KBC reports profit of €14m in Ireland over three months
KBC Bank has reported a profit of €14m in Ireland for the three months to 31 March 2019.
This is a considerable fall on the profit of €57m reported in the same period last year.
The bank's performance here was impacted by lower net interest income, increased costs, and lower bad loan provision releases, it said in a trading update.
During the period the bank released €12m in provisions previously set aside for bad loans, however this was down from €43m in the same period last year.
Mortgage lending increased 9pc year-on-year in Ireland to €216m, while 18,000 new customer accounts were opened during the period.
Last month the bank sold its legacy corporate loan portfolio to Bank of Ireland. The portfolio is valued at roughly €260m.
It said the sale further solidifies KBC Bank Ireland’s “core business focus” on retail and small and medium business clients.
Overall, and KBC Group made a profit of €430m for the three month period.
Total income for the period was €1.86bn, 1pc increase quarter-on-quarter.
The bank described the result as “good,” as it paid the bulk of its taxes for 2019 in the first three months of this year.
Excluding the taxes, the net result surpassed the previous quarter’s net result by 9pc on the back of a slight increase in total income and lower costs.
When adjusted for the sale of a legacy portfolio in Ireland last year, lending to customers increased by 5pc year-on-year at the group, and deposits rose by 6pc.
Meanwhile, sales of non-life and life insurance products also went up year-on-year by 9pc and 4pc, respectively.