Bank of Ireland completes takeover of 150,000 Irish mortgages and accounts from KBC Bank

Bank of Ireland and KBC have confirmed the completion of a landmark transaction that will see the majority of the Belgian group’s Irish assets transferred to its former competitor bank here.

The sale of the majority of KBC Bank Ireland’s mortgages, personal loans and other assets, along with the transfer of other accounts, will affect around 150,000 customers.

Bank of Ireland CEO Myles O’Grady said the product transfer would take place in the coming weeks/

“I welcome the approximately 150,000 customers of KBC Ireland to Bank of Ireland,” he said.

“Our goal is to be your trusted partner in all financial decisions, big and small, for years to come.”

The acquisition includes loans with an estimated total value of €7.8 billion and the acquisition of €1.8 billion.

Loans are mainly €7.6 billion in non-performing mortgages, with around €100 million each in SME and consumer loans and €100 million in non-performing loans.

Bank of Ireland, which has already started writing to former customers of KBC Bank, alerting them to the need to change direct debit details for loan repayments, says an extensive communications program is underway with all new customers.

KBC Group’s decision to exit the Irish market followed UK lender NatWest’s decision in 2020 to put up for sale or wind down its Ulster Bank business here.

The agreement with Bank of Ireland was announced on 16 April 2021, followed by a legally binding agreement between the two banks the following October. NatWest has since sold its mortgage books here to Permanent TSB and AIB and its commercial loan portfolio to AIB.

Ireland’s Competition and Consumer Protection Commission (CCPC) signed the terms of the sale of KBC Bank in May last year, including imposing some conditions on the Bank of Ireland aimed at ensuring competition in the mortgage market if the two foreign banks exit.

Then-Treasury Secretary Paschal Donohoe approved the transaction in December, paving the way for the sale to close.

KBC Group will update investors on the financial implications of the sale when it publishes its full-year results for 2022 on February 9th.

https://www.independent.ie/business/irish/boi-completes-takeover-of-150000-kbc-bank-irish-mortgages-and-accounts-42327121.html Bank of Ireland completes takeover of 150,000 Irish mortgages and accounts from KBC Bank

Fry Electronics Team

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