Monday 19 February 2018

Bailout hits €1.3bn as KBC pumps €130m into Irish arm

KBC Bank
KBC Bank

Joe Brennan

KBC Group, Belgium's biggest bank by market value, pumped €130m into its Irish unit last month, bringing the bailout bill to about €1.38bn as the lender continues to grapple with losses following the property crash.

KBC Bank Ireland raised the money by selling shares to its immediate parent, KBC Bank NV, in Brussels on December 22, according to documents filed with the Companies Registration Office. The Dublin-based unit received €1.25bn of capital support from its parent between 2008 and 2013, it said.

KBC said in November that it expects its Irish unit to return to profit from 2016 after posting losses since 2011. While some 53pc of the bank's €14.6bn Irish loan book was categorszed as impaired at the end of September, net losses for the third quarter narrowed to €36m as it tackled soured loans. (Bloomberg)

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