Belgian bank faces €263m hit here

BELGIAN bank, KBC, said it saw a further deterioration in the Irish market in the fourth quarter and will take a €263 million hit here.

The bank is taking additional net provisions of up to €330m to account for losses at its Irish loan portfolio and for irregularities at KBC Lease UK.

It expects the accelerated restructuring of Irish banks to cut asset values while a slower economic recovery will hurt employment and increase the risk of defaults.