KBL epb to grow in India, Middle-East and Asia KBC increases its core tier-1 ratio by 1%
Friday, May 21, 2010, Brussels, London KBC
KBC group (KBC) has reached an agreement with the Hinduja Group (Hindujas or the Group) for the sale of its dedicated private banking subsidiary KBL European Private Bankers (KBL epb) for a total consideration of EUR 1.350 billion.
The Hinduja Group is a diversified international business that has been in the banking business since 1914 and is present in the sector through Hinduja Bank Switzerland and IndusInd Bank in India. As well as providing a stable home, continuity and careful stewardship for KBL, the Group will also give the bank greater access to the fast-growing Middle-East, Indian and Asian markets. The Hinduja Group intends to grow KBL epb internationally by using the Groups business interests in more than 100 countries.
Jan Vanhevel, KBC Group CEO: The transaction today is an important first step in implementing our updated strategy. With this divestment, we are releasing a significant amount of capital and further strengthening the KBC group, with its focus on its core bancassurance expertise and markets (Belgium, Central and Eastern Europe), and with its reduced risk-profile.
This important transaction enables the group to report a very strong pro forma core tier-1 ratio of 10.4 % as of 31 March 2010. on a personal note, it is with regret that we say goodbye to our KBL epb colleagues, with whom we have worked together successfully for many years. We are convinced that the Hinduja Group will allow KBL epb to grow its business, secure the future of its staff and continue offering superior customer service.
Srichand P. Hinduja, Chairman of the
Hinduja Group: We are very pleased to welcome KBL epb into our business, which has a long and successful history in the banking sector. We intend to ensure that KBL epb clients continue to receive exemplary service from a highly-motivated staff working in a new and secure environment.
We look forward to working with the existing management team of KBL epb who we believe have done an excellent job to date. We plan to invest further in the business, maintaining each of the subsidiaries, while also providing KBL epb with access to the fast growing markets of the Middle East, the Indian subcontinent and Asia. In this way, we hope to address the private banking needs of clients internationally and facilitate capital flows between fast growing economies and established Western financial markets.
http://www.hindujagroup.com
Hinduja Group India Ltd.
Hinduja House
171, Dr. Annie Besant Road
Worli, Mumbai-400 018.
Tel: 022 - 24960707
