Kbc bank
KBC Bank Ireland remains acutely aware of the need to maintain open lines of communication with its employees and to provide as much certainty as possible in the context of this transaction. KBC Bank Ireland has been very focused on the welfare of its employees throughout this process. on the CET1 ratio primarily by reducing risk-weighted assets by c.5 billion euros upon completion of the transaction and a further 1 billion thereafter.Īs a result of this announcement, the P&L of KBC Bank Ireland will be transferred from Business Unit International Markets (KBC Group) to Group Centre as of 1 January 2022 (not retroactive). Combined, it further improves KBC’s solid capital position on completion of the transaction (expected in 3Q22), with a positive impact of +0.9% pt.
Furthermore, as the transaction would ultimately result in KBC Group’s withdrawal from the Irish market, this will also trigger a P&L impact in 3Q21 of an estimated -0.2 billion euros (primarily increased impairment on limited non-performing loans included in the transaction, provisions for restructuring costs and the write-down of deferred tax, tangible and intangible assets). The transaction will have an impact on KBC Group’s P&L which is estimated at +0.2 billion euros at completion. The transaction remains subject to regulatory, including Irish competition, approvals.
KBC Bank Ireland is focused on ensuring that the migration of its customers to Bank of Ireland Group is carried out in an orderly manner. Customers will also continue to be afforded all legal and regulatory protections. Customers can continue to access KBC Bank Ireland’s retail banking and insurance products through its digital channels and hubs. KBC Bank Ireland customers do not need to take any immediate action as a result of this announcement. The exact size of the portfolio and consideration payable will depend on movements in the portfolio up to completion, but is not expected to materially change.īank of Ireland Group will acquire the portfolio and will fund it from its existing resources.
The acquisition for a total consideration of c.€5.0 billion (net of deposits), involves c.€ 8.8 billion of performing mortgages, c.€ 0.1 billion of mainly performing commercial and consumer loans, c.€ 0.3 billion of non-performing mortgages, and c. In addition, a small portfolio of non-performing mortgages (NPEs) will also be acquired as part of the transaction. KBC Bank Ireland confirms sale of substantially all of its performing loan assets and liabilities to Bank of Ireland Groupįollowing the announcement made on the 16th April 2021 that KBC Bank Ireland had entered into a Memorandum of Understanding (MoU) with Bank of Ireland Group, KBC Bank Ireland confirms that it has now entered into a legally binding agreement with Bank of Ireland relating to the sale of substantially all of KBC Bank Ireland’s performing loan assets and its deposit book to Bank of Ireland Group. Outside trading hours – Regulated information*īrussels, 22 October 2021 (8.20 a.m.