Investor Presentaiton
Executive Summary
1 Transaction summary: KBC Bank NV has agreed to acquire 100% of Raiffeisenbank Bulgaria (RBBG) from RBI for a total
consideration of 1 015m EUR, paid in cash.
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Indisputable strategic rationale: Strengthening our #3 position in the Bulgarian banking market. The proforma combined
entity (RBBG and UBB) would reach 18.2% market share by assets, becoming the #2 player in loans. It will allow KBC to
benefit from the underpenetrated Bulgarian financial services market and strong macroeconomic fundamentals and
reinforce our position as #1 financial group in Bulgaria.
Strong financial rationale, EPS accretive from year 1 onwards, whereby purchase price represents a 1.64x multiple of the
2022E Tangible Book Value (1) of the target and a 13x P/E (2) (based on 2022E earnings)
Leveraging on the combined entity & KBC expertise we see benefits from synergies quickly ramping up from ~12m EUR in
2022 to ~29m EUR in 2024 and remaining above ~25m EUR from 2025-2031 (pre-tax numbers)
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Capital Impact on KBC Group's CET1 (3Q21: 16.4% (3)) at around -1pp upon closing
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KBC Group Dividend Policy to remain unchanged (at least 50% pay-out ratio including interim dividend and AT1 coupon)
Transaction is subject to relevant regulatory approvals and expected to close mid-2022
(1) As per consolidated best estimate book value
(2) Including RR synergies (Run Rate synergies: recurring for longer terms & perpetual synergies)
(3) No IFRS interim profit recognition. Pro forma CET1 including 100% of 9M21 profit recognition 18.1%
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