Dexia Bank Belgium, itself a subsidiary of the Dexia Group, is selling its subsidiary
Eural S.A. to ING Belgium.
Eural has been a part of the Dexia Group since the acquisition of Artesia Banking
Corporation in 2001.
After examination of what might be the optimum positioning of Eural within
Dexia Bank, Dexia observed that the subsidiary was difficult to align to the
strategy adopted by the Group for the Belgian market. Differences between the
Dexia Bank and the Eural networks were reflected by sub-optimal integration
of the Eural network into that of the bank. There is, moreover, a limited complementary
relationship with regard both to clientele and to geographic cover.
Eural currently employs 103 members of staff. Through self-employed agents
and brokers, the company markets its own brand of investment and credit products,
as well as insurance products. The Eural distribution network includes 233 branches
and covers the entire territory of Belgium, with a greater density in the north
of the country.
As at 31/12/2004, Eural posted a net profit of 2.8 million EUR, for a balance
sheet total of 2.6 billion EUR. Client deposits amount to approximately 2.4
Following the sale of Eural, a capital gain of approximately 65 million EUR
is expected to be realised. It will be identified as a non-operational item in the fourth quarter 2005.
The agreement provides for the hiring of all members of staff at Eural and
The transaction is subject to approval being granted by the appropriate authorities.