International Strategy of KBC Networking event Agoria Banking Club Brussels, December 18th, 2007...
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International Strategy of KBC Networking event Agoria Banking Club Brussels, December 18th, 2007 John Hollows Senior General Manager Centra and Eastern Europe & Russia
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Transcript of International Strategy of KBC Networking event Agoria Banking Club Brussels, December 18th, 2007...
International Strategy of KBC
Networking event Agoria Banking ClubBrussels,
December 18th, 2007
John HollowsSenior General Manager
Centra and Eastern Europe& Russia
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MissionStatement KBC
KBC Group aims to be an independent, medium-sized bancassurer for private persons and medium-sized enterprises in selected European countries, with expertise in asset management and the financial markets. It endeavours to achieve high profitability targets through efficiency, customer-centricity, employee-friendly policies and sound risk management.
Through our customer-friendliness, efficiency, enterprising spirit and capacity for innovation, we will provide the best solutions for our customers, earn the loyalty of our employees, guarantee a high return to our shareholders and contribute towards the economic, social and cultural development of the community to which we belong
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KBC Group
Balance sheet total:EUR 325.4 billion
Net profit: EUR 3 430 (ROE : 24%)
Solvency levels: Tier 1, banking: 8.7%
Solvency margin, insurance: 374%
Customers: 11 000 000
Headcount: 51 000
Number 3 financial group in Central & Eastern Europe (consolidated assets, branches and employees)
KBC is number 2 bankassurance player in Belgium, with strong presence in the prosperous and Northern region of Flanders
Number 18 bank in Europe
Key financials (31-12-2006)
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Percentages concern direct + indirect presence
Poland Kredyt Bank (80%) Warta Insurance (100%)
Czech Republic CSOB Bank (100%) CSOB Insurance (100%)
Slovakia CSOB Bank (100%) CSOB Insurance (100%)
Hungary K&H Bank (100%) K&H Insurance (100%)
SloveniaNLB Bank (34%)NLB Life Insurance (67%)* financial participation
KBC’s Banks and Insurance co’s
Romania Romstal Leasing INK Insurance broker Swiss Capital stock broker Serbia KBC Securities Serbia: Senzal, Hipobroker and BastionHungary Equitas stock brokerLatvia Baltic Investment Company (BIC)
Serbia A Banka (100%)
Russia Absolut Bank (95%)
Bulgaria DZI Insurance (89.7%) EIBANK (75%)
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KBC: an important player in Central and Eastern Europe & Russia
Bank Insurance L/ NL
Poland Ranking 8th 7th / 2nd
Market share* 3.6% 2% /10%Clients 0.9 m. 2.5 m.Branches 376
Czech Ranking 2nd 3rd / 5th
Republic Market share* 21% 10% /4.5%Clients 2.9 m. 0.75 m.Branches 273
(+3350 points of sale-PO)
Slovakia Banking 4th 5th / 6th
Market share* 6% 4% / 3%Clients 0.2 m. 0.2 m.Branches 100
Hungary Ranking 2nd 7th / 6th
Market share* 10% 3% / 4%Clients 0.9 m. 0.3 m.Branches 170
Slovenia Ranking 1st Life : 4th
Market share* 42% Life : 8%Clients 1.0 m. 0,03 m.Branches 220 Market share total assets *01-04-2007
Bank InsuranceL/ NL
Serbia Ranking 34thMarket share (**) 0.4% -
Clients 55,000Branches 44
Bulgaria Ranking 9th 1st /1stMarket share 3.1% 28.5% / 17.6%Clients 225,000 510,000Branches 91 (+120 ‘outlets’) 200
Russia Ranking 26th (2005) Market share
0.86% in loans, 0.50% in deposits -
Clients 108,000 Branches 39
** 31-12-2006
(**)
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Key elements of KBC’s strategy
KBC will strenghthen its position in CEER viaDistribution: Focussing on the retail segment and small
corporates: broaden customer base by expanding branch and agent
networks in banking and insurance Intensify use of other distribution and service channels Intensify the corporate businesses in a number of
countries, targeting profitable growth
Bancassurance: Enhancing the bancassurance concept, built on strong local brands
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Survey results show that, in forthcoming years, new client acquisition
and maintenance of the actual customer base will be based
predominantly on traditional sales channels in the retail market
(branches, agents etc.)
The experience of the last few years show a strong correlation
between retail market share and branch density
We therefore upgrade our networks of bank branches and insurance
agents (using the bancassurance model)
Pursuing distribution excellence
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By expanding the bank branch network
Branch-Opening Program is on track: In 2006-2007, 180 new branches were opened 190 to be opened in 2008 and 2009
Expansion of the branch networks will enable us to reach more customers and service existing customers better
No. of KBC branches
0200400600800
100012001400
2006 2007actual
2008planned
2009planned
SK
HU
CZ
PL
No. of inhabitants per KBC branch
0
20.000
40.000
60.000
80.000
100.000
120.000
2006 2007actual
2008planned
2009planned
PL
CZ
HU
SK
843972
11631072
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Bank Branch-Opening Program – example (Poland)
100 new branches opened
Further locations identified for potential new KB branches
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No. of active Tied Agents
0
1000
2000
3000
4000
5000
2007 2008 2009
Sk
Hu
Cz
Pl
By increasing the number of tied insurance agents
The number of (active) insurance agents will be expanded from 3 190 to 4 000 by 2009 (+25%)
Recruitment of new high-quality agents is main challenge
Micro-market
Agent Bank
3 190
4 000
Number of inhabitants per KBC Tied Agents
0
50.000
100.000
2007 2008 2009
Sk
Hu
Cz
Pl
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By reinforcing direct distribution channels
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Intensifying the corporate business through network desks in each country
http://www.kredytbank.pl
http://www.warta.pl
Network Bank 13 Corporate Banking Centers
336 branches and sub-branches
Staff Bank 6,565
Staff Insurances 3,357
Activities Corporate and Retail Banking, Investment Banking, Asset Management, Insurance (life & non-life), Brokerage, Leasing, …
Philip Van Ginderachter
Head Network Desk
48 22 63 48 362
KBC Group in Poland
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KBC Group in the Czech Republic
Network Bank 11 corporate branches
234 retail branches + 3,350 points of sale located in post offices
Staff Bank 6768
Staff Insurance 710
Activities Corporate and Retail Banking, Financial Investment, Treasury, Leasing, Factoring, Asset Management, Insurance (life & non-life), …
Lucie Trnkova-PazderovaJolana Knoppova
Nicol FabbioContacts
International Corporate Desk +420 224 114 171/[email protected]
+420 224 114 169/[email protected]
+420 224 114 993/[email protected] http://www.csob.cz
http://www.csobpoj.cz
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KBC Group in SlovakiaNetwork Bank 3 corporate branches
105 retail branches
Staff Bank 1,496
Staff Insurance 249
Activities Corporate and Retail Banking, Financial Investment, Treasury, Leasing, Factoring, Asset Management, Insurance (life & non-life)
Marcel MARKUS
HeadInternational Corporate Desk
421 2 59 66 83 49
421 2 54 41 48 06
http://www.csobpoistovna.sk
http://www.csob.sk
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KBC Group in Hungary
http://www.khb.hu
Network Bank 20 corporate branches
168 retail branches
Staff Bank 3,804
Staff Insurance 261
Activities Retail and Corporate Banking, Treasury, Asset Management, Investment Consulting, Leasing, Insurance (life & non-life),Private Equity Investment Services, …
Oluremi Durosaiye
Head International Corporate Desk
00 36 1 328 90 06
00 36 1 328 96 95
http://www.khbiztosito.hu
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KBC Group in Russia
Network Bank: 39 branches
Staff Bank: 1,416
Activities: Trade Finance, Corporate Lending, SME banking & Retail Business
Eugenia ZhiglovaHead
Network Desk +7 (495) 777-71-95 ext. 515-35
+7 (495) 777-71-60
[email protected] http://www.absolutbank.com
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KBC Group in Serbia
Network Bank 18 branches, 26 sub-branches
Staff Bank 356
Activities Corporate and Retail banking; deposits, loans and payments
Mirko GolijaninDirector Corporate Segment
+381 11 30 50 321 +381 11 35 40 830
http://www.alcobanka.co.yu
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KBC Group in BulgariaNetwork Insurance 200 outletsNetwork Bank 17 regional offices, 91
branches, 129 other outlets
Staff Insurance 10,200 Insurace Agents 217 BrokersStaff Bank 1,472
Activities Non-life/ life Insurance; retal and corporate products
Alexandra BachevaHead of Corporate Clients
Relationships +359 2 9399 116
http://www.dzi.bg
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Further enhancing the Bancassurance concept
“Integrated distribution” principle, applied for bank and insurance channels:
Unified management
Centralised marketing
Integrated customer databases
Remuneration schemes
“Micro-Markets” approach:
Tied Agents: exclusive, self-employed agents linked to the local bank branches
Local insurance agents and local bank outlets work together (“act as one company”)
Bank branches sell standardised insurance products, and refer more complicated products to the agents
Agents refer customers to the bank branches and deal with after-sales service
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Further enhancing the Bancassurance concept (2)
Further enhancing the bancassurance concept by:Completing the development of shared
customer databasesExpanding insurance agent networks Upgrading of the agent networks: “Tied
Agents project” focusing on specialisation, sales support, training, review of incentive system, segmentation etc.
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KBC will develop the bancassurance to the highest level
KBC is stepping up from a ‘Level-2’ to a ‘Level-3’ bancassurer The Belgian model is the reference, implementation in CE will take the local situation into account The shared marketing and distribution function, as well as the local micromarket concept, are the cornerstones of the model
FCCE external benchmarking?
Level 3: Integrated distribution Acting as a single company: bank and insurance operations working
under unified governance, with integrated distribution channels & centralised marketing, integrated customer databases & centralised
IT platform and streamlined remuneration schemes
Level 1: Non-exclusive distributionBank branches selling insurance products of third-party insurers as additional source of fee income. This is the model of most
European banks.
Level 2: Exclusive distributionBank branches sell insurance products from intra-group insurance company as additional source of fee income
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Using secondary channels to reach additional market segments
Czech Republic: Postal Bank: 3 400 outlets and 31 financial centres, another 30
financial centres to be opened by 2010; special attention on Consumer Finance – consumer loans and cards
Hypotecni Banka (monoline mortgage lender): 30 sales points
CMSS: monoline “building savings” company providing savings accounts and subsequently, housing loans through 2 400 exclusive agents
Poland: Zagiel Consumer Finance: 220 sales offices and 35 000 retailers Ongoing project to increase number of Sales Points (average initial investment: 10 000 EUR,
break-even after 11 months)
Hungary: Sale of retail insurance via brokers Retail banking products via 2 200 non-exclusive banking agents
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Using strong local brands
HungaryJune 05
Czech Republic
Slovakia Pre- 2005
Pre- 2005
Poland Sept. 05
Bulgaria Sept. 07
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Using strong local brands (2)
we are building a great brand…
Make smart decisions
we are building a great brand…
Make smart decisions
