KBC Group, the Brussels-based financial services group, has finalised the sale of its private banking subsidiary KBL European Private Bankers ("KBL epb") to Precision Capital S.A.
KBC Group, the Brussels-based financial services group, has finalised the sale of its private banking subsidiary KBL European Private Bankers (“KBL epb”) to Precision Capital S.A.
The sale, which was first announced 10 October 2011, was for a total consideration of about €1bn. KBC said the sale is expected to release a substantial amount of capital (about €700m) for KBC, increasing its tier-1 ratio by 0.7 %.
KBL epb is one of Europe’s largest onshore private banking groups, and has affiliated local banks in nine European countries: Belgium, France, Germany, Luxembourg, Monaco, the Netherlands, Spain, Switzerland and the United Kingdom.
Johan Thijs, group chief executive of KBC, said: "This transaction is a major step in the implementation of our updated strategy of focusing on our core bancassurance business in our home markets in Belgium and Central and Eastern Europe (Czech Republic, Slovakia, Hungary, Bulgaria). I am convinced that Precision Capital is ideally placed to further develop the business of KBL epb."
KBC will continue to offer private banking services in its home markets in Belgium and Central and Eastern Europe through its KBC-branded private banking businesses.”
Precision Capital SA is a Luxembourg company representing the business interests of a Qatari investor.
George Nasra, chief executive of Precision Capital, described KBL epb as "a solid, solvent and well-established European banking group. We are going to support its development, not only in the European markets in which its reputation for excellence is already well known, but outside Europe as well.
"Our commitment to KBL epb, its clients and staff is a long-term proposition. We will preserve and promote the group’s entrepreneurial spirit - a hallmark of its unique business model."
Jacques Peters, chief executive of KBL epb: "With the support of Precision Capital, we are strengthening our stability and our unique business model based on a network of local private banks. While looking to offer our specific approach to new customers in emerging markets, we will continue to safeguard the future of our staff and to provide our existing customers with the quality service they are accustomed to. The support of Precision Capital will enable us to reinforce our strong competitive edge in the dynamic and demanding international private banking market."
KBL epb operates "a private banking business model focused on local client service supported by centralised operations". This model has resulted in the global-hub concept based in Luxembourg with control functions such as audit, compliance and risk management.