Precision Capital acquires KBL epb, KBC's priva...

Regulated information* - 10 October 2011 (Outside trading hours)

                     KBC increases its tier-1 ratio by 0.6%


The KBC group ('KBC') has reached an agreement with Precision Capital for the
sale of its dedicated private banking subsidiary KBL European Private Bankers
('KBL epb') for a total consideration of EUR 1.050 billion, EUR 50 million of
which depend on the results of KBL epb ('conditional earn out').


·     Precision  Capital  is  a  Luxembourg  entity,  a company representing the
business interests of a Qatari investor.

·     KBL epb  is one  of Europe's  largest onshore  private banking groups with
affiliated  local banks  in numerous  locations across  nine European countries:
Belgium,   France,   Germany,   Luxembourg,   Monaco,  the  Netherlands,  Spain,
Switzerland and the United Kingdom.

·     As at 30 June 2011, KBL epb had assets under management of EUR 47 billion,
assets  under custody of  EUR 38.2 billion (and,  through a 51.13% stake in EFA,
assets under administration of EUR 87.5 billion).

·     The transaction comprises the sale of KBC's entire interest in KBL epb and
includes  all the private banking  subsidiaries as well as  the custody and life
insurance businesses of KBL epb.

·     The KBL epb  brand, management team  and operations will  be maintained in
their entirety and KBL epb will continue to be headquartered in Luxembourg.

·    The closing of the transaction is subject to customary regulatory approvals
and is expected to be completed in the first quarter of 2012.

·     The transaction will  release a total  of approximately EUR 0.7 billion in
capital  for  KBC,  resulting  in  a  0.6 %  increase  in KBC's tier-1 ratio. In
addition,  over the last 18 months, some EUR 115 million in capital have already
been  released  as  a  result  of  a  reduction  in  risk-weighted  assets.  The
transaction  will have  a negative  impact of  approximately EUR  0.4 billion on
KBC's third-quarter P&L.

·     KBC will continue to offer private banking services in Belgium and Central
and Eastern Europe through its KBC-branded private banking businesses.


Jan Vanhevel, KBC Group CEO: 'The least we can say is that the market
circumstances of the last few months have been particularly challenging. All the
more reason why we are pleased to be able to announce today's deal. This
agreement marks a crucial step in implementing our refocus strategy, while at
the same time providing continuity, stability and certainty to the customers and
staff of KBL epb. The agreement will allow KBC to release a significant amount
of capital, to reduce our risk profile and to further strengthen our focus on
the core bancassurance expertise and markets of Belgium and Central and Eastern
Europe. It is also reassuring to see that a Qatari investor recognises and
values the strengths and potential of a European private banking group.
Precision Capital believes it can grow KBL epb organically onshore and through
strategic opportunities and also wishes to further capitalise on links with the
Middle East and Asia.

On a personal note, it is with regret that I say goodbye to our KBL epb
colleagues, with whom we have worked together successfully for many years. I
especially wish to express my appreciation for the hard work and commitment they
have shown, giving their customers the same high-quality service in these
challenging circumstances and during the period of uncertainty of the last few
months. I am convinced that Precision Capital will provide KBL epb with ample
growth opportunities, secure the future of KBL epb's staff and continue to offer
excellent customer service.'



Jacques Peters, KBL epb CEO: 'We are pleased with the agreement which has been
signed and which allows us to end this period of uncertainty. We can now look to
the future with more confidence. Precision Capital will be for us a leading
partner who is committed to supporting our customer-driven business model and
strategy with a long-term perspective. With Precision Capital, we will be able
to work closely together with the aim of tapping into new markets, in particular
in the Middle East and Asia. We are convinced that our private banking clients,
our staff and the Luxembourg financial centre as a whole will benefit from the
highly committed support of our new owner.'


* This news item contains information that is subject to the transparency
regulations for listed companies.




KBLepb_10102011_ENG.pdf: 


http://hugin.info/133947/R/1553178/478708.pdf




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