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KBC Group
(OTC:KBCSY)
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Rating:67Neutral
Price Target:
$80.00
â–²(14.63% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by financial statement risks—especially the sharp deterioration in TTM cash flow and the step-up in leverage—despite solid profitability. Offsetting these concerns, the earnings call was upbeat with upgraded guidance and strong operating performance, while technicals are bullish (price above key moving averages and positive MACD) but somewhat extended. Valuation is supportive with a moderate P/E and an attractive dividend yield.
Positive Factors
Bancassurance diversification
KBC’s integrated bancassurance distribution combines banking deposits/loans with life and non‑life insurance sales, creating diversified, recurring revenue streams. Cross‑selling through branches and digital channels supports fee income and premiums, reducing single‑cycle dependence and improving long‑term revenue stability.
Negative Factors
Negative and volatile cash flow
Operating and free cash flow swung meaningfully negative on a TTM basis, reversing prior positive conversion. Persistent negative or volatile cash generation undermines self‑funding for growth, increases reliance on external funding, and constrains capital allocation decisions such as dividends or buybacks over the medium term.
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Positive Factors
Negative Factors
Bancassurance diversification
KBC’s integrated bancassurance distribution combines banking deposits/loans with life and non‑life insurance sales, creating diversified, recurring revenue streams. Cross‑selling through branches and digital channels supports fee income and premiums, reducing single‑cycle dependence and improving long‑term revenue stability.
Read all positive factors
KBC Group (KBCSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$60.04B
Dividend Yield4.12%
Average Volume (3M)3.98K
Price to Earnings (P/E)14.3
Beta (1Y)0.91
Revenue Growth3.71%
EPS Growth10.72%
CountryUS
Employees37,493
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.76
Shares Outstanding835,325,560
10 Day Avg. Volume9,511
30 Day Avg. Volume3,985
Financial Highlights & Ratios
PEG Ratio2.87
Price to Book (P/B)1.58
Price to Sales (P/S)1.88
P/FCF Ratio15.60
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.64
Revenue Forecast (FY)$15.57B
KBC Group Business Overview & Revenue Model
Company Description
KBC Group NV, a financial services conglomerate headquartered in Brussels, Belgium, offers a full spectrum of integrated banking and insurance solutions. Through its subsidiaries, the company primarily serves a diverse client base, including indiv...
How the Company Makes Money
KBC Group makes money mainly through a bancassurance model that generates earnings from both banking and insurance activities.
Banking revenue streams:
- Net interest income: KBC earns interest on loans (e.g., mortgages, consumer loans, and busin...
KBC Group Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance for Q2: robust profit (EUR 1,152m), high RoTE (18%), record fee income, AUM growth (+10% q/q), strong loan growth and inflows of core client funds. Management upgraded guidance (total income and NII) and highlighted disciplined cost control and solid capital/liquidity positions (CET1 14.4%). Challenges flagged were manageable one-offs (Hungary modification loss), higher bank taxes, margin pressure on mortgages and rising RWAs that require portfolio management. Overall the positives materially outweigh the negatives, though some items (inflation‑linked bond volatility, tax burden, RWA growth) reduce near‑term predictability.Positive Updates
Strong Quarterly Profit and Returns
Q2 net result EUR 1,152 million with return on tangible equity of 18%.
Negative Updates
One-off Hungary Modification Loss and Potential Reversals
Modification losses related to Hungary cap changes of EUR 42 million taken this quarter (after-tax one-offs totaled ~EUR 38 million); outcome depends on evolving Hungarian government policy and may be reversed if caps are reinstated.
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Q2-2026 Updates
Positive
Negative
Strong Quarterly Profit and Returns
Q2 net result EUR 1,152 million with return on tangible equity of 18%.
Read all positive updates
Company Guidance
KBC upgraded its 2026 outlook after a strong Q2: Q2 profit was EUR 1,152m (RoTE 18%) with NII of EUR 1,805m, prompting net interest income guidance to approximately EUR 7.05bn and total income growth guidance to ~11% (vs 9.9% previously); loan growth guidance was raised to at least 6% after lending volumes rose 2.8% QoQ (7.2% YoY; YTD 4.3%), core customer monies inflow was EUR 6bn in Q2 (≈EUR 12bn YTD) with deposits +2% QoQ, AUM reached EUR 328bn (+10% QoQ) with H1 net sales EUR 3bn and mutual fund inflows EUR 1.4bn. Costs are guided at ~3.4% organic (7.7% non‑organic) with a cost/income around 40% (Q2 underlying 39.8%) and jaws ~3.3%; asset impairments were EUR 135m in Q2 (loan impairments EUR 53m, credit cost ratio 11bp), total one‑offs after tax EUR 38m (including a EUR 42m Hungarian modification loss), CET1 stood at 14.4% (MDA buffer ~10.99%), insurance solvency 231%, inflation‑linked bonds contributed EUR 45m NII in Q2 (YTD EUR 34m), expected year‑end taxes ~EUR 730m, and digital assistant Kate now serves 6.2m customers (autonomy ~80%) and triggered 488k sales.KBC Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
57
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.15B | 23.44B | 25.32B | 25.47B | 16.13B | 9.35B |
| Gross Profit | 12.64B | 12.16B | 11.15B | 10.77B | 10.06B | 7.48B |
| EBITDA | 5.06B | 4.98B | 4.40B | 4.83B | 4.02B | 3.90B |
| Net Income | 3.59B | 3.57B | 3.42B | 3.40B | 2.82B | 2.61B |
Balance Sheet | ||||||
| Total Assets | 397.23B | 397.37B | 373.05B | 346.92B | 354.55B | 340.35B |
| Cash, Cash Equivalents and Short-Term Investments | 22.74B | 42.37B | 46.83B | 34.53B | 51.43B | 40.66B |
| Total Debt | 60.15B | 27.33B | 27.96B | 26.21B | 18.98B | 20.09B |
| Total Liabilities | 371.42B | 369.39B | 348.74B | 322.66B | 332.73B | 317.27B |
| Stockholders Equity | 25.70B | 27.91B | 24.31B | 24.26B | 21.82B | 23.08B |
Cash Flow | ||||||
| Free Cash Flow | -10.43B | 2.83B | 8.47B | -21.55B | 10.85B | 13.11B |
| Operating Cash Flow | -9.10B | 4.20B | 9.85B | -20.19B | 11.77B | 14.04B |
| Investing Cash Flow | -1.77B | -2.15B | -86.00M | 1.98B | -4.96B | 822.00M |
| Financing Cash Flow | -2.68B | -1.64B | -1.69B | 5.02B | -3.38B | -448.00M |
KBC Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $98.17B | 12.58 | 12.49% | 3.25% | 2.42% | 19.99% | |
76 Outperform | $99.70B | 13.74 | 12.34% | 2.83% | 3.92% | 24.15% | |
69 Neutral | $96.01B | 11.08 | 21.64% | 7.10% | 19.64% | 12.10% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $60.04B | 14.33 | 13.42% | 4.23% | 3.71% | 10.72% | |
66 Neutral | $127.22B | 14.57 | 12.28% | 1.73% | 2.65% | 54.00% | |
62 Neutral | $89.74B | 20.34 | 11.05% | 3.26% | -13.48% | 25.29% |
* Financial Sector Average
KBCSY
KBC Group
73.89
15.30
26.12%
ITUB
Itau Unibanco
7.94
1.76
28.38%
LYG
Lloyds Banking
6.28
1.94
44.53%
MFG
Mizuho Financial
10.71
4.47
71.63%
PNC
PNC Financial
252.56
70.04
38.37%
USB
US Bancorp
63.94
21.09
49.21%
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.