KBC Groep : KBC Group: KBC reaches agreement with Société Générale Srbija and Telenor Serbia on the acquisition of KBC Banka

KBC Groep : KBC Group: KBC reaches agreement with Société Générale Srbija and
           Telenor Serbia on the acquisition of KBC Banka (Serbia)

Press Release - during trading hours

Brussels, 26 April 2013

KBC has reached an agreement with  Société Générale Srbija and Telenor  Serbia 
on the acquisition  of KBC Banka,  KBC's banking entity  in Serbia. Under  the 
agreement, Telenor will  purchase 100%  of KBC Banka's  shares, while  Société 
Générale Srbija will  acquire KBC  Banka's key  assets and  deposits. All  the 
parties  involved  agreed  not  to  disclose  any  financial  details  of  the 
transaction. For KBC, however, the transaction will have an impact on earnings
of an estimated -47 million euros
(-17m euros of which recorded in  1Q 2013), largely offset by another  capital 
release of an  estimated 42  million euros,  resulting in  a negligible  total 
capital release.  The agreement  marks  KBC's exit  from the  Serbian  banking 
market.

  *KBC Banka  is a  universal bank  providing a  full range  of products  and 
    services to  retail, SME  and  large corporate  customers in  Serbia.  The 
    bank's headquarters are located in Beograd. Customers are served through a
    nationwide distribution  network  of  58 branches,  located  in  the  most 
    economically active areas of the country. KBC Banka holds market shares of
    between 0.9%  and  2.9%,  serves  approximately  81  000  retail  and  SME 
    customers, and employs 492 people. 

  *Société Générale Srbija is  a leading bank  in Serbia and  is part of  the 
    Société Génerale Group. The Group has  been present in Serbia for over  35 
    years, with a network of 102 branches offering a broad range of  financial 
    products services and employing over 1 300 staff. 

  *Telenor Group is the sixth largest  mobile operator in the world with  148 
    million subscribers in 11 markets,  including 3.2 million in Serbia.  Last 
    year, the Group  identified mobile financial  services as one  of its  key 
    strategic directions and market opportunities. 

  *Pending regulatory approval, the transaction  is expected to be  finalised 
    in the fourth quarter of 2013. 

  *For KBC, however, the  transaction will have an  impact on earnings of  an 
    estimated -47 million  euros (-17m euros  of which recorded  in 1Q  2013), 
    largely offset  by another  capital  release of  an estimated  42  million 
    euros, resulting in a negligible total capital release.

Strategic rationale behind the agreement

KBC's decision to  sell KBC Banka  was part of  the Group's strategic  refocus 
that was agreed with the European Commission in November 2009. Since then, KBC
has been refocusing  on retail customers,  small and medium-sized  enterprises 
and mid-caps in its  core markets of Belgium  and Central and Eastern  Europe, 
while reducing risk-weighted assets. The divestment of KBC Banka fits in  with 
this updated strategy.

The acquisition  of  KBC  Banka's  key  portfolio  illustrates  the  strategic 
ambitions of  Société Générale  Srbija to  further expand  its businesses,  to 
offer new products  and services  to customers in  Serbia and  to support  the 
country's economic growth.

For Telenor the acquisition of KBC Banka  is a crucial step in the process  of 
bringing advanced  mobile  financial services  to  customers in  Serbia.  This 
investment will contribute to support economic growth in Serbia.

KBC Banka customers and other relevant stakeholders will soon receive  further 
details of  the transaction  and the  necessary assistance  to transfer  their 
assets. During a  transition period  of a  few months,  KBC Banka  - with  the 
backing of KBC  - will continue  to provide a  full range of  services to  its 
customers and serve their financial needs. KBC Banka customers will be able to
use all their usual products and enjoy the same level of professional  service 
as before. All parties included in the transaction have committed to  mitigate 
the effects of KBC's withdrawal from the Serbian market. KBC will ensure  that 
during the transition process,  the necessary staff  levels are maintained  to 
provide service  and  support  to KBC  Banka's  customers.  Respecting  social 
dialogue, KBC  will establish  a redundancy  plan for  any employees  directly 
impacted.

Johan Thijs, CEO  of KBC  Group NV  commented on the  deal as  follows: 'I  am 
pleased to announce another step  in implementing KBC's updated and  refocused 
strategy that  was agreed  with the  European Commission  in 2009  and is  now 
almost fully realised.  The divestment  of KBC Banka  further strengthens  our 
focus on  our core  bancassurance  markets while  reducing our  risk  profile. 
Today's announcement marks KBC's exit from  the Serbian market and the end  of 
period of  uncertainty  for KBC  Banka.  I would  like  to thank  KBC  Banka's 
management and staff for their commitment and efforts over the past years  and 
wish them every success in the future.'

Note for the editors:

About Telenor Group(www.telenor.rs)

Telenor Group  is the  sixth largest  mobile operator  in the  world with  148 
million subscribers in 11  markets, including 3.2  million in Serbia.  Telenor 
offers services that ensure that subscribers are connected easily and reliably
with people and information. Last year, the Telenor Group identified Financial
Services as  one of  its key  strategic directions  and market  opportunities, 
setting a target  of 1 billion  USD in  global revenue for  2016. Telenor  has 
valuable existing financial service positions in many markets and is  flexible 
about the  best way  to offer  mobile financial  services in  each of  the  11 
markets in which it operates.

About Société Générale Srbija (www.societegenerale.rs)

Société Générale  Srbija  is part  of  Société  Générale Group,  based  in  76 
countries,  employing  154  000  people  and  serving  32  million   customers 
throughout the world. Société Générale has been present in Serbia for over  35 
years. It has a network of 102 branches and employs over 1 300 staff.
In addition  to  banking  services  and products  for  individuals  and  legal 
entities,  Sociéte  Générale  Srbija  offers  leasing  services   (SOGELEASE), 
consumer loans through point of sales, memberships to a voluntary pension fund
(SOGE Penzije) and insurance (SOGE Osiguranje).

About KBC Banka (www.kbcbanka.rs)

KBC Banka (formerly Alco Banka a.d. Beograd) was established as a joint stock
company in 1996. In 2007, KBC became a 100% owner of the company. KBC Banka is
a universal bank, providing a full range of products and services to retail,
SME and large corporate customers through its network of 58 branches. The bank
serves approximately 81 000 retail and SME customers, and employs 492 people.
In 2012, KBC Banka was ranked 22nd in the Serbian banking sector.

About KBC (www.kbc.com)

KBC is an  integrated multi-channel bancassurance  group, catering mainly  for 
retail, SME and local mid-cap customers. At the end of 2009, KBC refocused its
strategy and now  concentrates on  its core activity  in its  home markets  of 
Belgium and certain countries in  Central and Eastern Europe (Czech  Republic, 
Slovakia, Bulgaria and  Hungary). Elsewhere  around the globe,  the group  has 
established a presence in selected countries and regions. Under that refocused
strategy, and at the request of the European Commission, KBC decided to divest
a number of businesses in non-EU markets and with limited market shares,  such 
as the activities of KBC Banka (Serbia).

KBC's headquarters are located in  Brussels (Belgium). The group employs  more 
than 37  000 FTE,  has 9  million customers  and is  listed on  NYSE  Euronext 
Brussels (ticker symbol 'KBC').
Follow KBC at www.twitter.com/kbc_group

KBC was advised on this transaction by Alba Partners and KBC Securities.

For further information, please contact:

KBC Group

Wim Allegaert, General Manager, Investor Relations, KBC Group NV
Tel.: +32 2 429 50 51 E-mail: wim.allegaert@kbc.be

Viviane Huybrecht, General Manager, Corporate Communications/Spokesperson, KBC
Group NV
Tel.: +32 2 429 85 45 E-mail: pressofficekbc@kbc.be

Telenor Serbia

Marija Vujanic, Communication Manager
Tel.: +381 63 670 520 E-mail: marija.vujanic@telenor.rs

Goran Stupar, Media Specialist
Tel.: +381 63 230 095 E-mail: goran.stupar@telenor.rs

Société Générale Srbija

Aleksandra Nenadovic, Communication Department Manager
Tel.: +381 63 65 75 67 E-mail: aleksandra.nenadovic@socgen.com 

Ana Markovic, PR Expert
Tel.: +381 63 104 88 27 E-mail: ana.markovic@socgen.com



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