M and A

Hinduja Continues Acquisition Drive, Buys KBC Private Banking Subsidiary

Nick Parmee 23 May 2010

Hinduja Continues Acquisition Drive, Buys KBC Private Banking Subsidiary

Belgian bancassurance group KBC is selling its dedicated private banking subsidiary KBL European Private Bankers to the Hinduja Group for €1.35 billion ($1.70 billion).

The move represents another important purchase for the Hinduja Group, a diversified international business that has been in the banking business since 1914 and is present in the sector through Hinduja Bank Switzerland and IndusInd Bank in India. In February this year, Hinduja Swiss Holding acquired Banca Commerciale Lugano (BCL), the Swiss bank.

In today's statement, the Hinduja group said it hoped to give KBL greater access to the fast-growing Middle East, Indian and Asian markets.

The KBL epb brand, management team and operations will be maintained in their entirety and KBL epb will continue to be headquartered in Luxembourg. It has affiliated local banks in 55 locations across ten European countries: Belgium, France, Germany, Luxembourg, Monaco, the Netherlands, Poland, Spain, Switzerland and the UK. 

Among the local KBL brands are Theodoor Gilissen Bankiers in the Netherlands, Merck Finck & Co in Germany, Puilaetco Dewaay in Belgium and Brown Shipley & Co in the UK.

At the end of 2009, KBL had assets under management of €47 billion, assets under custody of €37 billion and assets under administration of €103 billion. In 2009, the underlying after tax profit contribution of KBL epb to the KBC group was €140 million. 

KBC Group chief executive Jan Vanhevel said: “The transaction today is an important first step in implementing our updated strategy. With this divestment, we are releasing a significant amount of capital and further strengthening  the KBC group, with its focus on its core bancassurance expertise and markets (Belgium, central and eastern Europe), and with its  reduced risk-profile. We are convinced that the Hinduja Group will allow KBL epb to grow its business, secure the future of its staff and continue offering superior customer service.”

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes