Belfius Sale Likely to Raise Banking Costs for Consumers
The Belgian government’s search for a buyer for 20% of state-owned bank Belfius formally begins Monday, June 22, in a sale expected to generate approximately €2 billion for the federal treasury. But while savers have been reassured their deposits remain safe, market experts are warning that the entry of a commercial partner will likely lead to higher banking costs for consumers.
What Is Being Sold
The federal government, through the Federal Participation and Investment Company (SFPIM), is seeking a buyer for a 20% stake in Belfius Bank & Insurance. The 20% stake valued at €2 billion implies a total valuation of approximately €10 billion for the bank, representing a price-to-earnings ratio of about 8.6 based on Belfius’s record 2025 net profit of €1.16 billion, according to Het Laatste Nieuws.
The government has chosen a private placement rather than an initial public offering (IPO), meaning ordinary Belgian citizens will not be able to purchase shares directly on the stock market. Finance Minister Jan Jambon (N-VA) stated that “a private placement was chosen because an IPO is more complex, more dependent on market conditions, and puts more pressure on short-term results,” as reported by PAL. The goal is to complete the sale before the end of 2026.
Why Now?
Several factors are driving the privatization. Belgium faces a significant budget shortfall, and the €2 billion from the sale provides immediate cash. Increased NATO defense commitments require additional funding, and European rules discourage governments from holding state banks, viewing it as unfair competition to private banks. The government also views owning a bank as not a core government function, as VRT NWS reported.
Belfius has been performing exceptionally well. The bank posted a record net profit of €1.16 billion in 2025, up 3% from €1.127 billion in 2024. Total savings and investments exceeded €200 billion for the first time, and the bank granted a record €15.9 billion in new long-term loans, according to Belga News Agency.
Consumer Impact: Higher Fees Ahead
The most significant concern for ordinary Belgians is the likely increase in banking fees. Pascal Paepen, stock market expert at HLN, warned that Belgian banking services are currently relatively cheap compared to international standards, but that will change with a commercial partner.
“The chance is very high that costs will rise,” Paepen said. “If a commercial party steps in — whether it’s a private equity group like CVC Capital Partners, or a strategic player like ING or Rabobank — they will want to optimize the result.”
Paepen also noted that a renewed bank tax and rising cybersecurity costs will ultimately be passed on to consumers. “People often cheer such a tax, but don’t realize that the consumer ultimately pays for it through more expensive services,” he said.
On deposit safety, Paepen reassured savers: “You absolutely don’t need to lose sleep over it: your savings remain just as safe.” The legal deposit guarantee of €100,000 per person (€200,000 per family) applies regardless of ownership structure.
A Government Trade-Off
The sale represents a clear trade-off for the government: an immediate €2 billion infusion versus reduced dividend income going forward. Belfius is the largest contributor to the state treasury, having paid €945 million in total to the federal government in 2024, including an ordinary dividend of €445 million. The government is choosing a lump sum now rather than smaller dividends over the next 10 to 15 years.
Potential Buyers and Political Dimensions
Private equity group CVC Capital Partners has expressed interest, and other potential buyers include strategic players such as ING or Rabobank. The government is seeking an investor who can “actively contribute to the further development of Belfius.”
The sale carries political implications. N-VA is driving the privatization, consistent with its pro-market ideology, while CD&V previously blocked a sale in 2018 over the controversial Arco-dossier. The current De Wever government has prioritized fiscal consolidation, and the Belfius sale is seen as a key component of that strategy.
What to Watch For
The formal search for an investor begins Monday via SFPIM. Key questions remain: Which investor will acquire the stake? Will the €2 billion target be achieved? And most importantly for consumers, what specific fee increases can be expected, and when? With the target to complete the sale before the end of 2026, Belgian banking customers may soon feel the impact of this privatization in their monthly statements.