27.07.2007 /Operations
 KBC receives final approval to acquire Russian Absolut Bank
Brussels, Moscow – Yesterday, KBC received regulatory approval from the Central Bank of Russia to acquire Absolut Bank. KBC had already received the approval of the Anti-Trust Commission and now holds 95% of the shares of Absolut Bank, while IFC (the International Finance Corporation), the private sector arm of the World Bank Group, holds the remaining 5%. André Bergen, KBC Group CEO , commented on the closing of the deal as follows: “This acquisition is a logical and important step in KBC’s international expansion. KBC is now entering a new emerging European market. The Russian banking market is one of the largest and most dynamic in emerging Europe, having achieved annual growth of more than 40% in aggregate net profit over the past five years. Absolut Bank is a fast growing bank and an ideal platform for KBC to start building on its long-term presence in this promising market. KBC wants to ensure the growth and future of Absolut Bank for the benefit of its retail and corporate customers, employees, shareholders and the Russian community at large. G iven the professionalism, enthusiasm and determination of all Absolut Bank’s employees, KBC is convinced that, together, Absolut Bank and KBC will be able to grow and further strengthen their position in the league of strong performers in the years to come!” Jan Vanhevel, CEO of KBC Group’s Central Europe Business Unit, added: ”The acquisition of Absolut Bank is KBC’s very first takeover in Russia. KBC is strongly committed to supporting the management of Absolut Bank in the implementation of their ambitious and successful business and growth plans in Russia, plans which will be further fine-tuned in the coming months. We are convinced that the internationally active clients of the KBC group, and especially those in Central and Eastern Europe, will also be able to benefit from Absolut Bank’s experience, know-how and excellent service.” Nikolay Sidorov, Chairman of the Management Board of Absolut Bank, welcomed the new shareholder: “The new partnership between KBC and Absolut Bank is the beginning of a new era for our bank. KBC wants to build on the local strengths of Absolut Bank and to bring in its expertise and resources. KBC has already granted us a loan of 300 million US dollars to step up the bank’s retail business growth and to expand the network. This clearly underlines KBC’s strategy of being a long-term shareholder. KBC is strongly committed to the future of its group companies and fully backs those companies in terms of capital investments, shared services, knowledge-sharing and products. We are convinced that the partnership with KBC will be to the benefit of our customers, employees and all other stakeholders.” The recent press releases about the acquisition and more information about KBC Group are availableatwww.kbc.com. More information about Absolut Bank can be found at www.absolutbank.com.
For more information, please contact: - Mrs Dinara Suleymanova, Head of Marketing, Absolut Bank.
Tel +7(495) 995-1001; +7(495)777-7171 d.suleymanova@absolutbank.ru - Luc Cool, Director of Investor Relations, KBC Group
Tel. (+32) 2 429 40 51 investor.relations@kbc.com - Viviane Huybrecht, Head of Group Communication and of the KBC Press Office
Spokesperson, KBC Group Tel. (+32) 2 429 85 45 pressofficekbc@kbc.be Note to the editor KBC Group: www.kbc.com KBC Group is one of the leading financial groups in Europe. A multi-channel bancassurance group with a geographic focus on Europe, it caters mainly for retail and private banking customers and small and medium-sized enterprises. Besides focusing on providing retail and private bancassurance services, it is also active in asset management, the provision of services to businesses and market activities. KBC occupies significant, even leading positions in its two home markets of Belgium and Central and Eastern Europe and has an extensive private banking network operating under the European Private Bankers concept. It has also selectively established a presence in a number of other countries and regions around the world. KBC Group is listed on Euronext Brussels (ticker symbol ’KBC’) and the Luxembourg Stock Exchange. With a market capitalisation of around 36 billion euros, KBC is one of the top Belgian companies and one of the leading financial groups in Europe, employing 50 000 staff and catering for 11 million customers. Absolut Bank: www.absolutbank.com Absolut Bank was established in 1993, mainly as a corporate bank, but over the past few years it has developed into a universal bank, focusing increasingly on retail banking. It is headquartered in Moscow, with total assets of 2.3 billion euros ( 1H 2 00 7 ) and total equity of around 3 00. 6 million euros in 1 H 2007. It has more than 1 900 employees and 43 branches/outlets. The bank focuses principally on Western Russia, including the capital cities of Moscow and St. Petersburg. The Bank is also active in asset management, capital markets and leasing through two dedicated subsidiaries (Absolut Leasing and Leasing Company Absolut). Absolut Bank is the seventh largest non-state-owned mortgage lender, the fifth largest bank in terms of the growth rate of private deposits, and the twenty-fourth in corporate lending. It also occupies a leading position in trade finance for middle-sized companies. Absolut Bank is also a market maker in the local interbank forex market and participates in international and local government, corporate bond and securities trading. The bank is a securities trader on MICEX and the Russian Trading System (RTS).
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