loans 100.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A N/A 0.0% N/A N/A N/A 0.0% N/A N/A N/A
28 Local government financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
29 Housing financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
30 Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
31
Collateral obtained by taking possession: residential
and commercial immovable properties
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
32
Total GAR assets
25.0% 0.8% 0.0% 0.5% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
* Denominator per line item except for proportion of assets covered (vs total flow assets)
The EU Taxonomy flow figures for our Belgian portfolio were estimated on a pro rata basis, starting from the KPI stock templates. This approximation leads to an overestimation of the figures in the range of 10% - 20% for certain asset classes.

393Annual Report KBC Group 2024
KBC as a credit institution – GAR KPI flow (Turnover based) – PART 2
r s t u
v w x z aa ab ac ad ae af
Pollution (PPC)) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
new
assets
covered
31-12-2024
% (compared to flow of total eligible assets)*
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.0% N/A N/A N/A 0.0% N/A N/A N/A 89.9% 3.1% 0.0% 1.9% 0.7% 20.9%
2 Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 44.3% 3.9% 0.0% 0.8% 0.1% 0.4%
3 Credit institutions 0.0% N/A N/A N/A 0.0% N/A N/A N/A 44.3% 3.9% 0.0% 0.8% 0.1% 0.4%
4 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 46.2% 4.0% 0.0% 0.1% 0.1% 0.2%
5 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 42.2% 3.9% 0.0% 1.5% 0.1% 0.2%
6 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
7 Other financial corporations 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
8 Of which investment firms 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
9 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
10 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
11 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
12 Of which management companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
13 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
14 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
15 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
16 Of which insurance companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
17 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
18 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
19 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
20 Non-Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 36.9% 21.2% 0.0% 13.1% 5.2% 3.0%
21 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 36.5% 22.0% 0.0% 13.7% 5.4% 2.9%
22 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 45.3% 4.4% 0.0% 0.0% 0.0% 0.1%
23 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
24
Households
N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 17.5%
25
Of which loans collateralised by residential
immovable property
N/A N/A N/A N/A N/A N/A N/A N/A 100.0%
0.0% 0.0% 0.0% 0.0%
15.1%
26 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 5.3%
27 Of which motor vehicle loans N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.8%
28 Local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
29 Housing financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
30 Other local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
31
Collateral obtained by taking possession: residential
and commercial immovable properties
0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
32
Total GAR assets
0.0% N/A N/A N/A 0.0% N/A N/A N/A 25.1% 0.9% 0.0% 0.5% 0.2% 75.0%
* Denominator per line item except for proportion of assets covered (vs total flow assets)
The EU Taxonomy flow figures for our Belgian portfolio were estimated on a pro rata basis, starting from the KPI stock templates. This approximation leads to an overestimation of the figures in the range of 10% - 20% for certain asset classes.

394 Annual Report KBC Group 2024
KBC as a credit institution – GAR-KPI flow (Capex based) – PART 1
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2024
% (compared to flow of total eligible assets)*
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
90.4% 1.9% 0.0% 0.7% 0.8% 0.3% 0.1% 0.0% 0.1% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Financial undertakings 44.8% 4.0% 0.0% 0.8% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
3 Credit institutions 44.8% 4.0% 0.0% 0.8% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
4 Loans and advances 47.1% 4.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
5 Debt securities, including UoP 42.4% 4.0% 0.0% 1.5% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
6 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
7 Other financial corporations 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
8 Of which investment firms 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
9 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
10 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
11 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
12 Of which management companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
13 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
14 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
15 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
16 Of which insurance companies 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
17 Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
18 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
19 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
20 Non-Financial undertakings 40.3% 12.9% 0.0% 4.5% 5.6% 2.0% 0.9% 0.0% 0.6% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
21 Loans and advances 40.1% 13.3% 0.0% 4.7% 5.9% 2.1% 1.0% 0.0% 0.6% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
22 Debt securities, including UoP 45.5% 4.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
23 Equity instruments 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
24
Households
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A N/A 0.0% N/A N/A N/A
25
Of which loans collateralised by residential
immovable property
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
26 Of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A N/A 0.0% N/A N/A N/A
27 Of which motor vehicle loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
28 Local government financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
29 Housing financing 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
30 Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
31
Collateral obtained by taking possession: residential
and commercial immovable properties
100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
32
Total GAR assets
25.2% 0.5% 0.0% 0.2% 0.2% 0.1% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
* Denominator per line item except for proportion of assets covered (vs total flow assets)
The EU Taxonomy flow figures for our Belgian portfolio were estimated on a pro rata basis, starting from the KPI stock templates. This approximation leads to an overestimation of the figures in the range of 10% - 20% for certain asset classes.

395Annual Report KBC Group 2024
KBC as a credit institution – GAR-KPI flow (Capex based) – PART 2
r s t u
v w x z aa ab ac ad ae af
Pollution (PPC)) Biodiversityand Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
new
assets
covered
31-12-2024
% (compared to flow of total eligible assets)*
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.0% N/A N/A N/A 0.0% N/A N/A N/A 90.7% 2.1% 0.0% 0.7% 0.9% 20.9%
2 Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 44.8% 4.0% 0.0% 0.8% 0.1% 0.4%
3 Credit institutions 0.0% N/A N/A N/A 0.0% N/A N/A N/A 44.8% 4.0% 0.0% 0.8% 0.1% 0.4%
4 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 47.1% 4.0% 0.0% 0.1% 0.0% 0.2%
5 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 42.4% 4.0% 0.0% 1.5% 0.1% 0.2%
6 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
7 Other financial corporations 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
8 Of which investment firms 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
9 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
10 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
11 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
12 Of which management companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
13 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
14 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
15 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
16 Of which insurance companies 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
17 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
18 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
19 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
20 Non-Financial undertakings 0.0% N/A N/A N/A 0.0% N/A N/A N/A 42.4% 13.8% 0.0% 4.5% 6.2% 3.0%
21 Loans and advances 0.0% N/A N/A N/A 0.0% N/A N/A N/A 42.3% 14.3% 0.0% 4.7% 6.5% 2.9%
22 Debt securities, including UoP 0.0% N/A N/A N/A 0.0% N/A N/A N/A 45.5% 4.5% 0.0% 0.0% 0.0% 0.1%
23 Equity instruments 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% N/A 0.0% 0.0% 0.0%
24
Households
N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 17.5%
25
Of which loans collateralised by residential
immovable property
N/A N/A N/A N/A N/A N/A N/A N/A 100.0%
0.0% 0.0% 0.0% 0.0%
15.1%
26 Of which building renovation loans N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 5.3%
27 Of which motor vehicle loans N/A N/A N/A N/A N/A N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.8%
28 Local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
29 Housing financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
30 Other local government financing 0.0% N/A N/A N/A 0.0% N/A N/A N/A 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
31
Collateral obtained by taking possession: residential
and commercial immovable properties
0.0% N/A N/A N/A 0.0% N/A N/A N/A 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
32
Total GAR assets
0.0% N/A N/A N/A 0.0% N/A N/A N/A 25.3% 0.6% 0.0% 0.2% 0.2% 75.0%
* Denominator per line item except for proportion of assets covered (vs total flow assets)
The EU Taxonomy flow figures for our Belgian portfolio were estimated on a pro rata basis, starting from the KPI stock templates. This approximation leads to an overestimation of the figures in the range of 10% - 20% for certain asset classes.

396 Annual Report KBC Group 2024
KBC as a credit institution – KPI off-balance sheet exposures (stock - Turnover based) – PART 1
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible))
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2024
% (compared to total eligible off-balance sheet assets)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned))
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
1 Financial guarantees (FinGuar KPI)* 2.7% 1.4% 0.0% 0.0% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Assets under management (AuM KPI)** N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Denominator used is total Financial guarantees
** Assets under management are as from 2025 reported in the specific templates foreseen for asset managers
KBC as a credit institution – KPI off-balance sheet exposures (stock - Turnover based) – PART 2
r s t u
v w x z aa ab ac ad ae
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
31-12-2024
% (compared to total eligible off-balance sheet
assets)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
1 Financial guarantees (FinGuar KPI)* 0.0% N/A N/A N/A 0.0% N/A N/A N/A 2.8% 1.4% 0.0% 0.0% 0.3%
2 Assets under management (AuM KPI)** N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Denominator used is total Financial guarantees
** Assets under management are as from 2025 reported in the specific templates foreseen for asset managers

397Annual Report KBC Group 2024
KBC as a credit institution – KPI off-balance sheet exposures (flow - Turnover based) – PART 1
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible))
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2024
% (compared to flow of total eligible off-balance sheet
assets)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
1 Financial guarantees (FinGuar KPI)* 2.6% 1.3% 0.0% 0.0% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Assets under management (AuM KPI)** N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Denominator used is total flow of Financial guarantees
** Assets under management are as from 2025 reported in the specific templates foreseen for asset managers
KBC as a credit institution – KPI off-balance sheet exposures (flow - Turnover based) – PART 2
r s t u
v w x z aa ab ac ad ae
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
31-12-2024
% (compared to flow of total eligible off-balance
sheet assets)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
1 Financial guarantees (FinGuar KPI)* 0.0% N/A N/A N/A 0.0% N/A N/A N/A 2.6% 1.3% 0.0% 0.0% 0.3%
2 Assets under management (AuM KPI)** N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Denominator used is total flow of Financial guarantees
** Assets under management are as from 2025 reported in the specific templates foreseen for asset managers

398 Annual Report KBC Group 2024
KBC as a credit institution – KPI off-balance sheet exposures (stock - Capex based) – PART 1
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2024
% (compared to total eligible off-balance sheet assets)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
1 Financial guarantees (FinGuar KPI)* 4.1% 2.2% 0.0% 0.1% 0.4% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Assets under management (AuM KPI)** N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Denominator used is total Financial guarantees
** Assets under management are as from 2025 reported in the specific templates foreseen for asset managers
KBC as a credit institution – KPI off-balance sheet exposures (stock - Capex based) – PART 2
r s t u
v w x z aa ab ac ad ae
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
31-12-2024
% (compared to total eligible off-balance sheet
assets)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
1 Financial guarantees (FinGuar KPI)* 0.0% N/A N/A N/A 0.0% N/A N/A N/A 4.2% 2.2% 0.0% 0.1% 0.4%
2 Assets under management (AuM KPI)** N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Denominator used is total Financial guarantees
** Assets under management are as from 2025 reported in the specific templates foreseen for asset managers

399Annual Report KBC Group 2024
KBC as a credit institution – KPI off-balance sheet exposures (flow - Capex based) – PART 1
a b c d e
f g h i j k l m n o p q
Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
31-12-2024
% (compared to flow of total eligible off-balance sheet
assets)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
Of which Use
of proceeds
Of which
enabling
1 Financial guarantees (FinGuar KPI)* 3.2% 2.0% 0.0% 0.1% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A N/A 0.0% N/A N/A N/A
2 Assets under management (AuM KPI)** N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Denominator used is total flow of Financial guarantees
** Assets under management are as from 2025 reported in the specific templates foreseen for asset managers
KBC as a credit institution – KPI off-balance sheet exposures (flow - Capex based) – PART 2
r s t u
v w x z aa ab ac ad ae
Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM+CCA+WTR+CE+PPC+BIO)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
31-12-2024
% (compared to flow of total eligible off-balance
sheet assets)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors
(Taxonomy-aligned)
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
enabling
Of which
Use of
proceeds
Of which
transitio-
nal
Of which
enabling
1 Financial guarantees (FinGuar KPI)* 0.0% N/A N/A N/A 0.0% N/A N/A N/A 3.2% 2.0% 0.0% 0.1% 0.3%
2 Assets under management (AuM KPI)** N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
* Denominator used is total flow of Financial guarantees
** Assets under management are as from 2025 reported in the specific templates foreseen for asset managers

400 Annual Report KBC Group 2024
KBC as a credit institution – nuclear and fossil gas related activities (further referred to as ‘template 1’)
NUCLEAR ENERGY RELATED ACTIVITIES
1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. NO
2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production, as well as their safety upgrades, using best available technologies.
YES
3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
YES
FOSSIL GAS RELATED ACTIVITIES
4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. YES
5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. YES
6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. YES

401Annual Report KBC Group 2024
KBC as a credit institution – nuclear and fossil gas related activities – taxonomy aligned economic activities (denominator) - Turnover based
GAR stock GAR flow Financial guarantees KPI
31-12-2024
Economic activities
(amounts in millions of EUR)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
36 0.0% 36 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 1 0.0% 1 0.0% 0 0.0%
4
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
5
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the applicable KPI
992 0.5% 971 0.5% 21 0.0% 390 0.9% 381 0.8% 9 0.0% 159 1.4% 158 1.4% 0 0.0%
8 Total applicable KPI 1 028 0.5% 390 0.9% 159 1.4%
KBC as a credit institution – nuclear and fossil gas related activities – taxonomy aligned economic activities (denominator) – Capex based
GAR stock GAR flow Financial guarantees KPI
31-12-2024
Economic activities
(amounts in millions of EUR)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
55 0.0% 55 0.0% 0 0.0% 1 0.0% 1 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
4
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
5
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the applicable KPI
835 0.4% 804 0.4% 31 0.0% 258 0.6% 241 0.5% 17 0.0% 251 2.2% 251 2.2% 0 0.0%
8 Total applicable KPI 890 0.4% 258 0.6% 251 2.2%

402 Annual Report KBC Group 2024
KBC as a credit institution – nuclear and fossil gas related activities – taxonomy aligned economic activities (numerator) - Turnover based
GAR stock GAR flow Financial guarantees KPI
31-12-2024
Economic activities
(amounts in millions of EUR)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
36 3.5% 36 3.6% 0 0.0% 0 0.1% 0 0.1% 0 0.0% 1 0.5% 1 0.5% 0 0.0%
4
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
5
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in
rows 1 to 6 above in the numerator of the applicable KPI
992 96.5% 971 96.4% 21 100.0% 390 99.9% 381 99.9% 9 100.0% 159 99.5% 158 99.5% 0 100.0%
8
Total amount and proportion of taxonomy-aligned economic activities in the numerator of
the applicable KPI
1 028 100.0% 1 008 100.0% 21 100.0% 390 100.0% 381 100.0% 9 100.0% 159 100.0% 159 100.0% 0 100.0%
KBC as a credit institution – nuclear and fossil gas related activities – taxonomy aligned economic activities (numerator) – Capex based
GAR stock GAR flow Financial guarantees KPI
31-12-2024
Economic activities
(amounts in millions of EUR)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
55 6.2% 55 6.4% 0 0.0% 1 0.3% 1 0.3% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
4
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
5
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in
rows 1 to 6 above in the numerator of the applicable KPI
835 93.8% 804 93.6% 31 100.0% 258 99.7% 241 99.7% 17 100.0% 251 100.0% 251 100.0% 0 100.0%
8
Total amount and proportion of taxonomy-aligned economic activities in the numerator of
the applicable KPI
890 100.0% 859 100.0% 31 100.0% 258 100.0% 242 100.0% 17 100.0% 251 100.0% 251 100.0% 0 100.0%

403Annual Report KBC Group 2024
KBC as a credit institution – nuclear and fossil gas related activities – taxonomy-eligible but not taxonomy-aligned economic activities - Turnover based
GAR stock GAR flow Financial guarantees KPI
31-12-2024
Economic activities
(amounts in millions of EUR)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3 0.0% 3 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
76 0.0% 76 0.0% 0 0.0% 11 0.0% 11 0.0% 0 0.0% 2 0.0% 2 0.0% 0 0.0%
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
84 668 40.5% 84 654 40.5% 14 0.0% 10 892 24.2% 10 881 24.2% 11 0.0% 152 1.3% 152 1.3% 0 0.0%
8
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activities in the denominator of the applicable KPI
84 747 40.5% 84 733 40.5% 14 0.0% 10 903 24.2% 10 892 24.2% 11 0.0% 154 1.3% 154 1.3% 0 0.0%
KBC as a credit institution – nuclear and fossil gas related activities – taxonomy-eligible but not taxonomy-aligned economic activities – Capex based
GAR stock GAR flow Financial guarantees KPI
31-12-2024
Economic activities
(amounts in millions of EUR)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
3 0.0% 3 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 1 0.0% 1 0.0% 0 0.0%
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
76 0.0% 76 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 3 0.0% 3 0.0% 0 0.0%
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1 0.0% 1 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
85 017 40.7% 84 983 40.6% 34 0.0% 11 127 24.7% 11 115 24.7% 11 0.0% 220 1.9% 220 1.9% 0 0.0%
8
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activities in the denominator of the applicable KPI
85 097 40.7% 85 063 40.7% 34 0.0% 11 127 24.7% 11 116 24.7% 11 0.0% 224 1.9% 224 1.9% 0 0.0%

404 Annual Report KBC Group 2024
KBC as a credit institution – nuclear and fossil gas related activities – taxonomy non-eligible activities - Turnover based
31-12-2024
Economic activities
(amounts in millions of EUR)
GAR stock GAR flow Financial guarantees
KPI
Row
Amount % Amount % Amount %
1 Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI N/A N/A N/A N/A N/A N/A
2 Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0% 0 0.0%
3 Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0% 1 0.0%
4 Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 1 0.0% 0 0.0% 3 0.0%
5 Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0% 0 0.0%
6 Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0% 0 0.0%
7 Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 123 290 59.0% 33 732 74.9% 11 161 97.2%
8 Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI 123 290 59.0% 33 732 74.9% 11 166 97.2%
KBC as a credit institution – nuclear and fossil gas related activities – taxonomy non-eligible activities - Capex based
31-12-2024
Economic activities
(amounts in millions of EUR)
GAR stock GAR flow Financial guarantees
KPI
Row
Amount % Amount % Amount %
1 Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI N/A N/A N/A N/A N/A N/A
2 Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0% 0 0.0%
3 Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0% 1 0.0%
4 Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 1 0.0% 0 0.0% 3 0.0%
5 Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0% 0 0.0%
6 Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
123 078 58.9% 33 631 74.7% 11 000 95.8%
8 Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI 123 078 58.9% 33 631 74.7% 11 005 95.8%

405Annual Report KBC Group 2024
KBC as a (re)insurance company – Green underwriting
Substantial contribution to climate change
adaptation
DNSH (Do Not Significant Harm)
Absolute
premiums
31-12-2024
(2)
Proportion of
premiums
31-12-2024
(3)
Proportion of
premiums
31-12-2023
(4)
Climate
change
mitigation
(5)
Water and
marine
resources
(6)
Circular
economy
(7)
Pollution
(8)
Biodiversity and
ecosystems
(9)
Minimum
safeguards
(10)
Economic activities (1) in millions of
EUR
% % Y/N Y/N Y/N Y/N Y/N Y/N
A.1 Non-life insurance and reinsurance underwriting taxonomy-aligned activities (environmentally sustainable) 43 1.7%
6.6%
Y Y Y Y Y Y
A.1.1 of which reinsured - 33 N/A N/A Y Y Y Y Y Y
A.1.2 of which stemming from reinsurance activity 2 0.1% 0.1% Y Y Y Y Y Y
A.1.2.1. of which reinsured (retrocession) -1 N/A N/A Y Y Y Y Y Y
A.2 Non-life insurance and reinsurance underwriting taxonomy-eligible but not environmentally sustainable activities (not taxonomy-
aligned activities)
277 10.8% 7.7% N/A N/A N/A N/A N/A N/A
B Non-life insurance and reinsurance underwriting taxonomy-non-eligible activities 2 244 87.5%
85.7%
N/A N/A N/A N/A N/A N/A
Total (A.1+A.2+B) 2 564 100%
100%
N/A N/A N/A N/A N/A N/A

406 Annual Report KBC Group 2024
KBC as a (re)insurance company – Green investment ratio
(in millions of EUR, unless otherwise mentioned) 2024
The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative
to the value of total assets covered by the KPI, with following weights for investments in undertakings per below:
The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with
Taxonomy-aligned economic activities, with following weights for investments in undertakings per below:
Turnover-based: 1.4% Turnover-based: 371
Capital expenditures-based: 1.8% Capital expenditures-based: 479
The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities. The monetary value of assets covered by the KPI. Excluding investments in sovereign entities.
Coverage ratio: 97.2% Coverage: 26 533
Additional, complementary disclosures: breakdown of denominator of the KPI
The percentage of derivatives relative to total assets covered by the KPI. 0.2% The value in monetary amounts of derivatives. 41
The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: 31.2% For non-financial undertakings: 8 286
For financial undertakings: 15.7% For financial undertakings: 4 157
The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: 28.4% For non-financial undertakings: 7 523
For financial undertakings:13.4% For financial undertakings: 3 545
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: 10.4% For non-financial undertakings: 2 749
For financial undertakings: 15.0% For financial undertakings: 3 981
The proportion of exposures to other counterparties and assets over total assets covered by the KPI: 27.6%
Value of exposures to other counterparties and assets: 7 320
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy
holders: 37.4%
Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the
investment risk is borne by the policy holders: 9 931
The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI: 85.2%
Value of all the investments that are funding economic activities that are not Taxonomy-eligible: 22 596
=The value of all the investments that are funding Taxonomy- eligible economic activities, but not Taxonomy-aligned relative to the value of total assets covered by the KPI: 13.4%
Value of all the investments that are funding Taxonomy- eligible economic activities, but not Taxonomy- aligned: 3 567
Additional, complementary disclosures: breakdown of numerator of the KPI
The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: For non-financial undertakings:
Turnover-based: 1.1% Turnover-based: 292
Capital expenditures-based: 1.5% Capital expenditures-based: 397
For financial undertakings: For financial undertakings:
Turnover-based: 0.3% Turnover-based: 78
Capital expenditures-based: 0.3% Capital expenditures-based: 82
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy
holders, that are directed at funding, or are associated with, Taxonomy-aligned:
Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the
investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned:
Turnover-based: 0.6% Turnover-based: 149
Capital expenditures-based: 0.6% Capital expenditures-based: 169
The proportion of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI: Value of Taxonomy-aligned exposures to other counterparties and assets:
Turnover-based: 0.0% Turnover-based: 0
Capital expenditures-based: 0.0% Capital expenditures-based: 0
Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities – provided ‘do-not-significant-harm’(DNSH) and social safeguards positive assessment:
(1) Climate change mitigation
Turnover: 95.0%
CapEx: 96.0%
Transitional activities: Turnover: 5.6% Capex: 8.4%
Enabling activities: Turnover: 45.5% Capex: 41.3%
(2) Climate change adaptation
Turnover: 5.0%
CapEx: 4.0%
Enabling activities: Turnover: 3.5% Capex: 10.1%
(3) The sustainable use and protection of water of marine resources
Turnover: N/A
CapEx: N/A
Enabling activities: Turnover: N/A
Capex: N/A
(4) The transition to a circular economy
Turnover: N/A
CapEx: N/A
Enabling activities: Turnover: N/A
Capex: N/A
(5) Pollution prevention and control
Turnover: N/A
CapEx: N/A
Enabling activities: Turnover: N/A
Capex: N/A
(6) The protection and restoration of biodiversity and ecosystems
Turnover: N/A
CapEx: N/A
Enabling activities: Turnover N/A
Capex: N/A

407Annual Report KBC Group 2024
KBC as a (re)insurance company – nuclear and fossil gas related activities (further referred to as ‘template 1’)
NUCLEAR ENERGY RELATED ACTIVITIES
1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. NO
2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production, as well as their safety upgrades, using best available technologies.
YES
3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
YES
FOSSIL GAS RELATED ACTIVITIES
4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. YES
5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. YES
6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. YES

408 Annual Report KBC Group 2024
KBC as a (re)insurance company – nuclear and fossil gas related activities – taxonomy aligned economic activities (denominator)
Green Investment Ratio (Turnover based) Green Investment Ratio (Capex based)
31-12-2024
Economic activities
(amounts in millions of EUR)
Total Climate change mitigation
(CCM)
Climate change adaptation
(CCA)
Total Climate change mitigation
(CCM)
Climate change adaptation
(CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
4
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
5
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the applicable KPI
371 1.4% 352 1.3% 19 0.1% 479 1.8% 460 1.7% 19 0.1%
8 Total applicable KPI 371 1.4% 352 1.3% 19 0.1% 479 1.8% 460 1.7% 19 0.1%
KBC as a (re)insurance company – nuclear and fossil gas related activities – taxonomy aligned economic activities (numerator)
Green Investment Ratio (Turnover based) Green Investment Ratio (Capex based)
31-12-2024
Economic activities
(amounts in millions of EUR)
Total Climate change mitigation
(CCM)
Climate change adaptation
(CCA)
Total Climate change mitigation
(CCM)
Climate change adaptation
(CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
4
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
5
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the numerator of the applicable KPI
371 100.0% 352 100.0% 19 100.0% 479 100.0% 460 100.0% 19 100.0%
8
Total amount and proportion of taxonomy-aligned economic activities in the
numerator of the applicable KPI
371 100.0% 352 100.0% 19 100.0% 479 100.0% 460 100.0% 19 100.0%

409Annual Report KBC Group 2024
KBC as a (re)insurance company – nuclear and fossil gas related activities – taxonomy-eligible but not taxonomy-aligned activities
31-12-2024
Economic activities
(amounts in millions of EUR)
Green Investment Ratio
(turnover based)
Green Investment Ratio
(Capex based)
Row
Amount % Amount %
1 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI N/A N/A N/A N/A
2 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0%
3 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 1 0.0% 0 0.0%
4 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 6 0.0% 0 0.0%
5 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 8 0.0% 0 0.0%
6 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.0% 0 0.0%
7 Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 3 552 13.4% 3 263 12.3%
8 Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI
3 567 13.4% 3 263 12.3%
KBC as a (re)insurance company – nuclear and fossil gas related activities – taxonomy non-eligible economic activities
31-12-2024
Economic activities
(amounts in millions of EUR)
Green Investment Ratio
(turnover based)
Green Investment Ratio
(Capex based)
Row
Amount % Amount %
1 Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII N/A N/A N/A N/A
2 Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
3 Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
4 Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
5 Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
6 Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
7 Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPII 22 596 85.2% 22 791 85.9%
8 Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI 22 596 85.2% 22 791 85.9%

410 Annual Report KBC Group 2024
KBC as an asset manager – asset management KPI
(in millions of EUR, unless otherwise mentioned) 2024
The weighted average value of all the investments that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the
KPI, with following weights for investments in undertakings per below:
The weighted average value of all the investments that are directed at funding, or are associated with Taxonomy-aligned economic activities, with
following weights for investments in undertakings per below:
Turnover-based: 1.8% Turnover-based: 1 604
Capital expenditures-based: 2.6% Capital expenditures-based: 2 270
The percentage of assets covered by the KPI relative to total investments (total AuM). Excluding investments in sovereign entities. The monetary value of assets covered by the KPI. Excluding investments in sovereign entities.
Coverage ratio: 100% Coverage: 87 651
Additional, complementary disclosures: breakdown of denominator of the KPI
The percentage of derivatives relative to total assets covered by the KPI. 0.9% The value in monetary amounts of derivatives. 798
The proportion of exposures to EU financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to EU financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: 7.2% For non-financial undertakings: 6 274
For financial undertakings: 1.2% For financial undertakings: 1 037
The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: 46.5% For non-financial undertakings: 40 757
For financial undertakings: 13.3% For financial undertakings: 11 660
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: 15.0% For non-financial undertakings: 13 128
For financial undertakings: 10.6% For financial undertakings: 9 330
The proportion of exposures to other counterparties and assets over total assets covered by the KPI: 5.3% Value of exposures to other counterparties and assets: 4 667
The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI: 91.3% Value of all the investments that are funding economic activities that are not Taxonomy-eligible: 79 982
The value of all the investments that are funding Taxonomy- eligible economic activities, but not Taxonomy-aligned relative to the value of total assets covered by the KPI: 6.9% Value of all the investments that are funding Taxonomy- eligible economic activities, but not Taxonomy- aligned: 6 065
Additional, complementary disclosures: breakdown of numerator of the KPI
The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: For non-financial undertakings:
Turnover-based: 1.6% Turnover-based: 1 403
Capital expenditures-based:2.3% Capital expenditures-based: 2 057
For financial undertakings: For financial undertakings:
Turnover-based: 0.2% Turnover-based: 201
Capital expenditures-based: 0.2% Capital expenditures-based: 213
The proportion of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI: Value of Taxonomy-aligned exposures to other counterparties and assets:
Turnover-based: 0.0% Turnover-based: 0
Capital expenditures-based: 0.0% Capital expenditures-based:0
Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities::
(1) Climate change mitigation
Turnover: 96.4%
CapEx: 95.0%
Transitional activities: Turnover: 4.9%
Capex: 7.0%
Enabling activities:
Turnover: 56.6%
Capex: 50.5%
(2) Climate change adaptation
Turnover: 3.6%
CapEx: 5.0%
Enabling activities: Turnover: 0.4%
Capex: 0.5%
(3) The sustainable use and protection of water of marine resources
Turnover: N/A
CapEx: N/A
Enabling activities: Turnover: N/A
Capex: N/A
(4) The transition to a circular economy
Turnover: N/A
CapEx: N/A
Enabling activities: Turnover: N/A
Capex: N/A
(5) Pollution prevention and control
Turnover: N/A
CapEx: N/A
Enabling activities: Turnover: N/A
Capex: N/A
(6) The protection and restoration of biodiversity and ecosystems
Turnover: N/A
CapEx: N/A
Enabling activities: Turnover: N/A
Capex: N/A

411Annual Report KBC Group 2024
KBC as an asset manager – nuclear and fossil gas related activities (further referred to as ‘template 1’)
NUCLEAR ENERGY RELATED ACTIVITIES
1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. NO
2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production, as well as their safety upgrades, using best available technologies.
YES
3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
YES
FOSSIL GAS RELATED ACTIVITIES
4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. YES
5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. YES
6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. YES

412 Annual Report KBC Group 2024
KBC as an asset manager – nuclear and fossil gas related activities – taxonomy aligned economic activities (denominator)
Asset Management KPI (Turnover based) Asset Management KPI (Capex based)
31-12-2024
Economic activities
(amounts in millions of EUR)
Total Climate change mitigation
(CCM)
Climate change adaptation
(CCA)
Total Climate change mitigation
(CCM)
Climate change adaptation
(CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
4
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
5
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the applicable KPI
1 604 1.8% 1 546 1.8% 58 0.1% 2 270 2.6% 2 156 2.5% 114 0.1%
8 Total applicable KPI 1 604 1.8% 1 546 1.8% 58 0.1% 2 270 2.6% 2 156 2.5% 114 0.1%
KBC as an asset manager – nuclear and fossil gas related activities – taxonomy aligned economic activities (numerator)
Asset Management KPI (Turnover based) Asset Management KPI (Capex based)
31-12-2024
Economic activities
(amounts in millions of EUR)
Total Climate change mitigation
(CCM)
Climate change adaptation
(CCA)
Total Climate change mitigation
(CCM)
Climate change adaptation
(CCA)
Row
Amount % Amount % Amount % Amount % Amount % Amount %
1
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
4
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
5
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6
Amount and proportion of taxonomy-aligned economic activity referred to in section
4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the numerator of the applicable KPI
1 604 100.0% 1 546 100.0% 58 100.0% 2 270 100.0% 2 156 100.0% 114 5.0%
8
Total amount and proportion of taxonomy-aligned economic activities in the
numerator of the applicable KPI
1 604 100.0% 1 546 100.0% 58 100.0% 2 270 100.0% 2 156 100.0% 114 5.0%

413Annual Report KBC Group 2024
KBC as an asset manager – nuclear and fossil gas related activities – taxonomy-eligible but not taxonomy-aligned activities
31-12-2024
Economic activities
(amounts in millions of EUR)
Asset Management KPI
(turnover based)
Asset Management KPI
(Capex based)
Row
Amount % Amount %
1 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI N/A N/A N/A N/A
2 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0,0% 0 0,0%
3 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 2 0,0% 0 0,0%
4 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 33 0,0% 0 0,0%
5 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 48 0,1% 0 0,0%
6 Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0,0% 0 0,0%
7 Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 5.982 6,8% 6.139 7,0%
8 Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI
6.065 6,9% 6.139 7,0%
KBC as an asset manager – nuclear and fossil gas related activities – taxonomy non-eligible economic activities
31-12-2024
Economic activities
(amounts in millions of EUR)
Asset Management KPI
(turnover based)
Asset Management KPI
(Capex based)
Row
Amount % Amount %
1 Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII N/A N/A N/A N/A
2 Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
3 Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
4 Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
5 Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
6 Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPII 0 0.0% 0 0.0%
7 Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPII 79 982 91.3% 79 242 90.4%
8 Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI 79 982 91.3% 79 242 90.4%

414 Annual Report KBC Group 2024
Management certification
“I, Bartel Puelinckx, Chief Financial Officer of the KBC group, certify on behalf of the Executive Committee of KBC Group NV
that, to the best of my knowledge, the financial statements, which are based on the relevant standards for annual accounts,
true and fairly present in all material respects the assets and liabilities, the financial condition and results of KBC Group NV
and the undertakings included in the consolidation, and that the annual report provides a fair overview of the development,
the results and the position of KBC Group NV and the undertakings included in the consolidation, as well as an overview of
the main risks and uncertainties to which they are exposed and that it is prepared in accordance with sustainability reporting
standards referred to in Article 29 ter of Directive 2013/34/EU and with the specifications adopted pursuant to Article 8(4) of
Regulation (EU) 2020/852 of the European Parliament and of the Council.”
Contact details and calendar
Investor Relations Office
Kurt De Baenst (General Manager, Investor Relations Office)
IR4U@kbc.be
KBC Global Services NV, Investor Relations Office, Havenlaan 2, 1080 Brussels, Belgium
Press
Katleen Dewaele (General Manager, Corporate & Internal Communication/Company Spokesperson)
pressofficekbc@kbc.be
KBC Global Services NV, Corporate Communication, Havenlaan 2, 1080 Brussels, Belgium
Corporate Sustainability
Filip Ferrante (Senior General Manager, Corporate Sustainability)
csr.feedback@kbc.be
KBC Global Services NV, Corporate Sustainability, Havenlaan 2, 1080 Brussels, Belgium
Calendar
Publication of the Annual Report, the Sustainability Report and the Risk Report for 2024 31 March 2025
General Meeting of Shareholders (agenda available at www.kbc.com) 30 April 2025
Earnings release for 1Q 2025 15 May 2025
Earnings release for 2Q 2025 7 August 2025
Earnings release for 3Q 2025 13 November 2025
The most up-to-date version of the financial calendar is available at www.kbc.com.
Editor-in-chief: KBC Investor Relations Office, Havenlaan 2, 1080 Brussels, Belgium
Sub-editing, translation, concept and design: KBC Communication Division, Brusselsesteenweg 100, 3000 Leuven, Belgium
Printer: Van der Poorten, Diestsesteenweg 624, 3010 Leuven, Belgium
Publisher: KBC Global Services NV, Havenlaan 2, 1080 Brussels, Belgium
This annual report has been printed on eco-friendly and FSC®-certified paper.
The pre-press, printing and post-press operations for this annual report are all climate neutral.

415Annual Report KBC Group 2024

416 Annual Report KBC Group 2024

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Sustainability
Report
KBC Group
2024
Risk
sk
k
Rep
Re
Rep
R
Rep
ort
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t
ort
KBC G
KBC Gr
KBC Gr
BC Gr
oup
ou
up
up
20
20
20
20
0
20
2
4
2024 -2025
Report to Society
building the future
together