Kredyt Bank, the Polish unit of Belgian financial holding company KBC, has decided to sell its pension business to competitor PTE Polsat for an undisclosed price.
“The sale of our pension fund has been prepared for some time and is a result of the restructuring of Kredyt Bank’s assets,” says the bank’s chief Malgorzata Kroker-Jachiewicz.
The transaction is yet to be approved by the country’s pension and insurance regulator KNUiFE.
Kredyt Bank and Polsat are among the smallest pension funds with 264 m zlotys (E55.6m) and 182m zlotys respectively under management at the end of 2003. Poland’s 16 pension funds manage total funds worth around 45bn zlotys.
The Kredyt Bank’s pension fund showed a 20.2% return for 2002-2003, compared to PTE Polsat’s 29.4%. The average rate for all 16 Polish pension funds was 26% in 2002-2003.