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Kbc Group (KBCSY)
:KBCSY
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KBC Group
(OTC:KBCSY)
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Rating:73Outperform
Price Target:―
KBCSY earns a solid overall score of 73. The company's strong earnings performance and attractive valuation drive the score, while financial and technical analyses indicate some areas of caution, particularly with cash flow challenges and competitive pressures. The ongoing strategic positioning and robust balance sheet support confidence in future performance.
KBC Group (KBCSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.23B
Dividend Yield4.61%
Average Volume (3M)1.45K
Price to Earnings (P/E)12.3
Beta (1Y)0.70
Revenue Growth-6.95%
EPS Growth23.94%
CountryUS
Employees32,764
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.42
Shares Outstanding835,088,300
10 Day Avg. Volume2,487
30 Day Avg. Volume1,452
Financial Highlights & Ratios
PEG Ratio-0.37
Price to Book (P/B)2.45
Price to Sales (P/S)5.45
P/FCF Ratio7.04
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue6.47
Enterprise Value/Gross Profit6.37
Enterprise Value/Ebitda16.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
KBC Group Business Overview & Revenue Model
Company DescriptionKBC Group (KBCSY) is a leading financial institution based in Belgium, specializing in banking and insurance services. The company operates primarily in its core markets of Belgium, the Czech Republic, Slovakia, Hungary, Bulgaria, and Ireland. KBC Group offers a comprehensive range of financial products and services, including retail and corporate banking, asset management, life and non-life insurance, and leasing solutions. It is recognized for integrating its banking and insurance services to provide a seamless customer experience.
How the Company Makes MoneyKBC Group generates revenue through a diversified financial services model, primarily by offering banking and insurance products. The company's banking operations encompass retail and corporate banking, where it earns interest income from loans and credit products, as well as fee income from payment services, asset management, and securities trading. Its insurance segment provides both life and non-life insurance products, contributing to revenue through premium collection and investment income. KBC also benefits from cross-selling opportunities, leveraging its integrated bancassurance model to offer comprehensive financial solutions to its client base. Strategic partnerships and digital initiatives further enhance its service offerings, contributing to customer retention and revenue growth.
KBC Group Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a primarily positive outlook with strong net results, diversified income streams, and effective cost management. However, challenges include increased asset impairments, potential obstacles in the Ethias acquisition, and rising bank taxes.Q2-2025 Updates
Positive Updates
Strong Net Results
KBC Group reported a net result of EUR 1.18 billion for Q2 2025, marking the third consecutive quarter with net results over EUR 1 billion.
Diverse Income Streams
49% of income was from net interest income, with 51% from insurance and fee and commission products, demonstrating strong diversification.
Asset Management and Insurance Performance
Strong asset management sales of EUR 1.5 billion despite market turbulence and insurance sales growth with a combined ratio of 85%.
Cost Control
Operating expenses were below budget with a 5% increase from the previous year, maintaining a cost-income ratio of 41%.
Credit Quality and Solvency
Credit cost ratio was at 15 basis points; CET1 ratio remains strong at 14.6%.
Increased Guidance
Guidance for net interest income increased to at least EUR 5.85 billion from EUR 5.7 billion, with loan growth expectations raised to 6.5%.
Successful Digital Transformation
Kate, the digital assistant, handled 73 million interactions, saving substantial man-hours and boosting sales by converting leads.
Negative Updates
Increased Asset Impairments
Asset impairments stood at EUR 124 million, attributed to a one-off buffer of EUR 30 million for geopolitical risks.
Potential Challenges with Ethias Acquisition
Uncertainty surrounds the potential acquisition of Ethias due to political opinions and decisions by government parties.
Tax Increases
Bank taxes expected to increase by 7% compared to the previous year, impacting KBC Group's cost structure.
Company Guidance
During the Q2 2025 earnings call, KBC Group provided several key financial metrics and guidance updates. The group reported a strong net result of EUR 1.18 billion for the quarter, with net interest income increasing by EUR 88 million from the previous quarter to EUR 1.5 billion. The company announced an interim dividend of EUR 1 per share, payable in November, and a return on equity of 15%. The combined ratio for insurance was at a favorable 85%, and the credit cost ratio stood at 15 basis points. KBC highlighted a robust CET1 ratio of 14.6%, despite a one-off EUR 38 million loan impairment buffer. The group raised its full-year 2025 net interest income guidance to at least EUR 5.85 billion and increased its loan growth target to 6.5%. Additionally, the digital assistant Kate contributed significantly, answering 73 million customer queries and facilitating 414,000 sales in the past year. The group maintained cost control, with operating expenses up 5% year-over-year, in line with their budget.KBC Group Financial Statement Overview
Summary
KBC Group demonstrates a mixed financial performance. The income statement shows strong net profit margins but some volatility in revenue and net income. The balance sheet is robust with no debt, indicating low financial risk, though the ROE suggests room for improvement. Cash flow challenges with negative operating cash flow highlight potential liquidity constraints.Income Statement
The income statement demonstrates moderate performance with a net profit margin of 27.26% in TTM and consistent revenue growth over the years. However, the recent decline in total revenue and net income compared to the previous annual data indicates some volatility. The gross profit margin remains strong, but the absence of EBITDA data limits the analysis of operating efficiency.70
Positive
Balance Sheet
The balance sheet is robust, marked by a strong equity position with an equity ratio of 6.6% in TTM. The company maintains a healthy debt position with no total debt in TTM, indicating low financial risk. However, the relatively low return on equity (ROE) of 12.77% in TTM suggests room for improvement in generating shareholder returns.80
Positive
Cash Flow
The cash flow statement reveals challenges with negative operating cash flow in TTM, indicating potential liquidity constraints. Despite this, the company managed a positive free cash flow in previous years. The free cash flow to net income ratio is currently negative, highlighting pressures on cash generation from operations.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.31B | 10.94B | 11.23B | 8.49B | 7.48B | 7.15B |
| Gross Profit | 11.49B | 11.15B | 10.77B | 8.49B | 7.48B | 7.15B |
| EBITDA | 4.52B | 4.40B | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 3.55B | 3.42B | 3.40B | 2.82B | 2.61B | 1.44B |
Balance Sheet | ||||||
| Total Assets | 390.67B | 373.05B | 346.92B | 355.87B | 340.35B | 320.74B |
| Cash, Cash Equivalents and Short-Term Investments | 36.04B | 46.83B | 34.75B | 51.43B | 40.66B | 24.59B |
| Total Debt | 26.41B | 27.96B | 26.14B | 18.91B | 20.09B | 18.92B |
| Total Liabilities | 364.44B | 348.74B | 322.66B | 335.06B | 20.09B | 18.92B |
| Stockholders Equity | 26.20B | 24.31B | 24.26B | 20.81B | 23.08B | 21.53B |
Cash Flow | ||||||
| Free Cash Flow | 6.23B | 8.47B | -21.55B | 10.85B | 13.11B | 25.37B |
| Operating Cash Flow | 7.62B | 9.85B | -20.19B | 11.77B | 14.04B | 26.37B |
| Investing Cash Flow | -4.31B | -86.00M | 1.98B | -4.96B | 822.00M | -7.25B |
| Financing Cash Flow | -2.23B | -1.69B | 5.02B | -3.38B | -448.00M | 451.00M |
KBC Group Technical Analysis
Positive
57.75
Price Trends
59.16
Negative
55.55
Positive
49.32
Positive
Market Momentum
-0.04
Positive
50.52
Neutral
57.00
Neutral
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 57.75 is below the 20-day moving average (MA) of 58.78, below the 50-day MA of 59.16, and above the 200-day MA of 49.32, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 57.00 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $71.36B | 11.74 | 11.31% | 3.63% | 1.94% | 30.93% | |
73 Outperform | $49.23B | 12.33 | 15.07% | 4.61% | -6.95% | 23.94% | |
73 Outperform | $73.65B | 10.95 | 11.71% | 4.22% | 2.95% | 33.77% | |
73 Outperform | $71.91B | 10.06 | 20.49% | 6.11% | 5.44% | 2.81% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $66.42B | 15.10 | 7.85% | 3.73% | 0.76% | -5.74% | |
65 Neutral | $79.84B | 13.59 | 8.69% | 1.48% | -2.22% | 24.37% |
* Financial Sector Average
KBCSY
KBC Group
58.71
23.38
66.18%
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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.