Monday 20th May - KBC Bank Ireland and MasterCard have today announced a strategic partnership which will see the bank launch debit card services to its customers in Ireland later this year.

KBC’s Debit MasterCard will be accepted at over 33 million retail locations around the world, on the Internet and at 2 million ATMs - wherever MasterCard is accepted.

John Reynolds, Chief Executive at KBC Bank Ireland said: “Launching a debit card service is strategically important to KBC’s plans in Ireland and greatly enhances the range of banking services we offer to our customers. We are delighted to partner with MasterCard in providing our customers with the best possible debit card solution in the Irish market”.

Debit MasterCard offers total convenience and security and by debiting funds directly from a current account it allows KBC customers to remain in full control of their finances.

“The partnership with MasterCard is the latest innovation from KBC which, over the last 24 months, has rolled out a suite of new services and is expanding into a full service bank. These services bring welcome competition to the market and, along with the Debit MasterCard, we will be launching a Current Account this year. We are currently engaged in product testing and research with a view to launching the account,” said Reynolds.

Ann Cairns, President, International Markets at MasterCard said: “MasterCard is delighted with the opportunity to work with KBC on the launch of Debit MasterCard for customers of KBC’s new retail bank in Ireland. We look forward to forging a strong partnership with KBC in the years to come.”

KBC celebrates 40 years in Ireland this year and is expanding its offering to become a leading provider of savings, mortgage, insurance, debit card and current account services in the Irish market. KBC recently opened new offices in Dublin and Cork with plans to expand further throughout 2013.

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Contact: Mike Miley: 01 7038600, mike@mkc.ie

About MasterCard:

MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, travelling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the conversation on The Heart of Commerce Blog and subscribe for the latest news

After excluding the impact of the legacy business (CDOs, divestments) and the valuation of own credit risk, adjusted net profit came to 359 million euros, compared with 279 million euros in the previous quarter and 501 million euros in the corresponding quarter of 2012.

The full Press Release is available here

The KBC ‘Peloton’ will see 21 men and women from KBC cycle almost 800km over five days through Belgium, France and Ireland with the initial fundraising target set at €20,000 for the two charities.

KBC Bank Ireland is part of the Belgian KBC Group and the group is travelling to Brussels to begin the challenging trip on May 13th.

KBC Bank Ireland Associate Director, and member of the ‘Peloton’, Peter Sherry outlined the route and what the bank’s employees hoped to achieve:

“On Monday, the 21 of us will set off from the Grand Place in Brussels and will cycle south into France, all the way down to Calais across to Rosslare and up to Dublin, hopefully finishing in KBC Bank Ireland’s Head Offices on Sandwith Street the following Saturday. The ‘Peloton’ have been preparing long and hard for the five days of tough cycling with each member pedalling over 100 km every day to prepare for the gruelling challenge ahead.”

John Reynolds, Chief Executive KBC Bank Ireland added that all KBC staff members have been playing their part by fund raising with over €20,000 already raised for Barnardos and Barrettstown: “Both charities undertake fantastic work in aid of children across Ireland and we in KBC are delighted to support them. Our staff members from across Ireland have been fantastic in raising such badly needed funds and I would like to thank them all for their hard work.”

Gordon D’Arcy is ambassador for Barrettstown and he was on-hand to set the Peleton on its way. Gordon said:

"Barretstown’s mission is to rebuild the lives of children affected by serious illness and their families. We believe that every child with serious illness should enjoy their childhood. Barrettstown cannot provide its services and support without the wonderful fundraising activities such as the KBC Peloton. I would like to thank each KBC member who is taking part and wish them the best on their mammoth cycle."

Note: The KBC Peloton is still accepting donations and members of the public can help by http://www.mycharity.ie/event/kbc_cycle_challenge_2013/

Ends

Contact: Laurie Mannix/Mike Miley, MKC Communications, 01 7038600; laurie@mkc.iemike@mkc.ie

Dublin, Wednesday, April 17th 2013 – KBC Bank Ireland has once again been recognised as having the best reputation of any bank in Ireland according to the annual RepTrak study.

RepTrak is the most comprehensive study of corporate reputations undertaken in Ireland and the results of its fourth annual report were published today. KBC has been ranked as the top bank in Ireland in the study with the results of the 2013 report placing it at number one for the second year running.

RepTrak ranks the largest organisations in Ireland including indigenous, multinational and semi-state bodies and rates how highly these organisations are held in esteem, how much they are admired and trusted and how the general public feels about them. It also studies how an organisation rates across seven key dimensions of reputation: performance, innovation, leadership, products and services, governance, workplace and citizenship.

John Reynolds, Chief Executive, KBC Bank Ireland said;

“2013 marks KBC’s 40th anniversary in Ireland and we are delighted that, as the bank continues to grow, we are receiving this recognition in the RepTrak study. We are conscious of the relatively poor reputational standing of the sector within which we operate and the need for the sector as a whole to rebuild trust. KBC is committed to playing its role in the rebuild of the reputation of the banking sector. We have invested in significant resources in reaching out to and assisting customers in difficulty and have embarked on an ambitious business expansion programme in Ireland which has seen the bank invest in new high street offices, launch a range of new financial products and expand its online banking presence.

“As the bank expands into a full service bank, our reputation has never been more important and the fact that the RepTrak study is derived from consumers’ beliefs is particularly welcome. KBC understands that it must work every day to maintain its reputation among customers. KBC offers a real competitive alternative and the work of our 700 employees is at the heart of everything we do and how we are perceived. I would like to thank all our employees for their enthusiasm and hard work which is ultimately why we have such a positive reputation among banks in Ireland.”

KBC is celebrating forty years in Ireland this year and has embarked on an ambitious expansion programme in Ireland which has seen the bank invest in new high street offices, launch a range of new financial products and expand its online banking presence.  The Cork office is the first new office to be opened outside Dublin and will employ 28 people initially, with employee numbers expected to grow significantly over the next few years.

John Reynolds said; “Cork and indeed Munster has always been a very important market for KBC and we are proud of our long association with the city.  We have ambitious plans to grow our business in the region and the opening of our new office is an exciting and important step in our drive to offer real choice to customers.  Our focus is on being a leading bank, providing attractive savings, mortgage and other financial services to consumers.  We are committed to providing sustainable competition in the Irish market”.

Mr. Reynolds said that the bank is continuing to expand the financial services it provides to customers.  “We are delighted with the response to our savings products which have been very successful.   In 2012, KBC welcomed over 22,000 new savers to the Bank and the launch of our most recent product – our Regular Saver account has broadened our appeal further. We will continue to introduce innovative products and services in 2013 as we become a competitive and alternative banking force in Ireland”.

KBC’s new office is located on Lapp’s Quay in a former mill known as Furlongs Mill, a flour mill constructed in the mid 1850’s. The building was refitted in 1874 when the original steam plant was replaced by the roller process. The red sandstone and grey limestone utilised in the construction of the building are characteristic of Cork industrial architecture and add colour and textural interest to the building. The bank has converted internally into bright modern space where customers can conduct their business in a welcoming environment, whilst retaining some of the character and features of the old building. 

John Reynolds concluded by saying that the retail investment copper-fastens KBC’s commitment to growing in Ireland. “Opening our office in Cork reflects our belief in Ireland as a place to do business and our confidence in being a real competitive alternative in the market for Irish consumers.  We have a sizable business here, and provide valuable employment to over 700 people in Ireland” he added.

Ends.

For further information:  Laurie Mannix / Mike Miley, MKC Communications,

Telephone: 01 7038600; email: mike@mkc.ie

This is the fifth Barometer by KBC Bank Ireland and Millward Brown with the results showing that not only are younger people saving more but that Irish people as a whole prefer to save regularly with over half of savers having an amount set aside to save monthly.

As a result, KBC has introduced its Regular Saver account which allows savers to deposit monthly and earn a competitive interest rate of 3.5% Gross/AER variable.

“The results of the Savings Barometer show that the Regular Saver account is responding to a demand in Ireland for this type of account,” according to KBC Bank Ireland Executive Director and Head of Retail Banking, Dara Deering.

“Over 50% of savers have an amount they set aside monthly and the Regular Saver account will suit their needs. This is especially true of young people in Ireland with the results showing that half of all under 35s believe that an ability to save monthly is the most important feature of a savings account. This belief is stronger than that found in all other age groups, “ Ms. Deering continued.

“In fact, the KBC Savings Barometer results show that Ireland’s young people have developed more robust savings habits than their older counterparts. Over 21% of under 35s have increased their savings in the last year, a figure that again exceeds all other age groups.

“The Regular Saver account facilitates the setting of the minimum deposit at €100 and allowing for deposits to come from two sources puts savings within easier reach of younger couples. In fact, according to the Barometer, the average savings is set at just under €200.”

“Overall, Irish people’s savings habits remain strong. In the 12 months since we introduced the KBC Savings Barometer, the number of Irish adults with a savings account has remained steady with over three quarters of Irish adults claiming to have an account.  Parents also see the importance of children developing a healthy savings habit from a young age with research showing that 60% of parents encourage children to save every month. The ability to access funds has grown over time with 77% now stating this as the most important feature of a savings account, compared to 67% in March 2012.   Two thirds of savers continue to dip into their savings with unexpected bills (67%) being the main reason for doing so.  This reflects the continued financial pressures on consumers, but also their determination to maintain the discipline of some level of savings”, Dara Deering concluded.

Ends

KBC Savings Barometer

The KBC Savings Barometer is conducted in conjunction with Millward Brown. It measures the levels of savings amongst the Irish public and the behaviours of those who do save. It is carried out Quarterly with the most recent Barometer carried out in February. This is the fifth Barometer.

 For reference: Laurie Mannix/Mike Miley, MKC Communications 01 7038600.

KBC has been leading the market with innovative savings products over the past 18 months and the new Regular Saver account is no different.  The minimum amount which can be saved is €100 a month, but recognising that many couples pool their savings together, direct debits of €50 each from two different accounts can be paid monthly into the KBC regular saver account.  

 “Launching our new Regular Saver account is very important for KBC Bank Ireland.  It broadens the appeal of our savings products to new customers who may not have a lump sum to deposit but are looking for the best return for saving smaller amounts on a regular basis”, said Dara Deering, Executive Director and Head of Retail Banking at KBC Bank Ireland.

“We’re very focused on developing savings products which make sense for our customers and meet their needs.  Younger savers can have greater financial pressures and allowing a couple to set up individual direct debits into their KBC Regular Saver account makes it easier for them to manage their savings. The new account also allows two payment holidays per year with 14 days notice.  It gives savers breathing space when they need extra cash at particular times of the year – for example, summer holidays or Christmas”, continues Deering.

KBC’s Savings Barometer research shows that over half of savers have an amount set aside to save at least monthly, with the average monthly savings at just under €200.  Monthly savings are predominant among those aged under 35. The setting of the minimum deposit at €100 and allowing for deposits to come from two sources puts savings within easier reach of younger couples.

“In the 12 months since we introduced the KBC Savings Barometer, the number of Irish adults with a savings account has remained steady with over three quarters of Irish adults claiming to have an account.  The ability to access funds has grown over time with 77% now stating this as the most important feature of a savings account, compared to 67% in March 2012.   Two thirds of savers continue to dip into their savings with unexpected bills (67%) being the main reason for doing so.  This reflects the continued financial pressures on consumers, but also their determination to maintain the discipline of some level of savings”, said Dara Deering. 

Deering says the Savings Barometer allows KBC to introduce savings products which reflect the circumstances of Ireland’s savers.  KBC Bank Ireland, which celebrates 40 years in Ireland this year,  was one of the first to allow savers penalty free access to savings during the fixed term and also to top up their savings during the fixed term.

“Tailoring our savings products in this way has been very successful.   We’re making it easy for savers to get information and open accounts with us.  Our KBC Pop Up is very successful allowing consumers to meet with KBC staff at weekends in their home town.   We are also continuously improving our online resources and our new office in Baggot Street has had a very busy and successful first quarter since opening last December.  Our Regular Saver account expands the savings options available to Irish savers and we are confident it will prove extremely popular with them”.

Ends.

Dublin, 4 March 2013: In recognition of Ireland’s 40 year membership in the EU, European Movement Ireland today launched a competition for third-level students. The EM Ireland 40 Years of Change Bursary Award, supported by KBC Bank Ireland, is an essay competition that challenges undergraduate students across the island of Ireland to produce an essay on the topic of Ireland and the EU: Forty Years of Change. The competition invites students to critically examine how Ireland and the EU have developed over the past forty years and how this relationship may develop over the next forty.

Entries will be reviewed by an independent panel of judges drawn from the worlds of academia and politics to select a winner. Chaired by KBC Bank Ireland Chief Executive, John Reynolds, the panel includes Dr Mary Canning, member of the Royal Irish Academy and member of Board of the Higher Education Authority and European Movement Ireland, and David Byrne, former EU Commissioner and Chancellor emeritus Dublin City University. The author of the winning essay will be announced at a gala dinner in Dublin at the end of May 2013 and will receive a bursary award of €1,500. Second and third place runners-up will also receive prizes on the night.

Speaking in Dublin this morning, EM Ireland Executive Director, Noelle O Connell, outlined the reasons behind the Bursary Award’s timing: “With 2013 marking the 40th anniversary of Irish accession to the EEC, and with Ireland currently holding the Presidency of the Council of the EU for the 7th time, now is the perfect time for students to explore the past relationships between Ireland and the EU, to reflect on its current challenges and to contemplate future developments. We are delighted to be working with KBC Bank Ireland on this initiative and look forward to reading the thoughts and opinions of students around the country on the Irish-EU relationship.”

2013 also marks KBC Bank Ireland’s 40th year in Ireland, providing customers with financial services since 1973. According to Chief Executive, John Reynolds: "At KBC Bank Ireland, we are delighted to be supporting the 'EM Ireland 40 Years of Change Bursary Award' and encourage third level students nationwide to get involved with this special competition. This sponsorship is a great fit for KBC, a bank centered in Europe, as this year we also celebrate 40 years serving Irish customers. As Ireland marches forward, our relationship with Europe has never been more important and it is timely to analyse how it has developed and where we go from here."

The Competition

In order to enter the competition for the EM Ireland 40 Years of Change Bursary Award, supported by KBC Bank Ireland, students must address the following question: “Critically examine how the relationship between Ireland and the EU have developed over the past forty years and how this relationship may develop over the next forty.” Essay style answers must be between 1,500 and 2,000 words and should be submitted electronically to Billie Sparks, EM Ireland’s Education and Advocacy Manager, at billie@europeanmovement.ie. The deadline for receipt of entries is 5pm on Monday, 15 April 2013. More information is available from www.europeanmovement.ie/bursary-award/.

ENDS.

Notes for Editors

About KBC Bank Ireland

KBC Bank Ireland has been operating in Ireland for 40 years and has been a member of the KBC Group since 1978.

As one of Ireland’s leading banks, KBC provides business and personal banking services to customers throughout Ireland. Our 700 employees in Dublin, Cork, Limerick, Belfast and Galway are dedicated to working in partnership with our customers to ensure their financial needs are met.

A member of one of Europe’s largest banking groups, KBC is committed to delivering responsible but innovative banking that is grounded in customer and shareholder value.

About European Movement Ireland

Founded in 1954, European Movement Ireland is a not-for-profit, voluntary, membership organisation working to make the connection between Irish people and the European Union. For more information about European Movement Ireland’s campaigns, programmes, information briefings and events, visit www.europeanmovement.ie.

Through education programmes and advocacy work, European Movement campaigns for every Irish person to get involved with the European Union and, by doing so, help shape it through reasoned, robust and informed debate. Full details of EM Ireland’s Presidency Programme are available from http://www.europeanmovement.ie/irelands-eu-presidency/.

Available for comment

EM Ireland’s Executive Director, Noelle O Connell, is available for interview and comment. Contact EM Ireland’s Communications and Membership Manager, Jenny Flynn, on 01 662 5815, 085 111 5836 or email jenny@europeanmovement.ie.

KBC Group net profit of €612m for full-year 2012 and underlying profit amounted to €1542 million for full-year 2012 (before exceptional and non-operating items).

KBC Bank Ireland reports a loss of €306 million after tax and impairment costs for 2012.  The loss, while disappointing, was not unexpected, given the challenging credit environment in Ireland.

KBC Bank Ireland’s parent, the Belgian KBC Group, recorded a strong performance for the year, reporting net profit of €612m for full-year 2012 and underlying profit amounted to €1542 million for full-year 2012 (before exceptional and non-operating items).

In Ireland, 2012 was a year of continued unacceptably high credit costs for the bank as mortgage arrears in its residential loan book continued to increase, albeit at a slower pace than heretofore, reducing quarter on quarter in 2012.  Collateral values in its commercial banking book were impacted by continued funding illiquidity and asset deleveraging in the Irish market.  The majority of our customers continue to repay their loans in full and the bank is working day by day to increase the number of customers availing of restructuring initiatives offered by the bank.  

KBC Bank Ireland continued its successful retail expansion in 2012, increasing deposits to c €2.1bn and attracting an additional 22,000 new retail customers.  Innovations such as KBC’s Pop Up and a new branch office in Baggot Street have increased KBC’s footprint and awareness among Irish consumers.

Reflecting muted economic activity and limited new business demand, as well as increased loan repayments and redemptions, the overall loan portfolio reduced to €16.0 billion from €16.7 billion in 2011.

John Reynolds, Chief Executive of KBC Bank Ireland said; “The bank’s results for 2012, represents an unsatisfactory business performance.  We had signalled that we expected conditions to remain challenging in 2012 and this proved to be the case.  However, we anticipate increasing economic stability will lead to more sustainable conditions in 2013 with the bank hoping for reduced credit cost in the year ahead”.

“KBC Group is a strong and profitable entity and is committed to developing its business in Ireland.  2013 will see further investment in KBC Bank Ireland with new retail branches and distribution platforms; continued expansion of our product portfolio and a commitment to supporting Irish homeowners, whether through the writing of new business or continuing to support mortgage arrears customers with workable solutions.  We recognise the opportunity in Ireland’s recovery and are positioning to play our part in that recovery, despite the challenges that remain as Ireland seeks to develop a sustainable banking sector”.

Mr. Reynolds added that the bank aspires to retain its 10% share of Ireland’s mortgage market while significantly increasing its broader retail presence.

KBC Bank Ireland employs over 650 people in Ireland and has offices in Dublin, Cork, Limerick, Galway and Belfast.  New high street retail offices are planned for Cork, Limerick and Galway this year.

Ends.

KBC Home Insurance will provide comprehensive home and contents insurance and is competitively priced with a number of key features and benefits for policy holders (see note at end). KBC Buy to Let Insurance provides coverage for investment properties. Both products are underwritten by Zurich Insurance plc, one of Ireland’s leading insurance companies.

Dara Deering, Executive Director and Head of Retail Banking at KBC Bank Ireland commented “KBC Bank Ireland is expanding the suite of retail services that are offered to customers and we have already received very positive feedback. We want to make banking simple for our customers and both insurance products will provide Irish homeowners with an easy way to safeguard their properties while offering real choice and value.”

Dara Deering went on to say that the launch of the products is the latest step in KBC’s strategy to grow its presence in Ireland. “2013 marks KBC Bank Ireland’s 40th year in Ireland and the launch of these insurance products further reflects our belief in Ireland as a place to do business and our confidence in being a real competitive alternative in the market for Irish consumers. We have a sizable business here, and provide valuable employment to over 700 people.”

KBC Bank Ireland opened its first high street retail office on Baggot street Dublin in December last year.

Ends

For reference: Laurie Mannix / Mike Miley, MKC Communications 01 7038600

About KBC Bank Ireland

KBC Bank Ireland has been operating in Ireland for 40 years. It is part of the Belgian KBC Group and is one of the leading providers of financial services in Ireland. KBC Bank employs over 700 people in Dublin, Limerick, Cork, Galway and Belfast.

The insurance products offered by KBC Bank Ireland are underwritten by Zurich Insurance.

KBC Home Insurance

KBC Home Insurance provides comprehensive cover for your home and contents. In addition to great quality insurance cover at a competitive price, exceptional benefits offered as standard:

•  Low Deposit of only 10%
•  0% APR on repayments
•  No service charges
•  Home Emergency Response available 24/7
•  No Claims Discount Scale
•  Standard Policy Excess €350
•  Personal Money up to €400
•  Credit Card Cover up to €1,275
•  Door Lock replacement €700
•  Unlimited cover for deterioration of stock (food and drink)in deep freezer
•  Contents in the garden up to a limit of €700*

KBC Buy to Let

KBC Buy to Let insurance provides cover for investment properties or holiday homes and contents. In addition to great quality insurance cover at a competitive price, exceptional benefits offered as standard:

•  Low Deposit of only 10%
•  0% APR on repayments
•  No service charges
•  No Claims Discount Scale
•  Public Liability cover up to €3 million
•  Alternative accommodation or loss of rent cover up to 10% of sum insured
•  Unlimited cover for loss of oil
•  The cost of tracing or finding water and oil leaks up to €700
•  Fire Brigade Charges up to a limit of €2,000*

Below is the schedule of where the Pop Up will be – watch out for it in a town near you, we look forward to seeing you there!

• 19th / 20th January Jervis Shopping Centre, Dublin
• 26th / 27th January Stephens Green Shopping Centre, Dublin
• 9th / 10th Feb Whitewater Shopping Center, Newbridge, Co. Kildare
• 16th / 17th Feb Athlone Town Centre
• 2nd / 3rd March Castle Court Shopping Centre, Belfast
• 22nd / 23rd March MacDonagh Junction, Kilkenny
• 6th / 7th April Jervis Shopping Centre, Dublin
• 20th / 21st April Stephens Green Shopping Centre, Dublin
• 4th / 5th May Mahon Point Shopping Centre, Cork
• 18th / 19th May Scotch Hall Shopping Centre, Drogheda
• 1st / 2nd June City Square Shopping Centre, Waterford
• 15th / 16th June Letterkenny Shopping Centre

Monday December 10^th 2012: KBC Bank Ireland has launched its first high street retail office in Dublin opening a flagship unit at 142 Lower Baggot Street today. 

John Reynolds, CEO, KBC Bank Ireland said that the opening of the Dublin office is the first phase of an expansion programme by KBC which will see the bank invest in new retail locations in a number of cities in Ireland in the coming years. In order to meet increasing customer needs, the bank has added over 100 employees in Ireland in 2012 and the opening of its new retail location is a reflection of the increase in new customers joining the bank.

“We have ambitious plans to grow our business and the opening of our new Dublin retail office is an exciting and important step in our drive to offer real choice to customers in Ireland.  Our focus is on being a leading retail bank, providing attractive savings, mortgage and other financial services to consumers.  We are committed to providing sustainable competition in the Irish market”, said John Reynolds.

Reynolds points to KBC’s success in building a strong base of deposit customers as evidence of the appetite among consumers for the bank’s services.  “Over the past 18 months we developed a range of innovative deposit products, such as Interest Upfront, Top Up and Smart Access, which are attractive to savers.  We’ve grown our deposit book by over €1 billion and have won over 20,000 new customers in 2012.  We have a very solid customer base from which we can grow our business”, he said.

The new retail office is designed for banking in the 21^st Century. Rather than imposing change on customers and driving them specifically to certain channels, we have designed a very open space which is bright and welcoming; moving away from the ‘high counters environment’ that is the traditional retail bank and creating informal, relaxed meeting spaces where customers can engage with KBC financial advisors.

“Over the last year we have put a premium on engaging with customers and putting in place measures that make banking easier for them.  Online banking is a key part of our strategy but Irish people also like to do business ‘face to face’.  Investing in an expanded high street presence is key, but we are also pioneering more innovative ways for customers to interact with us”, said John Reynolds. “The KBC Pop-Up is one such innovation which we will continue to exploit. It’s all about making it easier for consumers to do business with KBC on a day to day basis.” 

John Reynolds concluded by saying that the retail investment copper-fastens KBC’s commitment to growing in Ireland with further plans to increase employment in the coming year. “As we approach 40 years in Ireland, these developments reflect our belief in Ireland as a place to do business and our confidence in being a real competitive alternative in the market for Irish consumers.  We have a sizable business here, and provide valuable employment to over 700 people” he added.

KBC Bank’s Headquarters is in Sandwith Street, Dublin and has offices in Cork, Galway, Limerick and Belfast.

Ends

For reference: Laurie Mannix/Mike Miley, MKC Communications 01 7038600.

86% of public expecting toughest Budget yet, according to KBC Barometer

Sunday December 2^nd 2012: The vast majority of the public is bracing itself for a tough Budget on Wednesday with almost nine in ten believing that it could be the toughest yet according to the latest KBC Savings Barometer.

“The latest results from the Barometer unsurprisingly show that the Irish public are uncertain about how the upcoming Budget may affect their finances,” said KBC Chief Economist Austin Hughes.

With this in mind, KBC Bank Ireland will attempt to simplify the complexity surrounding the Budget with the release of KBC’s Budget 2013 infographic.

The infographic will make the Budget easy to understand and provide vital information on budget changes, and their economic impact on both households and the broader economy.

Austin Hughes continues “To help alleviate uncertainty about the budget, the KBC infographic will focus on issues such as the effect on the Irish economy, the consequences for the housing market and how the budget may affect consumer spending. It will also highlight ‘backpocket’ issues such as the effect on people’s incomes.”

The infographic will go live late in the evening of Wednesday 5^th December.

Ends

For reference: Mike Miley, MKC Communications 086 3811203, mike@mkc.ie

As part of this drive to employ new staff, the bank is holding a Recruitment Open Evening on Wednesday December 5^th between 5pm and 8pm in KBC Headquarters, Sandwith Street, Dublin 2.

Held in conjunction with recruitment agency, Robert Walters Dublin, the open evening is by appointment only (see note at end). Business graduates with a 2.1 degree and professionals with banking experience are encouraged to contact Robert Walters Dublin to secure attendance.

Opportunities in a variety of areas will be on offer including:

• Retail Banking
• Credit & Underwriting
• Risk Management
• Arrears Restructuring Unit
• Corporate Lending (Recovery)
• Finance
• Retail Operations
• Wholesale Operations
• Compliance & Regulatory

Speaking ahead of the event, KBC Bank Ireland Head of Human Resources, Jennifer Blake, said “KBC is building on its near 40 year presence in Ireland  and is entering into an exciting phase of development.  We have a number of exciting roles on offer. Attendees at the Open Night will have the opportunity to meet with experienced consultants, discuss available roles with KBC representatives and attend a company briefing to get a broad overview of the bank’s operations in Ireland. I would encourage any candidate to contact Robert Walters and come along on Wednesday.”

Ends

Details

KBC Bank Ireland Banking Recruitment Open Evening

Date:               Wednesday December 5^th 2012

Time:               5.00pm to 8.00pm

Location:         KBC Bank Ireland Headquarters, Sandwith Street

Attendance is by appointment only. Interested candidates should send a copy of their Curriculum Vitae to Mia Barry, Banking & Financial Services, Robert Walters Dublin, kbc@robertwalters.com or call 01 633 4111 for more information

Almost 60% will use their Current Account to cover Christmas expenses while 30% will dip into savings

Three-quarters of Irish people have a savings account with the amount saved expected to be increased in 2013

Wednesday November 7^th 2012: Irish people plan to spend an average of €603.50 on Christmas expenses this year according to the latest KBC Savings Barometer. The research shows that the majority of people will cover Christmas expenses through their current account while almost one in three plan to dip into existing savings and 10% will use their credit card only.

The KBC Savings Barometer also reveals that Dublin consumers are higher Christmas spenders than people living elsewhere in the country with those living in the capital intending to spend €668 on average. However, people with dependent children will outspend all others with a projected outlay of €675 per person.

Dara Deering, Executive Director and Head of Retail Business, KBC Bank Ireland commented, “Most families consider Christmas to be the time of year where household expenditure is at its highest and this has been borne out with the KBC Savings Barometer showing that over €600 per person will be spent this year. However, it is positive to see the research once again pointing to Ireland as being a nation of savers with people pre-planning for expensive times of the year such as Christmas. The research shows that almost 9 out of 10 people claim to either use their current account or savings to pay for Christmas as opposed to taking out a loan from a financial provider (5%) or using their credit card (10%)”.

“Irish consumers are continuing to become ‘savvy savers’, they are not only saving in big numbers but are also demanding savings accounts that best suit their needs. 75% of Irish savers believe that ability to access funds is one of the most important features of a savings account and these people are also looking for an account that provides them with funds at a time that suits them. KBC’s new Interest Upfront Account offers an attractive fixed rate of 3.20% gross/AER and pays the interest upfront 16 days after the account is open, just in time for Christmas,” said Deering.

This is the fourth KBC Savings Barometer of the year with the latest results confirming that a savings culture has firmly taken hold in the country. Three-quarters of people have a savings account with that number rising amongst 35 – 44 year olds where 83% have an account.

27% of all savers cite having a financial safety net as their main reason for having a savings account with 18% believing uncertainty about the future is the main reason to hold one. Interestingly, a combination of factors is the main reason that 37% of savers gave for opening and maintaining a savings account.

“This reflects what we are hearing day-in, day-out in KBC”, Dara Deering added. “Irish people are already saving in big numbers with 50% saying they plan to increase the amount they save in the next year. They are also looking for a variety of features in their savings account alongside receiving an attractive return and that is shown by the fact that over 4 in 5 savers confirm that they dipped into their savings in the last year. With that in mind, KBC has rolled out a number of deposit options over the last year and will continue to do so in 2013.”

Wednesday 7^th November 2012: This Saturday 10th November and Sunday 11th November, KBC Bank Ireland will open up a ’Pop-Up’ at Mahon Point Shopping Centre. The temporary Pop Up will be manned by KBC financial advisors who will be on hand to provide savings information and advice to visitors. 

The Pop Up serves to create a new retail format for KBC, helping to extend the geographical reach of their current office network and reach new customers outside the usual office environment.

 “The aim of the KBC Pop Up is to provide information and increase brand awareness of KBC outside of the key regions where KBC has physical office presence and to bring KBC within greater reach of Irish consumers. It strives to create a new concept in Retail Banking for the Irish market and deliver an interactive and consumer friendly experience,” said Dara Deering, Director and Head of Retail Business at KBC Bank Ireland.

‘This is a new and innovative approach by KBC, to help accommodate customers who work during the week and our unable to visit our office in Cork City Centre. Shoppers will be able to ‘drop in’ to the KBC Pop Up in Mahon Point and sit down to chat with staff in a relaxed environment’ says Deering.

The KBC Pop Up will continue to visit locations around Ireland this year, appearing in Scotch Hall Shopping Centre, Drogheda on the weekend of the 24^th of November.

 Updated strategic focus and financial aspirations

During a press and analyst conference in Brussels today, Johan Thijs, CEO of the KBC group since May 2012, presented the group’s updated strategy and explained how KBC will address the challenges presented by the changed business environment. He also announced KBC’s major financial targets for 2015, setting the course for the group to become the reference in bankinsurance in its core markets.

Johan Thijs commented: ‘The macroeconomic environment, competitive landscape and regulatory situation and outlook remain challenging. Everyone needs to adapt. KBC is passionate about being the reference in bank-insurance in its core markets. After a thorough review, we decided at the Executive Committee to update our strategy. By building further on the strengths of the KBC group, our integrated bank-insurance business model which continued to perform through the cycle, and our skilled and professional employees, we enhanced our strategy by making clear business choices, optimising the organisational structure of our group (taking into account the divestments and derisking/deleveraging of recent years) and committing to a clearly defined corporate culture. Our goal is to become more agile and efficient and thus more competitive. In doing so, we will not only adapt to changing client behaviour but will also meet the legitimate expectations from society as a whole.’

Six drivers define KBC’s updated strategy, ‘2013 and beyond’: 

1. KBC defines ‘Local responsiveness’ as the key strategic priority. KBC will focus first and foremost on the client. KBC aims at building and deepening sustainable relationships with retail, SME and midcap clients.  ’Local responsiveness‘ means better understanding local clients, readily and proactively taking up suggestions, and tailoring products and services to their local needs. Relationship bank-insurance is key to ‘local responsiveness’ i.e. KBC will focus on banking and insurance business activities necessary to serve the client relationship in a sustainable way.

2. KBC continues to focus on core bank and core insurance products and services. KBC confirms its long-standing and long-term commitment to our bank-insurance model, a model which KBC has mastered and which has produced excellent results through the cycle. KBC’s bank-insurance business model is a fully integrated business model, creating cost synergies by avoiding an overlap of supporting entities (e.g., ICT, accounting). Clients

benefit from its added value through the complementary and optimised banking and insurance product and service offering.

3. KBC clearly defines its core markets as those markets where it is present with banking and insurance companies. These core markets are Belgium, the Czech Republic, Hungary, Slovakia and Bulgaria, where the group is strongly embedded in the local economies. In some of these markets KBC has achieved a market leadership position. All activities which do not contribute to serving the client relationships in KBC’s core markets will be stopped.

4. KBC further mobilises cross-border co-operation and group leverage to create costefficiencies throughout the group. International Product Factories and International Service Providers will focus on offering products and services which support and are tailored to the distribution strategy of the business units and help to increase local responsiveness. Exchange of know-how, best practices, experience, products and services between the different business units and corporate functions will be stimulated through communities.

5. KBC implements a new organisational structure that is fully aligned with the strategic choices and which supports effective decision making and accountability. The new structure includes, among other things, the creation of a new, separate business unit for the Czech Republic franchise, and clarification of the future role of the Merchant Banking Business Unit.

6. KBC commits to a clearly defined group culture. The group will strengthen its agility and responsiveness by emphasising and streamlining performance management and accountability for all staff. A clear link will be established between the strategic priorities and accountability (through key performance indicators).

KBC today already announced some of its financial aspirations for 2015, setting its course to become the reference in bank-insurance in its core markets.

KBC plans to improve its cost/income ratio to 55% by 2015, by both increasing revenues and improving efficiency and creating synergies. The combined ratio target for insurance is set at 95% or less.

KBC is also targeting a liquidity coverage ratio of 100% and a net stable funding ratio of 105% by 2015.

These targets will be further fine-tuned in the coming six months, during KBC’s internal budget process, and first-quarter earnings will be reported on 16 May 2013 following implementation of the new structure.

KBC’s internal and external challenges

Today, KBC, like any other player in the financial sector, is being confronted with changing client behaviour and stakeholder expectations, a changing and restrictive regulatory environment, a number of macroeconomic challenges, a European landscape characterised by different country specifics and a changed financial and competitive landscape where the focus is on home markets and deleveraging.

KBC‘s priority over the last few years has been the implementation of the plan agreed with the European Commission in 2009 with the aim of repaying the state aid it received and of complying with the new capital requirements for financial institutions (Basel III, Solvency II, etc.). This has resulted in a deleveraging strategy and a reduction in KBC’s balance sheet by nearly one-third. KBC is now well advanced in the implementation.

Today, the KBC group is defined by two business dimensions:

1. Strategically: banking and insurance.

2. Geographically: Belgium and Central and Eastern Europe, with Belgium and the Czech Republic being the main drivers of profit.

The group is also intertwined with and a driving force in the local economies it operates in:

1. As regards its business, KBC focuses on retail, SME and midcap clients/client segments.

2. KBC’s distinctive and unique expertise is based on in-depth knowledge of its local markets and deep relationships with its clients.

KBC’s integrated bank-insurance business model has proven to be a strong value creator with good underlying results through the cycle.

KBC’s current strategy, in which ‘local responsiveness’ and ‘global efficiency’ have the same strategic value, was sometimes conflicting, given the different levels of maturity of the group’s franchises. Although in some areas a group approach has created added value (risk or asset management, for example), the implementation of ‘global efficiency’ has increased complexity, thus slowing down the decision-making process and resulting in loss of efficiency and agility. Given that KBC is not big enough to compete solely on the basis of economies of scale, it will create its competitive advantage in other areas.

The updated strategy ‘KBC 2013 and beyond’ addresses tomorrow’s challenges and provides a clear strategic framework for the refocused, smaller group KBC has become.

‘KBC 2013 and beyond’

The ‘KBC 2013 and beyond’ strategy puts the customer first and comprises both an optimisation of the organisational structure of the group and a commitment to a clearly defined corporate culture.

‘Our clients are and should be at the heart of everything we do, and deserve all our energy and attention. We can only achieve confidence and trust if we focus on client satisfaction and on putting clients first’, said Johan Thijs.  ‘KBC 2013 and beyond’ continues to focus first and foremost on the client and on doing business in a sustainable way. KBC believes that better understanding local clients and tailoring products and services to their local needs, will create and increase its competitive advantage. Therefore, ‘local responsiveness’ becomes the key strategic priority.  KBC will continue to build sustainable relationships with and offer added value to retail, SME and midcap client segments in its core markets. The core markets (i.e. the markets in which KBC is present in banking and insurance business), continue to be Belgium, the Czech Republic, Hungary, Slovakia and Bulgaria, where KBC is already strongly embedded in the local economy. Absolut Bank (Russia), NLB (Slovenia), KBC Bank Deutschland (Germany), KBC Banka (Serbia) and Antwerp Diamond Bank (Belgium) will be divested. Ireland remains an exception, where in the coming years KBC Bank Ireland will be managed to maximise its value contribution through its retail banking business.

In its updated strategy, KBC repeats its long-standing and long-term commitment to the integrated bank insurance model, a model which it has mastered and in which it has been very successful, including during the recent years of financial crisis. By using the ‘relationship bank-insurance’ approach, i.e. focus on the optimal combination of banking and insurance products and services to fulfil clients’ needs and to serve the client relationship in a sustainable way, KBC will further build its market position in its core markets. This also means that KBC will divest or discontinue activities which do not contribute to building sustainable banking and insurance client relationships in its core markets.

Although the point of gravity is local, the group should and wishes to be more than the sum of its parts. Consequently, KBC will further mobilise cross-border co-operation and create group leverage in a pragmatic way. In doing so, it will create cost efficiencies throughout the group.

International Product Factories and International Service Providers will focus on offering products and services – developed from a global point of view – which support and fit into the distribution strategy of the Belgium, Czech Republic and International Markets business units and help increase local responsiveness.

Exchange of know-how, best practices, experience, products and services will be stimulated through the creation of communities. Their mission will be to promote synergy, dialogue and exchange throughout the group wherever and whenever it makes sense. Banking, Insurance, Lease and Payments have already been identified by management as core communities, handling mission-critical items. This way of working with communities will be stimulated through central support from the new Corporate Communities Support entity within the Corporate Change & Support Division.

Fully in line with these strategic choices, KBC will implement a new organisational structure which supports effective decision making and accountability. In the new structure, a new, separate business unit will be created for the Czech Republic franchise. Together with the Belgium and International Markets business units, it will form the beating heart of the KBC group.

Now that the deleveraging of the group and reduction in risk-weighted assets (mainly in the Merchant Banking Business Unit) is well advanced and the implementation of the divestment and restructuring plan agreed with the European Commission is drawing to a close, KBC has clarified the future role of the Merchant Banking Business Unit. The current Merchant Banking Business Unit will be split mainly into:

1. Corporate Banking Belgium, which, in line with the principle of local responsiveness, has been shifted to the Belgium Business Unit.

2. Activities such as Markets and Securities – global by nature – which have been shifted into the new International Product Factories Business Unit.

3. Ireland, which will be incorporated into the new International Markets Business Unit.

Based on the focus on local economies and the relationship bank-insurance model, the other corporate banking activities will be positioned as part of each local business unit. In addition, because the corporate banking segment contains client types that can differ from country to country, the incorporation of this segment into the various business units will provide for better alignment of larger SME and smaller corporate clients.

Based on a re-assessment of the global nature of activities and services, the current Shared Services & Operations Business Unit has been split into:

1. Country and international product factories. Truly international product factories (e.g., KBC Asset Management and KBC Securities) will be moved into the new International Product Factories Business Unit. Other, not truly international, product factories (e.g., Lease) will be divided into the different business units as (embedded) Country Product Factories.

2. International service providers (e.g., ICT) will be moved into the new Corporate Change & Support Division.

Johan Thijs concluded: ‘Since we are passionate about being the reference in bank-insurance in our core markets, we recognise that our corporate culture can be more clearly defined. We will put more emphasis on individual accountability for all staff and streamline performance management across the group, so that we become more responsive and agile. Our talented and professional staff will be increasingly empowered to use their talents to the full and will be encouraged to co-operate internally, but will also be accountable and responsible for achieving the targets we have set. In fact, today we also announced some of our financial aspirations for 2015, such as the cost/income ratio, combined ratio, liquidity coverage ratio and net stable funding ratio.

A clear link will be established between the strategic priorities and accountability, through key performance indicators. As in the past, targets will not exclusively focus on financial elements (capital, net profit, liquidity) but will also include clear ‘stakeholder objectives’ (with stakeholders including customers, staff, society and shareholders). We are well aware of our responsibility towards and the contribution we are expected to make to society as a whole. Hence we have also decided that from now on our Corporate Social Responsibility (CSR) team will report directly to me. I will personally follow up on and commit to further implementing our CSR vision and strategy, which is also a major concern shared by our Supervisory Board’.

The strategic choices will be fully reflected in a new group structure, which comprises three building blocks and eight vertical pillars, each focusing on its individual contribution to the group. The Group Executive Committee will define the ‘chalk lines’ for each of the pillars outlined below and will monitor and guard them closely.

1. The ‘generate’ building block, consisting of four pillars (i.e. the business units).

These business units will be the beating heart of the group, focusing on local business and contributing to sustainable profit and growth by catering for clients’ needs. They will be fully responsible and accountable for achieving their targets and will be the final decision-takers for their core domain.

Belgium Business Unit and the newly created Czech Republic Business Unit: both mature market leaders, will ensure stable, growing, high-level profitability.

International Markets Business Unit: will contain the other core Central and Eastern European countries, Slovakia, Hungary and Bulgaria. These will be the growth generators.

KBC Bank Ireland will also belong to this business unit, as will the non-core entities earmarked for divestment (Russia, Serbia, Antwerp Diamond Bank, etc.).

International Product Factories Business Unit: will include Asset Management, Trade Finance, Consumer Finance, Markets & Securities, etc.

2. The ‘improve’ building block, consisting of the ‘Corporate Change & Support’, ‘CRO Services’ and  ‘CFO Services’ pillars, will act as an internal regulator, but must above all support the business units.

3. The ‘develop’ building block consisting of the ‘Corporate Staff’ pillar will be a competence centre for strategic know-how and best practices on corporate organisation and communication. It will support and serve the Group Executive Committee and the business units. This pillar will be dedicated to stimulating corporate collaboration.

Compared to the current KBC group structure, this new organisational model incorporates, among other things, two major re-designs:

- The current Merchant Banking Business Unit will be split mainly into:

o Corporate Banking Belgium, which, in line with the principle of local responsiveness, will be moved to the Belgium Business Unit. Corporate clients in Belgium will be catered for through the existing network of specialised corporate branches, as is the case today. Corporate banking activities outside Belgium will be positioned as part of each local business unit focusing on core clients in core markets.

o Activities such as Markets and Securities, which have been moved into the International Product Factories Business Unit.

- Following a re-assessment of the global nature of activities and services, the current Shared Services & Operations Business Unit will be split into:

o Country and international product factories: the truly international product factories (such as Asset Management, KBC Securities, Trade Finance and Consumer Finance) will be moved into the International Product Factories Business Unit. Other product providers, which are currently group-wide but not truly global, will be divided into the various business units as (embedded) Country Product Factories (e.g., Lease).

o International service providers such as ICT will be moved into the Corporate Change & Support Division.

The new organisational structure will be implemented as of 1 January 2013.

For further information, please contact:

KBC Group:

Wim Allegaert, General Manager, Investor Relations, KBC Group

Tel +32 2 429 40 51 E-mail wim.allegaert@kbc.be

Viviane Huybrecht, General Manager, Group Communications/Spokesperson, KBC Group

Tel +32 2 429 85 45 E-mail pressofficekbc@kbc.be

It’s simple to ‘do the maths’ with KBC’s online savings calculator!

Monday 17^th September:   How many of us know what our money will actually earn from the interest on our deposit account?  Other than checking who has the highest interest rate and the account that best suits our needs, it can be sometimes difficult to calculate exactly what return you will get.

Now, KBC Bank Ireland has made it simple to do so by adding a very useful savings calculator to its website at www.kbc.ie

Type in the amount you want to save and a drop down box will show you both the gross and net (after DIRT) euro amount you will earn in each of the savings accounts on offer.  From there, you can chose the account which best suits your needs.

Not only are KBC making savings simple by making it easy for savers to see the interest they will earn, they are also paying interest upfront. KBC’s new Interest Upfront Savings Account, an addition to their current competitive range of savings products, offers a market leading rate of 3.8% Gross/AER.

The new 12 month fixed term account pays interest upfront after just 16 days, giving savers the option of spending the interest earned or adding it to their nest egg. This offer will end on 29^thSeptember 2012.

Check out KBC’s full suite of savings products at www.kbc.ie.  Open an account by applying online, visiting one of KBC Bank Ireland’s branches in Dublin, Cork, Limerick and Galway; or by phoning1800 51 52 53.

Ends.

For reference: Mike Miley / Laurie Mannix, MKC Communications 01 7038600

Wednesday, 6th September 2012:  KBC Bank Ireland has been awarded the prestigious Allianz Business to Arts Award for the ‘Best Long Term Partnership’ between an arts organization and a commercial entity.

The Award recognizes KBC’s long term support of and commitment to the KBC Great Music in Irish Houses Festival.  The fifteen year partnership - 12 of which are as title sponsor, has seen the festival expand and grow to become firmly established in the music calendar.   The festival brings some of the world’s finest musicians to perform in some of Ireland’s most beautiful venues.

Speaking at the Awards, John Reynolds, Chief Executive, KBC Bank Ireland said; “I am delighted to accept this Award which recognises the important support provided by businesses and commercial organizations to the development of a vibrant arts sector in Ireland. 

Over the past fifteen years KBC Bank Ireland has developed a very strong creative partnership with the Great Music in Irish Houses Festival.  Our sponsorship is one of the longest running in the arts sector in Ireland today and it is an example of the mutually beneficial relationship which develops when the relationship is built from a long term perspective”.

Laurie Cearr, General Manager of the KBC Great Music in Irish Houses Festival said; “We are delighted with this award and that the KBC Great Music in Irish Houses Festival has been recognised at this prestigious event. Our partnership with KBC Bank Ireland has been instrumental to the growth of the Festival over the years. At all times, their commitment has first and foremost centred on what they could do to assist us in achieving our objectives of developing and growing an extensive programme for the festival.  The 2012 KBC Great Music in Irish Houses festival was one of the most successful yet and the stage is set to build on this success for next year’s festival”.

Ends.

For reference:  Laurie Mannix / Mike Miley, MKC Communications 01 7038600

Friday 24^th August, KBC Bank Ireland launches their new Interest Upfront Savings Account, an addition to their current competitive range of savings products, offering a market leading rate of 3.8% Gross/AER. The new 12 month fixed term account pays interest upfront after just 16 days, giving savers the option of spending the interest earned or adding it to their nest egg.

The latest KBC Savings Barometer shows that some savers prefer to receive their interest when they first open a savings account, with the demand highest among those under 35 (42%) even though many do not spend the interest. 56% of those polled choose to save the interest they earn, while only 1 in 10 spend the interest earned outright.  18% of savers said they ‘don’t really think about the interest at all.

Speaking about the launch, Dara Deering, Executive Director and Head of Retail Business, KBC Bank Ireland said; “The Interest Upfront Savings Account is the latest savings account we have launched this year, in response to consumer demand. The latest KBC Savings Barometer shows that younger savers in particular like to see their interest paid upfront, even if they don’t want to spend it. With this new account, we are making it easier for savers who want access to their interest at the beginning of the term rather than waiting 12 months for the account to mature”.

The latest KBC Savings Barometer shows that commitment to savings remains strong, especially among the under 35s. Of those who have a savings account, 48% said they intend to increase their savings in the next 6 – 12 months. 

Financial safety (27%) is the key reason for having a savings account, with 21% saving for a specific reason such as children’s education (6%), a house (4%), a holiday (4%) or a car (3%). Uncertainty about the future (16%) is also driving the savings habit. 

“The figures have remained consistent since we launched our first barometer last March.  A savings culture has definitely taken hold, with 4 in 5 Irish adults holding a savings account.

“This is driven in part by general economic uncertainty but also by the excellent rates and range of savings options now available.  KBC Bank is committed to meeting the demand for innovative savings products”, said Dara Deering.

KBC’s Interest Interest Upfront Savings Account requires a minimum deposit of €3,000 and the maximum deposit allowed is €1,500,000.Further information is available at www.kbc.ie; from KBC Bank Ireland’s branches in Dublin, Cork, Limerick and Galway; or by phoning 1800 51 52 53.

KBC Bank Ireland has been operating in Ireland for nearly 40 years.  It is part of the Belgian KBC Group and is one of the leading providers of financial services in Ireland.  KBC Bank employs over 600 people in Dublin, Limerick, Cork, Galway and Belfast. 

Ends.

For reference:  Laurie Mannix / Mike Miley, MKC Communications 01 7038600

Friday 24th August, Irish people are still splashing out on their Summer holidays with the latest KBC Savings Barometer showing that 50% of Irish consumers surveyed booked a holiday this year.  On average €927 is spent on their annual vacation by Irish holiday makers with those who holiday abroad spending more - on average €1016 compared to those who stay at home. Spending during a ‘staycation’ is in the region of €785. 

KBC’s Savings Barometer showed that those with dependent children spend significantly more than those who do not, while those living in Munster are also higher holiday spenders. But, unlike the Celtic tiger years, consumers have become more savvy and are now saving for their holiday rather than borrowing or paying for it with their credit card.  67% of those surveyed saved for their holiday so they would not have to borrow while only 3% took out a holiday loan.  29% still favour plastic, using their credit card to pay for their holiday.

Dara Deering, Director and Head of Retail Business, KBC Bank Ireland said: “It is no surprise that people still want to go abroad on holiday, particularly when you consider the weather we have had this summer.  However what we are seeing is the growing savings culture in Ireland where people and are more likely to save for big ticket items such as holidays or for a car than previously”. 

With Summer almost ended, consumers are now starting to save for Christmas.  More than one third of Irish adults said Christmas is the next big item for planned savings, followed by a holiday (17%), school expenses (12%) and a car (10%).

“KBC’s new Interest Upfront Account is an ideal savings account for those looking to save a lump sum but wanting some pocket money for their holidays or for a special Christmas present.  With a market leading interest rate of 3.8%, we pay the interest upfront, just 16 days after the account is open.  We are making it easy for savers who want to withdraw their interest at the beginning of the term and spend it, rather than waiting 12 months for the account to mature”.

The latest KBC Savings Barometer shows that commitment to savings remains strong, especially among the under 35s. Of those who have a savings account, 48% said they intend to increase their savings in the next 6 – 12 months.

Financial safety (27%) is the key reason for having a savings account, with 21% saving for a specific reason such as children’s education (6%), a house (4%), a holiday (4%) or a car (3%). Uncertainty about the future (16%) is also driving savings. 

“The figures have remained consistent since we launched our first barometer last March.  A savings culture has definitely taken hold, with 4 in 5 Irish adults holding a savings account. This is driven in part by general economic uncertainty but also by the excellent rates and range of savings options now available.  KBC is committed to meeting the demand for competitive savings products”, said Dara Deering.

KBC Bank Ireland has been operating in Ireland for nearly 40 years.  It is part of the Belgian KBC Group and is one of the leading providers of financial services in Ireland.  KBC Bank employs over 600 people in Dublin, Limerick, Cork, Galway and Belfast.

Ends.

For reference:  Laurie Mannix / Mike Miley, MKC Communications 01 7038600

Editors Note:

KBC’s Interest Interest Upfront Savings Account is a 12 month fixed term deposit account paying an interest rate of 3.8% Gross / AER.  Minimum deposit of €3,000 and the maximum deposit allowed is €1,500,000.  Further information is available atwww.kbc.ie; from KBC Bank Ireland’s branches in Dublin, Cork, Limerick and Galway; or by phoning 1800 51 52 53.

The Allianz Business to Arts Awards recognise businesses, artists and arts organisations that develop creative partnerships, bringing the arts and artists into mutually beneficial relationships with business. The 2012 KBC Great Music in Irish Houses took place in June of this year and brought together some of the world’s finest chamber musicians to perform in some of Ireland’s most beautiful venues.

Speaking after the Festival received the nomination, KBC Bank Ireland CEO John Reynolds said:

“We in KBC are absolutely delighted that this wonderful festival has been honoured by being short listed for such an esteemed award. The 2012 KBC Great Music in Irish Houses marked a 12 year sponsorship and over 15 years of association between the bank and the festival. We look forward to continuing our support for the wonderful events that celebrates the combination of Ireland’s unique heritage and some of the world’s most beautiful chamber music.

“This year’s sponsorship delivered an exciting and dynamic programme and was an overwhelming success. I wish the very best to all in the awards ceremony on September 4^th.”

Laurie Cearr, General Manager of the Festival commented ‘’KBC has been an integral element in the festival for many years and has always shown a unique level of engagement with our activities, enabling us to maintain programs and artists of the highest internal standard.’’

Ends

Note: Further information on the 2012 KBC Great Music in Irish Houses is available at http://greatmusicinirishhouses.com/

Monday, 9^th July: KBC Bank Ireland is pleased to announce that it has selected Zurich, one of the world’s leading insurance groups, to develop competitively priced home insurance products.

Celebrating 40 years in Ireland next year, KBCI is one of Ireland’s leading mortgage providers and the introduction of the new KBCI home building and contents insurance will complement the existing mortgage product range.

“We selected Zurich because they demonstrated an understanding of our customers’ needs and also the innovation to develop products that offer real choice and value. Zurich is a global insurer with superior financial strength and a AA-/stable rating from Standard and Poor’s. By expanding the range of insurance products available to Irish homeowners, we are increasing competition in the marketplace which can only benefit consumers” says Dara Deering, Executive Director and Head of Retail Banking at KBC Bank Ireland

“We have been investing heavily in expanding our suite of retail financial services and these are being well received by consumers.  We are continuing to develop new deposit products, where we now have a suite of products offering market leading interest rates and we will also be exploring other financial services offerings as we grow our presence in Ireland”.

Maurice Cullen, Chief Marketing Officer Zurich Insurance Ireland said; “KBCI has a strong reputation for providing innovative financial services and we are delighted to have been selected by KBC Bank Ireland. At Zurich we understand the needs of customers and we want to make sure homeowners are protected against financial loss if their personal possessions are stolen or their home is damaged. We take a look at the whole picture, working sympathetically and swiftly to put everything in order again. I am confident KBCI customers will benefit from our extensive knowledge of the Irish market, backed by our global expertise in home insurance”.

Further information is available from www.kbc.ie, KBC offices in Dublin, Cork, Limerick and Galway or by phoning 1800 51 52 53.

Ends.

Contact:  Laurie Mannix / Mike Miley, MKC Communications 01 7038600

Friday, June 29, 2012 KBC Bank Ireland welcomes the reform of the Bankruptcy framework and the introduction of mechanisms to deal with significant levels of unmanageable debt.

Speaking today on publication of the legislation, John Reynolds, CEO, KBC Bank Ireland said “Both Government and the individual banks are working towards a common goal of assisting homeowners in difficulty.  While we welcome the introduction of the bill we remain cautious about the potential unintended consequences of certain elements of the proposed legislation.”

The impact of the inclusion of mortgage debt in the bill is one concern, given that this is untried and untested in the proposed form.  Depending on how mortgage debt is treated it could have significant unintended consequences on the availability of funding and therefore the supply and pricing of new mortgage credit.

He said that KBC Bank is also concerned that the scope of the new personal insolvency regime will cover debt up to €3 million. 

“This is contrary to the primary purpose of the personal insolvency plans as it will result in the inclusion of borrowers of a commercial nature”.

Mr. Reynolds said “We are disappointed that the legislation does not resolve the legal impediment created by the Justice Dunne Judgement prohibiting repossessions.  While repossessions remain the last and least desirable resort for KBCI, there are cases where customers won’t work with KBCI to resolve their mortgage arrears issue and as a last resort we need to be in a position to repossess.”

KBC Bank Ireland welcomes the emphasis placed on customers firstly engaging with their bank to resolve their mortgage arrears issue.  KBC Bank has an extensive outreach programme in place for our customers experiencing difficulty.  The Bank engages proactively with all its customers who are finding it difficult to meet their mortgage repayments to find a roadmap to recovery.  Working with customers according to their individual circumstances, we develop solutions which allow the customer to maintain their home while meeting their financial obligations.

“While the legislation is designed to assist those who truly cannot meet their financial obligations, the experience of the Bank is that the vast majority of customers can repay their mortgage debt and we are introducing more long term resolution options to offer further support to these customers. 

We will be piloting a number of these long term mortgage resolution options with customers over the coming months such as the introduction of a mortgage to rent scheme” concluded Reynolds.

Ends.

For reference:  Laurie Mannix / Mike Miley, MKC Communications 01 7038600

About KBC Bank Ireland plc:

KBC Bank Ireland plc is regulated by the Central Bank of Ireland.  KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele.  KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world.  KBC Bank Ireland plc has a strong presence in Ireland where it has been operating for nearly 40 years providing lending and investment services.

John Reynolds, CEO KBC Bank Ireland said “KBC is continuously assessing the solutions it provides to customers in difficulty. We plan to identify the most appropriate solutions through our pilot programmes with customers. Once this process is complete, KBC will offer solutions to customers based on their specific financial needs which will be assessed on a case by case basis”.

“As always the first step for all customers is to engage with the bank and provide us with up to date financial information to allow us to carry out an informed assessment of the customer’s current circumstances. On the KBCI Bank Ireland website we have developed a set of short video clips to help and inform customers about the process. Our customers have told us that the short video guides have made the overall process of filling in the Standard Financial Statement much easier at what is a stressful time for them” continues Reynolds.

KBC Bank Ireland has developed a comprehensive Customer Engagement Programme for all mortgage customers. This entails a general outreach programme including advertising, direct marketing, brochure ware, website material and video guides. Importantly, it includes enhanced communication and outreach for customers who are already in arrears. KBC Bank Ireland also has an extensive field team of specialists who are able to meet with customers in their home or at a suitable location.

The current pilot programmes cover two solutions including where the loan term is extended and the contracted payment will be reduced to an affordable level for the customer by extending the remaining term on the mortgage. The bank is also reviewing a three year interest only option where the contracted payment will be equal to 100% of the interest component due on the facility, for a period of three years. During this period, the capital balance on the facility will remain static.

KBC Bank Ireland is also working with the relevant government bodies to introduce a mortgage to rent scheme for customers with unsustainable mortgages. Further resolution options such as the split mortgage will be piloted throughout the remainder of 2012.

ENDS

 49% of those polled plan to increase the amount they save within the next 12 months

Thursday, 14th June 2012: Almost 8 out of 10 Irish people are now saving according to the most recent KBC Bank Ireland Savings Barometer, a study of the attitudes of 1,000 Irish consumers towards saving.

Research shows that saving account ownership is higher amongst men compared with women with 81% of men savings versus 75% of women. The largest increase in savings account ownership is in the 35 – 44 age group which grew from 75% in the Q1 Barometer to 79% in the Q2 Barometer. Among all those who currently save, a financial safety net or a rainy day fund is the key reason for saving, followed by saving for a particular item with 21% currently saving for a holiday and children’s education.  

Access continues to be the most important feature when opening a savings account, followed by rate and term. 72% of consumers surveyed would like the option to access their savings across the term of the product should they need to. This is not surprising given 4 out of 5 people are currently dipping into their savings, primarily to meet unexpected day to day expenses. Given the time of year, 40% of respondents are also accessing their savings to pay for summer holidays.

The savings culture in Ireland remains strong with almost half (49%) planning to increase the amount they save within the next year, including 16% intending to add to their savings over the next 3 months.

“It’s encouraging to see that the savings ethos in Ireland is growing from strength to strenghth, with 78% of Irish people currently claiming to have a savings account”, says Dara Deering, Executive Director and Head of Retail Banking at KBC Bank Ireland. “The research tells us that consumers are looking for a competitive savings account, which offers them access to their money should they need it, which is why we launched the new ‘Top Up’ demand account. The product gives savers a guaranteed 4.1% (AER) during the term and allows them to top up their savings by a further 25% during the term. Savers also have the added comfort of knowing they can access up to 25% of their savings without penalty – particularly appealing for those making a last minute decision to go support the Irish team in the Euros or booking a last minute holiday in search of some Summer sun” 

“This new Top Up Savings product seems to have hit the target with customers as we have seen online applications up 300% since its introduction” adds Deering.

Further information is available from www.kbc.ie, KBC offices in Dublin, Limerick, Cork and Galway or by phoning 1800 51 52 53.

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For further information:  Laurie Mannix, MKC Communications 01 7038620

For three days, books of every kind will be celebrated and brought to life by their authors. This year, we are very excited to launch a terrific new short story competition in association with KBC Bank. We’re looking for stories on the subject of ‘Summertime’. If you’re under 13 (the best age for writers, we think) send us your masterpiece! A prizewinner will be selected in each category (9 and under and 10-13yrs).

Both winners will receive books equal to the height of a Dalkey goat, as well as Weekend festival tickets (subject to availability) for the winner and their family to the festival and lunch with the children’s authors and a two night family stay with dinner in Fitzpatrick’s Castle Hotel!

Pictured to launch the new childrens competition are Dara Deering, Executive Director, KBC Bank (left) Ireland and Sian Smyth, Festival Director, Dalkey Book Festival (right).

Dara Deering, Executive Director of KBC Bank Ireland said, "This is a fantastic initiative which KBC Bank is very proud to support. There will be lots of Summertime reading from this competition which I am looking forward to! The best of luck to all the talented boys and girls who take pen to paper. We look forward to hearing about the winners in a few weeks' time."

Click here to visit the Application Page

This year, our children’s festival is bigger than ever with bestselling authors like Derek Landy, the author of the Skulduggery Pleasant series who has sold 17 million books. Multi-talented author and actor Pauline McLynn will be talking about her latest book as will children’s authors Alan Early and Judi Curtin. Author of over 40 books , Gordon Snell, will be talking about the magic of words and we also have Nicola Pierce, Sarah Webb and Anna Carey. For illustrators, there will be a comic workshop with Alan Nolan and there’ll be drawing with the hugely popular Chris Judge.

For more information and to book tickets online see dalkeybookfestival.org.

Ticket prices for children are very reasonable and range from €5 to €7

Box Office opens 28 May at 20 Railway Road, Dalkey; telephone booking on 089 472 6756

78% of 1,000 people surveyed across Ireland in May had a savings account, a slight decrease on the Q1 Savings Barometer (79%). However, 79% of those aged 35 – 44 had a savings account, compared to 75% in Q1.

“The positive trend is that people are still saving and are trying to manage their finances so that they have some fallback for an unexpected event. The commitment to savings remains strong and 49% are planning to increase their savings in the next year”, said Dara Deering, Executive Director, Head of Retail Banking, KBC Bank Ireland.

Of those who have a savings account, saving for a rainy day at 26% remains the most important reason for saving. 21% of savers are saving for a particular item such as a car, house, children’s education or holidays while 14% say that ‘uncertainty about the future’ is their reason for saving.

The majority of respondents (34%) dip into their savings 2 -3 times a year, while 20% of respondents dipped into their savings more than 5 times in the last year,

“The latest KBC Savings Barometer shows people are dipping into their savings more regularly but they also want to be able to top up again when they have some extra cash.

The top three features sought by savers are the ability to access funds, the interest rate offered and the ability to add additional funds to the account. We’re now launching a new Top-Up deposit account this week with all these features to give savers greater freedom in how they manage their savings”, she said.

“With a very competitive 4.1% AER/Gross deposit rate over 12 months, as well as the flexibility to lodge or withdraw up to 25% of funds during the term, our innovative Top-Up deposit account will be very attractive to savers”, she added.

KBC Bank Ireland’s Top-Up deposit account is available from Thursday, 24th May. Details will be available at www.kbc.ie; from KBC Bank Ireland’s branches in Dublin, Cork, Limerick and Galway; or by phoning 1800 51 52 53.

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The Key Findings of the KBC Bank Ireland Savings Barometer 2012 are:

• 78% of 1,000 people surveyed across Ireland in May had a savings account, a slight decrease on the Q1 Savings Barometer (79%).

• 79% of those aged 35 – 44 had a savings account, compared to 75% in Q1.

• Connaught / Ulster had the highest percentage of savers (81%) compared to Dublin (78%), Munster (77%) and Rest of Leinster (77%).

• Of those who have a savings account, saving for a rainy day and having an all important ‘financial safety net’ (26%) remains the most important reason for saving. 21% of savers are saving for a particular item such as a car, house, children’s education or holidays while 14% say that ‘uncertainty about the future’ is their reason for saving.

• While 17% have increased the amount they save over the past six months, 44% are saving less.

• The commitment to savings remains strong with 49% of those with a savings account planning to increase the amount they save in the next year.

• However, there has been a 6% increase in those who do not plan to increase their savings (51% in May, compared to 45% in March).

• The majority of respondents (34%) dip into their savings 2 -3 times a year, while 20% of respondents dipped into their savings more than 5 times in the last year,

• Meeting unexpected bills remains the key reason for dipping into savings (60%), followed by planned expenditure, such as a car (44%) or holidays (40%)

• The top three features sought by savers are the ability to access funds (72%), the interest rate offered (43%) and the ability to add additional funds during the term of the account (41%).

The All Ireland Marketing awards are the most prestigious marketing awards in Ireland and KBC Bank is honored to have won this accolade.

John Reynolds, CEO, KBC Bank said “Market research is central to everything we do and helps us to continuously improve the products and services we provide to our customers. I would like to thank the Marketing Institute for honoring KBC Bank at this year’s awards. I wish to extend my congratulations to our marketing team whose outstanding work has been recognised by this award. Energised and focused, our people are critical to our continued success.”

KBC Bank continues to develop its retail presence in Ireland offering consumers real choice for their savings and mortgage needs.

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Note: The All Ireland Marketing Awards took place last night, May 17th, in the Burlington Hotel in Dublin. Organised by The Marketing Institute of Ireland, the awards recognise the success of Irish marketing professionals.

For more information and a list of winners, see www.kbc.ie and www.aimawards.ie

Dublin, Wed, 2nd May 2012 - KBC Bank Ireland has been ranked among the most reputable companies in Ireland in the third annual RepTrak study published today. RepTrak is the most comprehensive study of corporate reputations undertaken in Ireland. KBC Bank Ireland was recognised for having the best reputation of any bank in Ireland.

RepTrak ranks the largest organisations in Ireland including indigenous, multinational and semi-state bodies and rates how highly these organisations are held in esteem, how much they are admired and trusted and how the general public feels about them. It also studies how an organisation rates across seven key dimensions of reputation: performance, innovation, leadership, products and services, governance, workplace and citizenship.

John Reynolds, Chief Executive, KBC Bank Ireland said; “KBC Bank Ireland is honoured to be recognised in the prestigious Ireland RepTrak 2012 study. Our reputation is extremely important to us and we work hard to ensure it reflects the values of our organisation. It is great to get this level of recognition from Irish consumers and we appreciate the need to constantly work to retain that recognition. Every person who works in KBC plays an instrumental role in developing and protecting the positive reputation we enjoy and this is a fantastic tribute to their hard work and commitment”.

A full list of the rankings is available at www.corporatereputations.ie.

The Ireland RepTrak 2012 study was carried out amongst the general public in Ireland and is the Irish segment of the largest reputation study in the world, the Global RepTrak™ study, which covers over 2,800 companies across 41 countries and 24 industries. Over 100 of Ireland’s largest and most familiar organisations were included in the independent study with fieldwork completed in January and February of this year. The Irish study was undertaken by Corporate Reputations and the Reputation Institute.

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“In Northern Ireland we have focused primarily on providing financial services to the business community, so it’s no surprise that people may not have heard of us. As part of KBC Bank NV, one of Belgium’s largest banks with 13 million customers across Europe, we bring an international perspective to the market but one which reflects our long term presence here. Now, we’re bringing that experience and expertise to the benefit of Northern Ireland consumers”, says Dara Deering, Executive Director and Head of Retail Banking, KBC Bank Ireland.

“We are very pleased to be offering real choice and value to Northern Ireland savers. We know that people are increasingly seeking better returns on their money and are willing to shop around for the best rate. We have developed our Select Access Demand Account with their needs in mind. People can save when they can afford to and make unlimited withdrawals on demand when they need to”, says Deering.

The minimum opening balance for Select Access Demand Account savers is £2,000 with a maximum balance of £1 million. The account gives a return of 3.0% (Gross / AER) variable and savers can access their funds on demand.

For more information call 0800 389 5384 or download an application form from www.kbc.ie/ni

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The festival has been in operation for over 40 years and brings together some of the world’s finest chamber musicians to perform in some of Ireland’s most beautiful venues. The 2012 KBC Great Music in Irish Houses marks over 12 years of association between the bank and the festival.

Speaking at the launch of the 2012 Festival, KBC Bank Ireland Chief Executive, John Reynolds, said: ”KBC Bank Ireland is delighted to continue our support for this wonderful festival that celebrates the combination of Ireland’s unique heritage and some of the world’s most beautiful chamber music. All at KBC are proud to play a part in a festival that offers so much for all involved.”

Always held in beautiful locations, this year the Great Music in Irish Houses Festival will visit some of newly rejuvenated buildings whose restoration reflects the diversity of Irish architectural and interior design. This year’s opening concert will be held in Rathfarnham Castle and the National Concert Hall is a new venue for the 2012 Great Music in Irish Houses festival.

There is an exciting and dynamic programme and, in a recession friendly gesture, half of the world-class concerts will have tickets available at €20 or less. Tickets can be booked for all events through www.nch.ie

Highlights of the extraordinary musical talent programmed by Artistic Director Ciara Higgins for the 2012 Festival includes the Irish premiere of Steve Reich’s powerful Drumming, with a début appearance by the exhilarating percussion ensemble, The Colin Currie Group, on the 17th June.

Messiaen’s Quartet for the End of Time, written in a prisoner of war camp in World War II will be performed on June 13th. The recent major transformation of Smock Alley in Temple Bar provides a dramatic setting for Finghin Collins, Carol McGonnell, Catherine Leonard and British cellist Guy Johnston to perform this extraordinary work.

• Opening the Festival this year is Rathfarnham Castle, which exemplifies the magnificent restoration work of the OPW, is the British Doric Quartet on June 12th. As well as quartets by Haydn and Schubert, these exciting musicians will perform Korngold’s Third Quartet, their recording of which has garnered international critical acclaim.

• While Ireland has a big international football match on June 14th in Euro 2012, music is not forgotten as guitarist Xuefei Yang pays her own musical salute to Spain and Ireland in a pre-match performance at the Little Museum of Dublin on Stephen’s Green.

• Following their début as a trio in Paris in 2010, three of our most creative musicians Dermot Dunne (accordion), Katherine Hunka (violin) and Carol McGonnell (clarinet) collaborate in an evocative programme of Dermot’s own brilliant musical arrangements on June 15th at the Royal College of Surgeons.

• The Elias Quartet, performing music by Beethoven and Schubert, makes the first of two Festival appearances on June 16th in Dublin’s Mansion House. On June 17th they partner guitarist-extraordinaire Xuefei Yang in a programme of Rodrigo, Bach, Boccherini and Dvořák in the Festival’s spiritual home, Castletown House.

• The brilliant young Irish mezzo-soprano, Tara Erraught will perform in the perennial Festival favourite Killruddery House in Co. Wicklow on June 16th. Dundalk-born Tara has had a meteoric career rise since her last Festival appearance in 2009. She is the youngest ever principal with the Vienna State Opera and will make her much-anticipated North American début during the 2012/2013 season.

Listings Information: KBC Great Music in Irish Houses Festival

Dates: June 12 – 17, 2012

Website: www.greatmusicinirishhouses.com

Bookings: www.nch.ie

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Main Points:

• Irish business activity levels show first clear improvement since late 2007.
• Significant differences remain in conditions across sectors but early 2012 less difficult for most companies.
• Further modest increase in business volumes expected in second quarter.
• Survey shows job gains now matching job losses for first time in more than four years – hinting at emerging stability in economy-wide employment.
• Irish companies more concerned about general economic outlook of late in spite of increased business volumes.
• Gradual and modest improvement in Irish economy seen taking hold in next three to five years.
• Almost 2/3 of firms expect to increase employment in the next three years but only half plan to operate at a significantly greater scale.
• 7 out of 10 companies feel they understand the broad issues in relation to the referendum on the Fiscal Treaty.
• Opinion fairly evenly divided as to whether Treaty will materially change the thrust of Irish budget policy..

You can download the full Spring 2012 briefing.

This confirms that Irish people really have turned into a nation of savers and echoes the results of the KBC Bank Savings Barometer which showed that 55% of savers planned to increase their savings this year.

The Smart Access Demand Account has tapped into this by offering a market leading rate of 3.25% with unlimited withdrawals and with savers able to access their funds if and when they need.

“We are delighted with the response to the Smart Access Demand Account and believe it reflects the needs of Irish savers,” said Dara Deering, Executive Director, Retail Banking for KBC Bank Ireland.

“As the KBC Bank Savings Barometer showed, two-thirds of savers believe the ability to access their funds is the most important feature of a savings account. Free access to funds is a feature of the Smart Access Demand Account and a key driver of its success.

We are delighted with the unprecedented level of sales enquiries to all our channels including calls to our dedicated deposit team, our online channel and our offices in Dublin, Cork, Galway and Limerick. Applications through our website www.kbc.ie have more than doubled.

The Smart Access Demand Account offers a market leading rate of 3.25%. The minimum balance for Smart Access Demand Account savers is €3,000 with a maximum balance of €100,000. Customers can apply online, over the phone or through our offices. Unlimited withdrawals and lodgments are a feature of the account and interest is paid annually.

“We believe that demand for the Smart Access Demand Account will continue to remain strong as will interest in KBC Bank Ireland’s range of deposit offerings,” Dara Deering continued.

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Further information on KBC Bank Ireland’s Smart Access Demand Account is available at 1800 51 52 53 or by visiting www.kbc.ie

The videos, which bring customers through the process of completing and returning a Standard Financial Statement (SFS), are available on KBC Bank’s website www.kbc.ie and also on the bank’s You Tube channel. In conjunction with this, the Bank has also launched a new guide to assist customers experiencing mortgage difficulty. This is also available on www.kbc.ie.

Under the Code of Conduct on Mortgage Arrears, lenders use the SFS in order to assess a customer’s financial circumstances and to help customers who are in difficulty get back on track with their mortgage.

“We continuously challenge ourselves to find ways to further assist customers in financial difficulty. The Standard Financial Statement is an important part of the mortgage process and we want to do our best to help customers understand it as much as possible. We believe that by watching these short instructional videos, our customers will feel more comfortable with the process and better understand what is involved.’’ said Dara Deering, Executive Director at KBC Bank Ireland.

“We recognise that this can be a very stressful time for some customers. Therefore our aim is to try and help reduce the level of stress for our customers by making the process as easy as possible. If the SFS is filled out correctly at the start of the process we can work towards finding a solution for our customers more quickly.”

KBC Bank Ireland has been proactively engaging with its mortgage customers to encourage those worried about their mortgage to start talking to the bank as early as possible. In addition to writing to its customers and advertising in national newspapers, the bank has recently extended its opening times.

“It is important to remember that the earlier a customer engages with us, the more likely we will be able to come to an agreement which allows them to repay their mortgage albeit over different terms. Our aim is always, as far as is possible, to try to help our customers to retain home ownership and we are continually seeking ways to help our customers take proactive steps with us in this regard. Our new videos and guide are examples of how KBC Bank Ireland is working to make this process as easy as possible for our customers”.

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• Four in every five dipped into their savings last year

KBC Bank Ireland has introduced the KBC Savings Barometer, measuring public sentiment towards savings among 500 Irish consumers across Ireland.

Details of the KBC Savings Barometer were announced at the launch of a new Smart Access Demand Account from KBC Bank Ireland offering a market leading rate of 3.25% to savers.

The KBC Savings Barometer shows that Irish people have turned into a nation of savers with 79% owning a savings account. Irish people remain cautious about spending, with 55% of respondents planning to increase their savings in 2012. However four in every five consumers dipped into their savings in the past year.

“Over half of all Irish savers plan to increase their amount of savings in 2012 while two-thirds of Irish savers believe the ability to access funds is the most important feature of a savings account according to the KBC Savings Barometer. Our new Smart Access Demand Account provides an appealing option for these savers by allowing instant access to funds and an attractive return”, said Dara Deering, Executive Director, Retail Banking for KBC Bank Ireland.

The minimum balance for Smart Access Demand Account savers is €3,000 with a maximum balance of €100,000 offering customers a market leading rate of 3.25%. Customers can apply online, over the phone or through our offices at Dublin, Cork, Limerick and Galway. Unlimited withdrawals and lodgments are a feature of the account and interest is paid annually.

“The Savings Barometer confirms that Irish consumers are looking for the best return on their savings with 48% ‘shopping around’ before deciding on which account to open,” Dara Deering continued. “Access to their funds is crucial with 80% of savers dipping into their savings last year and this is one of the reasons we believe that the Smart Access Demand Account will appeal to Irish savers”.

Uncertainty about the future (42%), a desire to have a financial safety net (32%) were the primary reasons for saving nowadays while 22% were saving for a particular item such as a car, house, children’s education or holidays, according to the KBC Barometer.

“As the KBC Savings Barometer shows, the demand for savings products will remain strong and KBC’s range of deposit accounts mean we have an account to suit most savers. We are seeing great demand for our products with consumers looking for flexibility and choice.

“We will continue to deliver products which meet the needs of Irish savers and investors. In fact, KBC Bank Ireland has put in place a comprehensive marketing plan that will allow us to more effectively target our communications and receive feedback from customers. We have offices in Dublin, Cork, Limerick, Galway and Belfast and savers can also open an account online at www.kbc.ie at their own convenience”, said Dara Deering

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The bank is one of five nominees shortlisted in each category and will attend the awards ceremony on May 17th in the Burlington Hotel.

Speaking following the announcement, KBC Bank Ireland, Executive Director Retail Banking, Dara Deering said; “We are delighted to have been shortlisted for these two prestigious awards and I want to thank all the KBC Bank Ireland team for the huge effort that has been put in over the last year".

“In 2011, KBC Bank Ireland embarked on a strategy to enter the retail deposit market, facing a number of challenges as we did so. Our dedicated marketing team worked diligently and effectively to deliver impressive results that exceeded both expectation and business targets."

“Market research was the cornerstone of all decisions regarding the bank’s entrance into the retail deposit market. Our market research strategy allowed us to understand customer preferences and fed into our communications and marketing plans. It was instrumental in all that was accomplished."

“I wish the KBC Bank Ireland nominees all the best on May 17th but believe that, after all their success, they are already winners.”

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Note: The All Ireland Marketing Awards take place on May 17th in the Burlington Hotel in Dublin. Organised by The Marketing Institute of Ireland, the awards recognise the success of Irish marketing professionals.

For more information, see www.kbc.ie and www.aimawards.ie

Ms. Deering joins KBC Bank Ireland from EBS where she recently held the position of Director of EBS Retail Business and CEO EBS Mortgage Finance. Ms. Deering was responsible for key business lines including mortgages and retail deposits as well as for EBS Brand Positioning and Market Strategy.

During her time with EBS she was a member of the Executive Management Team, Group Credit Risk Committee, and Chair of the Pricing Forum.

Mr. John Reynolds said; “I am delighted to welcome Dara to KBC Bank Ireland. Retail Banking is a growth area for KBC and Dara will play a leading role in the development of innovative products and services for KBC Bank Ireland customers. Her experience will be invaluable to us as we expand this area of our business”.

Dara is Chair of the Irish Mortgage Council and Executive Vice-President (Ireland), European Mortgage Federation. She holds an MBA from Smurfit Business School and a Bachelor of Science Management from Trinity College Dublin.

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Core earnings power intact

• Net underlying profit amounted to €1,098 million

• Net reported profit of €13 million after divestments and impairment charges

Comfortable capital position and solid liquidity position

• Group Tier-1 ratio: 12.3% (Core Tier-1 ratio: 10.6%)

• Loan to deposit ratio KBC Bank: 94%

KBC Bank Ireland plc:

• Loss (after tax and impairment costs) amounted to €269 million

• Loan impairment costs of €510 million (€525 million 2010)

• Net operating profit (before loan impairments) of €241 million

• Low cost / operating income ratio of 23%

• Successful retail deposit campaign with over 5,000 customers added in 2011, total retail deposits approach €1 billion

• Further investment in retail product range and distribution channels

• Continuing commitment to support customers in difficulty

• Capital Position at year end: Tier 1 Capital Ratio 11.0%

KBC Bank Ireland reports a loss of €269 million after tax and impairment costs for 2011, which represented a further year of heightened credit costs for the Bank. The year was characterised by growing mortgage arrears in the residential loan book and the effects of a stagnant commercial property market on the Corporate Banking portfolio. At the same time, the Bank successfully expanded its retail banking presence in the market.

As a consequence of weak confidence and uncertainty regarding asset values, the demand for lending of an investment nature continued to be muted. KBC Bank Ireland devoted its resources therefore to, on the one hand, responding to the needs of its customers in mortgage arrears and those facing business difficulty, and on the other hand, servicing the banking needs of our many other customers.

The overall loan portfolio reduced to €16.7 billion at year end from €17.3 billion in 2010 reflecting limited new business demand and loan repayments and redemptions.

On 8th December 2011, Standard & Poor's reported in regard to KBC Bank Ireland:

"We view the bank's management and strategy as generally favourable relative to domestic peers. This, together with financial support from its parent, KBC Bank N.V. (KBC; A-/Stable/A-2), has helped business stability. In particular, we consider that KBCI's commercial property risk appetite was more restrained in the years prior to the severe dislocation in the Irish banking system that began in 2008 and that KBCI's business has been managed satisfactorily since."

Speaking about today’s results Mr. John Reynolds, Chief Executive of KBC Bank Ireland said:

“The past year was a difficult year for both our customers and the Bank. We are committed to support those customers facing financial difficulties. Notwithstanding our expectations for another tough year in 2012, we remain optimistic about the prospects of economic stability returning to Ireland by 2013 followed by tangible recovery signs offering both the Bank and its customers better prospects in the medium term.

KBC Bank Ireland continued to develop its retail banking activities and envisages expanding its market position in this regard over the coming years. We will also seek to provide new and competitive products for deposit customers.

Reflecting the expansion of our retail banking activities and continuing commitment to support our customers, KBC Bank Ireland employee numbers increased from 452 to 521 during the year.”

CORPORATE PROFILE

KBC Bank Ireland Plc

KBC Bank Ireland plc (“KBC Ireland”) is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and treasury services. Employing c. 500 people, and headquartered in Dublin, KBC Ireland has regional offices in Belfast, Cork, Galway and Limerick.

KBC Group Press Releases are available at www.kbc.com

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Mr. Britton retired from Chartered Accountants KPMG Ireland in 2011 after 22 years as a Partner. During this time he served in a number of senior positions including the firm’s Board, the firm’s Risk Committee and as head of the firm’s Audit Practice. With KPMG Mr Britton advised blue chip Irish public companies and multinational companies. He is a Fellow of the Institute of Chartered Accountants in Ireland.

John Reynolds, Chief Executive of KBC Bank Ireland said: “I am delighted to welcome Gary Britton on to the Board of KBC Bank Ireland. His experience of advising corporate Ireland over the past 22 years as a Partner with KPMG will be valuable to the board as we continue to manage our business in Ireland”.

KBC Bank Ireland has been operating in Ireland for over 35 years and has been a member of the KBC Group since 1978. It is one of the leading providers of financial services in Ireland and employs 500 people in Dublin, Limerick, Cork, Belfast and Galway.

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KBC Bank Ireland which is part of the Belgian KBC Group is actively pursuing opportunities in the Irish market. The bank launched a new branding campaign earlier this year with the theme ‘It makes sense to be with KBC’. The campaign included TV print, online and radio ads.

The current ad campaign is supporting KBC Bank’s 14 month fixed term deposit account which is offering a very competitive 4.5% AER.

“With the increasing proliferation of smartphones, reaching our target consumers through mobile advertising makes sense. Our advertising campaign has increased our overall brand awareness and customers now see us a real alternative choice when looking to diversify their savings”, said

Nóirín Ní Laocha, Senior Marketing Manager, KBC Bank Ireland.

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Main Points:

• Business activity slips again in final quarter of 2011.
• Firms see only marginal improvement in business volumes in early 2012.
• Concerns about broader economic outlook increase markedly. (Weakest result since Spring 2009.)
• Euro crisis seen as key influence on Irish business prospects.
• Budget 2012 divides opinions but majority feel scale of tax increases and shift towards indirect taxation is correct.
• Budget property measures will help… a little.
• Business expects Irish economy will see relatively modest improvement by 2015.

You can download the full Winter 2011 briefing.

KBC Bank Ireland confirmed that it will pass on the interest rate cut from the European Central Bank . From December 1st the standard variable rate for Homeloans customers will be 4.25% (APR 4.34%).

The bank is reducing its rates to customers notwithstanding the fact that the cost of funds on the retail deposit market and the wholesale market does not fully reflect the ECB reduction. The bank reserves the right to increase or decrease its variable interest rates in accordance with the terms and conditions of its contracts with its customer and its policies.

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Main Points:

• Activity and employment weaken marginally in third quarter.
• Prolonged and uneven stabilisation process is continuing.
• Uncertain economic backdrop weighing on company spending and hiring.
• 1 in 4 firms have significant problems accessing credit with 1 in 6 experiencing a deterioration in the past three months.
• Most businesses against budget package above €3.6 bio as many feel larger adjustment will hurt economy both in short and long run.
• Surprisingly, businesses also report increased confidence in Irish economic prospects.  Presumably, near term pain is seen producing longer term progress.

You can download the full Autumn 2011 briefing

With close to 200,000 people expected at this year’s Ploughing Championship, which is celebrating its 80th anniversary, We are all eagerly anticipating what should be a really great three days!

Come visit us at Stand 256 in the financial services area of the exhibition. Our advisors will be on hand to discuss your financial needs – whether you are looking for a mortgage or seeking a safe haven for your savings. Our flexible deposit accounts provide customers with flexible access to their funds while maximising the interest earned on their savings

Everyone who visits us will be in with the chance to win a top of the range Husqvarna Garden Tractor.

We wish the organisers, competitors and exhibitors every success at the 2011 National Ploughing Championships and we look forward to seeing customers old and new, at our stand.

Mr. Gijsens is a member of the KBC Group Executive Committee and the CEO of Merchant Banking Business Unit, KBC Group.

Originally from Belgium, Mr. Gijsens has 34 years experience in investment and corporate banking. Between 1981 and 1988, he was assigned to the International Network (Hong Kong, Bahrain, New York), returning to Belgium in 1988 to take up a position in the corporate division, where he ultimately took charge of the Antwerp Corporate Office as General Manager in 1994. He was appointed Senior General Manager of the Investment Banking Directorate in 2000 and then Senior General Manager of the Corporate and Institutional Banking Directorate in 2003.

Mr. Gijsens has been a member of the Merchant Banking Management Committee in KBC Group since 2006 and was appointed to the KBC Group Executive Committee as CEO of Merchant Banking Business Unit, KBC Group in May 2011.

KBC Bank Ireland has been operating in Ireland for over 35 years and has been a member of the KBC Group since 1978. It is one of the leading providers of financial services in Ireland and employs 500 people in Dublin, Limerick, Cork, Belfast and Galway.

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KBC Bank employees built a 'human house' as CEO John Reynolds presented a cheque of €20,000 to Focus Ireland CEO Joyce Loughnan (contact Mike Miley in MKC Communications for copies of pictures released).

KBC Bank CEO, John Reynolds, said: “KBC Bank Ireland is delighted to support the vital work of Focus Ireland and sponsor its excellent and successful triathlon. Twenty thousand euro was raised by KBC Bank staff through sponsorship for the triathlon as well as through a variety of events such as sponsored cycles, bake-a-thons, casual days and charity walks. We are delighted to support an organisation that engages in such vital work with those who are homeless and I want to thank every person in KBC Bank who took the time and effort to help.”

Focus Ireland CEO Joyce Loughnan said: “I would like to sincerely thank KBC Bank and its employees for their great efforts in raising €20,000 to help fund Focus Ireland’s work to combat and prevent homelessness. These funds are more vital now than ever before as Focus Ireland has seen an 18% increase in the number of people coming to us for support. We worked with 6,500 people last year compared to 5,500 in 2009. The ongoing support received through KBC Bank will allow us to continue our work to support some of the most marginalised families and single people and support them to secure and sustain a home.”

KBC Bank sponsored the Focus Ireland Fundraising Triathlon which took place at Dun Laoghaire Harbour on Sunday 31st of July.

Ends

About KBC Bank Ireland:

KBC Bank Ireland is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organization headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and investment services. Headquartered in Dublin, KBC Bank has regional offices in Belfast, Cork, Galway and Limerick

Main Points:

• Irish economy still negotiating a difficult and lengthy adjustment.  The absence of a ‘straight line’ recovery is hurting business sentiment.
• Conditions vary considerably by sector but activity levels overall slipped marginally in past three months.
• Modest improvement expected in activity in coming quarter as patchy and uneven turn continues.
• Employment declines slightly as new hiring remains subdued while layoffs decline.
• Uncertainty about 1-2 year outlook has increased significantly in past three months and may be weighing on business expansion and hiring plans.
• Half of businesses surveyed now see downturn lasting more than two more years.
• 18% of companies see recent Government jobs initiative boosting employment levels in their businesses.

You can download the full Summer 2011 briefing

The Institute of Certified Public Accountants in Ireland (CPA) is one of the main Irish accountancy bodies with in excess of 5,000 members and students. The CPA designation is the most commonly used designation worldwide for professional accountants and the Institute’s qualification enjoys wide international recognition.

KBC’s Subscription Finance Agreement enables new CPA students to pay their Application to Membership Fee, of €727, over the course of ten monthly payments. It allows students to take that first step towards becoming a CPA Accountant without the need to find the funds upfront for the membership fee.

The current interest rate is 5%. APR is 12.6%.

An application form can be downloaded from www.cpaireland.ie The completed application form should be submitted to Karen Norris, Education and Training Department, The Institute of Certified Public Accountants in Ireland (CPA), 17 Harcourt Street, Dublin 2 You may also contact Karen at knorris@cpaireland.ie or 01 425 1023.

Further information is also available from KBC’s Subscription Finance Team at 01 664 6506.

“These new products are the latest in an expanding product range from KBC Bank Ireland which is proving very popular with Irish savers”, said Christine Moran, Director, KBC Bank Ireland. “The extension of our Savings product range is in direct response to customer demand. These accounts suit customers looking for a fixed rate of return over a longer period of time. In addition our flexible withdrawal feature, whereby customers can withdraw up to 25% of their funds during the investment term, has proved so popular with customers that we have extended this product feature into our new products. Also, in response to customer demand we have extended our deposit telephone opening hours from 8.30am- 8pm (Mon- Fri) and Saturday 10am – 2pm”.

Please refer to interest rate table below:

Term Gross Return Rate AER

1 Year 3.65% 3.70%

18 Months 6.00% 3.95%

3 Years 14.00% 4.46%

Interest is paid at the end of the term. Minimum Balance €10,000.

KBC Bank Ireland has had a presence in Ireland for over 35 years. “We have a strong Savings and Mortgage Customer Base in Ireland and being part of KBC Bank NV, one of Belgium’s largest banks with 13 million customers across Europe allows us to bring an international perspective to the market. With offices in Dublin, Cork, Limerick and Galway there is great security for customers in knowing they can call into a KBC office and talk to us about their savings. We can accommodate customers who want a direct face-to-face account opening experience with us or who prefer to open an account online at their own convenience”.

Further information is available from 1800 51 52 53 or by visiting www.kbc.ie

Interest is subject to DIRT where applicable. Terms & Conditions apply. The Gross Return Rate is the indicative rate of gross interest (before DIRT) that will be paid to the customer based on the length of time the funds are in the account. AER means Annual Equivalent Rate (AER). Interest is paid at the end of the term. Rates quoted are correct as at 13th June 2011 and subject to availability. KBC Bank Ireland plc is a member of the Irish Deposit Guarantee Scheme.

About KBC Bank Ireland

KBC Bank Ireland plc is regulated by the Central Bank of Ireland has been operating in Ireland for over 35 years. KBC Bank Ireland plc has been a member of the KBC Group since 1978.

KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV. The KBC group is an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. The KBC group holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world.

Now in its forty first year the festival is a highlight in Ireland’s cultural calendar and brings some of the finest chamber music in the world to a wide audience in some of the most beautiful settings in the country.

KBC has been a proud sponsor of KBC Music in Great Irish Houses for the past eight years and earlier this year announced its commitment to the festival for the coming two years.

John Reynolds, Chief Executive, KBC Bank Ireland said; “The KBC Music in Great Irish Houses festival continues to preserve and celebrate Ireland’s heritage in terms of both chamber music performance and fine architecture by bringing this great music to some of the most beautiful houses in the country. All of us at KBC Bank Ireland are very proud to play a role in the Festival”.

Artistic Director Ciara Higgins has put together a world class line up of artists both from Ireland and overseas who will perform in some of Ireland’s finest venues over the coming week. Highlights of the festival include:

June 13th: Leading Irish and international musicians - pianist Lance Coburn, violinist Michael d’Arcy and cellist Hannah Roberts - collaborate in piano trios by Schubert, Beethoven and Smetana, in the magnificent surroundings of Killruddery House.

June 14th: Hillsborough Castle, courtesy of the Secretary of State for Northern Ireland, is the venue for a programme of some of the ‘greats’ in chamber music repertoire by cellist Guy Johnston and pianist Kathryn Stott.

June 15th : the world renowned Pavel Haas Quartet perform works by Britten, Janácek and Schubert in the Orangery in Killruddery House.

June 16th: The Pavel Hass Quarter will collaborate with the brilliant young German-Japanese cellist Danjulo Ishizaka for Schubert’s sublime Cello Quintet at Dublin’s Freemasons’ Hall.

June 17th: La Serenissima, the award-winning period ensemble and champions of the music of Antonio Vivaldi, makes its Festival début in the magnificent setting of Christ Church Cathedral with Vivaldi’s much-loved Four Seasons masterpiece, and with the Irish première of the composer’s recently discovered Grand Mogul concerto with flautist Katy Bircher.

June 18th: Members of La Serenissima can be heard again in the Festival’s first morning concert in the serene setting of the Chapel of Trinity College Dublin.

Also on June 18th, the dazzling Quatuor Ebène return to perform a classical programme in the magnificent surroundings of Castletown House.

June 19th: Wearing an alternative hat, Quatuor Ebène line out as L’Autre Ebéne in a programme of popular/jazz repertoire at Dublin’s Sugar Club.

Ends.

Download full Q1 2011 Earnings Statement

Main Points

• Irish business activity levels have improved marginally in the past three months with a stronger improvement expected in coming quarter.
• Conditions continue to vary widely between sectors and firms.
• Employment falls slightly but new hiring up modestly and layoffs ease
• Costs rising sharply but weak conditions mean companies set to limit price increases and absorb much of the impact of higher oil prices.
• 73% of Irish companies expect to be negatively affected by higher ECB interest rates.
• Interest rate impact to be felt through weaker demand, higher financing costs and further blow to confidence.
• New Government programme regarded as positive for Irish economic prospects.
• Significant doubts that 2015 deficit target will be met but renegotiated IMF deal could help. Survey suggests increased policy focus on growth needed.

You can download the full Spring 2011 briefing.

Cameron Marr was born in 1962 and is a British national. He holds a Bachelor of Commerce Honours degree in Business Studies from the University of Edinburgh, awarded in 1984. Following roles in banks in the City of London between 1984 and 1999, Cameron Marr joined KBC Bank in London from HSBC Investment Bank in 1999 to establish the Bank's Syndication and Debt Placement department and capabilities. Following promotion to General Manager in 2004, in 2006 Cameron Marr was appointed General Manager in charge of KBC Bank London Branch where he was responsible for KBC Bank's banking operations throughout the UK, with full oversight of all credit, market, legal and operational risks arising from these activities. In 2009, he joined KBC Group's Head Office in Brussels as the Head of the Project Management Office for the Merchant Banking Business Unit to assist in implementing KBC's strategic refocus.

KBC group:

Core earnings are and remain solid

• Profit (after tax and impairment costs) amounted to €1.86 billion

Solid liquidity position and satisfactory capital buffers

• Group Tier-1 ratio: 12.6% (Core Tier-1 ratio: 10.9%)
• Including impact of all divestments already announced, €4.5 billion excess capital above 10% Tier-1 solvency target
• Loan to deposit ratio KBC Group: 81%

KBC Bank Ireland plc:

• Loss (after tax and impairment costs) amounted to €177 million.
• Loan impairment costs rose to €525 million.
• Overall loan portfolio reduced to €17.2 billion at year end from €18.0 billion in 2009 reflecting very limited demand.
• Residential loans amounted to €13.1 billion at year end representing circa 9.6% of the Irish market.
• Corporate/SME loans amounted to €2.3 billion at year end.
• Real Estate lending comprised €1.9 billion i.e. 11% of overall loan book, of which Real Estate Development comprised €0.6 billion i.e. 3.5% of overall loan book.
• Capital Position at year end: Tier 1 Capital Ratio 10.3% and a Capital Adequacy Ratio of 12.7%.
• No need for externally sourced capital during period 2008 to 2010.

KBC Bank Ireland reports a disappointing loss of €177 million after tax and impairment costs for 2010. The deterioration in the Irish economy went deeper over the course of 2010 than we had anticipated.  While there were some signs of an improvement in externally focused sectors of the economy, domestic activity weakened further and numbers at work continued to fall albeit at a more modest pace than in 2009.

Lending demand of an investment nature was negligible.  Confidence in asset values was impacted by the dampening effect of the banking problems particularly the accelerated deleveraging pressure on Irish banks as a consequence of the EU/IMF assistance programme and additional capitalisation imperatives.

This environment presented difficulties for some of our customers although thankfully the significant majority of both our business and personal customers continue to meet their commitments to the Bank.

The composition of KBC Bank Ireland's loan portfolio, with relatively low exposure to the particularly troubled real estate development market, has allowed the bank to remain self sufficient in capital during 2010 as was the case in the previous two years of the economic downturn.

As a Belgian owned but domestically active participant in the Irish market, this relatively unique capital self sufficiency to date has enabled KBC Bank Ireland to look forward with confidence on its prospects within the Irish market place for the next few years.

Speaking about today’s results Mr. John Reynolds, Chief Executive of KBC Bank Ireland said;

"We have recently launched attractive product offerings in the retail deposit market and look forward to extending our presence in both the personal and commercial deposits market as well as increasing our residential mortgage and business lending over the year.  We will do so in a controlled and responsible manner seeking opportunities that fit within our risk appetite which has served us well over the course of our thirty plus years of banking in Ireland.

We anticipate 2011 being another tough year for it and its customers.  We are committed to working with those customers in difficulties.  We also wish to do more business with viable borrowers and to provide a first class service to all our customers.” 

We remain optimistic in the medium term about the economy's capacity to recover positive momentum.

--------------------------------------------------

Issued on behalf of KBC Bank Ireland by MKC Communications. For reference:

Laurie Mannix
MKC Communications
Tel: 01 703 8620
Mobile: 086 814 3710

NOTE TO EDITORS

CORPORATE PROFILE
KBC Bank Ireland Plc

About

KBC Bank Ireland plc (“KBC Ireland”) is a wholly owned subsidiary of KBC group, an integrated bancassurance organization headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and treasury services. Employing c. 470 people, and headquartered in Dublin, KBC Bank Ireland has regional offices in Belfast, Cork, Galway and Limerick.  

KBC group Press Releases are available at www.kbc.com

ENDS

KBC Bank Ireland will make additional one-off net provisions of between 315 and 330 million EUR (depending on the exact tax impact) for these two events and wishes to inform the market and all stakeholders about this impact in advance of the publication of fourth-quarter earnings on 10 February 2011.

The above-mentioned events and moderate results from market activities will impact the performance of the Merchant Banking Business Unit. However, the underlying results from other businesses in the fourth quarter of 2010 are fully in line with expectations. The effect of the above-mentioned events on reported profit will not be substantial.

KBC Bank Ireland increases provisions for its loan portfolio.

Since the release of its third-quarter results on 10 November 2010, KBC Bank Ireland has seen a further deterioration in market conditions in Ireland.

Following the announcement of the 85 billion EUR European Union and International Monetary Fund financial aid package for Ireland on 28 November 2010 and the consequent impact on the Irish economy, KBC Bank Ireland has reassessed its required provisioning levels for 2010.

Although the financial aid package should reduce the risk of default by the Irish Government, KBC Bank Ireland also expects that the accelerated restructuring of the Irish banks (Bank Recovery Plan) will have a negative effect on asset valuations in the industry. Consequently, KBC Bank Ireland has increased its provisions in respect of its commercial lending portfolio, mainly in its relatively limited real estate development and investment financing activities.

Moreover, any economic recovery will be slower than anticipated in November 2010 and is not expected to have a positive effect on employment levels in the short term. The continuously high level of unemployment may cause higher arrears and default ratios for mortgage loans to retail customers. As a result, KBC Bank Ireland has also increased its provisioning of its residential mortgage portfolio.

On account of these factors, KBC Bank Ireland has decided to make additional impairments. Fourth-quarter loan impairment provisions for Ireland will now amount to approximately 263 million EUR net (300 million EUR gross). KBC Bank Ireland remains a sufficiently capitalised bank.

KBC Bank Ireland provisions for case of irregularities in KBC Lease UK

During the fourth quarter, internal controls at KBC Lease UK identified irregularities in some of the contracts between that KBC bank Ireland entity and third parties. A full and thorough review is being conducted by both the relevant authorities and KBC Bank Ireland’s internal audit and compliance departments. At this stage it remains premature to form final conclusions on the basis of the ongoing investigation. KBC Bank Ireland has appointed an external legal counsel to assist in the investigation and is pursuing all available legal remedies against the third parties involved in order to protect its interests.

Today, the maximum net (potential) amount of the irregularities has been estimated at approximately 150 million EUR, depending on the exact tax impact. A provision has been made. KBC Bank Ireland has taken certain legal preventive measures deemed necessary to protect its interests and to maximise its recovery and has also filed an insurance claim aimed at recovering the amounts at risk.

KBC Bank Ireland will announce its detailed full-year and fourth-quarter results for 2010 on 10 February, 2011.

-  END  -

Notes for the editor

KBC Lease UK Ltd, a subsidiary of the KBC Lease Group, provides leasing services in the UK. KBC Lease UK has been earmarked for divestment as part of the updated strategy of the KBC group.

KBC Lease UK provides long-term finance. It has provided finance by purchasing known streams of future payments (receivables) due under lease (e.g. lease rentals), or similar agreements, from a vendor or lessor of such assets. Its principal business is the financing of investments in assets such as Information and Communications Technology mostly by large organisations in both the public and private sectors.  It carries out this activity primarily in partnership with vendors of such movable assets and technology and independent lessors operating in this sector.

This method of financing is widely used by other leasing companies in the UK operating in the same sector.  In the ordinary course of business only little credit risk is taken on a vendor, but on the end customer.

Contact details:

Wim Allegaert, General Manager, Investor Relations, KBC Group
Tel 32 2 429 40 51

Viviane Huybrecht, General Manager, Group Communications/Spokesperson, KBC Group
Tel 32 2 429 85 45  

The 1 Year deposit account offers an interest rate of 3.5% AER.  Depositors can make one withdrawal up to a maximum of 25% of their savings during the period and a minimum deposit of €10,000 is required to open the new flexible account.

Christine Moran, Director, KBC Bank Ireland said the new deposit account reflected the increased importance placed by savers on security and access to their deposits.  The bank undertook extensive independent research with consumers which showed that these considerations were more important than the interest rate on offer.

“This is not surprising when you consider the uncertainty surrounding the economy and the very quick and deep recession we have experienced”, says Christine Moran.  “It’s very understandable that consumers are keen to have a nest egg which will cushion them from future shocks but they also want to be sure they can access it easily in an emergency.  There has been a definite shift in mindset.  Consumers obviously want to see a good return on their savings, but will not necessarily choose the product offering the best rate.  Security and access to savings have assumed greater priority, particularly for families with young children who need to provide for contingencies such as college fees and indeed for older people seeking to have access to cash in their retirement”.

According to Moran, “As a bank which is owned by KBC Bank NV, one of Belgium’s largest banks with 13 million customers across Europe, we bring an international perspective to the market but one which reflects our long term presence here.  We’ve been doing business in Ireland for over 35 years, primarily in the homeloans market and we have a very strong understanding of the needs of consumers. As the research has indicated, savers will balance the expected return against other considerations. I believe that the financial solutions we provide to our customers are innovative, competitive and, because we listen to them, meet their needs”, says Moran

Other deposit rates on offer from KBC Bank Ireland for personal savers are as follows:

For information on KBC’s savings products visit www.kbc.ie or call the customer service team at 01 664 6666.

KBC Bank Ireland is a member of the Deposit Guarantee scheme which is administered by the Central Bank and funded by European Central Bank. The maximum amount payable to any depositor is 100 per cent of the aggregate deposits held with us subject to a maximum compensation of €100,000 per individual. Minimum Deposit €10,000, Maximum €1,500,000.  Terms and Conditions apply. The gross rate of interest is the interest rate payable before any Deposit Interest Retention Tax (DIRT) is deducted. This is currently charged at 27%. Gross interest rate quoted is on a 360 day basis. The term Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year. Interest is paid at the end of the term. Rates quoted are correct as at 19th January 2011 and subject to availability. KBC Bank Ireland plc is regulated by the Central Bank of Ireland. Registered in the Republic of Ireland. Number 40537. Registered Office: Sandwith Street, Dublin 2, Ireland.

About KBC Bank Ireland:

KBC Bank Ireland is regulated by the Central Bank of Ireland. KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 35 years providing lending and investment services. KBC Bank Ireland provides services to new and existing mortgage customers in Ireland under the trading name ‘KBC Homeloans’. Headquartered in Dublin, KBC Bank Ireland has regional offices in Belfast, Cork, Galway and Limerick. Further information is available at: www.kbc.ie

For information; Laurie Mannix, MKC Communications, 01 703 8620

KBC Bank Ireland launched its new deposit offering on the Irish market in November last and such was the strong interest from Irish savers that the bank has now introduced a new deposit account this week which provides flexibility to savers wishing to access funds during the term of the account.

KBC Bank Ireland undertook extensive research with consumers to understand their needs prior to launching its new fixed rate deposit account.  The quantitative research showed that security and access to savings were the most important considerations for savers when choosing a deposit account.

“This is not surprising when you consider the uncertainty surrounding the economy and the very quick and deep recession we have experienced”, said Christine Moran, Director, KBC Bank Ireland. It’s very understandable that consumers are keen to have a nest egg which will cushion them from future shocks but they also want to be sure that they can access it easily in an emergency”. 

KBC Bank Ireland’s new One Year Fixed Rate Deposit Account pays an interest rate of 3.50% AER.  The account offers savers the flexibility of making one withdrawal up to a maximum of 25% of their deposit during the 12 month period.  A minimum deposit of €10,000 is required to open this account. 

“We spoke extensively to consumers in an effort to really understand their concerns and their needs.  There has been a definite shift in mindset.  Investors obviously want to see a good return on their savings, but will not necessarily choose the product offering the best rate.  Security and access to savings have assumed greater priority, particularly for families with young children who need to provide for contingencies such as college fees and indeed for older people seeking to have access to cash in their retirement”.

According to Moran, the research confirms KBC Bank Ireland’s own approach to business. “We have always been very clear in our approach.  We will not necessarily pay the highest interest rate in the market but we will be competitive.  As the research has indicated, savers will balance the expected return against other considerations. What we offer is a sensible and prudent approach which has served us and our customers well”.

Another recent trend seen by KBC Bank Ireland is the desire of savers to have a number of options available to them.  “I believe that media coverage and the general debate around the bank guarantee scheme raised awareness among consumers of the need to spread their savings among different institutions.   Like many other banks, we have benefited from this willingness by consumers to spread their savings. We are committed to expanding our retail offering in Ireland and we believe that Irish savers will welcome the opportunity to place their savings in a secure and flexible account which is offering a competitive return”, said Christine Moran.

Other deposit rates on offer from KBC Bank Ireland for personal savers are as follows:

“As a Bank which is owned by KBC Bank NV, one of Belgium’s largest banks with 13 million customers across Europe, we bring an international perspective to the market but one which reflects our long term presence here.  We’ve been doing business in Ireland for over 35 years, primarily in the homeloans market and we have a very strong understanding of the needs of both consumers and businesses. I believe that the financial solutions we provide to our customers are innovative, competitive and, because we listen to them, designed to meet their needs”, says Moran

For information on KBC Bank Irelands’s savings products visit www.kbc.ie or call the customer service team at 01 664 6666

Main Points

• Business activity broadly steady at end 2010 but conditions vary widely between sectors.
• Gap between improving ‘traded’ sectors and weakening domestic demand increasing.
• Slight improvement expected in early 2011 but divergences set to widen further.
• Employment falls modestly as downward pressure on costs intensifies.
• €6 billion budget cuts judged about right but business feels tax increases went too far.
• Government economic forecasts felt to be ‘slightly’ too optimistic but majority feel 4 year plan provides a reasonable framework.
• 61% of businesses feel EU/IMF assistance improves Irish economic outlook while 16% think it worsens prospects.
• Slight majority (56%) also feel Ireland’s membership of EMU has helped economy through crisis but 30% disagree.
• Opinion split on whether ECB has helped or hurt Irish economy.

You can download the full Winter 2010 briefing.

“We are offering savers the peace of mind that comes with knowing that their money is on deposit with KBC Bank Ireland which is owned by KBC Bank NV, one of Europe’s leading Banks serving over 12 million customers worldwide”, said Christine Moran, Executive Director, KBC Bank Ireland.  

“KBC Bank Irealnd has been in Ireland for over 35 years and has a strong presence in the mortgage and business market with over 65,000 mortgage customers. We are committed to expanding our retail offering in Ireland and we believe that Irish savers will welcome the opportunity to place their savings in a secure bank offering a competitive return. Money placed on deposit with KBC Bank Ireland will support lending by the Bank in Ireland”, she said.

A minimum deposit of €25,000 is required for personal savings.  The deposit rates on offer for personal savers are as follows:

For further information call KBC’s personal deposit team on 01 664 6666 or visit www.kbc.ie

Press contacts: 

Laurie Mannix / Julie Dilger, MKC Communications 01 703 8600

Note to Editor:

KBC Bank Ireland is a member of the Deposit Guarantee scheme which is administered by the Central Bank and funded by European Central Bank. The maximum amount payable to any depositor is 100 per cent of the aggregate deposits held with us subject to a maximum compensation of €100,000 per individual. Minimum Deposit €25,000, Maximum €1,500,000. Personal Funds Only. Terms and Conditions apply. The gross rate of interest is the interest rate payable before any Deposit Interest Retention Tax (DIRT) is deducted. This is currently charged at 25%. Gross interest rate quoted is on a 360 day basis. The term Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year. Interest is paid at the end of the term. Any withdrawals made prior to the maturity date will result in a breakage charge for the customer equivalent to any funding loss incurred by KBC Bank Ireland. Rates quoted are correct as at 22nd November 2010 and subject to availability. KBC Bank Ireland plc is regulated by the Central Bank of Ireland. Registered in the Republic of Ireland. Number 40537. Registered Office: Sandwith Street, Dublin 2, Ireland.

About KBC Bank Ireland:

KBC Bank Ireland is regulated by the Central Bank of Ireland. KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC Bank Ireland holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 35 years providing lending and investment services. KBC Bank Ireland provides services to new and existing mortgage customers in Ireland under the trading name ‘KBC Homeloans’. Headquartered in Dublin, KBC Bank Ireland has regional offices in Belfast, Cork, Galway and Limerick. Further information is available at: www.kbc.ie

Main Points

• Business levels stabilising and some small improvement expected in final quarter of 2010.
• Sharp differences continue; manufacturing and business services strengthen but construction and consumer focussed companies still weakening.
• Job cuts continue at a modest pace while costs fall further.
• Dramatic decline in business sentiment towards Irish economic outlook.
• Budget and banking problems expected to raise uncertainty further and weaken demand.
• Slight majority of businesses in favour of tougher budget.
• Widely different opinions on whether early election would help or hurt.

You can download the full Autumn 2010 Briefing.

The new business fixed rates (effective from 1st October 2010) are as follows:

An updated matrix showing all new business mortgage rates offered by KBC Bank is attached for your information.

Ends.

About KBC Bank Ireland:

KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and investment services. KBC Bank Ireland provides services to new and existing mortgage customers in Ireland under the trading name ‘KBC Homeloans’. Headquartered in Dublin, KBC Bank Ireland has regional offices in Belfast, Cork, Galway and Limerick. Further information is available at: www.kbc.ie

For further information contact:

Noirin Ni Loacha, Marketing Manager KBC Bank Ireland
T: (01) 664 6247

Laurie Mannix/, MKC Communications
T: (01) 703 8620

KBC Bank ireland’s Owner Occupier Standard Variable rate will increase from 3.65% (APR 3.71%) to 3.85% (APR 3.92%).

John Delaney, Director, Homeloans Division, said ‘The decision to increase our standard variable rate  reflects the continuing high cost of attracting funds to support the mortgage market in Ireland. KBC Bank Ireland has sought to limit as far as possible the impact on our customers by delaying the introduction of these new rates until the 1^st of September and we remain fully committed to offering a competitive choice to Irish home owners.’

Ends.

Editors Note:

The average monthly increase in loan repayments for a home owner (owner occupier) with a €200,000 mortgage over 20 years will be €20.82.

About KBC Bank Ireland:

KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and investment services. KBC Bank Ireland provides services to new and existing mortgage customers in Ireland under the trading name ‘KBC Homeloans’. Headquartered in Dublin, KBC Bank Ireland has regional offices in Belfast, Cork, Galway and Limerick. Further information is available at: www.kbc.ie

For further information contact:

Anne Marie Collins, Marketing Manager KBC Bank Ireland
T: (01) 664 6244           

Laurie Mannix/Charles Hogan, MKC Communications
T: (01) 703 8609           

Main Points

• Business sentiment points towards positive GNP growth in second quarter.
• Increased business activity suggests modest growth is underway.
• Fewer firms expect activity to decline but no great surge expected.
• Manufacturing and business services remain the key drivers of improvement with Construction still suffering.
• Job cuts continue but are far less widespread.
• Irish business notably more optimistic about general economic outlook.
• 69% of firms cut pay in past two years but only 13% in past 3 months.
• 36% of companies say weaker Euro has helped but 23% say it hurt.

You can download the full Summer 2010 briefing.

The three year fixed rate for new customers has been reduced to 3.74 per cent (APR), while the five year fixed rate for new customers has been reduced to 4.13 per cent (APR). The new rates took effect from 24 May.

John Delaney, Director, Homeloans Division, KBC Bank Ireland, said: “In the present economic climate, we constantly seek to offer competitive rates to our customers. This week, we have moved to reflect more favourable cost of funds in the rates we offer to customers seeking to take out new mortgages”.

KBC Bank Ireland has reported an increased number of applications for mortgages in the first quarter of this year, compared to the last quarter of 2009.

About KBC Bank Ireland KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated financial services group active in the fields of banking, insurance and wealth management. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and investment services to business and personal customers. Headquartered in Dublin, KBC Bank Ireland has offices in Belfast, Cork, Galway and Limerick. Further information is available at: www.kbc.ie

For further information contact:

Anne Marie Collins, Marketing Manager
KBC Bank Ireland
T:         (01) 664 6244

Laurie Mannix/Charles Hogan
MKC Communications
T:         (01) 703 8609

Mr. John Reynolds, Chief Executive of KBC Bank Ireland said: “In examining our credit costs, we have continued to take a conservative view of our loan book.  We now have the benefit of knowing the initial approach of NAMA and the first discounts it has applied to affected real estate loans and we have also further adjusted our already conservative assumptions on house price depreciation.  We are comfortable with the view we have taken on loan impairments, and we believe that credit costs for the remainder of 2010 should therefore be significantly lower than Quarter 1.”

“The first quarter has been tough and we believe that business conditions will remain difficult for the remainder of this year. We feel however, that there is a reasonable expectation for signs of improvement becoming evident by year end. Our underlying business in Ireland remains strong and our objective is to prudently manage our business so that we continue to hold our market position and work towards a profitable out-turn for this year”.

“KBC Bank Ireland is very much open for business and we are actively targeting new mortgage business. We will continue to support home owners and businesses in these challenging times and we are committed to the sustainable development of our business in Ireland", he added.

Non-performing loans within KBC Bank Ireland’s loan book for the first quarter of 2010 were 6.9%, compared to 6.4% from the final quarter of 2009. Commercial real estate development currently accounts for 4% of the bank’s total loan portfolio. The proportion of the bank’s total loan book in Ireland that is classified as low to medium risk is 80%.

About KBC Bank Ireland: KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and deposit services. Headquartered in Dublin, KBC Bank has regional offices in Belfast, Cork, Galway and Limerick. Further information is available at: www.kbc.ie

For further information contact:

Anne Marie Collins, Marketing Manager
KBC Bank Ireland
T:         (01) 664 6244

Laurie Mannix/Charles Hogan
MKC Communications
T:         (01) 703 8609

Dublin, IRELAND - May 4th 2010: KBC Bank Ireland, one of the leading providers of financial services in Ireland, has raised €32,400 for Temple Street Children’s University Hospital. The money raised will be used to help fund the purchase of a dialysis machine, which is an essential item of equipment at Temple Street Children’s Hospital.

As the National Paediatric Dialysis and Renal Unit, Temple Street always needs new haemodialysis and peritoneal machines. The funds raised by KBC Bank Ireland will purchase a new dialysis machine for St Michaels C Renal Ward and will be used to provide children on a waiting list for a kidney transplant the ability to lead a somewhat normal life. 

The funds were raised through a number of initiatives organized by the staff of KBC Bank Ireland. These included a sponsored ‘walk-a-thon’ and a ‘cycle-a-thon’ held at the Banks headquarters in Dublin. KBC Bank Ireland then pledged to match the funds raised by staff which brought the total figure raised to €32,400.

Pictured at the announcement of the donation were (left-right): Denise Fitzgerald, CEO, Fundraising Office, Temple Street Children’s University Hospital & Christine Moran, Executive Director, KBC Bank Ireland.

About KBC Bank Ireland:

KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC Bank Ireland holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and investment services. Headquartered in Dublin, KBC Bank Ireland has regional offices in Belfast, Cork, Galway and Limerick. Further information is available at: www.kbc.ie

For further information contact:

Anne Marie Collins, Marketing Manager
KBC Bank Ireland
T:         (01) 664 6244

Laurie Mannix/Charles Hogan
MKC Communications
T:         (01) 703 8609

A graduate of Trinity College and the London School of Economics, Mr. Power held a number of key senior positions, over a career spanning almost three decades at Cornmarket Group Financial Services, before retiring in 2009.

Mr. Vandendriessche, who holds law degrees from both the University of Ghent and the University of Brussels, has more than 30 years of experience at KBC group. During this time he has held senior positions with the bank in Europe and the United States. Since 1995, he has been based at KBC group’s head office in Brussels.

John Reynolds, Chief Executive of KBC Bank Ireland said: “I am delighted to welcome both Robert and Piet on to the board. Their experience in both the Irish and overseas markets will provide unique insights as we continue to assist our customers through what we expect to be another tough year. They will also provide valuable counsel, as we seek organic business growth opportunities in the emerging financial services landscape in Ireland”.

About KBC Bank Ireland:

KBC Bank Ireland plc is a wholly owned subsidiary of KBC group NV, an integrated financial services group active in the fields of banking, insurance and wealth management. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and investment services to business and personal customers. Headquartered in Dublin, KBC Bank Ireland has offices in Belfast, Cork, Galway and Limerick. Further information is available at: www.kbc.ie

For further information contact:

Anne Marie Collins, Marketing Manager
KBC Bank Ireland
T:         (01) 664 6244

Laurie Mannix/Charles Hogan
MKC Communications
T:         (01) 703 8609

KBC Bank is to introduce increases in interest rates for Owner Occupier and Residential Investment mortgages. It has also announced its new facility for home purchase customers, a discounted variable rate, and a new 5 year fixed rate for Owner Occupier customers.

KBC Bank’s Owner Occupier Standard Variable rate will increase from 3.24% (APR 3.28%) to 3.65% (APR 3.71%), while the Residential Investment Standard Variable rate will increase from 4.29% (APR 4.37%) to 4.50% (APR 4.59%). These rate changes are effective from May 1st 2010.

KBC Bank’s discounted variable rate for new home purchase customers is designed to assist home purchasers by discounting its Standard Variable Rate by 0.55% for each of the first two years of the mortgage term.

KBC Bank has also revised its fixed rates with effect from April 19th 2010 for its Owner Occupier customers. These rate changes will not affect existing fixed rate customers for the remainder of their current fixed rate term. The increase in rates will only apply to existing mortgage customers who choose to move to a fixed rate.

John Delaney, Director, Homeloans division, KBC Bank Ireland, said: “The increases in our rates reflect the continuing pressures on the cost of funding to lenders. KBC Bank remains fully committed to providing mortgage finance in the Irish market and to offering its customers a range of competitive interest rates”. 

The revised rates are summarised as follows:

About KBC Bank Ireland:

KBC Bank Ireland plc is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organisation headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and investment services. KBC Bank Ireland provides services to new and existing mortgage customers in Ireland under the trading name ‘KBC Homeloans’. Headquartered in Dublin, KBC Bank Ireland has regional offices in Belfast, Cork, Galway and Limerick. Further information is available at: www.kbc.ie

For further information contact:

Anne Marie Collins, Marketing Manager
KBC Bank Ireland
T:      (01) 664 6244

Laurie Mannix/Charles Hogan
MKC Communications
T:      (01) 703 8609

Main Points

• Stronger business conditions expected by mid year - most positive reading since Spring 2008.
• Conditions remain tough in early 2010 but slightly better than late 2009 and not nearly as terrible as a year ago. 
• Manufacturing and business services see improvement while firms focused on construction and consumers remain weak.
• Job shedding continued in early 2010 although at a slower pace.
• Costs continue to tumble as Irish businesses improve competitive position.
• Irish businesses slightly more worried about near-term economic outlook but starting to focus on stabilising activity and preparing for upturn.
• 1 in 5 firms facing tighter credit conditions.  Most believe NAMA will help, but only a little.
• 2/3 of Irish firms have cut pay.  The average reduction was 13%.
• Majority of firms in Ireland no longer see cost cutting as primary concern. One in four now focused on upturn.

You can download the full Spring 2010 briefing.

• Profit (after tax and impairment costs) amounted to €92 million.
• Credit impairment costs rise to €176 million (96bps).
• Overall loan portfolio amounted to €18 billion at year end, reflecting very limited demand.
• Home loans and residential investment loans amounted to €13.4 billion at year end
  representing circa 9% of the Irish market.
• Business loans amounted to €2.9 billion at year end. Real estate lending comprised €1.7 billion i.e. 9.4% of overall loan book, of which Real Estate Development comprised €0.6 billion - i.e. 3.5% of overall loan book.  
• Capital Position at year end: Core Tier 1 Ratio 9.3% and a Capital Adequacy Ratio of 10.3%, without the need for externally sourced capital during 2009.

Context

• The composition of KBC Bank Ireland’s loan portfolio, with relatively low exposure to the particularly troubled Real Estate Development market, has allowed the Bank to report acceptable profits for 2009. That said, KBC Bank Ireland incurred substantially increased impairment costs, reflecting the difficulties evident in the Irish economy.
• KBC Bank Ireland operates within KBC group’s integrated liquidity policy under which KBC Bank Ireland has access to the strong liquidity position and retail and corporate deposit capacity of the Group.
• The core business model of KBC Group remained largely untouched by the Strategic plan of KBC Group, approved by the EU Commission in November 2009. While the plan included the divestment of certain identified Group entities and a reduction in international and corporate lending, KBC Ireland was not earmarked for divestment or reduction in scale and continues its longstanding position within the KBC Group. Our aim in terms of business development is to provide our customers with a competitive alternative to whatever status quo emerges from the restructuring of the Irish banking market.
• The arrears statistics in both the home loans and business categories showed a marked increase in the first half of 2009 reflecting the sharp deterioration in the economic environment. The rate of increase moderated in the second half of the year, when some signs of stabilisation, particularly in Q4, became evident, although KBC Ireland remains cautious about the extent to which this represents a trend.
• KBC Bank Ireland is a committed subscriber to the Code of Conduct on Mortgage Arrears and the Code of Conduct on SME Lending which is reflected in our support of customers during 2009 when 5.8% of the lending portfolio has been restructured.

Press Release 11th February 2010

2010

• KBC Bank Ireland’s underlying profitability remains robust and our loan portfolios are carefully managed to withstand the ongoing effects of the poor economic climate.
• It is our policy to work constructively with borrowers to ensure we have offered them every possibility of meeting their obligations to us.
• We look forward to supporting home buyers with finance and viable businesses with investment funding in 2010, when we expect demand to return to the market.

Executive Commentary

Speaking about today’s results Mr. John Reynolds, Chief Executive of KBC Bank Ireland said;

“While we are satisfied with having achieved substantial profitability in 2009, we have found the credit and funding environment for our business very challenging”.

“Our key consideration in 2010 is to support customers during what we believe will be another tough year and to generate an acceptable return for our shareholders. Our aim is to remain a long term, relevant lender to Irish personal and business customers. We intend to achieve this through the continuing application of our sustainable business model, responsible lending criteria, stable funding, fair and competitive pricing and sensitive customer management. We believe that our experience of over thirty years in the Irish market will assist us in achieving our objectives.”

“In summary, our underlying profitability remains solid and we are looking forward positively towards our business over 2010. We expect the economy to show signs of moderate recovery towards the end of this year with the reasonable prospect of better times in 2011”.

ENDS.

Issued on behalf of KBC Bank Ireland by MKC Communications. For reference:

Laurie Mannix
MKC Communications
Tel: 01 703 8620
Mobile: 086 814 3710

Charles Hogan
MKC Communications
Tel: 01 703 8609
Mobile: 086 043 6328

Anne Marie Collins
KBC Bank Ireland
Tel: 01 664 6244
Mobile: 087 6571526

NOTE TO EDITORS

CORPORATE PROFILE

KBC Bank Ireland Plc

About

KBC Bank Ireland plc (“KBC Ireland”) is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organization headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and treasury services. Employing c. 450 people, and headquartered in Dublin, KBC Ireland has regional offices in Belfast, Cork, Galway and Limerick. 

KBC group Press Releases are available at www.kbc.com

ENDS.

KBC Bank is one of the leading providers of financial services in Ireland. The bank provides a broad range of business and personal banking services and holds a 10% share of the mortgage market.  In the first six months of 2009, the Bank reported profits of €42 million.

Originally from Co. Tipperary, Mr. Malone served as secretary general of the Department of Agriculture and Food between 1997 and 2005 and was involved in all the major developments in agriculture during that time.  Mr. Malone has served as Chairman of the Audit Committee in the Taoiseach’s Department for the past 3 years and has recently been appointed to the Audit Committee in the Comptroller and Auditor General’s Office. 

John Reynolds, CEO, KBC Bank Ireland, said: “I am delighted to welcome John to the board of KBC Ireland.  These are challenging times and as a non executive Director his experience and counsel will be important as we continue to develop our business in Ireland”.

Ends

About KBC Bank Ireland:

KBC Bank Ireland is a wholly owned subsidiary of KBC Group NV, an integrated bancassurance organization headquartered in Brussels, catering mainly for retail customers, small and medium-sized enterprises and private banking clientele. KBC holds leading positions in its key markets of Belgium and Central Europe as well as a selective presence in the rest of the world. KBC Bank Ireland has a strong presence in Ireland where it has been operating for over 30 years providing lending and investment services. Headquartered in Dublin, KBC Bank has regional offices in Belfast, Cork, Galway and Limerick

For further information:

John J McAlinden
Head of Marketing & Communications
KBC Bank Ireland
T:         01 664 6473

Charles Hogan/Laurie Mannix
MKC Communications
T:         01 703 8609