KBC Groep : KBC Group: KBC completes the sale of Absolut Bank
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: firstname.lastname@example.org
Viviane Huybrecht, General Manager, Corporate Communication/Spokesperson, KBC
Tel +32 2 429 85 45 - E-mail: email@example.com
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