KBC Second-Quarter 2020: Fully Provided

Narrow-moat KBC Group reported net attributable profits of EUR 210 million for the second quarter of 2020, appreciably lower than the EUR 745 million it reported for the second quarter of 2019. KBC did, however, comfortably beat the consensus expectation of analysts polled by KBC itself of EUR 150 million attributable profits for the quarter. KBC exceeded expectations for revenue growth, mainly due to strong performance from nonlife insurance and trading. Loan-loss provisions were lower than expected. We maintain our narrow moat rating and EUR 54 per share fair value estimate for KBC.