KBC Groep: KBC Group: KBC Announces Sale of KBC Bank Deutschland

       KBC Groep: KBC Group: KBC Announces Sale of KBC Bank Deutschland

Regulated information* - 24 September 2013 (08.00 a.m. CEST)


Press Release
Outside trading hours - Regulated information*

Brussels, 24 September 2013 (08.00 a.m. CEST)

KBC Announces Sale of KBC Bank Deutschland

 KBC  today  announced it  has  reached an  agreement  to sell  KBC  Bank 
Deutschland AG, a wholly-owned subsdiary of KBC Bank NV, to several  investors 
including affiliates  of  Teacher Retirement  System  of Texas  (TRS),  Apollo 
Global Management, LLC  (NYSE: APO),  Apollo Commercial  Real Estate  Finance, 
Inc. (NYSE: ARI), and Grovepoint Capital LLP (Grovepoint).

 KBC  Bank Deutschland  specialises in  corporate banking  and  financial 
services for medium-sized German companies. It also provides professional real
estate financing,  acquisition  finance, institutional  asset  management  and 
private wealth management services for German high-net-worth individuals.

 The  transaction  is  subject  to  antitrust  and  regulatory  approval. 
Meanwhile, KBC  Bank  Deutschland, with  the  support of  KBC,  remains  fully 
committed to all its current business activities and serving its customers.

 This deal  will free up  around 0.1  billion euros of  capital for  KBC, 
primarily by reducing risk-weighted assets and will have no material impact on
KBC's financial results. This will result in an improvement of KBC's  solvency 
position with roughly 15bp.

 In  November  2009,  KBC  agreed a  strategic  plan  with  the  European 
Commission  that   involves  refocusing   on  retail   customers,  small   and 
medium-sized enterprises  and mid-caps  in  its core  markets of  Belgium  and 
Central and Eastern Europe (Czech  Republic, Slovakia, Hungary and  Bulgaria), 
while  reducing  risk-weighted  assets.  As  part  of  this  plan,  KBC   Bank 
Deutschland was earmarked for divestment,  despite the presence and  expertise 
it has  built  up.  At  the  same time,  KBC  continues  to  respond  to  the 
international banking  needs  of  its corporate  customers  outside  its  home 
markets through a  network of  branches and network  desks in  a selection  of 
countries, including Germany.

Johan Thijs, CEO  of KBC  Group NV commented  on the  transaction: 'With  this 
deal, the  divestment  programme  KBC  has  committed  to  execute  is  nearly 
complete. This agreement also affirms  KBC Bank Deutschland's expertise,  and 
will provide continuity to the bank's  staff and customers. I am pleased  that 
under its new ownership,KBC Bank Deutschland  will be able to further  enhance 
its business and its reputation and  continue to deliver high quality  service 
for its customers, supported by a dedicated staff and our well-reputed  brand. 
At the  same  time,  the  agreement allows  KBC  to  continue  supporting  its 
home-market corporate customers requiring financial services for their  German 
business activities. '

Mr Axel Bartsch,  CEO of KBC  Bank Deutschland  said: 'We are  pleased that  a 
period of uncertainty  regarding our future  ownership is nearing  an end.  We 
have been very impressed with the  depth of knowledge and understanding  shown 
by the bank's proposed  new owners. They understand  our heritage, our  values 
and the importance of high quality  service and continuity to our clients.  We 
are excited to be working with them. '

Note for the editors:

About KBC (www.kbc.com)

KBC is an integrated multi-channel bank-insurance group, catering mainly for
retail, SME and local midcap clients. 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's headquarters
are located in Brussels (Belgium). The group employs more than 37 000 FTE and
is listed on NYSE Euronext Brussels (ticker symbol 'KBC').

Follow KBC at www.twitter.com/kbc_group

About KBC Bank Deutschland (www.kbcbank.de)

KBC Bank Deutschland is a stand-alone specialised financial institution for
German medium-sized corporate clients (the Mittelstand). The bank is also
active in professional real estate financing, acquisition finance,
institutional asset management and private wealth management for German
high-net-worth individuals. Its foundation dates back to 1863 as a cooperative
banking organisation in Bremen. The bank is specialised in financing and
providing financial advice to the Mittelstand. In 1982, the bank was acquired
by the former Kredietbank, which expanded the bank's network with additional
branches in several German major cities. In 1999, the brand name became KBC
Bank Deutschland.

  o180 staff members
  oBranches in Bremen (head office), Hamburg, Hannover, Berlin, Düsseldorf,
    Frankfurt, Stuttgart and Munich
  oTotal assets: 2,607 million euros (end 2012)



About TRS (www.trs.state.tx.us)

TRS delivers retirement and related benefits authorised by the Texas
Legislature and manages a 117 billion-dollar trust fund established to finance
member benefits. More than 1.3 million public education and higher education
employees and retirees participate in the system.

About Apollo Global Management (www.agm.com)

Apollo Global Management, LLC (NYSE: APO) is a leading global alternative
investment manager with offices in New York, Los Angeles, Houston, London,
Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets
under management of approximately 113 billion US dollars as of 30 June 2013,
in private equity, credit and real estate funds invested across a core group
of nine industries where Apollo has considerable knowledge and resources.

About Apollo Commercial Real Estate Finance, Inc. (www.apolloreit.com)

Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate
investment trust that primarily originates, invests in, acquires and manages
performing commercial real estate mortgage loans, subordinate financings, CMBS
and other commercial real estate-related debt investments throughout the U.S.
The company is externally managed and advised by ACREFI Management, LLC, a
Delaware limited liability company and an indirect subsidiary of Apollo Global
Management, LLC, a leading global alternative investment manager with
approximately 113 billion US dollars of assets under management at 30 June
2013.

About Grovepoint Capital (www.grovepoint.co.uk)

Grovepoint Capital LLP was founded in 2010 as a specialist private investment
firm for sophisticated investors. It operates through three business units,
namely Investment Management, Principal Investments and Specialist Lending.
Grovepoint Investment Management, manages investments for pension funds,
financial institutions, family offices and high net worth individuals,
offering its clients specialised opportunities and bespoke portfolio
management services. Grovepoint Capital operates as a partnership that has
been founded on a set of values that are fundamental to the way it does
business. Grovepoint is authorised and regulated by the UK's Financial Conduct
Authority (FCA).

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.
KBC Group NV                        Press Office          KBC press releases are
Havenlaan 2 - 1080 Brussels         Tel. +32 2 429 65 01  available at www.kbc.com
Viviane Huybrecht                   Tel. +32 2 429 29 15  or can be obtained by
General Manager                     Fax +32 2 429 81 60   sending an e-mail to
CorporateCommunication/Spokesperson E-mail:               pressofficekbc@kbc.be
Tel. +32 2 429 85 45                pressofficekbc@kbc.be
                                                          Follow us on
                                                          www.twitter.com/kbc_group


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

KBC_Bank_Deutschland_divestment_ENG.pdf

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Source: KBC Groep via Thomson Reuters ONE
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