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Investing.com - Deutsche Bank (ETR:DBKGn) raised its price target on KBC Group (BR:KBC) (OTC:KBCSY) to EUR94.00 from EUR87.00 while maintaining a Hold rating following the bank’s strong second-quarter 2025 results.
The research firm increased its 2025 net income forecasts by 4% and its 2026/2027 forecasts by 3%, primarily due to better net interest income (NII) growth trends. Deutsche Bank now projects approximately 7% compound annual growth rate (CAGR) in NII through 2027, compared to KBC’s guidance of at least 5% annually.
Deutsche Bank also sees strength in KBC’s insurance business with approximately 8% CAGR versus the company’s guidance of at least 7%, and fee income growth of around 6% CAGR. The firm noted that good cost control with approximately 4% annual CAGR and 3% positive jaws would continue to complement earnings growth.
The firm expects KBC’s cost of risk to remain benign, inching up moderately toward approximately 25 basis points of loans. Deutsche Bank anticipates KBC will upgrade its mid-term guidance when it reports full-year 2025 results.
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