KBC appears set to complete its exit from Ireland this year but sets no firm date

KBC shocked the banking and political systems when last year it followed Ulster Bank to say it was quitting banking operations in the Republic altogether.  Photo: Larry Cummins

KBC Bank appears to want to complete its planned exit from Ireland this year — although it has set no definitive date for its departure.

In its latest earnings report, the Belgian-based banking group reiterated it expects a €200m boost to its income in 2022 when it completes "the sales of substantially all of KBC Bank Ireland’s performing loan assets and its deposit book". 

KBC did report, however, it took hits to its operating expenses in the last quarter, including a small additional amount set aside to meet its commitments for its part in the industry-wide tracker mortgage scandal. 

KBC shocked the banking and political systems when last year it followed Ulster Bank to say it was quitting banking operations in the Republic altogether. 

The Competition and Consumer Protection Commission, or CCPC subsequently launched a full so-called Phase 2 investigation into plans by Bank of Ireland to get €8.8bn in home mortgages and €4.4bn in deposits from KBC.

The watchdog only launches Phase Two investigations when it is concerned about the state of competition in an industry.

On New Year's Eve, the CCPC also escalated an investigation into the plans by AIB to take €4.2bn in loans from Ulster Bank into a full Phase 2 probe. Any such announcement on plans by Permanent TSB involving Ulster Bank is awaited.   

Separately, the CCPC announced in early December a full probe into plans by AIB, Bank of Ireland, Permanent TSB, and KBC to set up an Irish banking payments app. 

Meanwhile, Bank of Ireland has told the stock market that US investment fund BlackRock has increased its stake to just over 7% from 6.95%. 

At the same time, the Government has further pared back its stake in Bank of Ireland to just over 5.9% from 6.9%. Bank of Ireland shares closed little changed on Thursday to value the bank at €7.46bn.