Analyst Note| Johann Scholtz, CFA |
We believe that KBC allocates capital in an exemplary fashion. KBC has a very strong balance sheet. It invests in the business areas where it has a competitive advantage, and it exits business where it does not have an edge. When KBC cannot invest capital profitably, it will return surplus capital to shareholders. We maintain our EUR 62.50 fair value estimate and our narrow economic moat rating.