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KBC Bank Ireland PLC - Financial Results for year ended 31st December 2019

13 February 2020

Financial Results

“Irish consumers want more from their bank, more convenience, value and transparency. At KBC Bank Ireland we are focused on transforming how banking is done and we recognise the opportunity to deliver more for consumers and we will continue to set the pace of innovation in the Irish Market. People are increasingly turning to KBC because of the convenience and value we provide, and more than 40,000 new customers chose to bank with us in 2019, the highest since the launch of our digital bank in 2013. I would like to take this opportunity to thank our new and existing customers, we look forward to working with you in 2020.”
                                               
Peter Roebben, Chief Executive, KBC Bank Ireland
 

Key Financial Highlights
 
  • KBC Bank Ireland reports net profit of €32 million for the year 2019 (after tax and impairment)
  • New mortgage lending of €1,122 million in 2019, the strongest year since the launch of the retail bank in 2013
  • Share of mortgage market increases to 11.8% in 2019 from 10.8% in 2018
  • Mortgage applications up 11% year on year, in line with market
  • 38,000 new current accounts opened in 2019 – the strongest year since the launch of the product in 2013
  • Total number of customers increased 6% in 2019, now standing at 303,000
  • Impaired loans stock reduced 32% to €1.656 billion at end 2019 (Bringing NPL ratio to 16.4%)
  • Capital Position at end of 2019: CET 1 Capital Ratio 16.6% fully loaded
 
"Rebuilding trust in the sector and embedding responsible behaviour within our culture has been a focus of mine in my first year as CEO. It is critical that we ensure we are always focused on the best interests and best outcomes for our customers.

Working in collaboration with the Irish Banking Culture Board (IBCB), I believe we can achieve much more in the future to genuinely obtain and retain consumers trust. I am proud of what has been achieved so far in supporting vulnerable and bereaved customers and look forward to actively working with the IBCB in 2020."

 
Peter Roebben, Chief Executive, KBC Bank Ireland
 
 
Financial Highlights
 
KBC Bank Ireland has reported a net profit of €32 million after tax and impairments for 2019 with net profit for Q4 at €3.0 million. This includes an exceptional loss of €11.1 million relating to the sale of a legacy loan portfolio in Q2.
 
KBC Group ended the fourth quarter of 2019 with a net profit of €702 million. KBC Group’s net result for the full year 2019 stands at €2,489 million.
 
 
Competitive Mortgage Offering
 
Irish people are looking for products and services that make money and life management easier. KBC recorded mortgage lending of €1,122 million in 2019, the strongest year since the launch of the retail bank, as first-time buyers, switchers and movers availed of market-leading fixed 1 and 10-year rates, in addition to some of the most competitive 2, 3 and 5-year fixed rate options. KBC has also extended its switcher offer to June 30th 2020, with €3,000 available to mortgage holders who join from another lender.
 
Delivering value and innovation
 
In 2019, KBC added 38,000 new current accounts following the introduction of free day-to-day banking, making it the strongest year since the launch of the product in 2013. Seven out of ten KBC current account holders now avail of free day-to-day banking by making a monthly lodgement of €2,000, with no requirement to maintain a minimum balance.
 
Consumers are actively seeking innovation and now are choosing more digital tap and go payments as their preferred way to pay. Supporting this trend, KBC added Wena Pay™ to the full suite of contactless ‘Tap & Go’ payment options in 2019, making KBC the only bank in Ireland to offer digital wallets from five of the world’s leading technology companies; Apple Pay™, Google Pay™, Fitbit Pay™, Garmin Pay™ and now Wena Pay™. These partnerships support KBC’s ambition to transform banking in response to customer demand for easy, secure, digitally led solutions.
 
Delivering products that are focused on making banking easier and more accessible for our customers is a key part of the bank’s strategy. KBC’s Regular Investment Product (Start 2 Invest), has seen continued momentum in trade numbers and customer acquisition, with trades numbers increasing 191% year on year and we will continue to focus on new ways to provide further choice and convenience for investment consumers in the future. 
 
Sustainability
 
KBC Group has 110 different Socially Responsible Investment (SRI) funds, totalling €12 billion assets under management. In 2019, KBC launched SRI funds in Ireland and they now account for 14% of all the bank’s investment trades.
 
In 2019, the Strategic Banking Corporation of Ireland (SBCI) allocated funding to KBC as part of the Government of Ireland’s ‘Future Growth Loan Scheme’. The scheme has been successful and in 2019 the bank received more than €9 million in applications from a broad range of professional micro businesses and SMEs across Ireland.
 
KBC raised over €60,000 for its chosen charity partner, The Alzheimer's Society Ireland (ASI) in 2019 bringing the total funding provided to over €250,000. Additionally, to support its vulnerable customers staff from KBC hubs and operations team completed dementia friendly training delivered by the ASI. The training has helped KBC staff to better support people living with dementia and their families and carers.
 
Sustainability is at the core of KBC and in 2019 the bank continued to deliver sustainable products, services and initiatives across the business, including signing the first dedicated Business in the Community Ireland (BITCI) pledge to reduce carbon usage by 50 percent by 2030.  
 
KBC became the title sponsor of the KBC Dublin Marathon in 2019 on its 40th anniversary. In the first year of the three-year partnership on October 25th more than 22,500 runners, 300,000 supporters and 1,500 volunteers took to the streets of Dublin to celebrate.
 
Executive Appointments
 
Last year KBC expanded the executive team following the key appointments of Ms. Lavinia Morris as Chief Operating Officer and Ms. Jo Reynaerts as Chief Commercial Officer.