Download PDF

1. Company Snapshot

1.a. Company Description

KBC 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.

Show Full description

1.b. Last Insights on KBC

KBC Group NV's recent performance was driven by a strong Q2 2025 net profit of €1,018 million, exceeding expectations. The company's solid earnings prospects led to an upgrade to a Zacks Rank #1 (Strong Buy). A robust capital position was also highlighted in the 2025 EU-wide EBA stress test. Additionally, a significant shareholder, FMR, reported a 3.29% stake, crossing the 3% reporting threshold. The company's strong fundamentals and consistent earnings make it an attractive dividend stock, with a focus on providing reliable income streams.

1.c. Company Highlights

2. KBC Group's Strong Q4 2025 Earnings: A Closer Look

KBC Group reported a robust financial performance in Q4 2025, with total income growing 9% year-over-year, driven by a significant increase in net interest income. The company's net interest income reached EUR 1.608 billion, a 12% rise compared to the previous year. The EPS came in at EUR 2.42, beating analyst estimates of EUR 2.37. The company's cost-income ratio improved to 41% when excluding bank taxes, demonstrating efficient cost management. As Johan Thijs, Group CEO, noted, "The machine has been firing on all its cylinders," highlighting the company's strong performance across various business segments.

Publication Date: Feb -13

📋 Highlights
  • Net Interest Income Growth:: Increased by 12% YoY (EUR 1.608B) and 5% QoQ, driven by term deposit shifts to current accounts and higher reinvestment yields.
  • Bancassurance Performance:: Balanced 50% interest/non-interest income mix, with insurance business growth of 26% in life insurance sales and combined ratio at 86.7%.
  • Capital Strength:: CET1 ratio at 14.9%, EUR 5.1/share dividend (60% payout ratio), and EUR 25M staff bonus, reflecting robust capital management.
  • Digital Automation Success:: Kate 2.0 AI achieved 82% autonomy, generating 400,000 independent sales; mobility ecosystem reached 73K users in 1 month.
  • Future Guidance:: 2026-2028 income growth of 5.3-6.8%, cost-income ratio <38%, and EUR 2B investment in AI/automation over 3 years for efficiency gains.

Segmental Performance

The bancassurance franchise performed excellently, with a diversified split of 50% net interest income and 50% non-interest income. The insurance business saw double-digit growth in non-life and life insurance, with a combined ratio of 86.7%, better than guided. The asset management business also reported a record high EUR 300 billion in assets under management.

Capital Position and Dividend

KBC Group's common equity Tier 1 ratio stood at a solid 14.9%, and the company proposed a dividend of EUR 5.1 per share, with a payout ratio of 60%. The dividend yield is attractive at 2.49%, considering the current stock price.

Valuation

To understand what's priced into KBC Group's stock, we can look at the Price-to-Tangible Book Value (P/TBV) ratio. Although not directly available, we can use the Price-to-Book Ratio (P/B) as a proxy, which stands at 1.78. This suggests that the stock is trading slightly above its book value. Additionally, the Net Interest Margin (NIM) is not directly available, but the company's net interest income growth is a positive indicator. The Dividend Yield of 2.49% is another relevant metric for income-seeking investors.

Guidance and Outlook

KBC Group provided guidance for 2026, 2027, and 2028, expecting underlying total income growth of 5.3% in 2026 and 2027. The company anticipates a cost-income ratio below 38% in the longer term and a combined ratio below 91% for the insurance business. Analysts estimate next year's revenue growth at 6.7%, indicating a positive outlook for the company's future performance.

3. NewsRoom

Card image cap

KBC Group: Publication of transparancy notification(s) received by KBC Group NV

Mar -03

Source:

Card image cap

Assessing KBC Group (ENXTBR:KBC) Valuation After Recent Share Price Pullback

Feb -13

Source:

Card image cap

KBC Group Deepens Central European Reach While Rewarding Shareholders And Staff

Feb -13

Source:

Card image cap

KBC Group grants extraordinary bonus to all employees after strong 2025 performance

Feb -12

Source:

Card image cap

KBC Group: Fourth-quarter result of 1 003 million euros

Feb -12

Source:

Card image cap

KBC Group finalises acquisition of Business Lease Czech Republic and Slovakia

Feb -10

Source:

Card image cap

Interim Financial Report 2025/2026

Jan -30

Source:

Card image cap

European Dividend Stocks To Consider For Your Portfolio

Jan -19

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.90%)

6. Segments

Belgium Business

Expected Growth: 5.5%

The Belgian banking market is mature, and growth is expected to be moderate. The segment's strong market position and diversified revenue streams support a growth rate slightly below the global hypothesis of 5.9%. The economic conditions in Belgium, including low interest rates, may also impact growth.

Czech Republic Business

Expected Growth: 6.2%

The Czech Republic's economy is growing, and the banking market is expected to expand. The segment's strong presence and diversified revenue streams position it for growth above the global hypothesis of 5.9%. The increasing demand for financial services in the country also supports a higher growth rate.

International Markets - Hungary

Expected Growth: 6.0%

Hungary's economy is recovering, and the banking market is expected to grow. The segment's presence and diversified revenue streams support a growth rate above the global average. However, the segment's growth is slightly tempered by the competitive market conditions in Hungary.

International Markets - Bulgaria

Expected Growth: 6.5%

Bulgaria's economy is growing, and the banking market is expected to expand. The segment's presence and diversified revenue streams position it for strong growth. The increasing financial penetration and demand for banking services in the country support a growth rate above the global hypothesis of 5.9%.

International Markets - Slovakia

Expected Growth: 5.8%

Slovakia's economy is growing, and the banking market is expected to expand moderately. The segment's presence and diversified revenue streams support a growth rate in line with the global hypothesis of 5.9%. The competitive market conditions in Slovakia may slightly temper the segment's growth.

Group Centre

Expected Growth: 5.9%

As the Group Centre provides support services to the various business segments, its growth is expected to be in line with the global hypothesis of 5.9%. The segment's role in managing the group's corporate functions and providing support services is essential to the group's overall operations, and its growth is expected to be stable.

7. Detailed Products

Retail Banking

KBC Group NV offers a range of retail banking services, including current and savings accounts, credit cards, personal loans, and mortgages.

Private Banking

KBC Group NV provides private banking services to high net worth individuals, offering personalized investment advice, wealth management, and estate planning.

Corporate Banking

KBC Group NV offers corporate banking services to businesses, including cash management, trade finance, and risk management solutions.

Insurance

KBC Group NV provides a range of insurance products, including life insurance, non-life insurance, and pension plans.

Asset Management

KBC Group NV offers asset management services, including investment funds, exchange-traded funds, and discretionary portfolio management.

Markets and Treasury

KBC Group NV provides markets and treasury services, including foreign exchange, commodities, and interest rate hedging solutions.

8. KBC Group NV's Porter Forces

Forces Ranking

Threat Of Substitutes

KBC Group NV operates in a highly competitive market, and customers have various alternatives to choose from. However, the company's strong brand reputation and diversified product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

KBC Group NV's customers have significant bargaining power due to the availability of alternative financial services providers. The company's large customer base and diversified product offerings help to mitigate this power to some extent.

Bargaining Power Of Suppliers

KBC Group NV has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term relationships with suppliers also help to mitigate supplier power.

Threat Of New Entrants

The threat of new entrants in the financial services industry is relatively low due to the high barriers to entry, including regulatory requirements and significant capital investments. KBC Group NV's established brand reputation and diversified product offerings also make it difficult for new entrants to gain market share.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. KBC Group NV's strong brand reputation, diversified product offerings, and strategic partnerships help the company to maintain its competitive position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.40%
Debt Cost 9.95%
Equity Weight 43.60%
Equity Cost 9.95%
WACC 9.95%
Leverage 129.34%

11. Quality Control: KBC Group NV passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
KBC

A-Score: 7.2/10

Value: 5.3

Growth: 6.8

Quality: 6.0

Yield: 7.5

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Swedbank

A-Score: 6.7/10

Value: 4.9

Growth: 7.7

Quality: 5.4

Yield: 5.0

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Danske Bank

A-Score: 6.6/10

Value: 5.5

Growth: 4.6

Quality: 5.5

Yield: 6.9

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
UniCredit

A-Score: 6.5/10

Value: 4.0

Growth: 6.7

Quality: 5.8

Yield: 7.5

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Lloyds Banking

A-Score: 6.1/10

Value: 5.0

Growth: 2.7

Quality: 5.4

Yield: 6.9

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Deutsche Bank

A-Score: 5.7/10

Value: 6.7

Growth: 4.9

Quality: 5.1

Yield: 3.1

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

106.6$

Current Price

106.6$

Potential

-0.00%

Expected Cash-Flows