11 november 2020
18:02
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Analysts expect KBC’s results for the third quarter of 2020 to be roughly the same as for the third quarter of 2019. In addition, investors are looking forward to comments from the bank about corona support to households and businesses.
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The Belgian bank KBC
comes Thursday at 7 with results. Analysts expect KBC to achieve a quarterly profit of 600 million euros, or 1.42 euros per share. Those are comparable figures to last year. For the whole of 2020, analysts expect a profit of 1.3 billion euros. That is about a half compared to 2019 as a result of the pandemic.
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The focus of the strategic update will mainly be on digitization
Albert Ploegh
Analyst at ING
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Albert Ploegh, ING analyst, does not expect much spectacular news. “We believe that KBC will repeat its forecast for 2020 of net interest income of 4.4 billion euros, a decrease in operating costs of 3.5 percent and write-offs on loans amounting to 1.1 billion euros.” The analyst foresees a slightly higher quarterly profit than the consensus: 624 million euros.
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In addition to the figures, we also look forward to the comments from KBC. For example, what does the bank say about the payment deferment that it has granted as corona support to families and businesses?
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“Later in the day, KBC will also issue a strategic update via a virtual meeting,” says Ploegh. ‘We expect that the focus of that update will mainly be on digitization.’
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Price recovery
The prospect of a vaccine is extremely important for banks. Because companies were experiencing massive sales declines as a result of the corona crisis, they were in danger of running into liquidity problems. Governments looked to banks for financing and it has. But that also increases the risk of bank customers’ defaults. That is why it is very important for banks that the economy returns to a ‘normal’ situation as soon as possible.
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Still on the agenda
Investors can also look forward to the figures from the imaging group EVS on Thursday
and the diagnostics company Biocartis
. In the US come the largest supplier of network equipment in the world Cisco
, the Disney entertainment group
and the software company Palantir
with results.
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