Bank of Ireland in €260m loan deal
Bank of Ireland has completed the acquisition of approximately €260m in performing commercial loans from KBC Bank Ireland.
Michael Lauhoff, director of business banking at Bank of Ireland, said the acquisition of the portfolio was a "positive development," that is consistent with the bank's strategy of growing lending volumes.
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"This is a strong portfolio of performing commercial loans and it further strengthens our business banking portfolio," Mr Lauhoff said. "We look forward to supporting these new customers on the future growth and development of their businesses".
The bank is writing to customers to inform them of the completion of the transfer, and providing them with information in relation to the servicing of their loans.
It will manage the accounts directly, and the contractual terms and conditions will remain the same.
For KBC the sale, which was first announced in April, will have a negligible impact on its profit and loss and capital ratio.
The Brussels-headquartered group said the transaction further solidifies its core business focus on small and medium clients in Ireland.
Meanwhile, Bank of Ireland reported an increase in customer lending in the three months to March 31, 2019 but its share of new mortgages slipped to 23pc, according to a trading update from the bank earlier this year.
Customer loans at the bank stood at €79.1bn at the end of March, an increase of €2.1bn since the end of December 2018. Shares in Bank of Ireland were down 2.2pc yesterday, trading at €4.45.