KBC Group: KBC completes acquisition of Raiffeisen Bank International's Bulgarian operations
07 Juli 2022 - 5:45PM
KBC Group: KBC completes acquisition of Raiffeisen Bank
International's Bulgarian operations
Press Release
Outside trading hours – Regulated information*
Brussels, Sofia, 7 July 2022 (5.45 p.m.
CEST)
KBC completes acquisition of Raiffeisen
Bank International's Bulgarian operations
Today, KBC Bank and Raiffeisen Bank
International (‘RBI’) completed the deal announced on 15 November
2021 concerning the acquisition of 100% of the shares of
Raiffeisenbank (Bulgaria) EAD, which is responsible for the banking
operations of RBI in Bulgaria.
The transaction also includes
Raiffeisenbank Bulgaria’s fully owned subsidiaries Raiffeisen
Leasing Bulgaria, Raiffeisen Asset Management (Bulgaria),
Raiffeisen Insurance Broker and Raiffeisen Service.
The acquisition, worth a total of 1
009 million euros paid in cash,
reflects the quality of the Raiffeisen franchise in
Bulgaria and the potential for synergy. The
transaction will have a capital impact of around -1 pp on KBC
Group’s CET1 in 3Q2022.
Raiffeisenbank (Bulgaria) has systematically
developed its banking activities since entering the market in 1994.
It is one of Bulgaria’s leading universal banks, offering a full
range of banking, asset management, leasing and insurance services
to individuals, SMEs and business customers.
The bank ranks sixth with a local market share
of 7.9% in assets and 8.4% in loans. Raiffeisenbank (Bulgaria) has
a network of 122 bank branches across the country which are
complemented by a network of mobile banking advisors, external
partners and credit intermediaries. Raiffeisenbank (Bulgaria) has 2
500 employees and serves 635 000 customers.
The transaction* also includes:
- Raiffeisen Leasing Bulgaria, the fourth largest leasing company
in Bulgaria (10.5% market share)
- Raiffeisen Asset Management (Bulgaria), the third largest asset
management company in Bulgaria (9.7% market share and 106 million
euros of assets under management)
- Raiffeisen Insurance Broker, which serves the leasing and
business customers of Raiffeisenbank (Bulgaria) and distributes
products from 12 insurance companies (1% market share)
- Raiffeisen Service
Raiffeisenbank (Bulgaria)'s risk appetite/risk
profile and compliance governance are similar to those of KBC
Group.
The strong credit rating of UBB, which is the
highest credit rating among banks in Bulgaria and 2 notches higher
than that of Bulgaria as a country, indicated by Fitch rating
agency, confirms that UBB is consistently a reference on the
Bulgarian market in terms of financial strength and stability.
Raiffeisenbank (Bulgaria) and UBB will merge their operations,
allowing KBC to further strengthen its position in the Bulgarian
banking market. The pro forma combined entity (UBB and
Raiffeisenbank (Bulgaria)) would achieve a 19.3% market share in
terms of assets (compared to 11.4% for UBB today), making it the
biggest bank in Bulgaria.
Johan Thijs, CEO of KBC Group,
is pleased with the completion of this acquisition: ‘Over the past
15 years, KBC Group has established itself as the biggest investor
in Bulgaria, taking the leading position as part of the
consolidation of Bulgaria’s financial sector. The Belgian KBC
Group’s Bulgarian business is a successful example of building a
sustainable bank-insurance model in accordance with KBC’s strategy
for its core markets. By acquiring Raiffeisenbank (Bulgaria) and
its subsidiaries, we will now ensure high-quality financial
intermediation for over 2.5 million Bulgarian customers. We would
like to offer a warm welcome to our new customers and colleagues
joining our big family!’
Peter Andronov, CEO
International Markets of KBC Group, added: ‘This
acquisition once again serves to underline our commitment to the
Bulgarian market and our support for the Bulgarian economy. The
clear focus on innovation and digitalisation combined with high
customer satisfaction will allow us to further expand our Bulgarian
operations and consolidate our leadership position on the Bulgarian
financial market together with the staff and management team.’
Peter Roebben, Country CEO for KBC Group
in Bulgaria, concluded: ‘The acquisition
of Raiffeisenbank (Bulgaria) further strengthens KBC Group’s
leading position as the top integrated financial group in the
country. We are fully prepared to quickly and decisively proceed
with the merger of Raiffeisenbank (Bulgaria) and UBB. In
particular, we will ensure that we pay proper attention to the
needs of our customers and staff throughout this process. This is
an exciting moment: a new banking leader is emerging in Bulgaria,
and we are committed to making a positive impact for all
stakeholders.’
For more information, please
contact:
Viviane Huybrecht, General Manager, Corporate
Communication/Spokesperson, KBC Group
Tel + 32 2 429 85 45 - pressofficekbc@kbc.be
Investor Relations, KBC Group
IR4U@kbc.be
* This news item contains information that is subject to
transparency regulations for listed companies. |
KBC Group NV Havenlaan 2 – 1080
Brussels Viviane Huybrecht
General Manager Corporate Communication
/Spokesperson Tel. + 32 2 429 85 45 |
Press Office Tel. + 32 2 429 65 01 Stef
Leunens Tel. + 32 2 429 29 15 Ilse De
Muyer Tel. + 32 2 429 32 88 Pieter Kussé
Tel. + 32 2 429 85 44 Sofie Spiessens
pressofficekbc@kbc.be |
KBC press releases are available at
www.kbc.com or can be obtained by sending
an e-mail to pressofficekbc@kbc.be
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* Market data upon announcement on 15 November 2021
- 20220707-closing-kbc-raiffeisenbank-bulgaria-en
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