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KBC Group NV (KBCSY)
OTHER OTC:KBCSY
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KBC Group
(OTC:KBCSY)
73Outperform
KBC Group (KBCSY) vs. S&P 500 (SPY)
Market Cap
$39.65B
Dividend Yield3.07%
Average Volume (3M)31.63K
Price to Earnings (P/E)10.4
Beta (1Y)0.74
Revenue Growth11.37%
EPS Growth-13.02%
CountryUS
Employees32,764
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.69
Shares Outstanding835,088,300
10 Day Avg. Volume17,014
30 Day Avg. Volume31,626
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)1.40
Price to Sales (P/S)0.00
P/FCF Ratio-4.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
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 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 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.92B | 11.23B | 8.49B | 7.48B | 7.15B | 7.60B | Gross Profit |
| 14.92B | 10.77B | 8.49B | 7.48B | 7.15B | 7.60B | EBIT |
| 4.17B | 10.86B | 9.31B | 3.42B | 1.85B | 3.12B | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 2.98B | 3.40B | 2.82B | 2.61B | 1.44B | 2.49B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 9.05B | 34.75B | 51.43B | 40.66B | 24.59B | 8.37B | Total Assets |
| 340.13B | 346.92B | 355.87B | 340.35B | 320.74B | 290.74B | Total Debt |
| 0.00 | 26.14B | 18.91B | 20.09B | 18.92B | 18.43B | Net Debt |
| -9.05B | -8.39B | -32.52B | -20.57B | -5.67B | 10.06B | Total Liabilities |
| 321.91B | 322.66B | 335.06B | 20.09B | 18.92B | 18.43B | Stockholders Equity |
| 17.68B | 24.26B | 20.81B | 23.08B | 21.53B | 20.36B |
| Cash Flow | Free Cash Flow | ||||
| -7.85B | -21.55B | 10.85B | 13.11B | 25.37B | -3.65B | Operating Cash Flow |
| -6.56B | -20.19B | 11.77B | 14.04B | 26.37B | -2.46B | Investing Cash Flow |
| -5.88B | 1.98B | -4.96B | 822.00M | -7.25B | -1.85B | Financing Cash Flow |
| -3.04B | 5.02B | -3.38B | -448.00M | 451.00M | -1.15B |
KBC Group Technical Analysis
Positive
47.44
Price Trends
44.74
Positive
41.87
Positive
39.09
Positive
Market Momentum
0.95
Negative
61.33
Neutral
93.55
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 47.44 is above the 20-day moving average (MA) of 45.79, above the 50-day MA of 44.74, and above the 200-day MA of 39.09, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 61.33 is Neutral, neither overbought nor oversold. The STOCH value of 93.55 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $116.86B | 8.34 | 13.25% | 2.17% | 0.27% | 19.44% | |
80 Outperform | $206.83B | 10.87 | 10.30% | 5.57% | -1.91% | -6.79% | |
75 Outperform | $65.71B | 9.98 | 11.92% | 4.75% | 4.07% | 9.97% | |
73 Outperform | $39.65B | 10.42 | 14.77% | 3.07% | 11.37% | -13.02% | |
64 Neutral | $12.82B | 9.83 | 7.68% | 17000.34% | 12.38% | -5.56% |
* Financial Sector Average
Performance Comparison
KBCSY
KBC Group
47.44
11.54
32.14%
HSBC
HSBC Holdings
58.87
17.32
41.68%
ING
ING Groep
21.17
4.38
26.09%
SAN
Banco Santander SA
7.75
2.68
52.86%
KBC Group Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -0.55%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call for KBC Group highlighted strong financial performance with record sales in investment products, strategic acquisition in Slovakia, and solid liquidity and solvency ratios. However, the results were impacted by high bank taxes and exposure to Hungarian windfall taxes. Despite these challenges, the overall outlook remains positive with significant growth potential in digital initiatives and strategic market positioning.Q1-2025 Updates
Positive Updates
Strong Overall Performance
KBC posted a €546 million result for the quarter, with strong performance in net interest income, fee and commission income, and insurance growth. Net interest income was notably strong, supported by a customer loan increase of 2.43% and a €2.4 billion inflow in customer money.
Record Sales in Investment Products
The first quarter saw a record sales inflow of €2 billion in investment products, marking the best quarter ever for the company in this segment.
Acquisition of 365.bank
KBC announced the acquisition of 98.45% of 365.bank in Slovakia for €749 million, which will position KBC as a top 3 bank in Slovakia with a significant market share of 16%.
Solid Liquidity and Solvency Ratios
KBC maintains a strong liquidity and solvency ratio, with a cost/income ratio of 41% and a credit cost ratio showing significant improvement.
Positive Outlook for Kate
The digital assistant Kate has shown significant adoption, with 5.5 million customers using it daily, contributing to sales and operational efficiency.
Negative Updates
High Bank Taxes Impacting Results
The quarterly result was heavily distorted by the upfront booking of €539 million in bank taxes for the year 2025.
Exposure to Hungarian Windfall Taxes
KBC was impacted by an additional €53 million in windfall taxes imposed by the Hungarian government, which may become a recurring issue.
Challenges with Term Deposit Maturities
A significant portion of term deposits maturing are not being reinvested in low-yielding term deposits, potentially impacting future net interest income.
Company Guidance
During the KBC Group Earnings Release First Quarter 2025 Conference Call, the company reported a €546 million result for the quarter, significantly affected by the upfront booking of €539 million in bank taxes for the year. The CEO, Johan Thijs, highlighted robust performance in net interest income, driven by a 2.43% increase in customer loans and a €2.4 billion inflow of core customer money. The company's cost/income ratio was reported at 41%, and loan loss impairments were lower than planned. Additionally, KBC announced an acquisition of 365.bank in Slovakia for €749 million. The company updated its dividend policy, stating a payout ratio of 50% to 65% of consolidated profit and emphasized a minimum CET1 ratio of 13% to maintain strong capitalization. The call also covered the expected integration and synergy benefits from the acquisition, as well as the continuation of strategic capital deployment.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.