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KBC Group
(OTC:KBCSY)
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Rating:68Neutral
Price Target:
$71.00
â–¼(-8.73% Downside)
Action:Reiterated
Date:08/10/26
The score is primarily held back by financial quality risks—especially negative/volatile cash flow and a notable step-up in leverage—despite solid profitability. Offsetting this, the latest earnings call was meaningfully supportive with upgraded guidance and strong Q2 execution, while technicals show a clear uptrend (though momentum is getting stretched) and valuation is reasonable with a ~4% dividend yield.
Positive Factors
Earnings and Growth Outlook
Upgraded income guidance after strong execution indicates improving revenue momentum across the banking franchise. Higher loan growth, customer inflows, and net interest income support earnings visibility and provide a stronger base for sustained profitability over the next several quarters.
Negative Factors
Higher Leverage
The sharp increase in leverage weakens balance-sheet resilience relative to recent years and reduces financial flexibility. Greater reliance on debt can increase sensitivity to funding conditions, constrain capital allocation, and make the group less able to absorb future stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings and Growth Outlook
Upgraded income guidance after strong execution indicates improving revenue momentum across the banking franchise. Higher loan growth, customer inflows, and net interest income support earnings visibility and provide a stronger base for sustained profitability over the next several quarters.
Read all positive factors
KBC Group (KBCSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.31B
Dividend Yield4.64%
Average Volume (3M)1.05K
Price to Earnings (P/E)12.6
Beta (1Y)0.88
Revenue Growth7.92%
EPS Growth10.65%
CountryUS
Employees37,493
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.95
Shares Outstanding835,325,560
10 Day Avg. Volume0
30 Day Avg. Volume1,055
Financial Highlights & Ratios
PEG Ratio2.87
Price to Book (P/B)1.58
Price to Sales (P/S)1.88
P/FCF Ratio15.60
Enterprise Value/Market Cap1.94
Enterprise Value/Revenue4.13
Enterprise Value/Gross Profit7.83
Enterprise Value/Ebitda19.75
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.54
Revenue Forecast (FY)$15.33B
KBC Group Business Overview & Revenue Model
Company Description
KBC Group NV, a financial services conglomerate headquartered in Brussels, Belgium, offers a full spectrum of integrated banking and insurance solutions. Through its subsidiaries, the company primarily serves a diverse client base, including indiv...
KBC Group Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance for Q2: robust profit (EUR 1,152m), high RoTE (18%), record fee income, AUM growth (+10% q/q), strong loan growth and inflows of core client funds. Management upgraded guidance (total income and NII) and highlighted disciplined cost control and solid capital/liquidity positions (CET1 14.4%). Challenges flagged were manageable one-offs (Hungary modification loss), higher bank taxes, margin pressure on mortgages and rising RWAs that require portfolio management. Overall the positives materially outweigh the negatives, though some items (inflation‑linked bond volatility, tax burden, RWA growth) reduce near‑term predictability.Positive Updates
Strong Quarterly Profit and Returns
Q2 net result EUR 1,152 million with return on tangible equity of 18%.
Negative Updates
One-off Hungary Modification Loss and Potential Reversals
Modification losses related to Hungary cap changes of EUR 42 million taken this quarter (after-tax one-offs totaled ~EUR 38 million); outcome depends on evolving Hungarian government policy and may be reversed if caps are reinstated.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Profit and Returns
Q2 net result EUR 1,152 million with return on tangible equity of 18%.
Read all positive updates
Company Guidance
KBC upgraded its 2026 outlook after a strong Q2: Q2 profit was EUR 1,152m (RoTE 18%) with NII of EUR 1,805m, prompting net interest income guidance to approximately EUR 7.05bn and total income growth guidance to ~11% (vs 9.9% previously); loan growth guidance was raised to at least 6% after lending volumes rose 2.8% QoQ (7.2% YoY; YTD 4.3%), core customer monies inflow was EUR 6bn in Q2 (≈EUR 12bn YTD) with deposits +2% QoQ, AUM reached EUR 328bn (+10% QoQ) with H1 net sales EUR 3bn and mutual fund inflows EUR 1.4bn. Costs are guided at ~3.4% organic (7.7% non‑organic) with a cost/income around 40% (Q2 underlying 39.8%) and jaws ~3.3%; asset impairments were EUR 135m in Q2 (loan impairments EUR 53m, credit cost ratio 11bp), total one‑offs after tax EUR 38m (including a EUR 42m Hungarian modification loss), CET1 stood at 14.4% (MDA buffer ~10.99%), insurance solvency 231%, inflation‑linked bonds contributed EUR 45m NII in Q2 (YTD EUR 34m), expected year‑end taxes ~EUR 730m, and digital assistant Kate now serves 6.2m customers (autonomy ~80%) and triggered 488k sales.KBC Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.10B | 23.44B | 25.32B | 25.47B | 16.13B | 9.35B |
| Gross Profit | 13.24B | 12.16B | 11.15B | 10.77B | 10.06B | 7.48B |
| EBITDA | 5.25B | 5.07B | 4.40B | 4.83B | 4.02B | 3.90B |
| Net Income | 3.74B | 3.57B | 3.42B | 3.40B | 2.82B | 2.61B |
Balance Sheet | ||||||
| Total Assets | 412.08B | 397.37B | 373.05B | 346.92B | 354.55B | 340.35B |
| Cash, Cash Equivalents and Short-Term Investments | 23.99B | 42.37B | 46.83B | 34.53B | 51.43B | 40.66B |
| Total Debt | 67.15B | 27.33B | 27.96B | 26.21B | 18.98B | 20.09B |
| Total Liabilities | 386.44B | 369.39B | 348.74B | 322.66B | 332.73B | 317.27B |
| Stockholders Equity | 25.51B | 27.91B | 24.31B | 24.26B | 21.82B | 23.08B |
Cash Flow | ||||||
| Free Cash Flow | -11.13B | 2.83B | 8.47B | -21.55B | 10.85B | 13.11B |
| Operating Cash Flow | -9.79B | 4.20B | 9.85B | -20.19B | 11.77B | 14.04B |
| Investing Cash Flow | -3.59B | -2.15B | -86.00M | 1.98B | -4.96B | 822.00M |
| Financing Cash Flow | 691.00M | -1.64B | -1.69B | 5.02B | -3.38B | -448.00M |
KBC Group Technical Analysis
Negative
77.79
Price Trends
72.90
Negative
71.07
Negative
68.69
Negative
Market Momentum
-2.61
Positive
34.95
Neutral
23.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBCSY, the sentiment is Negative. The current price of 77.79 is above the 20-day moving average (MA) of 68.05, above the 50-day MA of 72.90, and above the 200-day MA of 68.69, indicating a bearish trend. The MACD of -2.61 indicates Positive momentum. The RSI at 34.95 is Neutral, neither overbought nor oversold. The STOCH value of 23.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $30.52B | 7.90 | 9.20% | 3.01% | 5.37% | 14.38% | |
72 Outperform | $66.49B | 6.60 | 16.16% | 5.62% | 6.60% | 29.61% | |
71 Outperform | $89.11B | 11.94 | 12.61% | 3.30% | 7.11% | 21.33% | |
70 Outperform | $39.05B | 8.86 | 10.68% | 2.88% | 3.72% | 10.87% | |
68 Neutral | $53.31B | 12.60 | 14.01% | 4.64% | 7.92% | 10.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $77.19B | 12.49 | 11.05% | 4.04% | -13.48% | 25.29% |
* Financial Sector Average
KBCSY
KBC Group
64.69
5.54
9.37%
KB
Kb Financial Group
113.12
31.16
38.02%
LYG
Lloyds Banking
5.42
0.89
19.59%
PNC
PNC Financial
225.84
46.87
26.19%
NWG
NatWest Group
17.09
2.30
15.58%
SHG
Shinhan Financial Group Co
65.24
12.70
24.17%
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.