Earnings call transcript: KBC Group misses Q3 2026 estimates but keeps guidance

KBC Group reported Q3 2026 earnings that fell short of analyst expectations, with adjusted earnings per share at $1.55, below the $1.68 consensus estimate. Revenue was $3.85 billion, missing the $4.0 billion forecast by $150 million. The Belgian bank-insurer still maintained strong profitability metrics, with a return on tangible equity of 18% and a cost-to-income ratio of 39.7%, better than guided.

Fee income reached a record EUR 773 million, and assets under management hit EUR 330 billion. Management retained full-year 2026 guidance unchanged, indicating confidence in the outlook. The company's integrated model continued to perform well across banking, insurance, and asset management, though deposit migration and mortgage margin pressure remained industry themes.

Loan volumes rose 1.8% quarter on quarter and 6.2% year to date, surpassing the 6% full-year target. The stock fell 1.89% in premarket trading to $66.84, near the middle of its 52-week range. KBC's shares were trading at a P/E ratio of 12.93 and were deemed undervalued with a Fair Value estimate suggesting upside potential.