Mort­gage lend­ing at €198m but KBC Ire­land prof­its fall

Irish Independent - - Business - El­lie Don­nelly

THE Ir­ish arm of KBC Bank re­ported a profit of €59m af­ter tax and im­pair­ments in the first three months of 2018.

This is down from a profit of

€70.4m re­ported in the same pe­riod last year, as less money pre­vi­ously set aside for bad loans was freed up by the bank.

In a sep­a­rate up­date yes­ter­day, KBC Group said that it had re­leased €43m in re­spect of its Ir­ish op­er­a­tions dur­ing the three-month pe­riod, pre­vi­ously set aside for bad loans.

The so-called ‘write back’ of loans came about mainly be­cause of the in­crease in house prices.

KBC ex­pects its full im­pair­ment re­lease in Ire­land for 2018 to ease to be in the re­gion of

€100m to €150m. Dur­ing the pe­riod the bank re­ported new mort­gage lend­ing of €198m in Ire­land, an in­crease of over 60pc year-on-year, while al­most 20,000 new cus­tomer ac­counts were added.

Mort­gage cases in ar­rears were down 3pc in the three months, with nine out of ten cus­tomers in dif­fi­culty of­fered a range of solutions, ac­cord­ing to the bank.

“I am pleased to re­port a strong start to 2018 for KBC Bank Ire­land with al­most 20,000 new cus­tomer ac­counts opened in the first three months of the year,” Wim Ver­braeken, CEO of KBC Bank Ire­land, said.

“We are see­ing growth in all ar­eas of the Ir­ish busi­ness with cus­tomers bank­ing with KBC for mul­ti­ple prod­ucts at a time, es­pe­cially cur­rent ac­counts and mort­gages.”

In re­la­tion to the tracker mort­gage scan­dal, the bank rates had been rec­ti­fied on all im­pacted tracker mort­gage ac­counts, while 76pc of the iden­ti­fied im­pacted cus­tomers have re­ceived re­dress and com­pen­sa­tion.

The bank said it re­mains on track to meet its com­mit­ment to com­plete re­dress and com­pen­sa­tion to all im­pacted cus­tomers by the end of June 2018.

Over­all, KBC Group re­ported a profit of €556m for the three­month pe­riod.

The bank said the im­proved per­for­mance of its In­ter­na­tional Mar­kets busi­ness unit, which re­ported a net re­sult of €137m, re­lated pri­mar­ily to Ire­land “where the pre­vi­ous quar­ter’s re­sult had been neg­a­tively im­pacted by ad­di­tional pro­vi­sion­ing of €61.5m for an in­dus­try-wide review of the tracker mort­gages orig­i­nated be­fore 2009.”

CEO Wim Ver­braeken, of KBC Bank in Ire­land, said that the bank has added 20,000 new cus­tomer ac­counts

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.