Kbc Group Takes a Leap Forward in the Slovakian Market with the Acquisition of 365.bank

According to CEO Johan Thijs, KBC Group is taking a significant step forward in the fast-growing Central European market, with the acquisition of the Slovakian 365.bank. Thijs does not see the growing protest against the pro-Russian Slovakian prime minister Robert Fico as a risk.

KBC Group, the Belgian sofa and insurer, is the latest in a string of major deals in the European financial sector. The company announced on Thursday that it will acquire 365.bank, a Slovakian retail bank that is also active in asset management and consumer loans.

Change in capital distribution policy

In addition to the acquisition, KBC also introduced a new capital distribution policy on the same day. According to this new policy, the group will henceforth distribute a larger portion of net profit as dividend, varying between 50 and 65 percent. At the same time, the company will save less surplus capital than in previous years. This will in principle free up more money for possible acquisitions or for capital distributions to shareholders.

According to analysts at Kepler Cheuvreux, KBC's surplus capital under the new rules amounts to over 2 billion euros. This gives KBC the opportunity to look at possible large takeovers, such as the Belgian insurer Ethias.

Importance of the takeover

With the acquisition of 98,45 percent of the shares in 365.bank for a sum of 749,2 million euros, KBC has made its largest deal since the acquisition of the Bulgarian Raiffeisenbank EAD almost four years ago.

KBC has been active in Slovakia for 25 years through its subsidiary CSOB and has experienced strong growth in recent years. With the acquisition of 365.bank, KBC expects to strengthen its position in the top three of the sector.

Central and Eastern Europe: an important market

KBC's move into Slovakia underlines the growing importance of Central and Eastern Europe for the group. Since the late 90s, when KBC entered the Czech and Slovak markets through the acquisition of CSOB, the region has become increasingly important.

These countries achieved a net profit of 342 million euros in the first quarter, compared to a net profit of 281 million euros in Belgium.

Questions & Answers

What is the importance of the acquisition of 365.bank by KBC?

With the acquisition of 365.bank, KBC is taking an important step into the fast-growing Central European market. The bank has been active in the region for 25 years and has experienced strong growth in recent years.

What does KBC's new capital distribution policy mean?

Under the new policy, KBC will distribute a larger portion of net profit as dividend, ranging from 50 to 65 percent. At the same time, the company will save less surplus capital than in previous years.

How important is Central and Eastern Europe for KBC?

Central and Eastern Europe are of great importance to KBC. Since the late 90s, when KBC entered the Czech and Slovak markets through the acquisition of CSOB, the region has become increasingly important. In the first quarter of this year, these countries accounted for a net profit of 342 million euros, compared to a net profit of 281 million euros in Belgium.