Belgian banking and insurance group KBC has reported a 39 per cent rise in second-quarter underlying profit, beating analysts' expectations with help from higher interest and fee income.
KBC's underlying net profit for April-June was €880 million, against €634 million in the same period last year.
KBC, which owns IIB Bank in the Republic, said net interest income rose 7 per cent year-on-year, while fee and commission income went up 14 per cent.
In its outlook, KBC said July had been "encouraging". The bank did not release figures for its Irish business.
KBC reported a 28 per cent rise in underlying net profit for its Belgian operations to €417 million, beating expectations, while in central and eastern Europe, net profit was also above expectations at €177 million.
Shares in KBC trade at 10 times projected 2007 earnings and have dropped 6.5 per cent since the start of the year, while those of Belgian-Dutch peer Fortis trade at 8.6 times and have dropped 16.5 per cent. Fortis reported a forecast-beating 16 per cent rise in net profit on Thursday, helped by strong trading figures.
Its shares have been hit by a planned capital increase to fund its proposed acquisition of Dutch peer ABN Amro. - (Reuters)
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