While the global economy gradually recovers from its worst downturn in decades, KBC has been working on a strategic review to enhance its position in the post-crisis period.
The new business plan will enable KBC to continue to act as a solid European regional player that is attractive for its customers, employees, shareholders and the communities in which it operates.
The strategy will also generate enough capacity to redeem the capital securities that were issued to the State. The strategic plan, which was the basis for a restructuring plan as requested by the European Commission, was cleared by European regulatory authorities today.
Highlights
- Crisis lesson learnt: more focus on core businesses, risk levels to be reduced
- Core bancassurance model largely untouched by crisis, growth options in Eastern Europe maintained
- Non-dilutive exit from State liabilities, predominantly based on earnings accrual and reduced scope of international activities (and some divestments)
- Group total risk-weighted assets to be reduced by 25%
- Aim to resume dividend payout as of 2011
- Plan cleared by European Commission
- Institutional investor conference (Investor Day) scheduled for tomorrow, 19 November (London)
Approval from the European Commission
The European Commission on Wednesday approved restructuring plans for British bank Lloyds, Dutch counterpart ING and Belgium’s KBC bank, all rescued by public bailouts during the global financial crisis.
In order to avoid distortion of competition within the European Union and to ensure that the temporary stimuli received by KBC from both the Belgian Federal and Flemish Regional Governments have been adequately financially remunerated, the European Commission was needed to approve these transactions.
Jan Vanhevel: ’Discussions with the European Commission were not always easy since difficult trade-offs had to be made. But we appreciated the open and constructive way these discussions were held. The same holds true for our discussions with lead representatives from both the Belgian Federal and Flemish Regional authorities.’
’We are ready for the future. We have a clear vision for the years ahead supported by a strong business case. We will start executing the plan immediately and will closely follow this up. We will make sure that change processes are professionally managed and internal dialogue remains unambiguous and respectful, in line with our corporate culture.
The decisions on divestment were not taken lightly. We will work carefully to manage the divestment process in a way that will support the success of our business in the interests of our customers, employees and shareholders alike.
In addition, several of the intended measures are conditional on the approval or advice of the relevant works councils and local regulatory authorities.’
