KBC shares surged over 2% after the Belgian lender reported robust fourth-quarter results, including a €1 billion net profit and a proposed dividend hike to €5.10 per share for 2025. The bank's strong capital position and higher interest income drove the gains, lifting its stock as investors reacted positively to the improved outlook. Net profit for the quarter reached €1 billion, compared to €1.12 billion a year earlier, while full-year 2025 net profit rose 18% to €3.57 billion excluding one-offs.

The group also upgraded its earnings guidance, forecasting at least a 9.90% rise in total income for 2026 and net interest income of at least €6.73 billion. The proposed €5.10 dividend represents a significant payout increase, boosting the group's total gross dividend to 60% of full-year net profit. Completed acquisitions of 365.bank in Slovakia and Business Lease in the Czech Republic and Slovakia will reduce capital by about 50 basis points in Q1 2026, strengthening the balance sheet further. KBC's fully loaded CET1 ratio stood at 14.90% at year-end, reflecting a solid capital base despite a slight annual decline from 15%. Liquidity and net stable funding ratios were strong at 159% and 138%, respectively, underpinning the bank's stability. The results underscore KBC's resilience in a challenging environment, with the dividend increase and guidance upgrade providing clear value for investors.