Archive news

• 5,00% for term deposits of 3 months
• 5,75% for term deposits of 3 months
• 7,00% for term deposits of 3 months

Gross interest are given annually, NIR=EIR.
Minimum depositing amount is 500 EUR.

New phone numbers are:

• 066/822-1150 – number from which the clients receive SMS notification and TAN for payment authorization via Online Banking (instead of 063/613-963)
• 066/822-1151 – number to which the clients send SMS to receive account ballance information (instead of 063/613-962).

Savings account can be opened for children up to 15 years of age, and deposit with accrued interest is withdrawn at majority. Deposits can be termed in four currencies: RSD, EUR, USD and CHF. Minimum deposit amounts are: 10 EUR, 10 USD, and 10 CHF, i.e. 5,000 RSD and interest rates are 5.50% for term deposits in EUR, 3.80% for term deposits in USD, 3.10% for term deposits in CHF and 10% for term deposits in RSD (gross interests are given on the annual level, NIR = EIR).

SMS supplement of credit for mobile phones in DinaCard system is comfortable solution that provides supplement of prepaid account at any time and from any place in the selected amount, even in roaming. All the mobile phone user should do is to send free SMS message on the number 8585 and confirm the transaction with the confirmation code (mPIN), received after filling out the Request for supplement of prepaid credit.

The supplement of prepaid credit can be executed both by the prepaid and postpaid user, owner of KBC Banka’s DinaCard, for its own or any other number.

• conversion of loans in foreign currency and loans indexed with foreign currency clause to RSD loans
• modifying the conditions of repayment by extending the repayment period for at least twelve months, or if the extension period is longer, for one fifth of the remaining repayment period at least, in the way which enables the reduction of the monthly obligations of the debtor, or by modifying the repayment conditions for purpose of reduction of debtor's monthly obligation by at least 20%.

This Decision applies to the loans approved before April 30, 2009. Change of crediting conditions in accordance with this Decision will be made at the client’s request in accordance with the regulations and procedures of KBC Banka.

Detailed information can be obtained at the branches and sub-branches of KBC Banka.

Since MTS is currently issuing bills with both account numbers, in KBC Banka’s Online Banking in the payment template list there are two templates for MTS bills: MTS bill with the starting number 355 (new account number) and MTS bill with the starting number 160 (old account number).

Before executing payment, Online Banking users should check the number of account on their bills and based on it to choose the correct payment template.

DinaCard holders are enabled to pay public revenue (tax, fees, etc) and services to entities financed from the state budget (scholarships, school trips, etc). This service is operational at the cash counters of the following Treasury Administration branches: Stari Grad Branch, Obilićev venac 9-11, Belgrade; Palilula Branch, 27. Marta Street 28-32, Belgrade; and Novi Sad Branch, Modene 2, Novi Sad.

For payment of property tax, agricultural and forestry revenue, annual personal income tax, tax on sale/purchase of vehicles and farmers’ mandatory social insurance contributions, no commision is charged. The commision on other types of payments is equal to commision for cash transactions.

Some of the changes in the Tariffs mean the introduction of monthly charging of eBanking maintenance fees and charging of issuing a smart card and smart card reader as well.

Tariffs for commissions and fees for legal entities from 1 April 2009

Today, the Inner Cabinet agreed with the fine-tuning of some technical features of the transaction agreed between KBC and the Belgian State. The transaction is expected to be closed before the end of the year.

• KBC to issue 3.5 billion euros’ worth of core capital, as announced on 27 October
• Removal of option held by the State to convert securities into ordinary shares
• Adjustment of the dividend multiples used for determining the annual coupon amount and adjustment of the bottom price for the State in the event of conversion into shares initiated by KBC
• No material changes to other terms and conditions

Transaction details finalised

André Bergen, Group CEO: "As previously announced, KBC will further strengthen its capital base by issuing 3.5 billion euros’ worth of core-capital securities to be subscribed to by the Belgian State. Today, we are happy to reconfirm this transaction. We have also agreed with the Belgian State representatives on a number of features which will improve the structure of the transaction for both parties". The transaction is expected to be settled by the end of 2008.

Technical changes made

KBC may buy back all or some of the securities at any time at 150% of the issue price. In this case, however, the State initially had the option to require the buyback to be settled by exchanging one security for one ordinary share. This option has been removed in the final set of terms and conditions, thus eliminating the related earnings dilution risk for KBC shareholders.

The annual cash coupon initially agreed on was the higher of 2.51 euros per security (reflecting an interest rate of 8.5%) or an amount equal to 110% of the dividend paid on ordinary shares for the year 2009 and 115% from 2010 and onwards. The dividend multiples used have been changed to 120% and 125%, respectively. The coupon amount will be the higher of 2.51 euros per security or an amount equal to 120% of the dividend paid for the year 2009 and 125% from 2010 and onwards.

KBC is also entitled to exchange all or some of the securities into ordinary shares on a one-for-one basis, from the fourth year after the issuance onwards. However, if KBC chooses to do this, the State may opt to have the securities redeemed in cash. The conversion price for this cash option was initially set at 100% of the issue price. In the final agreement, the conversion price has been set at 115% of the issue price as of the fourth year, and will be increased by 5 percentage points for every subsequent year, capped at 150%.

Summary of terms and conditions

• Issuer (unchanged): KBC Group
• Subscriber (unchanged): Belgian State
• Type of securities (unchanged): fully paid-up new class of non-transferable non-voting securities qualifying as core capital
• Ranking (unchanged): pari passu with ordinary shares
• Issue price (unchanged): 29.50 euros per security
• Interest coupon (changed): the higher of (i) 2.51 euros per security (reflecting an interest rate of 8.5%) or (ii) 120% of dividend paid on ordinary shares for 2009 and 125% for 2010 and onwards. No coupon if no dividend is paid.
• Maturity (unchanged): perpetual
• Buy back option (changed): KBC may at any time buy back (subject to the regulator’s approval) all or some of the securities at 150% of the issue price (44.25 euros), to be settled in cash
• Conversion option (changed): after three years, and onwards, KBC may substitute the securities with ordinary shares on a one-for-one basis. If KBC chooses to do this, the State may opt to have the securities repaid in cash. The cash amount will be 115% of the issue price as of the fourth year, and will be increased by 5 percentage points for every subsequent year, capped at 150%.
• Tax treatment (unchanged): coupon is not tax deductible

The amount of securities issued will be part of the parent shareholders’ equity, as presented on the balance sheet according to IFRS. Including the changes announced today, the transaction will have no impact whatsoever on existing debt holders.

From 1 December 2008 the changed Tariff book will be available in all branches and sub-branches of the Bank in order for the clients to get acquainted with its content. The clients will be informed about the new Tariff book via direct mail.

One of the changes in the Tariff book means the introduction of monthly charging of current account maintenance fees. That is why we kindly ask the clients to visit our closest branch and check their current account balance.

Tariffs for commissions and fees from 1 January 2009

1. KBC has strong liquidity and solid solvency levels
“KBC is highly solvent. With a Tier-1 ratio of more than 9%, it is one of the most solvent banks. Moreover, the group has strong liquidity levels (i.e. it has more deposits than loans), making it much less dependent on the interbank market to finance its operations. KBC also has a large buffer of securities that it can use, if necessary, to mobilise funds from the ECB. To date, this buffer has been left untouched.”

2. KBC is supported by reference shareholders who think long term
“The majority of KBC shares are held by stable shareholders who believe in our long-term strategy and who have supported the group through thick and thin for decades.”

3. KBC’s corporate strategy is clear and focused
“KBC is a bancassurer that focuses primarily on retail and SME customers and that targets growth markets in Central and Eastern Europe, where the credit crisis is having little or no impact at the moment”. KBC is present mainly in those Central European countries that are in relatively good macroeconomic shape. As these economies are showing no sign of overheating they are also less vulnerable.
No problems have arisen in relation to funding the subsidiaries, either. Throughout the group, even more attention than before is being paid to ensuring that assets and liabilities are correctly balanced.”

4. KBC is a company that has a traditionally conservative approach to its operations”
“In recent years, KBC has consistently adopted a rather conservative approach to both acquisitions and investments.”

5. KBC endeavours to communicate as transparently as possible
“KBC is a fundamental supporter of open and transparent communication, even in difficult circumstances and when the market is driven by rumour and emotion. KBC endeavours to respond quickly and accurately to questions from all its stakeholders. ‘When the crisis erupted last year, KBC was one of the first financial institutions to disclose its exposure to CDOs. KBC has regularly published details of the write-downs on the CDO portfolio during the past twelve months and will continue to release details of any temporary negative mark-to-market write-downs going forward.”

Cash-in ATM is a new type of ATM on our market which, besides classic services, provides the options of cash payments. Users are enabled to make payments 24 hours a day seven days a week. The paid cash is immediately transferred to the account and are immediately at disposal, and the payment report is obtained upon completion of transaction.

This is the first Cash-in ATM within KBC Banka which will, due to simplicity of use, contribute to the easier and faster execution of cash transactions to the benefit of the users of our services.

• Sub-branch Vojvode Stepe - Belgrade, Vojvode Stepe 206 St.
• Branch Beograd II - Novi Beograd, Vladimira Popovića 40 St.
• Sub-branch Subotica - Prozivka - Subotica, Braće Radića 118 St.
• Sub-branch Studentski grad - Novi Beograd, Bulevar Zorana Đinđića 144a St.
• Sub-branch Azzaro - Novi Beograd, Jurija Gagarina 32a St.
• Sub-branch Altina - Zemun, Dobanovački put 28 St.
• Branch Beograd III - Belgrade, Takovska 23-25 St.
• Sub-branch Novi Banovci - Novi Banovci, Svetosavska 2a St.
• Sub-branch Užice - Užice, Dimitrija Tucovića 100b St.