2010 Q1 Results
12 May 2010
2010 Q1 Results
Wednesday 12 May 2010: KBC Bank Ireland plc has reported an operating profit of €74 million for the three months to March 2010 before loan impairment charges of €142 million, giving rise to a Quarter 1 loss of €59 million after tax.
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
