KBC Group NV (KBCSY)
OTHER OTC:KBCSY
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KBC Group
(OTC:KBCSY)
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Rating:68Neutral
Price Target:
$68.00
â–²(10.17% Upside)
Action:DowngradedDate:04/06/26
The score is driven primarily by solid but uneven financial performance—good profitability and improving leverage are tempered by declining revenue and volatile/weaker cash flow. Earnings-call guidance and operational execution are strong and supportive, while technical signals are mixed and valuation is favorable with a reasonable P/E and a ~4.2% dividend yield.
Positive Factors
Net interest income & margin
Sustained NII growth and higher NIM provide a durable earnings base for a bancassurer. A guided NII floor and replication portfolio gains imply recurring net interest uplift that supports profitability, buffers underwriting/market swings, and funds dividends and strategic investments over the medium term.
Negative Factors
Declining revenue trend
Two consecutive years of revenue contraction point to persistent top‑line headwinds that can erode operating leverage. Even with margin gains, weaker revenues make it harder to hit long‑term cost/income targets, limit reinvestment capacity, and heighten sensitivity to adverse market or competitive shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Net interest income & margin
Sustained NII growth and higher NIM provide a durable earnings base for a bancassurer. A guided NII floor and replication portfolio gains imply recurring net interest uplift that supports profitability, buffers underwriting/market swings, and funds dividends and strategic investments over the medium term.
Read all positive factors
KBC Group (KBCSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.23B
Dividend Yield4.01%
Average Volume (3M)996.00
Price to Earnings (P/E)12.4
Beta (1Y)0.82
Revenue Growth-5.87%
EPS Growth28.80%
CountryUS
Employees32,764
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.45
Shares Outstanding835,325,560
10 Day Avg. Volume0
30 Day Avg. Volume996
Financial Highlights & Ratios
PEG Ratio2.78
Price to Book (P/B)1.58
Price to Sales (P/S)1.88
P/FCF Ratio15.60
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit3.20
Enterprise Value/Ebitda7.78
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.75
Revenue Forecast (FY)$15.80B
KBC Group Business Overview & Revenue Model
Company Description
KBC 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 asse...
How the Company Makes Money
KBC Group makes money through a combination of banking and insurance earnings (the bancassurance model). In banking, a major revenue stream is net interest income: the spread between interest earned on loans and securities (e.g., mortgages, consum...
KBC Group Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance for 2025: robust NII and NIM expansion, record asset management flows and AUM, disciplined costs, low credit costs and solid capital/solvency metrics. Management provided constructive medium‑term guidance (higher organic income growth, continued efficiency targets) and highlighted significant digital/AI productivity initiatives. Key risks and negatives include elevated and uncertain bank taxes, RWA/capital pressure from rapid volume and acquisition activity, a material software/goodwill impairment, margin pressures in some markets and sensitivity to deposit mix and pass‑through dynamics. On balance, the positive operating beats, strong guidance and capital measures outweigh the flagged uncertainties.Positive Updates
Strong Net Interest Income (NII) Growth
Q4 NII of EUR 1.608 billion, +5% vs prior quarter and +12% vs prior year; full‑year NII floor guided at >= EUR 6.725 billion (~+11% vs prior year). Net interest margin rose to 211 basis points, driven by replication portfolio performance, volume growth and shifts from term deposits to current/savings accounts.
Negative Updates
Bank Tax Uncertainty and High Bank Taxes
Bank taxes are material (EUR 666 million FY2025) and there is uncertainty about proposed Belgian bank tax changes, creating near‑term P&L and guidance volatility; group will disclose clearer guidance after Q1 2026 developments.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Net Interest Income (NII) Growth
Q4 NII of EUR 1.608 billion, +5% vs prior quarter and +12% vs prior year; full‑year NII floor guided at >= EUR 6.725 billion (~+11% vs prior year). Net interest margin rose to 211 basis points, driven by replication portfolio performance, volume growth and shifts from term deposits to current/savings accounts.
Read all positive updates
Company Guidance
The management guided organic underlying total income to rise c.6.8% in 2026 (with top‑line growth accelerating to c.7.7% by 2028) while operating costs are targeted to grow c.3.4% p.a. (organic), implying a 2026 cost/income ratio of ~40% and a medium‑term target below 38%; they also reiterated a floor for 2026 net interest income of at least EUR 6.725bn (≈+11% y/y) and expect loan book growth of about 5% in 2026. Credit costs are guided to remain well below the 25–30bp through‑the‑cycle range (2025 outturn 13bp; impaired loans 1.8% / 137bp EBA), insurance premium growth was upgraded to c.7.5% with a combined‑ratio ceiling around 91% (2025 combined ratio 86.7%), and the group confirmed CET1 of 14.9% (pro forma ~14.4% after 365/Business Lease ~‑50bp impact), a leverage ratio of 5.6%, Solvency II ~227% and continued liquidity strength. They flagged continued capital optimisation via SRTs (inaugural SRT: EUR4.3bn notional, ~EUR2.3bn RWA relief, >50% efficiency; further SRTs planned), maintained a proposed dividend of EUR5.10/shr (payout ~60%), and reaffirmed continued tech/AI investment (≈EUR2bn cash and EUR1.5bn opex over three years) to drive efficiency gains.KBC Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.44B | 25.32B | 25.47B | 16.13B | 9.35B |
| Gross Profit | 12.16B | 11.15B | 10.77B | 10.06B | 7.48B |
| EBITDA | 4.98B | 4.40B | 4.83B | 4.02B | 3.90B |
| Net Income | 3.57B | 3.42B | 3.40B | 2.82B | 2.61B |
Balance Sheet | |||||
| Total Assets | 397.37B | 373.05B | 346.92B | 354.55B | 340.35B |
| Cash, Cash Equivalents and Short-Term Investments | 42.37B | 46.83B | 34.53B | 51.43B | 40.66B |
| Total Debt | 27.33B | 27.96B | 26.21B | 18.98B | 20.09B |
| Total Liabilities | 369.39B | 348.74B | 322.66B | 332.73B | 317.27B |
| Stockholders Equity | 27.91B | 24.31B | 24.26B | 21.82B | 23.08B |
Cash Flow | |||||
| Free Cash Flow | 2.83B | 8.47B | -21.55B | 10.85B | 13.11B |
| Operating Cash Flow | 4.20B | 9.85B | -20.19B | 11.77B | 14.04B |
| Investing Cash Flow | -2.15B | -86.00M | 1.98B | -4.96B | 822.00M |
| Financing Cash Flow | -1.64B | -1.69B | 5.02B | -3.38B | -448.00M |
KBC Group Technical Analysis
Positive
61.72
Price Trends
65.65
Positive
65.15
Positive
60.99
Positive
Market Momentum
-0.04
Negative
60.55
Neutral
90.74
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 above the 20-day moving average (MA) of 61.69, below the 50-day MA of 65.65, and above the 200-day MA of 60.99, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 60.55 is Neutral, neither overbought nor oversold. The STOCH value of 90.74 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $100.60B | 9.08 | 21.64% | 9.77% | 11.82% | 3.41% | |
72 Outperform | $89.23B | 10.18 | 11.88% | 3.11% | 1.79% | 30.93% | |
69 Neutral | $86.40B | 10.95 | 12.12% | 3.77% | 2.91% | 33.77% | |
68 Neutral | $56.23B | 12.35 | 13.44% | 4.01% | -5.87% | 28.80% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $79.39B | 12.62 | 9.93% | 3.19% | -20.94% | -18.71% | |
57 Neutral | $105.91B | 10.79 | 9.73% | 2.31% | -2.84% | 25.48% |
* Financial Sector Average
KBCSY
KBC Group
67.32
24.05
55.57%
ITUB
Itau Unibanco
9.16
4.15
82.83%
LYG
Lloyds Banking
5.49
1.96
55.52%
MFG
Mizuho Financial
8.63
3.90
82.45%
PNC
PNC Financial
221.13
71.27
47.56%
USB
US Bancorp
55.66
19.01
51.89%
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.