Crédit Agricole Group (Belgium) and KBC Group NV finalise sale of Centea

Regulated information* - 1 July 2011 (Outside trading hours)
 
KBC Group NV and Crédit Agricole Group (Belgium) today will finalise the sale of
Centea  for an  amount of  527 million euros.  Besides the  sale price, KBC will
receive a dividend of 66 million euros from Centea for financial year 2010. This
sale was previously announced in a joint press release on 4 March 2011. The deal
will  free up around 0.4 billion  euros of capital for  KBC. The finalisation of
this  acquisition  signifies  a  major  step  for  Crédit Agricole in its growth
strategy for Belgium.
 
 ·            The deal will free up around 0.4 billion euros of capital for KBC,
primarily  by  reducing  risk-weighted  assets  by 4.2 billion euros, which will
ultimately  boost KBC's  tier-1 ratio by  around 0.4%. The  gain on this deal is
limited.
 
  * The addition of Centea to the Crédit Agricole Group is a major step in the
    growth and diversification policy that the bank has been pursuing for many
    years. Crédit Agricole and Centea will combine forces to become a new and
    important player in the Belgian banking world, maintaining Crédit Agricole's
    co-operative values and boasting one of the biggest networks of tied agents
    that caters for more than one million customers.
 
  * In mutual agreement with the management teams of the KBC group and Crédit
    Agricole, Centea CEO, Paul D'Haeyer, has decided - partly because he has
    only been a rather short time at Centea - to continue his 34-year career
    with KBC. As of 1 July 2011, he will take up the position of General Manager
    Corporate Banking Belgium. The other members of Centea's Executive Committee
    will move to Crédit Agricole. Alain Diéval, Chairman of the Board of
    Directors of Crédit Agricole will become Chairman of the Board of Directors
    of Centea.
 
Jan Vanhevel, KBC Group CEO: 'Today marks the next major step in the execution
of the strategic plan we agreed with the European Commission. This divestment
will free up a considerable amount of capital and help us further strengthen the
KBC group. Through Crédit Agricole, Centea has gained a new and solid
shareholder. I would like to thank all Centea staff for their commitment and
effort over the years and wish them every success in their future careers.'
 
Johan Thijs, CEO, KBC Belgium Business Unit: 'Divesting Centea was one of the
most difficult choices our group has had to make to meet the European
Commission's demands. Personally speaking, therefore, it is with a heavy heart
that we have to bid farewell to our Centea colleagues, with whom we have had a
successful working relationship for many years. Crédit Agricole will ensure the
necessary continuity for Centea staff and agents alike. Needless to say, KBC
will remain as active as before in Belgium through its extensive and close-knit
network of bank branches and insurance agencies that operate under the KBC and
CBC names.'
 
Luc Versele, Crédit Agricole CEO: '1 July will go down in Crédit Agricole's
history as the day that the group more than doubled in size, the number of
agents tripled and the number of customers rose to one million, all at once. I
hereby warmly welcome all Centea customers and staff to the Crédit Agricole
Group. This acquisition means that now, more than ever, we can offer a worthy
alternative to the large banks.'
 
Alain Diéval, Chairman of the Board of Directors of Crédit Agricole Belgium:
'This great deal, concluded in an excellent spirit between the two parties, will
position our bank as an important player on the Belgian banking market. This
promising and meaningful acquisition is the logical result of the strategy
Crédit Agricole Belgium has been pursuing for many years for the benefit of its
customers and which has the full support of its shareholders, including the
French entities of the Crédit Agricole Group and the active participation of
Crédit Agricole SA.'
 
About Centea (www.centea.be)
Centea is one of the strongest savings banks in Belgium and a renowned brand.
The bank employs 452 people and has a share of 2.98% of the market for savings
accounts and savings certificates, and around 6.77% of the home loans market
(February 2011).
 
Centea  caters for the banking and  insurance needs of more than 600 000 private
customers,  the self-employed and small  and medium-sized enterprises, thanks to
its  extensive  network  of  653 points  of  sale  run  by  604 tied bank agents
throughout Belgium with whom it has worked closely for many years.
Its  comprehensive range of  products includes deposits,  investments and loans,
and  life and non-life insurance provided  in close co-operation with Fidea (the
complementary  network  of  insurance  brokers  owned  by KBC that has also been
earmarked  for divestment).  Fidea will  continue to  provide life  and non-life
insurance  products in  the years  ahead through  the Centea  agents as  well as
through Crédit Agricole's network.
 
About KBC Group NV (www.kbc.com)
KBC is a bancassurer that focuses on its home markets of Belgium, the Czech
Republic, Slovakia, Poland, Hungary and Bulgaria. Its head office is located in
Brussels (Belgium), the heart of Europe. The group employs some 53 000 full-time
staff and caters for around 12 million customers. KBC Group NV is listed on NYSE
Euronext Brussels (ticker symbol 'KBC').
KBC's press releases are available at kbc.com. Follow KBC
onwww.twitter.com/kbc_group
 
About the Crédit Agricole Group (www.credit-agricole.be)
The Crédit Agricole Group is now comprised out of five entities: the co-
operative bank Crédit Agricole, and its four subsidiaries, Crédit Agricole
Assurances (insurance), the niche bank 'Europabank', the online bank 'Keytrade
Bank' and Centea.
 
Crédit Agricole is a solid bank that offers a broad range of banking and
insurance products and services.
 
The Crédit Agricole Group can rely on two solid shareholders, namely the Belgian
co-operative savings banks, 'Lanbokas' and 'Agricaisse' (a 50% shareholding),
and the French company, 'Crédit Agricole' (a 50% shareholding) - more
specifically the regional Crédit Agricole Nord du France and Crédit Agricole du
Nord Est savings banks and Crédit Agricole SA - which support Crédit Agricole
(Belgium) in the realisation of its goals.
 
Crédit Agricole Group
= 3 982 employees, 900 agencies, 1 000 000 customers and 145 000 co-operative
entities.
 
* This news item contains information that is subject to the transparency
regulations for listed companies.
 
Closing Centea ENG: 
http://hugin.info/133947/R/1527220/463131.pdf
 
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Source: KBC Groep via Thomson Reuters ONE
 
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