KBC completes acquisition of OTP Banka Slovensko (Slovakia) Brussels Stock Exchange: KBC

Joint press release
Outside business hours – Regulated information *

Brussels, Budapest, Bratislava – November 26, 2020 – 6 pm CET

KBC completes the acquisition of OTP Banka Slovensko (Slovakia)

KBC Group of Belgium and OTP Bank, the Hungarian parent company of OTP Banka Slovensko (Slovakia), closed the agreement today announced on February 17, 2020 for KBC Bank NV to acquire ownership of 99.44% of the shares of OTP Banka Slovensko, as (OTP Banka Slovensko). The remaining shares are in the hands of various individuals.
The transaction received regulatory approval from the National Bank of Slovakia (NBS), the National Bank of Belgium (NBB), the European Central Bank (ECB) and the Antimonopoly Office of the Slovak Republic. That has only a limited impact (-0.2%) on KBC’s strong capital position, maintaining KBC’s excellent 3Q2020 CET1 ratio of 16.6% (Basel III fully loaded, Danish commitment) well above the regulatory minimum capital requirements.

As a result of the transaction, KBC Bank NV is now the new parent company of OTP Banka Slovensko. The next logical step is the legal and operational merger of Československá obchodná banka, as (ČSOB) and OTP Banka Slovensko, which will further consolidate ČSOB’s current position number four in the Slovak banking market in terms of assets, with a market share of approximately 12.6%.

The OTB Banka Slovensko brand will initially remain in place to ensure a smooth transition. Meanwhile, OTP Banka Slovensko, with the full support of ČSOB, will continue to fulfill its commitments to the market and provide a professional service of the highest level to all its clients, who will not have to take any action as a result of the transaction.

Johan Thijs, CEO of KBC Group, welcomes today’s transaction: ‘The acquisition of OTP Banka Slovensko further strengthens our participation in the Slovak market, where we have already been present through ČSOB since 2002. We will be able to benefit from economies of scale and increase our visibility in this highly competitive market, to the benefit of all our concerned parties. This operation is fully in line with our strategy, which is focused on becoming the benchmark banking-insurance group for retail clients, small and medium-sized companies and midcaps in all of our main markets. It will create opportunities for us to offer high-end financial solutions to an even wider range of clients. I am convinced that they will benefit significantly from the future merger of ČSOB and OTP Banka Slovensko, as they will gain access to high-quality, modern and innovative financial services enabled by digital technologies, as well as a personal and professional approach. ‘

Sándor Csányi, President and CEO of OTP Bank, commented: ‘Our entry into the Slovak market will always be memorable for us, as it was our first step on the way to becoming a regional banking group that is currently active in more than 10 countries. I would like to thank our management and the staff of OTP Banka Slovensko for their professional and dedicated work for almost two decades. During this time, our subsidiary bank has been a stable market player providing high quality services in Slovakia. I am confident that the merger with ČSOB will provide OTP Banka Slovensko’s clients with access to numerous additional bank branches, a wider range of services and the support of another large banking group. After the successful financial closing of the transaction, in line with our strategy, we will continue to actively investigate possible acquisitions in the region, mainly in countries where we are already present ”.

Daniel Kollár, CEO of ČSOB Bank Slovakia and Country Manager concluded: ‘Today’s transaction marks an important milestone for ČSOB. The merger of OTP Banka Slovensko into ČSOB will substantially strengthen our banking and insurance franchise in the country and further enhance our cross-selling potential with ČSOB Poist’ovňa, as, ČSOB Leasing, as and KBC Asset Management.
I also wish a warm welcome to all customers and employees of OTP Banka Slovensko, which will continue to be led by Ms. Zita Zemková, Managing Director of OTP Banka Slovensko. Their extensive experience, market knowledge and management skills ensure continuity for all stakeholders and will be of great value in successfully integrating ČSOB and OTP Banka Slovensko into a new, dynamic and future-proof entity. With this in mind, I encourage and invite our new colleagues from OTP Banka Slovensko to embrace our ČSOB community and share their ideas, opinions and experiences with us. ‘

Note to editors:

OTP Bank Slovakia
OTP Banka Slovensko, as operates on the Slovak market as a universal bank. Since April 4, 2002, OTP Bank Plc., The largest bank in Hungary, is the majority shareholder of OTP Banka Slovensko, as
At the end of 2019, OTP Banka Slovensko had a market share of 1.75% in deposits and 1.85% in loans.

It currently operates a network of 58 branches in Slovakia, serving approximately 176,000 retail clients and 14,400 corporate / SME clients. The bank is based in Bratislava and most of its business is related to banking products and services provided to natural and legal persons in the Slovak market.

KBC presence in Slovakia (www.kbc.com )

KBC Bank NV, based in Belgium, is the parent company and the sole shareholder of Československá obchodná banka, as (ČSOB). ČSOB is a leading Slovak bank with more than 50 years of tradition. It is one of the largest and strongest financial institutions on the Slovak market. As a universal bank, it serves a wide range of clients, including retail, freelance, SME, corporate and institutional clients. It is part of the ČSOB Financial Group, which also includes ČSOB Stavebná sporiteľňa, as (construction company), ČSOB Leasing, as, ČSOB Real, sro, ČSOB Advisory, sro and ČSOB Nadácia (foundation). ČSOB Poisťovňa, as (insurance company) is a sister company of ČSOB.
The acquisition of OTP Banka Slovensko, as will primarily drive retail operations and market share in:
o Mortgages (from 12.9% to 14.8%)
o Consumer loans (from 4.7% to 8.2%)
Based on the group’s banking and insurance model, ČSOB Poisťovňa, as, ČSOB Leasing, as and KBC Asset Management will also benefit from the acquisition through cross-selling products and services to OTP Banka Slovensko’s retail customer base.

For more information, contact:

Kurt De Baenst, Managing Director, Investor Relations, KBC Group
Tel .: + 32 2429 35 73 – Email: [email protected]

Viviane Huybrecht, General Manager, Corporate Communications / Spokesperson, KBC Group
Tel .: + 32 2429 85 45 – Email: [email protected]

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

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