KBC Bank Ireland CEO Ales Blazek will take over the Belgian group’s Czech business in May, before the bank is scheduled to withdraw from the Irish market later this year.
His bank said John Hollows will retire as CEO of its Czech Business Unit and will be replaced by the current head of the Irish business, who will also join the committee. corporate governance.
The changes will take effect May 5, the bank said. It is around time that Ireland’s competition regulators have to determine if a plan to sell a majority of KBC’s Irish assets can go ahead, and in what form.
Last year, KBC announced its intention to close its operations here and leave the Irish market, with Bank of Ireland (BOI) to buy most of its assets here. In February, KBC completed the sale of a bad debt of 1.1 billion euros to US investor CarVal.
However, the sale of BOI is still subject to regulatory approval.
On February 18, the Competition and Consumer Commission (CCPC) told BOI and KBC that their agreement to transfer 9 billion euros of effective operating assets from KBC to BOI would significantly reduce the competition in the mortgage market. It requires banks to come up with remedies to address competition concerns before making a final decision on the proposed takeover in May.
CCPC’s preliminary assessment could further complicate KBC’s exit from the Irish market, if, for example, part of a sale is blocked or other conditions are in place.
The remedies applied may affect the size, value and structure of the transaction.
CCPC is currently evaluating a number of consolidation proposals in the banking sector such as Ulster Bank and KBC withdrew.
Permanent TSB agreed last July to acquire 7.6 billion euros of Ulster Bank assets in a deal that would also make British state-controlled bank NatWest the majority shareholder in the company for Irish loan and significantly increase its equity value.
AIB is taking over Ulster Bank’s €4.1 billion corporate and commercial lending portfolio, in addition to its acquisition of Goodbody and its joint venture with Great-West Lifeco to offer investment products to its clients. me.
The withdrawal of KBC Ireland and Ulster Bank will leave only three retail banks in the Irish market, two of which – AIB and Permanent TSB – are state-owned.
While banks and officials point to the emergence of non-bank lenders straining competition in sectors including mortgage lending, the most recent price moves suggest that Traditional banks have more advantages in current market conditions. This was demonstrated over the past week by the BOI cutting some mortgage rates while the non-bank ICS Mortgages/Dilosk raised rates.
KBC Bank of Ireland recorded a loss of 298 million euros in 2021 due to costs related to withdrawing from the Irish market.
https://www.independent.ie/business/irish/kbc-ireland-chief-moving-to-new-czech-role-ahead-of-banks-expected-departure-41462003.html KBC Ireland director moves into new Czech role ahead of bank’s expected departure