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Kbc Group (KBCSY)
:KBCSY
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KBC Group
(OTC:KBCSY)
Rating:73Outperform
Price Target:―
KBC Group (KBCSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.29B
Dividend Yield4.59%
Average Volume (3M)5.32K
Price to Earnings (P/E)12.4
Beta (1Y)0.73
Revenue Growth-6.95%
EPS Growth23.94%
CountryUS
Employees32,764
SectorFinancial
Sector Strength71
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.42
Shares Outstanding835,088,300
10 Day Avg. Volume13,193
30 Day Avg. Volume5,317
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue3.48
Enterprise Value/Gross Profit9.95
Enterprise Value/Ebitda23.29
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 NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. The company offers demand deposits and savings accounts; home and mortgage loans; consumer finance and SME funding services; credit, investment fund and asset management, and life and non-life insurance; and cash management, payments, trade finance, lease, money market, capital market products, and stockbroking services. It also provides Internet and mobile banking services. As of December 31, 2021, it operated 439 bank branches and 310 insurance agencies in Belgium; 208 bank branches in the Czech Republic; 123 bank branches in Slovakia; 198 bank branches in Hungary; 168 bank branches in Bulgaria; and 12 bank branches in Ireland. KBC Group NV serves customers through agents, brokers, and various electronic channels. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium.
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: 6.99%|
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance by KBC Group, with notable achievements in net interest income growth, insurance segment performance, and digital transformation. The increase in guidance for net interest income and the announcement of an interim dividend further reinforce a positive outlook. However, challenges such as increased asset impairments and higher taxes were noted, but they were outweighed by the positive aspects of the call.Q2-2025 Updates
Positive Updates
Strong Net Results
KBC Group reported strong net results of EUR 1.18 billion for the quarter, continuing a streak of over EUR 1 billion in net results for three consecutive quarters.
Robust Net Interest Income Growth
Net interest income was reported at EUR 1.5 billion, up EUR 88 million from the previous quarter and EUR 233 million from the same quarter last year, driven by strong deposit and lending growth.
Insurance Segment Performance
The insurance segment delivered strong performance with an 8% growth in non-life sales and a combined ratio of 85%, significantly lower than the guidance.
Successful Digital Transformation with Kate
The digital assistant, Kate, handled 73 million customer interactions this quarter, resulting in significant cost savings and generating 414,000 extra sales transactions over the last 12 months.
Dividend Announcement
An interim dividend of EUR 1 per share was announced, maintaining strong shareholder returns.
Increase in Net Interest Income Guidance
The guidance for net interest income was increased to at least EUR 5.85 billion for the full year, reflecting strong performance and growth expectations.
Negative Updates
Increased Asset Impairments
Asset impairments increased to EUR 124 million, with EUR 38 million added as a management overlay buffer for geopolitical and macroeconomic uncertainties.
Higher Taxes
The tax expenses increased significantly, with expectations to reach EUR 669 million by year-end, a 7% increase over the previous year.
Potential Market Competition Concerns
Concerns were raised about potential aggressive competition in the deposit market, although current market behavior is disciplined.
Company Guidance
During the KBC Group Q2 2025 conference call, the company provided guidance reflecting a robust performance across various metrics. The net result for the quarter was a strong EUR 1.18 billion, marking the third consecutive quarter with net results exceeding EUR 1 billion. The net interest income was EUR 1.509 billion, driven by a 2.2% quarterly growth in deposits and lending, with a yearly increase of 7%. The bank noted a combined ratio of 85% for their insurance segment, and a credit cost ratio of 15 basis points, indicating strong underwriting and credit management. The company announced an interim dividend of EUR 1 per share, payable in November. The return on equity was 15%, with a CET1 ratio of 14.6%. KBC also updated its net interest income guidance to at least EUR 5.85 billion for the year, reflecting the same level of conservatism as previous guidance, and raised its loan growth target to at least 6.5%. The company highlighted the significant positive impact of their digital assistant, Kate, which now handles 70% of customer inquiries autonomously, contributing to operational efficiency and cost control.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 25.32B | 11.23B | 8.49B | 7.48B | 7.15B |
| Gross Profit | 11.15B | 10.77B | 8.49B | 7.48B | 7.15B |
| EBITDA | 4.40B | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 3.42B | 3.40B | 2.82B | 2.61B | 1.44B |
Balance Sheet | |||||
| Total Assets | 373.05B | 346.92B | 355.87B | 340.35B | 320.74B |
| Cash, Cash Equivalents and Short-Term Investments | 46.83B | 34.75B | 51.43B | 40.66B | 24.59B |
| Total Debt | 27.96B | 26.14B | 18.91B | 20.09B | 18.92B |
| Total Liabilities | 348.74B | 322.66B | 335.06B | 20.09B | 18.92B |
| Stockholders Equity | 24.31B | 24.26B | 20.81B | 23.08B | 21.53B |
Cash Flow | |||||
| Free Cash Flow | 8.47B | -21.55B | 10.85B | 13.11B | 25.37B |
| Operating Cash Flow | 9.85B | -20.19B | 11.77B | 14.04B | 26.37B |
| Investing Cash Flow | -86.00M | 1.98B | -4.96B | 822.00M | -7.25B |
| Financing Cash Flow | -1.69B | 5.02B | -3.38B | -448.00M | 451.00M |
KBC Group Technical Analysis
Positive
57.87
Price Trends
51.56
Positive
48.50
Positive
43.34
Positive
Market Momentum
1.56
Negative
78.52
Negative
99.95
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 57.87 is above the 20-day moving average (MA) of 53.26, above the 50-day MA of 51.56, and above the 200-day MA of 43.34, indicating a bullish trend. The MACD of 1.56 indicates Negative momentum. The RSI at 78.52 is Negative, neither overbought nor oversold. The STOCH value of 99.95 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $221.71B | 12.73 | 10.69% | 5.11% | -2.96% | -13.66% | |
78 Outperform | $138.10B | 9.95 | 12.85% | 2.77% | -14.74% | 13.79% | |
75 Outperform | $71.88B | 11.13 | 12.08% | 4.75% | 1.13% | -1.14% | |
73 Outperform | $49.29B | 12.38 | 15.07% | 4.59% | -6.95% | 23.94% | |
67 Neutral | $17.22B | 11.28 | 10.45% | 3.94% | 10.30% | 1.07% |
* Financial Sector Average
Performance Comparison
KBCSY
KBC Group
58.91
23.50
66.37%
HSBC
HSBC Holdings
64.20
24.71
62.57%
ING
ING Groep
24.13
8.23
51.76%
SAN
Banco Santander SA
9.32
4.90
110.86%
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.