Barclays cuts lender KBC Groep on low EPS expectations

KBC Groep NV

02/12/2025 08:57

** Barclays cuts Belgian-based lender KBC Groep KBC.BR to "underweight" from "equal-weight" rating, expecting lower than widely expected profitability in the next two years

** "Whilst CEE (Central and Eastern Europe) system trends are solid, our 2026 and 2027 expected EPS (earnings per share) are 4-6% below pre-third quarter consensus", say analysts

** The brokerage adds that KBC's varied revenue stream offers less advantage with current ECB rates at 2%

** "We believe KBC has trapped excess capital for now", Barclays says, while cutting its PT to 96 euros per share from 112 euros

** Out of 18 analysts that cover KBC, eight rate the stock "strong buy" or "buy", while ​nine rate it "hold" with one analyst rating the stock "sell", according to LSEG data

 (Reporting by Mateusz Rabiega)

 ((mateusz.rabiega@tr.com))