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KBC Group NV (KBCSY)
OTHER OTC:KBCSY
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KBC Group
(OTC:KBCSY)
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Rating:75Outperform
Price Target:
$80.00
â–²(29.62% Upside)
KBC Group's overall stock score reflects strong technical momentum and positive earnings call guidance, which are the most significant factors. Financial performance is solid but faces challenges with declining revenue and cash flow. The valuation is reasonable, and the attractive dividend yield adds to the stock's appeal.
Positive Factors
Strong Profitability
KBC's strong profitability and efficient operations, as evidenced by healthy profit margins and return on equity, indicate a robust business model capable of sustaining growth and competitive positioning over the long term.
Technological Advancements
The introduction of Kate 2.0 enhances KBC's digital strategy, improving operational efficiency and customer service. This technological advancement supports long-term competitiveness in the financial services industry.
Solid Solvency and Liquidity
KBC's strong solvency and liquidity positions provide a stable financial foundation, ensuring the company can withstand economic fluctuations and pursue growth opportunities.
Negative Factors
Potential Regulatory Changes
Potential regulatory changes pose a risk to KBC's future earnings, as new government measures could increase costs or limit revenue growth, impacting long-term financial performance.
Declining Revenue
A decline in revenue suggests potential challenges in maintaining market share or pricing power, which could impact long-term growth and profitability if not addressed.
Cash Flow Challenges
Significant decline in free cash flow growth indicates potential liquidity issues, which could limit KBC's ability to invest in growth initiatives or manage debt effectively over time.
KBC Group (KBCSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.87B
Dividend Yield4.01%
Average Volume (3M)996.00
Price to Earnings (P/E)14.1
Beta (1Y)0.67
Revenue Growth-5.87%
EPS Growth28.80%
CountryUS
Employees32,764
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.43
Shares Outstanding835,325,560
10 Day Avg. Volume0
30 Day Avg. Volume996
Financial Highlights & Ratios
PEG Ratio1.56
Price to Book (P/B)1.23
Price to Sales (P/S)1.18
P/FCF Ratio3.52
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue1.93
Enterprise Value/Gross Profit3.86
Enterprise Value/Ebitda9.60
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
KBC Group Business Overview & Revenue Model
Company DescriptionKBC Group is a leading integrated bank-insurer headquartered in Brussels, Belgium. The company operates primarily in Belgium and Central and Eastern Europe, providing a wide range of financial services including retail banking, insurance, and asset management. KBC offers products such as personal loans, mortgages, credit cards, investment funds, life and non-life insurance, as well as corporate banking services. The group's focus is on delivering comprehensive financial solutions that cater to the needs of both individual and corporate clients.
How the Company Makes MoneyKBC Group generates revenue through various channels, primarily from its banking and insurance operations. The bank earns interest income from loans and advances made to customers, which constitutes a significant portion of its revenue. Additionally, KBC receives fees and commissions from services such as asset management, investment advisory, and transaction services. The insurance segment contributes through premiums collected from policyholders and investment income from the management of insurance funds. Furthermore, KBC has established partnerships with various businesses and financial institutions, enhancing its ability to cross-sell products and expand its customer base, which further strengthens its revenue streams.
KBC Group Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant increases in net results, loan growth, and insurance performance. The company has adjusted its guidance upward, indicating confidence in its operations. However, challenges such as the impact of inflation-linked bonds and potential regulatory changes are noted. Overall, the positive aspects significantly outweigh the challenges.Q3-2025 Updates
Positive Updates
Strong Net Results
KBC reported a net result of EUR 1.02 billion for the third quarter of 2025, driven by balanced income from both net interest income and non-interest income.
Increased Guidance
Guidance for net interest income increased from at least EUR 5.85 billion to at least EUR 5.95 billion, with total income expected to grow by at least 7.5%.
Solid Loan Growth
Loan growth was reported at 1.6% for the quarter and 8% year-on-year, with a year-to-date growth of 6.3%.
Strong Insurance Performance
The insurance business showed strong performance with a combined ratio of 87% and life insurance up by 29% for the quarter.
Technological Advancements
The launch of Kate 2.0, a large language model, is expected to further increase efficiency and customer interactions.
Robust Cost Management
Costs are under control with a cost-to-income ratio of 41%, down from 43% the previous year.
Solid Solvency and Liquidity
The solvency position is strong at 14.9%, with liquidity ratios at 158% and 134% for LCR and NSFR respectively.
Negative Updates
Impact of Inflation-Linked Bonds
Lower net interest income from inflation-linked bonds, though partially offset by other factors.
Challenges in Hungary
Extended windfall tax in Hungary due to high policy rates, potentially impacting future earnings.
Potential Regulatory Changes
Uncertainty around potential government measures that could impact earnings, including bank taxes and loyalty premiums.
Company Guidance
During KBC Group's third-quarter 2025 earnings call, the company provided robust guidance by increasing its income expectations. The guidance for net interest income was raised to at least EUR 5.95 billion, reflecting a strong performance in net interest income despite lower returns on inflation-linked bonds. The company also projected a 7.5% total income growth, maintaining cost growth at a maximum of 2.5%, which would result in a superior 'jaw' of at least 5%. This indicates strong income growth outpacing cost increases. The credit cost ratio was recorded at an excellent 12 basis points, significantly better than the long-term average, and the solvency position remained solid at 14.9%. Additionally, KBC highlighted the performance of its digital strategy, with its digital assistant Kate achieving 70% autonomy and expecting further improvements with the launch of Kate 2.0.KBC Group Financial Statement Overview
Summary
KBC Group shows strong profitability and operational efficiency with healthy profit margins and return on equity. However, declining revenue and free cash flow growth pose risks. The balance sheet remains stable, but increasing leverage and cash flow challenges need attention.Income Statement
KBC Group's income statement shows a strong gross profit margin of 55.45% for the TTM, indicating efficient cost management. However, the company experienced a revenue decline of 1.93% in the TTM, which is a concern. Despite this, the net profit margin improved to 17.20%, reflecting enhanced profitability. EBIT and EBITDA margins also show improvement, suggesting operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 1.01, indicating moderate leverage. Return on equity stands at 14.33%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. However, the increase in total debt over the years warrants attention.70
Positive
Cash Flow
Cash flow analysis shows a significant decline in free cash flow growth by 49.92% in the TTM, which is a major concern. The operating cash flow to net income ratio is low at 0.03, indicating potential cash flow challenges. However, the free cash flow to net income ratio is strong at 3.89, suggesting good cash generation relative to net income.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.72B | 25.32B | 25.47B | 16.13B | 9.35B | 8.95B |
| Gross Profit | 11.84B | 11.15B | 10.77B | 10.06B | 7.48B | 7.15B |
| EBITDA | 4.76B | 4.40B | 4.83B | 4.02B | 3.90B | 2.43B |
| Net Income | 3.68B | 3.42B | 3.40B | 2.82B | 2.61B | 1.44B |
Balance Sheet | ||||||
| Total Assets | 383.34B | 373.05B | 346.92B | 354.55B | 340.35B | 320.74B |
| Cash, Cash Equivalents and Short-Term Investments | 28.44B | 46.83B | 34.53B | 51.43B | 40.66B | 24.59B |
| Total Debt | 26.98B | 27.96B | 26.21B | 18.98B | 20.09B | 18.92B |
| Total Liabilities | 356.32B | 348.74B | 322.66B | 332.73B | 317.27B | 299.21B |
| Stockholders Equity | 26.96B | 24.31B | 24.26B | 21.82B | 23.08B | 21.53B |
Cash Flow | ||||||
| Free Cash Flow | 3.12B | 8.47B | -21.55B | 10.85B | 13.11B | 25.37B |
| Operating Cash Flow | 4.51B | 9.85B | -20.19B | 11.77B | 14.04B | 26.37B |
| Investing Cash Flow | -3.73B | -86.00M | 1.98B | -4.96B | 822.00M | -7.25B |
| Financing Cash Flow | -1.12B | -1.69B | 5.02B | -3.38B | -448.00M | 451.00M |
KBC Group Technical Analysis
Positive
61.72
Price Trends
65.15
Positive
62.22
Positive
56.74
Positive
Market Momentum
1.47
Negative
68.88
Neutral
84.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBCSY, the sentiment is Positive. The current price of 61.72 is below the 20-day moving average (MA) of 68.10, below the 50-day MA of 65.15, and above the 200-day MA of 56.74, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 68.88 is Neutral, neither overbought nor oversold. The STOCH value of 84.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KBCSY.
KBC Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $87.22B | 12.15 | 12.18% | 3.77% | 2.91% | 33.77% | |
75 Outperform | $58.87B | 14.11 | 15.22% | 4.01% | -5.87% | 28.80% | |
75 Outperform | $87.09B | 13.46 | 11.99% | 3.11% | 1.79% | 30.93% | |
71 Outperform | $87.82B | 16.14 | 10.77% | 3.19% | -20.94% | -18.71% | |
69 Neutral | $91.43B | 12.57 | 19.89% | 9.77% | 11.82% | 3.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $108.94B | 15.88 | 9.14% | 2.31% | -2.84% | 25.48% |
* Financial Sector Average
KBCSY
KBC Group
70.73
34.06
92.88%
ITUB
Itau Unibanco
8.59
4.07
90.04%
LYG
Lloyds Banking
5.97
3.10
108.01%
MFG
Mizuho Financial
8.63
3.05
54.66%
PNC
PNC Financial
223.30
32.61
17.10%
USB
US Bancorp
56.11
10.79
23.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.