The net interest margin for the quarter under review amounted to 2.17%, up 6 basis points on the previous quarter and 12 basis points year-on-year (up 3 basis points and 9 basis points, respectively, excluding the recent acquisitions).
The insurance service result (insurance revenues before reinsurance – insurance service expenses before reinsurance + net result from reinsurance contracts held) amounted to EUR 172 million, compared to EUR 166 million recorded in the previous quarter and EUR 142 million in the year-earlier quarter. The insurance service result for the quarter under review breaks down into EUR 118 million for nonlife insurance and EUR 54 million for life insurance. The non-life insurance combined ratio for the first quarter of 2026 came to an excellent 84%, compared to 87% for full year 2025. Sales of non-life insurance products grew by 7% year-on-year, while life insurance sales were up 9% on the level recorded in the previous quarter and 15% on the level in the year-earlier quarter.
Operating expenses excluding bank and insurance taxes were down 1% quarter-on-quarter (partly seasonal effect) and up 10% year-on-year (down 3% and up 7%, respectively, excluding the recent acquisitions). Bank and insurance taxes amounted to EUR 549 million, since the first quarter of the year traditionally includes the bulk of the bank and insurance taxes for the entire year. The cost/income ratio for the first quarter of 2026 came to 44%, compared to 46% for full-year 2025. In that calculation, certain non-operating items have been excluded and bank and insurance taxes were spread evenly throughout the year. When excluding all bank and insurance taxes, the cost/income ratio for the quarter under review amounted to 41%, the same as for full-year 2025.
“We recorded a net profit of EUR 557 million in the first quarter of 2026. Compared to the previous quarter, our total income benefited from strong net interest income, higher insurance revenues, slightly higher net fee and commission income despite the geopolitical turmoil and increased net other income, while trading & fair value income and dividend income were down”, said Johan Thijs, Chief Executive Officer.
“The past few months have also seen us make considerable progress in implementing our strategy. We finalised the acquisitions of 365.bank in Slovakia and Business Lease in the Czech Republic and Slovakia. These acquisitions contributed EUR 13 million to profit in the first quarter of 2026. They had an impact of -0.5 percentage points on our capital position, bringing our unfloored fully loaded common equity ratio under Basel IV to a strong 14.4% at the end of March 2026. Our liquidity position remained very solid too, as illustrated by an LCR of 159% and an NSFR of 135%. As approved by the General Meeting of Shareholders on 7 May 2026, we will pay a final dividend of EUR 4.1 per share on 20 May 2026, bringing the total dividend for full-year 2025 to EUR 5.1 per share and the pay-out ratio to 60% of 2025 net profit”, he added.
“Our goal remains to be the reference bank‑insurer across all our core markets. We work towards achieving this ambition through a customer‑centric approach and a firm commitment to digital innovation, but most importantly based on the confidence our customers, employees, shareholders and other stakeholders place in us. That trust is deeply valued and something I am sincerely grateful for”, the CEO emphasized.
The full report can be found here.
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