Bank of Ireland buys KBC's loans in €5bn deal

A portfolio of around €300m of non-performing mortgages would also be acquired

The two banks announced they were in talks about the deal in April, just weeks after NatWest began winding down its Ulster Bank business in the Republic. Pic: Larry Cummins

Bank of Ireland has agreed to buy "substantially all" of KBC's Irish performing assets for €5bn as the Belgian financial group confirmed it would become the latest lender to leave the shrinking Irish market.

The two banks announced they were in talks about the deal in April, just weeks after NatWest began winding down its Ulster Bank business in the Republic. The departures leave Ireland with just three retail banks.