KBC Groep : KBC Group: KBC completes the sale of Absolut Bank

        KBC Groep : KBC Group: KBC completes the sale of Absolut Bank

Press Release
Outside trading hours - Regulated information*

Brussels, 24 May 2013

Today, KBC Group is pleased to  announce the completion of the deal  announced 
on 24  December 2012,  whereby KBC  would sell  its Russian  banking  business 
Absolut Bank to a  group of Russian  companies that manage  the assets of  the 
second largest non-state pension fund in Russia, Blagosostoyanie. 

The total consideration  amounts to  0.3 billion euros.  In addition,  Absolut 
Bank repaid  the entire  0.7  billion euros  of  KBC intercompany  funding  by 
refinancing it with other capital  market transactions in the period  between 
signing and closing the deal.
It will  have  a  negative  impact  of  about  -0.1  billion  euros  on  KBC's 
consolidated 2Q13 results, but not on its capital account since -  technically 
speaking - this relates  primarily to foreign  exchange differences that  have 
already been absorbed in KBC's capital base. The deal frees up a total of  0.3 
billion euros of capital for KBC (0.2 billion euros of which in 2Q13), chiefly
by reducing risk-weighted assets by 2 billion euros, and ultimately  improving 
KBC's tier-1 ratio by around 0.4% (0.3% of which in 2Q13).

KBC is now no longer present on the Russian banking market and, therefore,  is 
fully compliant with  the agreement made  in November 2009  with the  European 
Commission to divest Absolut Bank.



Johan Thijs, CEO of KBC Group NV commented on the deal as follows: 'I am happy
to announce that the sale of Absolut  Bank has been completed. This deal is  a 
major step in the implementation of our updated strategy to focus on our  core 
bancassurance business in our home markets in Belgium and Central and  Eastern 
Europe (Czech Republic, Slovakia, Hungary,  Bulgaria). It is a recognition  of 
Absolut Bank's experience and  expertise, and will  provide continuity to  its 
staff and customers. I  would like to thank  all of Absolut Bank's  management 
and staff  - with  whom we  have  had a  successful working  relationship  for 
several years - for their commitment  and effort, and wish them every  success 
in their future careers.'

Note for the editors:

About Blagosostoyanie (www.npfb.ru)

The Non-State Pension  Fund Blagosostoyanie  was founded  in 1996.  It is  the 
second largest Non-State Pension Fund in the Russian Federation and is  active 
in the field of non-state pension provision and mandatory pension insurance in
80 regions of  Russia. Based in  Moscow, it  has own assets  amounting to  6.5 
billion euros and  boasts 2.9  million customers. It  has achieved  continuous 
growth in customers, pension savings and reserves.

About KBC (www.kbc.com)

KBC is an  integrated multi-channel bancassurance  group, catering mainly  for 
retail, SME and local midcap customers. It concentrates on 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.
KBC provides banking, insurance and asset management products and services via
its integrated  distribution channel  consisting of  bank branches,  insurance 
agents and  brokers  and  the  Internet. KBC's  headquarters  are  located  in 
Brussels (Belgium), the heart  of Europe. The group  employs more than 37  000 
FTEs. KBC is listed on NYSE Euronext Brussels (ticker symbol 'KBC').

About Absolut Bank (www.absolutbank.com)

Absolut Bank, a full-service bank founded in 1993, is successfully  developing 
in the 15 largest regions  of Russia. It is  among the TOP-45 largest  Russian 
banks by  net assets  (RBC Rating),  and among  the TOP-10  banks by  size  of 
mortgage portfolio  (RBC  Rating).  At  1 January  2013,  the  bank's  equity 
amounted to 17.7 billion  roubles and profit to  1.2 billion roubles,  while 
the capital adequacy ratio N1 came to 17.96 % at 1 January 2013 (RAS  ratio). 
The bank's key strategies  are to provide  high-quality service, to  diversify 
its customer base, to continuously monitor the quality of the loan  portfolio, 
and to adopt a conservative approach towards risk management. The bank employs
nearly 3 000 employees, who serve more than 140 000 customers.

For more information, please contact:

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

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

* This  news  item  contains  information  that  is  subject  to  the  transparency 
regulations for listed companies.
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Absolut_Bank_closing_en.pdf

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Source: KBC Groep via Thomson Reuters ONE
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