KBC report lower first quarter losses despite negative Fitch report
KBC Bank have reported a significant annual drop in the amount of funds required to cover loan arrears for this year’s first quarter.
Compared to the first three months of last year, loan impairment costs have reduced from €99m to €47m by the end of March 2014.
According to results posted today, losses at the bank stand at €17.1m after tax and impairment costs for the first quarter, compared to a loss of €46.4m for the same period in 2013.
The firm said it continued its “successful retail deposit acquisition” with total retail deposits now recorded at €3.1m, an increase of €.2bn since year end 2013.
KBC Bank Ireland has already opened a new banking hub at Grand Canal Plaza, Dublin 2 and have promised that this expansion will continue with the acquisition of five new sites in Dublin.
In an effort to attractive a larger section of the Irish retail banking market, KBC have launched a new programme ‘Change your Bank Day’ to accommodate customers switching from other banks.
It has also recently launched a new credit card featuring competitive fees and contactless transactions which has been designed to meet customers’ personal banking needs and bring greater choice to the Irish retail banking market.
Wim Verbraeken, Chief Executive of KBC Bank Ireland said he is “satisfied” with the bank’s latest results.
“The financial results and impairments are in line with our expectations and we remain on track to return to profit by 2016. We are recruiting for new positions this year across a range of professions to drive forward with our expansion plans.”
“With the continued strength and support of our shareholder KBC Group and our focus on responsive customer service and innovation through an efficient and cost effective banking model, we are well positioned to acquire new customers across our competitive current account, credit card, savings, mortgage and insurance product ranges.”
KBC Bank Ireland employs over 800 people in Ireland with retail banking hubs in Dublin, Cork, Limerick and Galway.
The announcement follows a report from ratings agency Fitch which said that 18.4pc of the value of all mortgages in this market are now three months or more in arrears
“The signs are that lenders are becoming more willing to consider taking properties into possession,” Fitch said in a report on the Irish mortgage market.