Losses fall to €14m as KBC Bank eyes profitability in 2016

Fiona Reddan

Losses at KBC Bank Ireland fell to €14 million in the third quarter of 2014, compared to a loss of €51 million in the same period in 2013, as loan impairment costs shrunk and the bank continued to extend its reach inthe Irish market. The bank said it "remains on track for return to profitability by 2016".

Losses after tax and impairment costs were €14m, while the bank’s loan impairment costs were € 47 million for Q3 2014, compared to € 98 million for the same period in 2013.

Wim Verbraeken, chief executive of KBC Bank Ireland said: "The financial results and impairments are in line with our expectations and we remain on track to return to profitability by 2016, so we are satisfied with our performance. We continue to grow our retail banking presence, focussing on busy footfall locations in urban centres with the recent acquisition of new hubs in Dublin and Maynooth, and five more planned for opening early 2015."

Net profit at KBC Group rose to €591m, up from €317m in the previous quarter and € 272 million in the third quarter of 2013.

KBC grew its deposit book “reasonably well”, with total retail deposits at € 3.3 billion (up from € 2.7 billion at year end 2013) and it opened over over 30,000 new customer accounts.

KBC opened new banking hubs in Maynooth and Dundrum, Dublin 14 in Q3, and the bank will open five additional hubs early in 2015. The bank has also reviatalised its personal lending products, and will launch the distribution of a new competitive suite of KBC sponsored investment funds this month to complement its existing range of saving and investment products.

KBC Bank Ireland employs over 960 people in Ireland with retail banking hubs in Dublin, Cork, Limerick, Kildare and Galway.