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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
$37.90B
Dividend Yield3.16%
Average Volume (3M)2.73K
Price to Earnings (P/E)10.4
Beta (1Y)0.76
Revenue Growth11.37%
EPS Growth-13.02%
CountryUS
Employees32,764
SectorFinancial
Sector Strength88
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.47
Shares Outstanding835,088,300
10 Day Avg. Volume0
30 Day Avg. Volume2,730
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 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 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
46.22
Price Trends
44.35
Positive
41.38
Positive
38.85
Positive
Market Momentum
0.63
Negative
58.08
Neutral
25.24
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 46.22 is above the 20-day moving average (MA) of 44.88, above the 50-day MA of 44.35, and above the 200-day MA of 38.85, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 25.24 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $65.51B | 11.69 | 11.15% | 3.85% | 3.07% | 19.01% | |
76 Outperform | $57.31B | 11.83 | 8.73% | 4.05% | -2.65% | -14.84% | |
73 Outperform | $37.90B | 10.39 | 15.14% | 3.16% | 11.37% | -13.02% | |
71 Outperform | $63.85B | 10.26 | 11.50% | 4.74% | 2.19% | 34.00% | |
65 Neutral | $60.29B | 10.60 | 8.56% | 2.27% | 13.63% | 27.77% | |
64 Neutral | $12.60B | 9.73 | 7.92% | 16985.68% | 12.21% | -5.55% | |
55 Neutral | $51.69B | 11.63 | 0.10% | 5.33% | -27.31% | ― |
* Financial Sector Average
Performance Comparison
KBCSY
KBC Group
46.22
10.66
29.98%
TFC
Truist Financial
39.01
1.68
4.50%
LYG
Lloyds Banking
3.89
1.33
51.95%
MFG
Mizuho Financial
5.10
1.15
29.11%
PNC
PNC Financial
166.44
14.05
9.22%
USB
US Bancorp
42.02
2.39
6.03%
KBC Group Earnings Call Summary
Earnings Call Date:Feb 13, 2025
(Q4-2024)
| % Change Since: 16.19%|
Next Earnings Date:May 15, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong financial performance in the fourth quarter and full year 2024, driven by growth in net interest and insurance income, as well as a solid liquidity position. However, negative impacts from financial instruments at fair value, legal provisions, and high bank taxes present challenges.Q4-2024 Updates
Positive Updates
Strong Fourth Quarter Results
KBC posted a significant result in the fourth quarter of 2024 with €1.116 billion. This was influenced by a one-off €318 million tax benefit from the exit in Ireland.
Growth in Net Interest Income
Net interest income was up 3% on the quarter and 5% on the year, driven by an increase in the loan book and customer deposits.
Strong Insurance and Fee Business
Insurance sales were significantly up, with non-life insurance growing 9% year-on-year excluding FX effects. Fee and commission income reached a record high of €700 million in Q4.
Solid Solvency and Liquidity Position
The CET1 ratio stands at 15%, with NSFR and LCR ratios at 139% and 158% respectively.
Digital and Sustainability Achievements
5.3 million customers are using AI tool 'Kate' with a 70% autonomy success rate. KBC was also granted an A listing on the Carbon Disclosure Project.
Negative Updates
Negative Impact from Financial Instruments at Fair Value
There was a €32 million deterioration in financial instruments at fair value due to ALM derivatives and Czech interest rate changes.
Legal Provision in Hungary
KBC provisioned €28 million for a legal case in Hungary, impacting net other income.
Bank Taxes and Operating Expenses
Bank taxes remain high at €623 million, affecting 12% of total expenses, with an overall cost increase of 3% year-on-year.
Company Guidance
During the KBC Group's fourth-quarter 2024 earnings call, several key metrics and guidance for 2025 were highlighted. The Group reported a net profit of €1.116 billion for Q4, significantly influenced by a €318 million tax benefit from the exit in Ireland. The net interest income saw a quarterly increase, surpassing the full-year 2024 guidance, driven by loan book growth and customer deposits. The bank-insurance machine maintained a balanced 49/51 split between net interest income and non-net interest income. The cost-income ratio stood at 47% (43% excluding bank taxes), and the combined insurance ratio was 90%, below the 91% guidance, despite impacts from Storm Boris. The credit cost ratio was lower than expected, at 10 basis points or 16% excluding geographical and emerging risk buffers. Looking ahead, KBC aims for at least €5.7 billion in net interest income for 2025, with expected loan growth of 4% and insurance revenue growth of at least 7%. The Group's solvency position remains robust, with a CET1 ratio of 15%, NSFR at 139%, and LCR at 158%. The dividend for 2024 is set at €4.85 per share, with a 51% payout of net profit. CEO Johan Thijs noted the success of digital initiatives like the AI platform Kate, which now autonomously handles 70% of customer inquiries.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.