James Cox
KBC Group has revealed its intention to leave the Republic of Ireland, with plans to sell its performing loans and deposits to Bank of Ireland.
The Belgian group's departure will reduce the number of retail banks in the country to three.
KBC Bank Ireland said it is “reviewing options to divest” its non-performing loans.
This could mean the non-performing loans will be sold to an overseas distressed debt fund.
KBC Group CEO, Johan Thijs, said: “Over the last decade, KBC Bank Ireland has managed to build a digital first retail bank and launched recently a digital pension insurance business for the Irish market.
“Given the challenging operational context for European banks and after careful consideration, we have reached an agreement with Bank of Ireland Group regarding the potential sale to Bank of Ireland Group of substantially all of the performing loan assets and liabilities of KBC Bank Ireland.
“Next to this MOU, KBC Bank Ireland’s remaining non-performing mortgage loan portfolio is currently being reviewed for potential divestment.”
Francesca McDonagh, Group CEO of Bank of Ireland, said: “When we look at opportunities we consider if they are a good fit for the customers involved and for the bank. This MOU complements our strategy to grow our business in Ireland, and supports the investments we are making in the transformation of our systems and digital banking services. We would be very pleased to provide KBC Ireland customers with a good home, and look forward to progressing our discussions with KBC over the coming period.”
Image: Kevin Gillen, CIO KBC Bank Ireland
