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KBC Ireland records impairment charge of €95m due to Covid

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KBC boss Peter Roebben

KBC boss Peter Roebben

KBC boss Peter Roebben

KBC Ireland has recorded a charge of €95m to deal with problem loans stemming from the Covid-19 pandemic.

In the first six months of this year the bank reported a net loss of €55m after tax and impairments.

Impaired loan stock for the first half of this year reduced by €129m to €1.5bn, according to interim results from the group.

KBC has processed around 6,400 payment breaks on mortgages and loans for personal and small and medium business customers who have been impacted by Covid-19.

However, over the six month period mortgage applications remain broadly stable year-on-year following a “strong pick up” in June.

Total new mortgage lending was €370m for the period.

Meanwhile, its customer numbers in Ireland increased 5pc to 314,000.

Peter Roebben, chief executive of KBC Bank Ireland, said: “We are in an extremely challenging economic environment and the material provision taken in our H1 results reflects this.

However, our capital position remains robust and meets all regulatory standards and despite these challenges, we continue to grow our business and market share as consumers increasingly avail of mobile and digital banking and insurance services that are in step with people’s real lives.”

KBC Ireland’s parent company, which is headquartered in Belgium, ended the first half of the year with a net profit of €205m.

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