KBC : Exiting Ireland rational, capital release to be returned to shareholders
>Conclusion: Rational decision to exit Ireland - Given the relatively low ROE KBC is able to make in Ireland (9% vs a group ROE of 15-16%) partly driven by the requirement by the regulator end 2020 that KBC had to keep even more capital for their mostly lower risk residential mortgage book, it is logical that KBC is on the path to reallocate capital out of Ireland, so this decision is rational. We estimate that this transaction can release about € 1bn in capital which...KBC Group is a bank-insurance group engaged in providing products and services mainly to retail, private banking, SME and mid-cap clients. Co. focuses on its primary markets of Belgium, the Czech Republic, Slovakia, Hungary and Bulgaria. Co. is also present in Ireland and, to a limited extent, in several other countries to support corporate clients from its primary markets. Co.'s main brands are KBC and CBC in Belgium, CSOB in Czech Republic and Slovakia, K&H in Hungary, CIBANK and DZI Insurance in Bulgaria, and KBC Bank Ireland in Ireland. As of Dec 31 2014, Co. had 1,601 bank branches. In addition, Co. had total assets of Euro245.17 billion.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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