Bulgaria's UBB Bank Changes Owner Belgium-based KBC group has finalized the purchase of the United Bulgarian Bank (UBB) and leasing company Interlease. The deal, with a price tag of EUR 610 million, gives KBC control over 99.9% of the bank's shares and 100% of Interlease. KBC is the owner of CIBank and insurance company DZI in Bulgaria. UBB was until now owned by the National Bank of Greece (NBG) and the fourth-largest bank in Bulgaria with BGN 7.1 billion in assets, having taken over from Corporate Commerical Bank (KTB) as the latter collapsed. Its merger with CIBank (whose assets were BGN 2.8 billion as of September) will form the third-largest bank in Bulgaria in terms of size of the bank assets, with a share of around 11%. The deal requires approval from the Bulgarian National Bank, the central bank of Belgium, the Financial Supervision Commission, and the European Central Bank.
Source: Dnevnik (03.01.2017)

S&P and Fitch puts United Bulgarian Bank on positive rating watch after KBC agrees to buy 99.9% Standard & Poor's said it has placed its 'B' long-term counterparty credit rating on United Bulgarian Bank on CreditWatch with positive implications as a result of the agreement for the bank's acquisition by Belgium-based KBC Group. At the same time, S&P raised the short-term counterparty credit rating on UBB to 'B' from 'C to reflect the UBB's improved liquidity. Fitch Ratings has also placed UBB’s foreign currency long and short-term issuer default ratings and support rating on rating watch positive after Belgium-based lender KBC unveiled a deal to acquire UBB. The RWP on UBB's IDRs and Support Rating reflects Fitch's view that KBC is likely to have a high propensity to support UBB following the acquisition. Currently, UBB's ratings are driven by the bank's standalone financial strength, expressed by its 'b+' VR. Upon the completion of the transaction, Fitch expects to upgrade UBB's Long-Term IDR to 'BBB+', ie one notch below KBC. The bank's Short-Term IDR will likely be upgraded to 'F2' from 'B' and its Support Rating will likely be upgraded to '2' from '5'.
Source: Capital (10.01.2017)

Bulgarian banks' net profit grows in 2016 The combined net profit of Bulgarian banks rose to 1.26 billion levs ($690.9 million/655 million euro) in 2016 from 898.4 million levs in 2015, according to central bank data. The banks' combined interest income dropped to 3.3 billion levs in 2016, which compares to 3.65 billion levs in 2015, figures posted on the website of the Bulgarian National Bank show. Fee and commission income totalled 1 billion levs last year, the same amount as in 2015. Total interest expenses in the review period dropped to 510.7 million levs, from 879.7 million levs in 2015. The banking sector's total net operating revenue in 2016 edged down to 4.1 billion levs, from 4.2 billion levs in 2015. The banks' total assets increased to 92 billion levs at the end of December, compared to 87.5 billion levs a year earlier. A total of 22 banks and five branches of foreign banks operated in Bulgaria as of end-December 2016.
Source: Capital (02.02.2017)

Belgium's KBC has applied for a permit to buy UBB by CPC Banking and insurance group KBC has notified the Commission for Protection of Competition (CPC) in its intention to acquire United Bulgarian Bank (UBB) on Thursday. Consequently, the Commission has opened proceedings on the basis of which will assess the concentration and will take a decision within a month. KBC, which owns Cibank, announced in late 2016 its plans to acquire the fourth largest bank in Bulgaria – UBB frin the National Bank of Greece. The offer of EUR 610 mln, which KBC will pay in cash and own funds as soon as it receives regulatory approvals for the transaction, surprises for its generosity despite the financial capabilities of the buyer. The price is equivalent to about 80% of the capital of UBB. In the most expeditious consideration of the application, a final "yes" to the deal is expected in May.
Source: Capital (27.02.2017)

Nikrom - Trabna Mebel has gone into bankruptcy proceedings After numerous enforcement actions and attempts by creditors to collect their receivables through property auctions, the furniture manufacturer Nikrom - Trabna Mebel has officially gone into insolvency proceedings. A decision was taken by the Lovech District Court at the end of March. The total liabilities of the company are close to BGN 19 million. The main part of them is due to the state-owned Bulgarian Development Bank (BDB) and United Bulgarian Bank (UBB), as well as to the bond issue that the company stopped servicing. The insolvency petition was filed in early December, 2016 by Phoenix Remapic, which supplied fuel to Nikrom - Trabna Mebel. One of the creditors is BDB, the total amount of the debt (with interest, etc.) is just under BGN 3 million. UBB has to receive about BGN 6.5 million for two credit agreements. UBB is also a trustee and bond issuer for the EUR 6 million bond issue that Nikrom - Trabna Mebel issued in December 2012. The economic expertise has shown that besides the debts to the banks Nikrom - Trabna Mebel has other non-performing debts for a total of BGN 4.6 million.
Source: Capital (20.04.2017)

Bulgaria's UBB to pay 50 mln euro in dividend from 2016 profit United Bulgarian Bank said on Thursday that its shareholders have approved a dividend payout of 97.9 million levs ($53.8 million/50 million euro), which represents 88% of the bank's 2016 net profit. The remaining 13 million levs will be held as retained earnings, UBB said in a statement. "To us – the Executive Management and the Board of Directors of UBB - the year 2016 is yet another successful year, during which the Bank has irrefutably proved its position as one of the leading banking institutions in Bulgaria - displaying upward growth trend and high level of shareholder profitability," Stilian Vatev, CEO of United Bulgarian Bank said in the statement. In 2016, UBB distributed 257.8 million levs as dividend from its 2015 net profit and from profit for previous years. According to data from Bulgaria's commercial registry, UBB's capital is divided into 75,964,082 shares with a nominal value of 1 lev each. In December, Belgium's KBC Group said it had entered into a definitive agreement with the ?National Bank of Greece (NBG) for the acquisition of NBG's 99.91% stake in UBB and its 100% stake in leasing company Interlease for a total consideration of 610 million euro ($642 million). Bulgaria's central bank is expected to approve the transaction by mid-2017. The completion of the deal is expected to take about a year, as it is a subject to regulatory approval also from Bulgaria's Financial Supervision Commission and authorisation by the National Bank of Belgium/the European Central Bank, and anti-trust approval. UBB was Bulgaria's fifth largest bank by assets as of February 2017, according to data from the country's central bank.
Source: Capital (21.04.2017)

KBC gets Bulgarian anti-trust nod to acquire UBB, Interlease Bulgaria's competition authority has granted approval to Belgium's KBC Group to acquire 99.91% of United Bulgarian Bank (UBB) and 100% of leasing company Interlease from National Bank of Greece. Following the acquisition, the market share of KBC Group in any of the segments of both the wholesale and retail banking sectors in Bulgaria will not exceed 15%, the Commission for Protection of Competition announced. In December, KBC Group said it had entered into a definitive agreement with National Bank of Greece (NBG) for the acquisition of NBG's 99.91% stake in UBB and its 100% stake in Interlease for a total consideration of EUR 610 million. UBB was Bulgaria's fifth largest lender by assets as of end-Ferbruary. Bulgarian media reported in January that KBC Group plans to combine the assets of UBB and Sofia-based CIBank, which it already owns, to create the third largest bank in Bulgaria.
Source: investor.bg (02.05.2017)

Bulgarian c-bank issues approval for KBC purchase of UBB Bulgaria's central bank said it issued a preliminary approval for the direct acquisition of 99.91% of United Bulgarian Bank by Belgium's KBC Bank. "The preliminary approval was issued under the terms of the commitments undertaken by KBC Bank to ensure the stable and reliable development of United Bulgarian Bank," the Bulgarian National Bank said in a statement. The BNB approval moves the deal a step further to completion, after the Bulgarian competition authority announced its approval for the acquisition last month. In December, KBC Group said it had entered into a definitive agreement with National Bank of Greece (NBG) for the acquisition of NBG's 99.91% stake in UBB and its 100% stake in Interlease for a total consideration of EUR 610 million. UBB was Bulgaria's fourth largest lender by assets as of end-March. Bulgarian media reported in January that KBC Group plans to combine the assets of UBB and Sofia-based CIBank, which it already owns, to create the third largest bank in Bulgaria.
Source: Capital (23.05.2017)

The FSC has also given green light to the purchase of UBB by KBC After the Bulgarian National Bank and the Commission for the Protection of Competition approved the acquisition of United Bulgarian Bank by KBC Bank NV, the Financial Supervision Commission has also announced its decision on operations that affect the ownership of the Bulgarian bank and are part of the negotiated agreement for the purchase. The FSC approves the direct acquisition of a shareholding by United Bulgarian Bank in the amount of 30% of the share capital of UBB-MetLife Life Insurance Company from Ethniki Hellenic GeneralInvest SA, Greece. The Commission also approved the indirect acquisition by KBC Bank NV of 60% of the capital of OBB-MetLife Life Insurance Company by National Bank of Greece SA, Greece. At the end of December last year, the Belgian financial group, which owns Cibank in Bulgaria, announced that it acquired UBB - the fourth largest bank in Bulgaria.
Source: investor.bg (01.06.2017)

Belgian KBC paid EUR 610 million for UBB The biggest bank transaction in Bulgaria has been completed: on 13 June, Belgian KBC paid EUR 610 million for UBB to the Greek NBG, and on Wednesday the purchased bank will have a new management. The merger of UBB and Cibank will take place in the next half-year, so that the merged bank, which will be the third in the market in the country after UniCredit Bulbank and DSK Bank, will be operational before the beginning of 2018. KBC, the Belgian banking insurance group, acquired 99.91% of the shares of the fourth largest player in the Bulgarian banking sector - UBB, as well as the leasing companies Interlease, Interlease Auto, 60% of UBB Metlife and the subsidiary UBB Insurance Broker, UBB Asset Management and UBB Factoring. After the merger of the two banks, they will have combined assets of just over BGN 10 billion by the end of March 2017 and this will rank the bank in third place on the Bulgarian market.
Source: Capital (14.06.2017)

Standard&Poor's Ratings Services (S&P) raised its long-term credit rating on United Bulgarian Bank (UBB) to 'BB+' with a positive outlook from 'B' and affirmed its 'B' short-term rating. "We now view UBB as a strategically important subsidiary of KBC. We anticipate that the change in ownership will have a positive impact on UBB's overall creditworthiness, specifically its liquidity position," S&P said in a statement. On June 14, KBC Group and UBB said they have received all the necessary approvals to finalize the acquisition announced in late December 2016. Bulgaria is a very important market for KBC and we expect the group to be strongly committed to UBB given its intention to grow significantly in the Bulgarian banking sector. International business growth is one of the pillars of KBC's strategy as the group plans to be among the top three banks and the top four insurers in its core markets, which include Belgium, Bulgaria, Hungary, the Czech Republic, and Slovakia, by 2020. KBC group has announced its intention to merge UBB with its Bulgarian subsidiary CIBANK, creating the third largest player in the Bulgarian banking sector, with a prominent market share of about 12% in loans, 10% in deposits, and 22% in life insurance.
Source: Capital (23.06.2017)

Bulgarian banks show interest in financing projects of SMEs under Juncker Plan State-owned Bulgarian Development Bank (BDB) said nine offers have been submitted by local commercial banks for its EUR 300 million programme for providing financing to small and medium-sized businesses under the European Commission's investment plan for Europe. The offers were submitted by Allianz Bank Bulgaria, Bulgarian-American Credit Bank, Piraeus Bank Bulgaria, Investbank, Municipal bank, First Investment bank, D Commerce Bank, Eurobank Bulgaria, as well as a joint offer by UBB and CIBank. The financing of the new programme is jointly provided by BDB and EIB as part of the EU's Investment Plan for Europe. Under the programme BDB will provide up to EUR 50 million of financing to each eligible commercial bank for on-lending to small and medium-sized entreprises (SMEs) and it is prepared to assume up to 100% of the credit risk. Companies will be able to apply for loans of between BGN 3 million and BGN 24 million, for investment or operational financing purposes, excluding refinancing of existing loans.
Source: Banker (18.08.2017)

At the end of August, CIBANK and UBB started merging their branch network. Three are the first common branches that serve the clients of the two banks this week - in Sofia, Bansko and Sevlievo. The choice of merged branches is based on performance criteria and customer convenience, including the best and key location, size and location of the branch and the premises. All common sites will be marked with distinctive inscriptions CIBANK and UBB to facilitate the clients. Following the acquisition of UBB by Belgian bank-insurance group KBC in June this year, UBB and CIBANK continued to operate as two separate banks until their legal merger in the beginning of 2018 when they will offer the same services and products to their clients under one name - UBB. Together CIBANK, UBB, its subsidiaries and DZI become the largest bank-insurance group in Bulgaria, one of the main markets for KBC Group.
Source: Duma (23.08.2017)

Bulgarian Development Bank Approves All Partner Banks under Juncker Plan Scheme The Bulgarian Development Bank (BDB) has approved all ten partner banks in a new lending scheme under the Juncker Plan. These are Alianz Bank, the Bulgarian-American Credit Bank, DSK, Pireos, Investbank, United Bulgarian Bank and CIBank, Municipal Bank,First Investment Bank, Commercial Bank and Eurobank. The partner banks are yet to be vetted by the European Investment Bank. The money under the scheme for the Bulgarian business have been secured by BDB and EIB within the Investment Plan for Europe. The scheme is aimed at small, middle and intermediate companies with up to 3,00 staff which are among the existing clients of the banks. Banks will extend investment, project and turnover financing between BGN 3 and 24 million and the BDB will provide loan cover at 100%.
Source: Other (04.10.2017)

Piraeus Bank sold its Serbian unit The largest Greek asset bank, Piraeus Bank, sold its Serbian unit to Direktna Banka. The bank plans to part with its other businesses in the Balkans. This includes the Piraeus units in Bulgaria, Romania, Albania, and Ukraine in order to reduce foreign exposures. Piraeus Bank will do all it can to meet its plan for restructure of its assets and shareholdings by 2020. This restructuring envisages both the reduction of the problem and non-performing loans as well as the reduction of the capital holdings of the Greek bank. Some of these banks can be sold in full, others can sell a certain part of their shares to different investors. For Piraeus Bank Bulgaria a procedure is currently not underway.
Source: Banker (19.10.2017)

KBC-owned Bulgarian lenders UBB, CIBANK sign merger agreement Bulgaria’s CIBANK and United Bulgarian Bank (UBB), both subsidiaries of Belgium's KBC Group, have signed an agreement on October 18 under which UBB will absorb CIBANK, data from the Bulgarian commercial register showed. Under the terms of the agreement, CIBANK shares will be converted into shares in UBB at a ratio of 1 : 0.78419, CIBANK said in a filing to the country’s commercial register. The agreement is subject to approval by the shareholders of the two lenders. In June, KBC completed the acquisition of leasing company Interlease and a 99.91% stake in UBB from National Bank of Greece for a total consideration of 610 million euro ($707.4 million). Following the merger, UBB’s registered capital will be increased to 93.84 million levs from 75.96 million levs. UBB’s capital will be spread in 93.84 million shares with a nominal value of 1 lev each. KBC will hold 93.77 million shares of UBB representing a stake of 99.93%. At end-September, UBB was Bulgaria’s fifth largest lender by total assets, according to central bank data. UBB's total assets stood at 7.15 billion levs. CIBANK’s assets totalled 3.36 billion levs at end-September, making it the ninth largest lender. After UBB absorbs CIBANK, it will become Bulgaria’s third largest bank UniCredit Bulbank and DSK Bank.
Source: Capital (06.11.2017)

Sofia South Ring Mall consolidates syndicated loan into debt to Postbank Sofia South Ring Mall company, owner of Sofia Ring Mall, said on Tuesday its debt on a syndicated loan with an initial value of 88 million levs ($53.3 million/45 million euro) has been consolidatd into debt owned solely by Bulgaria's Postbank. "Sofia South Ring Mall and Postbank announce that the bank has become the sole owner of the syndicated loan provided to the company in 2014," the operator of the mall said in a statement. According to Asen Yagodin, executive director at Postbank, the transaction provides competitive conditions on the credit as well as an extended repayment period and additional financing. "In addition to this key transaction, the year 2017 brought us a further increase in traffic by 12% compared to 26% growth in 2016," Dimitris Papoulis, CEO of Sofia South Ring Mall, said. Sofia Ring Mall is a 130 million euro ($163 million) investment project of Greek companies Fourlis Group, which trades and produces quality durable goods, and Danaos Group, which deals in shipping, information technology, construction, banking and financial services. The shopping centre located at the Sofia ring road spreads on a gross area of 105,000 sq m and has about 200 stores. Development of the mall started in September 2011 and was conducted by local construction company Glavbolgarstroy. Bulgaria's Postbank is a unit of Greece’s Eurobank EFG.
Source: Capital (06.12.2017)

Shareholders of Bulgaria’s UBB approve absorbing CIBANK Bulgaria’s United Bulgarian Bank (UBB), majority owned by Belgium's KBC Group, said on Wednesday its shareholders have approved a proposal to absorb CIBANK, a wholly-owned Bulgarian subsidiary of the KBC Group. UBB’s capital will be increased by 17.87 million levs ($10.8 million/9.1 million euro) after it absorbs CIBANK, UBB told SeeNews in an e-mailed statement. Currently, UBB’s capital stands at 75.96 million levs, according to data from the commercial register. The deal is still pending approval from Bulgaria’s central bank. CIBANK and UBB are expected to fully complete merging their processes by the end of 2018, the CEO of both banks and country manager for KBC, Petar Andronov, told SeeNews last month. In October, the two Bulgarian lenders signed an agreement under which UBB will absorb CIBANK. Under the terms of the agreement, CIBANK shares will be converted into shares in UBB at a ratio of 1:0.78419, CIBANK said in a filing to the country’s commercial register at the time. After absorbing CIBANK, UBB will become Bulgaria’s third largest bank by assets after UniCredit Bulbank and DSK Bank. In 2007, KBC Group acquired 75% of Cibank, and in 2010 increased its shareholding interest to 100%. In June 2017, KBC Group completed the acquisition of UBB and leasing company Interlease from National Bank of Greece for a total consideration of 610 million euro.
Source: Capital (07.12.2017)

Fitch upgrades two Bulgarian banks, leasing company to 'A-' with stable outlooks Fitch Ratings said on Monday it has upgraded the Long-Term Issuer Default Ratings (IDRs) of Bulgarian lenders Societe Generale Expresbank and United Bulgarian Bank (UBB), as well leasing company Sogelease to 'A-' from 'BBB+' with stable outlooks. Fitch has also affirmed Allianz Bank Bulgaria's Long-Term IDR at 'BBB+' with a stable outlook, the agency said in a statement. The upgrades of Societe Generale Expresbank, UBB and Sogelease reflect the fact that their Long-Term IDRs are no longer constrained by Bulgaria's Country Ceiling, Fitch said. Earlier this month, Fitch upgraded Bulgaria’s Country Ceiling to 'A-' from 'BBB+'. Fitch also upgraded Bulgaria's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'BBB' from 'BBB-'.
Source: investor.bg (12.12.2017)