Profit falls at KBC Ireland despite increase in customer accounts
KBC Bank Ireland reported a profit of €59m after tax and impairments in the first three months of 2018, down from a profit of €70.4m reported in the same period last year.
Operating profit for the Irish operations was €25m during the three month period, according to a results statement from the bank.
In an earlier update today, the bank said that it had released €43m during the period, which it had previously set aside for bad loans in respect of Ireland.
The release came about mainly because of the increase in house prices and, to a lessor extent, an improved portfolio performance.
KBC expects its full impairment release in Ireland for 2018 to ease to be in the region of €100m to €150m.
During the period the bank reported new mortgage lending of €198m, an increase of over 60pc year-on-year, while almost 20,000 new accounts were added.
Mortgage cases in arrears were down 3pc in the three months, with nine out of ten customers in difficulty offered a range of solutions, according to the bank.
In relation to the tracker mortgage scandal, the bank said that 76pc of the identified impacted customers have received redress and compensation, and that it remains on track to meet its commitment to complete redress and compensation to all impacted customers by the end of June 2018.
"I am pleased to report a strong start to 2018 for KBC Bank Ireland with almost 20,000 new customer accounts opened in the first three months of the year," Wim Verbraeken, Chief Executive, KBC Bank Ireland said.
"We are seeing growth in all areas of the Irish business with customers banking with KBC for multiple products at a time, especially current accounts and mortgages."