On 30 July 2021, KBC acquired NN's Bulgarian life insurance and pension fund activities. Today, KBC Group is present in Bulgaria through United Bulgarian Bank (UBB), DZI (Insurance), UBB Interlease, UBB Pension Insurance, UBB Asset Management, UBB Factoring, UBB Insurance Broker and KBC Branch Bulgaria. In 2009, KBC Group defined Bulgaria as one of its core markets. KBC Group has been present in the Bulgarian financial sector since 2007. Raiffeisenbank's risk appetite / profile and compliance governance is similar to KBC Group's. These four companies are 100% owned by RBI Bulgaria. The transaction also includes Raiffeisen Leasing Bulgaria, the number 4 leasing company in Bulgaria (10.5% market share), Raiffeisen Asset Management (Bulgaria), the number 3 asset management company in Bulgaria (9.7% market share and 106m EUR AUM), Raiffeisen Insurance Broker (distributes products from 12 insurance companies 1% market share) and Raiffeisen Service. Raiffeisenbank (Bulgaria) enjoys strong customer satisfaction/NPS across all segments and is focused on innovation and digital banking. Its CET1 ratio at 1H2021 amounted to 16.4%. SME/micro), 4.2 bn EUR deposits and 5.2bn EUR assets and boasted net profit of 27m EUR. Raiffeisenbank (Bulgaria) employs 2,500 staff servicing 635,000 customers.Īt the end of 1H2021, the entity had a 3.3 bn EUR loan portfolio (o/w 36% corporate and 64% retail incl. Raiffeisenbank (Bulgaria) operates a network of 122 bank branches across the country, complemented with an agent network of mobile banking consultants, external partners and credit intermediaries. It ranks 6th in the market with a market share of 7.9% in assets and 8.4% in loans. It is a leading universal bank in Bulgaria, offering a full range of banking, asset management, leasing and insurance brokerage services to retail, SME and corporate customers. Raiffeisenbank (Bulgaria) has developed its banking business since entering the market in 1994. Raiffeisenbank (Bulgaria), an established and trusted nationwide universal banking franchise in Bulgaria with a proven track record The transaction will have a capital impact of around -1pp on KBC Group's CET1 (3Q21: 16.4% fully loaded, Danish Compromise) upon closing.Ĭompletion of the transaction is subject to regulatory approval and is expected by mid-2022. Leveraging on the combined entity and KBC's expertise, benefits from synergies are expected to quickly ramp up from ~12m EUR in 2022 to ~29m EUR in 2024 and remaining above ~25m EUR from 2025-2031 (pre-tax numbers). The transaction will be EPS accretive from year one onwards, whereby the purchase price represents a 1.64x multiple of the 2022E Tangible Book Value of the target and a 13 x P/E (based on 2022E Earnings). T he deal, involving a total consideration of 1 015 million euros paid in cash, reflects the quality of the Raiffeisen franchise and the synergies potential.
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