Belgium's KBC Q3 net profit rises on insurance, commission fee growth

Overview

• Belgium bank-insurer's Q3 net profit rose yr/yr on higher insurance and fee income

• Q3 basic EPS increased yr/yr

• Company saw 7% organic loan growth and 3% rise in customer deposits yr/yr

Outlook

• KBC says organic loan growth has already surpassed full-year 2026 guidance

• Company says operating expenses remain in line with full-year 2026 guidance

• KBC to provide new financial and non-financial guidance with Q4 and full-year results in February 2027

Result Drivers

• INCOME MIX - Q3 total income benefited from higher insurance revenues, net fee and commission income, trading and fair value income, and net interest income (excluding lower income from inflation-linked bonds)

• LOAN GROWTH - Organic loan portfolio grew 2% qtr/qtr and 7% yr/yr, surpassing full-year guidance

• COSTS AND IMPAIRMENTS - Operating expenses rose 3% qtr/qtr (excluding taxes), but remained in line with guidance on a like-for-like basis; impairment charges were stable overall

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Kbc Groep NV is €136.00, about 12.5% above its November 11 closing price of €120.85

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)