It's your Mortgage Day!
KBC Bank Ireland reports profit (after tax and impairment costs) of €18 million for Q2 2015 (compared to a loss of €34 million in Q2 2014). Remains on track to return to full year profitability by 2016
KBC Bank Ireland reports a profit of €18 million after tax and impairment costs for Q2 2015, compared to a loss of €34 million for the same period in 2014. The Bank had loan impairment costs of €16 million for Q2 2015, compared to €62 million for the same period in 2014.
KBC Group ended the second quarter of 2015 with a net profit of €666 million, compared with €510 million in the previous quarter and €334 million in the second quarter of 2014.
KBC Bank Ireland continued its retail banking expansion and investment with the opening of hubs in College Green, Dublin, Wilton in Cork, and Greystones, Wicklow, bringing its total hub network to 15. College Green is KBC’s flagship hub, featuring interactive touchscreen technology and instant access to a full suite of digital brochures and apps. KBC also launched a new mobile banking app available on iTunes and Android and a new state-of-the-art responsive website.
KBC’s mortgage business maintained its strong growth to 15% market share, driven by the Bank’s competitive offering and the ongoing market recovery. KBC Bank Ireland enhanced its range of competitive mortgage options for new and existing customers and increased its existing cash offer of €1,000 towards legal fees to €2,000 for those that switch their mortgage.
KBC Bank Ireland grew its current account customer base, with an ongoing offer for new customers who open a KBC Current Account to avail of a 0.2% discount on its competitive new mortgage rates as well as preferential savings and personal loan rates.
KBC Bank Ireland continued its successful retail deposit acquisition with deposits now at €3.8 billion and over 31,500 customer accounts added for the first half of the year. KBC’s insurance and investment products have performed well throughout 2015.
KBC maintained its progress in resolving arrears in its retail mortgage and corporate/SME loan books, offering a range of solutions for customers in difficulty, with a 14% reduction in the number of mortgage arrears cases in first half of 2015, a significant step up versus H1 2014.
Commenting on the financial results, Wim Verbraeken, Chief Executive of KBC Bank Ireland said: “The financial results and impairments are in line with our expectations and we remain on track to return to full year profitability by 2016, so our guidance remains the same as previously stated. We continue to invest significantly in our retail expansion, opening three new hubs in Wilton, Greystones, and our flagship interactive hub in College Green, bringing our total network to 15. We also launched a new responsive website and mobile app, making personal banking even easier for our customers on the go. With a good geographical spread of hubs in high-footfall locations and a full suite of competitive products bedded down, our focus is on promoting these products to new and existing customers.
“The momentum of our mortgage business remains strong, driven by our compelling offering and promotions, and better market conditions. Our retail deposit acquisition continued its strong growth in Q2 and customers are responding well to our current account, with special rates on savings, personal loans and mortgages. With 31,500 new customer accounts opened this year and many others with us longer term, we appreciate the loyalty of all our customers. With the ongoing support and strength of our shareholder KBC Group and our focus on competitive products, offers and innovation, we are well positioned to further grow our customer base in 2015.”
KBC Bank Ireland employs over 1,036 people in Ireland with retail banking hubs in Dublin, Cork, Galway, Limerick, Kildare, Waterford, Wicklow and Kilkenny.
For further information contact:
Gibney Communications 01-6610402
Mark Leech 087-9053679
Karen Jones 086-8664501