KBC Bank Ireland PLC, Financial Results for Q1 2014 (to 31st March 2014)

15/05/14

KBC Group reports net profit of €397 million and adjusted net profit of €387 million for Q1 2014 KBC Bank Ireland reports loss (after tax and impairment costs) of €17.1 million for Q1 2014 Loan impairment costs of €47.9 million for Q1 2014 (compared to €99 million in Q1 2013) Capital Position at end of Q1 2014: Tier 1 Capital Ratio 13% Retail Deposit Growth to c.€3.1 billion with over 9,000 new customer accounts added in Q1 2014 KBC Bank Ireland continues to expand its retail banking presence and performs well in Q1 2014 in line with expectations

  • KBC Group reports net profit of €397 million and adjusted net profit of €387 million for Q1 2014 
  • KBC Bank Ireland reports loss (after tax and impairment costs) of €17.1 million for Q1 2014
  • Loan impairment costs of €47.9 million for Q1 2014 (compared to €99 million in Q1 2013)
  • Capital Position at end of Q1 2014: Tier 1 Capital Ratio 13%
  • Retail Deposit Growth to c.€3.1 billion with over 9,000 new customer accounts added in Q1 2014
  • KBC Bank Ireland continues to expand its retail banking presence and performs well in Q1 2014 in line with expectations  

KBC Group ended the first three months of 2014 with a net profit of €397 million, compared with a net loss of €294 million in the previous quarter and a net profit of €520 million in the same period last year. After excluding the impact of the legacy business (CDOs, Divestments) and the valuation of own credit risk, adjusted net profit amounted to €387 million for the first quarter of 2014, compared with a loss of €340 million in the last quarter of 2013 and a profit of €359 million in the first quarter of 2013.

KBC Bank Ireland reports a loss of €17.1 million after tax and impairment costs for Q1 2014, compared to a loss of €46.4 million for the same period in 2013. The bank had loan impairment costs of €47.9 million for Q1 2014, compared to €99 million for the same period in 2013.

KBC Bank Ireland continued its successful retail deposit acquisition with total retail deposits now at €3.1 billion (up by €0.2 billion since year end 2013) and with over 9,000 customer accounts added in Q1 2014.

KBC Bank Ireland progressed its retail expansion in Q1 2014, with the opening of a new banking hub at Grand Canal Plaza, Dublin 2 and this expansion will continue with the acquisition of five new sites in Dublin. The bank launched a new programme ‘Change your Bank Day’ in Q1 2014 to accommodate those customers switching from other banks. KBC Bank Ireland also recently launched a new credit card featuring competitive fees and contactless transactions which has been designed to meet customers’ personal banking needs and bring greater choice to the Irish retail banking market.    
   
Commenting on the financial results, Wim Verbraeken, Chief Executive of KBC Bank Ireland said: “We are satisfied with our performance over the first few months of the year, as we continue to expand our retail banking presence. The financial results and impairments are in line with our expectations and we remain on track to return to profit by 2016. We opened a flagship retail banking hub in Grand Canal Plaza, the heart of the financial and IT district in Dublin. We also launched a competitive new credit card and strengthened our mortgage offering with a new tracker switcher product which allows our existing customers to trade up or down and retain their tracker product. We are recruiting for new positions this year across a range of professions to drive forward with our expansion plans.”

“With the continued strength and support of our shareholder KBC Group and our focus on responsive customer service and innovation through an efficient and cost effective banking model, we are well positioned to acquire new customers across our competitive current account, credit card, savings, mortgage and insurance product ranges.” 


KBC Bank Ireland employs over 800 people in Ireland with retail banking hubs in Dublin, Cork, Limerick and Galway.