The bank is strongly focused on organic growth and limited acquisitions to strengthen its existing market positions. Last year saw increased emphasis on the concept of customer-centricity and operational excellence, while strengthening synergies within the group. In this period KBC also completed the €1bn share buyback programme for 2007. In total 10.4 million KBC shares were repurchased at an average price of €95.81 per share.
As part of its strategy of shoring up its position in central and eastern Europe, KBC has expanded its presence further east in promising new markets, including the full takeover of Serbian bank, A banka, rebranded KBC Banka.
KBC also acquired an 85% stake in DZI Insurance, Bulgaria’s leading insurer, and a 75% holding in the same country’s Economic and Investment Bank, with the aim of developing its bancassurance concept in the Bulgarian market. “We are convinced that our business model, which is focused on retail bancassurance activities in both Belgium and eastern Europe, is a strong one,” says CEO André Bergen. “This, coupled with our strong liquidity and solvency position, provides a guarantee for future growth, even in difficult times.”
The acquisition of 100% of Slovakian Istrobanka, which was merged with KBC’s local subsidiary, raised the bank’s market share in Slovakia to 10%. As a leading European financial services group, KBC has continually achieved excellent financial results. The global market turbulence and the US subprime crisis have had a minimal impact on the bank, as reflected in the bank’s €3.28bn profit in 2007.
