KBC moves to acquire Slovakia’s 365.bank in strategic CEE expansion

365.bank, which commands a 3.7% share of Slovakia’s banking market by assets, is known for its strong retail orientation and digital capabilities. KBC, already active in the country through its ČSOB brand, aims to consolidate its position in Central and Eastern Europe (CEE) through the acquisition. The deal values 365.bank at 1.4 times its book value as of December 2024 and 9.4 times its average earnings from 2022–2024.

Merging networks and expanding reach

The acquisition is expected to bolster KBC’s Slovak footprint, particularly in retail banking, with a combined market share of roughly 20% in retail loans and mortgages. A key asset is 365.bank’s distribution agreement with Slovak Post, which offers KBC an expanded customer access network across the country.

While 365.bank will continue to operate independently until the deal is finalized, integration with ČSOB is planned post-completion. KBC leadership emphasized the value of combining innovation-driven operations with broad customer access to strengthen local service offerings.

Minimal capital impact, broader strategy

The acquisition will have a limited effect on KBC’s capital ratio, reducing its CET1 ratio by about 50 basis points—still well above regulatory requirements. For J&T Finance Group, the sale marks the end of a transformation journey for 365.bank, once known as Postal Bank, into a modern, digital-first institution.

If approved, the deal will create one of Slovakia’s largest retail banking groups under the KBC umbrella.