KBC Ireland reports net loss of €41m amidst Covid-19 challenges and tracker mortgage fine 

KBC said the net loss, after-tax and impairments, was driven primarily by the exceptional impairment loss it took on as a result of the impact of Covid-19. Picture: Sam Boal/RollingNews.ie

KBC Bank Ireland has recorded a net loss of €41 million for the nine months to the end of September, due in part to Covid-19 and its role in the State's tracker mortgage scandal. 

The Belgian-owned bank said the net loss, after-tax and impairments, was driven primarily by the exceptional impairment loss it took on as a result of the impact of Covid-19. 

The bank also took an additional €4m charge due to the tracker mortgage sanction. KBC Ireland was fined €18.3 million by the Central Bank for its role in the scandal.

Impaired loan stock for the first three quarters of 2020 reduced by €187 million (11%) to €1,469 million, representing c.14.4% of the bank's total portfolio.

The bank also saw a record surge in mortgage applications in the third quarter, up 66% quarter-on-quarter.

Peter Roebben, Chief Executive, KBC Bank Ireland said the bank is committed to helping customers with the challenges they face as a result of the Covid-19 pandemic. 

Mortgage drawdowns soared up to 67% to €297m quarter on quarter, but mortgage completions for the nine months to the end of September were down 16% year on year at €667m, slightly better than the overall market decline of 20%.

Customer accounts with the bank also increased 6% year on year to 318,000.

Peter Roebben, Chief Executive, KBC Bank Ireland said despite the difficult economic environment, KBC Bank Ireland has delivered a strong performance, particularly around new mortgage lending which saw sustained growth across the quarter.

"The volume of new mortgage applications in Q3 were some of the strongest results since the launch of the retail bank," he said. 

Mr Roebben said KBC is committed to helping customers with the challenges they face as we continue to navigate our way through the Covid-19 pandemic. 

"In response to this current phase of Covid-19 we have designed a range of tailored solutions to support customers who are vulnerable or find themselves in financial difficulty," he said.