KBC GROUP/CAIXABANK : High-flyers

Research evidence excerpt

KBC GROUP/CAIXABANK : High-flyers

EQUITIES

BANKS

KBC GROUP/CAIXABANK

High-flyers

The search for retail focussed, revenue diverse and profitable banks is a frequent one for investors.8 JUNE 2026

Securities Research Report We compare KBC and CaixaBank: similar premium valuations, delivering high returns, growing

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consistently and a track record of successful M&A. The former a founder of that ‘club’, the latter a

Research Analysts & Publishing Entities

newer member. We prefer CaixaBank, a better deposit franchise, an excellent cost position and a

Cyril Toutounji clearer capital distribution strategy. KBC compares well, outperforming CaixaBank on fees, but weBNP Paribas London Branch

(+44) 20 3430 8456 see more upside in the latter and reiterate our Outperform (CaixaBank) and Neutral (KBC) ratings.

cyril.toutounji@uk.bnpparibas.com

A deep dive on two high-flyers sharing many featuresIgnacio Ulargui, CFA

KBC and CaixaBank have a lot in common. Both are highly profitable, have a long-standing focusBNP Paribas SA

(+34) 91 114 83 10 on revenue diversification, and trade at a premium. They operate in different markets. KBC a

ignacio.ulargui@bnpparibas.com leading bancassurer in Belgium and CEE; CaixaBank the same in Spain. We provide a detailed,

head-to-head comparison of their businesses, identifying differences and similarities across their

home markets, product portfolios, cost bases, capital generation and capital allocation.

KBC’s fee generation shines, but CaixaBank steals the spotlight on costs and NII

KBC’s ability to generate fees and insurance revenues is impressive, helped by strong cross-

selling and higher penetration of these products within the customer base, with potential from

growth in CEE.