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KBC Bank Ireland would like to draw your attention to some important information

Updated on 30th August 2021

KBC Bank Ireland would like to draw your attention to some important information.

KBC Bank Ireland has entered into a Memorandum of Understanding (MoU) with Bank of Ireland, expressing the parties’ intention to explore a route that could potentially lead to a transaction whereby Bank of Ireland commits to acquire substantially all of KBC Bank Ireland’s performing loan assets and liabilities. The transaction remains subject to customary due diligence, further negotiation and agreement of final terms and binding documentation, as well as obtaining all appropriate internal and external regulatory approvals.

On the 16th April KBC also announced that it was reviewing its options to divest or sell non-performing loans. On the 30th August KBC Bank Ireland announced it will sell substantially all of its non-performing mortgage loan portfolio and a small number of non-mortgage non-performing loans in a transaction financed by funds managed by CarVal Investors. Once this is completed, Pepper Finance Corporation (Ireland) DAC will be managing the loans. Pepper is regulated by the Central Bank of Ireland. Customers will continue to have the same legal and regulatory protections (for example under the Consumer Protection Code (CPC) and the Code of Conduct on Mortgage Arrears (CCMA)) after the sale. For more information on please click here.

Further announcements regarding the Bank of Ireland Memorandum of Understanding will be made in due course. Execution of these two transactions would ultimately result in KBC Group’s withdrawal from the Irish market.

We would like to reassure you that there is no immediate impact for you and you don't need to take any action at the moment.

You can continue to bank with us as normal and you don’t need to do anything at this time. All of our products and day to day banking services remain the same and you will continue to be afforded all of the relevant regulatory protections at all times.

We are committed to keeping you updated; if circumstances change during the coming months we will keep you informed and outline the impacts (if any) for you.

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What do you need to know right now?

You do not need to take any immediate action as a result of this announcement. While these discussions are ongoing, KBC Bank Ireland remains committed to offering all of our products and services as normal through our digital channels and hubs. 

If customers have any specific queries, they should contact us on 1800 93 92 44. A dedicated freephone phone line is available for vulnerable customers and this team can be contacted on 1800 804 472.

To make sure you understand what this means for you we have prepared the following frequently asked questions and answers.

We're here to help...

We understand that the announcement has brought up many questions for existing and new customers. We are continuously reviewing those queries based on customer feedback and will keep KBC.ie up to date with new questions and responses.

We have grouped these frequently asked questions into sections so you can find the information most relevant to you.  

General
FAQs
 

For general updates about the announcement check our our general FAQs below.


 


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Our Product FAQs
 

Are you an existing customer and have questions about a specific product you have with us we've put together some FAQs for you.

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New Customer FAQs
 

If you are a new customer who is thinking about opening an account or taking out a product with us check out the FAQs below.


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Customers in Financial Difficulty FAQs

If you are a customer who is in financial difficulty please check out our FAQs below. 




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General Queries

  • There is no immediate impact on your products or services as a result of the announcement. All customers contracts remain in effect and unaltered, so nothing needs to be changed. 

    It is not possible to be able to be definitive on the outcome of this announcement. Customers will at all times continue to be afforded all the relevant regulatory protections. We are committed to keeping you updated; if circumstances change during the coming months we will keep you informed and outline the impacts (if any) for you.

    While these discussions are ongoing, KBC Bank Ireland remains committed to offering its retail banking and insurance services through its digital channels, hubs and contact centre.
  • You do not need to take any action. There is no immediate impact on your products or services as a result of the announcement. Customers will at all times continue to be afforded all the relevant regulatory protections.

    We are committed to keeping you updated; if circumstances change during the coming months we will keep you informed and outline the impacts (if any) for you.

    While these discussions are ongoing, KBC Bank Ireland remains committed to offering its retail banking and insurance services through its digital channels, hubs and contact centre.
  • We will keep kbc.ie up to date with information for our customers.

    If customers have any specific queries, they should contact us on 1800 93 92 44 or your local Hub.
  • You can find more information on how to make a complaint here - Make a complaint - KBC
  • KBC Group and KBC Bank Ireland has entered into a Memorandum of Understanding (MoU) with Bank of Ireland, expressing the parties’ intention to explore a route that could potentially lead to a transaction whereby Bank of Ireland commits to acquire substantially all of KBC Bank Ireland’s performing loan assets and liabilities. The transaction remains subject to customary due diligence, further negotiation and agreement of final terms and binding documentation, as well as obtaining all appropriate internal and external regulatory approvals.

    KBC Bank Ireland’s remaining non-performing mortgage loan portfolio, which is not part of the MoU, is currently being analysed whereby KBC Group is reviewing its options to divest this non-performing loan portfolio.

    It is therefore not possible to be definitive at this time as to when we will provide an update on this announcement. We are committed to keeping you updated; if circumstances change during the coming months we will keep you informed and outline the impacts (if any) for you.
  • We always advice customers to be aware of fraud. Given this announcement we would ask customers to be extra vigilant regarding any communications they received over the coming weeks.

    Fraudsters may attempt to exploit the situation by claiming to be KBC and that you need to register your details, or re-register your information. Never provide this information over the phone and if you have a doubt about who is calling you, make sure to call us back on 1800 93 92 44. Similarly we will never call you looking for PINs, User IDs or passcodes to complete purchases.

    You can find out more about Fraud Prevention here - Fraud Prevention - KBC.
  • KBC Group and KBC Bank Ireland has entered into a Memorandum of Understanding (MoU) with Bank of Ireland, expressing the parties’ intention to explore a route that could potentially lead to a transaction whereby Bank of Ireland commits to acquire substantially all of KBC Bank Ireland’s performing loan assets and liabilities. The transaction remains subject to customary due diligence, further negotiation and agreement of final terms and binding documentation, as well as obtaining all appropriate internal and external regulatory approvals.

    It is therefore not possible to be able to be definitive on this matter at this time. There is no immediate impact on our organisational set up. Our Headquarters, hubs, contact centre and digital channels will continue to operate as usual. Any potential future changes are yet to be determined.

    The Board and the Executive Committee of KBC Bank Ireland are fully conscious of their responsibilities to our colleagues and customers, and the role of KBC as part of the Irish banking system, and we are fully committed to managing this process in a professional, fair and responsible manner.

New Customers

  • Yes, KBC remains open for business.

    While these discussions are ongoing, KBC Bank Ireland remains committed to offering its retail banking and insurance services through its digital channels, hubs and contact centre.

    Customers are at all times guaranteed the full benefits of the Customer Protection Code. Customers have options to switch banking provider should they wish to do so.

    You can visit the Competition and Consumer Protection Commission's website for more information on switching lenders (https://www.ccpc.ie/).  

  • Your pension is a long-term plan to help you set aside money for your retirement. While no immediate impact is foreseen for your KBC PRSA there is a possibility that you may be required to transfer your fund to another provider at a given date in the future.  The transfer value of your PRSA at that date will have no penalties or charges applied.  Based on the performance of your chosen fund, this could be more or less than your initial contribution(s) invested. 

    Should you choose to open your KBC PRSA you will continue to be afforded all of the relevant regulatory protections.

    KBC Bank Ireland Plc is tied to KBC Life and Pensions for the distribution of PRSA products to personal customers in the Republic of Ireland.
  • There is no immediate impact of the announcement to your intended investment today.  It is too early to be definitive but should the transactions ultimately result in KBC Group’s withdrawal from the Irish market, your investment could be transferred to another provider or you may be required to redeem at a given day in the future. 

    If a transfer or redemption were to occur, you will receive the value of the fund as of that date with no exit charges. Please note that the gains in your fund are subject to exit tax at the prevailing rate*.  Based on the performance of the fund in future, the value of the fund could be more or less than the amount you initially invested. 

    Should you choose to open your investment account you will continue to be afforded all of the relevant regulatory protections.  
     
    KBC Bank Ireland plc is a distributor of funds managed by KBC Fund Management Ltd and KBC Asset Management NV.
  • While discussions are ongoing, we are open for business and processing new mortgage applications as normal. Therefore you can continue to proceed with your mortgage application through any KBC channel or your mortgage broker. If you apply for a mortgage with KBC you will continue to be afforded all the relevant regulatory protections.

  • At this time there is no impact. We are open for business, so should you wish to progress from Approval in Principle (AIP) to Loan Offer, please contact us through either our Contact Centre, Hubs or your Mortgage Broker.

    An AIP enables you to determine how much money you can borrow when looking for a home, but you should remember it is not a formal Loan Offer. Therefore, you should not rely on AIP to enter into a binding contract when buying your home (including at an auction). An AIP lasts up to 6 months.
  • If you have received an approved loan offer and you have signed and returned the loan offer to KBC, this means there is a contract in place between you and KBC. The terms and conditions of this contract will be honoured by KBC or another provider should your mortgage transfer to them.

    If you have not yet signed and returned your loan offer and you wish to proceed with your loan, you should review the terms of your offer letter and ensure you accept the offer within the timeframe set out in the letter.

    As always, updated financial information will be required prior to drawdown of your loan. This is to ensure your circumstances have not changed since application. Where your signed and returned loan offer includes a cash contribution towards professional fees, this will be honoured as part of the contract.
  • There is a chance that your mortgage could transfer to another provider. However, at all times you will be afforded all the relevant regulatory protections. We are committed to keeping you updated, and if circumstances change during the coming months we will keep you informed and outline the impacts (if any) for you.

Customers in Financial Difficulty

  • On the 30th August KBC Bank Ireland announced it will sell substantially all of its non-performing loan portfolio in a transaction financed by funds managed by CarVal Investors.

    Once this is completed, Pepper Finance Corporation (Ireland) DAC will be managing the loans. Pepper is regulated by the Central Bank of Ireland. Customers will continue to have the same legal and regulatory protections (for example under the Consumer Protection Code (CPC) and the Code of Conduct on Mortgage Arrears (CCMA)) after the sale.

    Customers do not need to take any action. We will get in touch with customers at least 60 days before the transfer if their account is included in the sale. Customers continue to be afforded all regulatory protections. You can find more information here.
  • KBC classify a non-performing loan in line with regulatory guidelines. A loan is typically classified as non-performing as a result of built-up arrears (>90 days) or a requirement to have the loan restructured (reduced payments etc.)  A loan can still be classified as non-performing for a period post the resolution of arrears or the conclusion of a restructure.
  • We will continue to work with all our customers in financial difficulty to find sustainable solutions, always being clear and fair in our communications and dealings and always mindful and respectful of your individual circumstances. We wish to stress the importance of active engagement in dealing with, or averting a financial difficulties situation. 

    It is important that you continue to meet your monthly repayments and that you contact our Arrears Support Unit on 0818 93 02 35 if your circumstances should change.


    You can also find more information on managing your debt here

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