KBC Bank Ireland post €39.5m profit as impaired loans fall 14pc
Profits at KBC Bank Ireland rose to €39.5m in the second quarter of 2016 from €17.8m during the same period last year.
In the year to date the bank posted a net profit of €73.7m as it slashed its stock of impaired loans by 14pc to €6.1bn.
The bank added 16,200 new customer accounts in the three months from April to June, bringing the total for the year up to 33,000.
KBC also reported "strong momentum" in reducing the number of mortgage arrears cases.
Chief executive Wim Verbraeken said the bank was pleased by its strong first half of 2016.
"We are focused on growing with our customers, staff and working with our communities and consolidating our reputation for a quality banking experience with an innovative edge.
"To achieve that, our priority is continued investment in new product development and digital solutions for customers, as well as talent development across our teams with the ongoing support of our shareholder. While we have made significant progress in offering resolutions to 95pc of our distressed customers we continue to work closely with any customers in financial difficulties to try and reach suitable, sustainable resolutions," he said.
Groupwide KBC said its performance in the European Banking Authority's stress tests should "reassure" all stakeholders that the bank is adequately capitalised. In Ireland, KBC's fully-loaded common equity tier-1 ration was 13.2pc, below the groupwide figure of 16.2pc.
The bank's retail and corporate deposit base continues to grow, standing at €5.5bn. During the quarter KBC also launched a new personal loan product, offering a lower rate of 7.49pc APR.
KBC Bank Ireland employs over 1,000 people in Ireland with retail banking hubs in Dublin, Cork, Galway, Limerick, Kildare, Waterford, Wicklow and Kilkenny.