KBC has reached an agreement with Precision Capital - a Luxembourg firm representing a Qatari investor - for the sale of its private banking subsidiary KBL European Private Bankers for €1.05bn.
KBL European Private Bankers, formerly known as KB Lux, had as of 30 June 2011 €47bn AUM and has branches in Belgium (Puilaetco Dewaay), France (KBL Richelieu), Germany (Merck Finck), Luxembourg (KBL European Private Bankers), Monaco (KBL Monaco), the Netherlands (Theodoor Gilissen), Spain (KBL España), Switzerland (KBL Swiss Private Banking) and the United Kingdom (Brown Shipley).
This has been KBC's second attempt to sell KBL EPB. A deal collapsed in mid-2010 when KBC agreed to sell its Luxembourg private banking subsidiary to India's Hinduja for €1.35bn, only for it to be vetoed by the Luxembourg regulator CSSF.
KBC has had to settle for €300m less - which, looking at the current market conditions does not come as a surprise, admits KBC CEO Jan Vanhevel: "The least we can say is that the market circumstances of the last few months have been particularly challenging. All the more reason why we are pleased to be able to announce today's deal," he added. "This agreement marks a crucial step in implementing our refocused strategy, while at the same time providing continuity, stability and certainty to the customers and staff of KBL," he added.
SRP's database currently has 213 products from members of the KBL Group, which employs 2,553 staff, including 401 private bankers. The products were launched in collaboration with a wide range of issuers including ABN Amro, Barclays, BNP Paribas Arbitrage, Commerzbank, Crédit Agricole CIB, Credit Suisse, Deutsche Bank, Exane, HSBC, ING, Irish Life & Permanent, JPMorgan, KBC IFIMA, Lloyds Bank, Natixis, Rabobank, Royal Bank of Canada, RBS and SG Acceptance.
These products are available in the Offshore, Private Banking & Institutional Database.