Belgian banking and leasing group KBC, has just announced
detailed plans for an expansion strategy in Russia – utilising the
branch network of Russia’s Absolut Bank, in which it recently
acquired a controlling stake.
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KBC, which operates in asset management, private equity,
leasing, factoring and insurance throughout the CEE, bought a 92.5
per cent stake in Absolut Bank last April – marking its first
strategic step into Russia’s leasing and banking market – and has
since raised that stake to 95 per cent in July. Absolut Bank is
also active in asset management, the capital markets and leasing
through its two subsidiaries Absolut Leasing and Leasing Company
Absolut.
“It is KBC and Absolut Bank’s ambition to become a leading
player in the retail, SME and mid-sized corporate segments in
Russia,” KBC Chief Executive Andre Bergen said in a statement.
“To this end, KBC will build upon the local management team,
strengthening it with KBC management and experience. KBC is in the
process of enhancing Absolut Bank’s already strong risk governance
by applying its own high standards.”
KBC aims to increase its number of branches in Russia to about
130 and expand Absolut Bank’s presence from a current 50 branches
in 18 regions to covering 25 regions by 2010.
Absolut Bank, which has €2.3bn in total assets and in 2006 grew
by two and half times to be one of the top 25 Russian banks, aims
to continue its investment in the small to medium sized corporate
sector, with a particular focus on working capital and term
loans.
Nikolay V. Sidorov, CEO of Absolut Bank, said: “The business
plan of Absolut Bank for the next three years continues to focus on
the development of the banking business in the retail and SME
segments, as well as in the mid-sized corporates segment.
Given Absolut’s fast growth, KBC expects to provide capital
injections and has already granted the privately owned bank
US$300m.
“KBC is fully committed to supporting the growth of Absolut Bank
in terms of deeper regional penetration and cross-selling to the
customer base,” Bergan added.
“KBC is also ready to provide capital support and intercompany
funding over the next few years.”
