KBC Ireland posted a loss of 15 million euros in the first three months of the year as it prepares to exit the Irish market.
Results include one-off charges of €32 million related to the ongoing sale of bank loans to Bank of Ireland and US private equity firm CarVal.
The Irish transactions resulted in total losses of €49m in the KBC group head office department in the first quarter, €28m more than in the previous quarter.
The bank made gains in its Belgian, Czech and international market units.
However, the bank was able to reverse a €14 million loan loss allowance at KBC Ireland, the lender said in a statement on Thursday.
KBC completed the sale of around €1.1bn of Irish distressed loans to CarVal in February after agreeing to repay its €9bn loan last year.
KBC Group’s net profit for the quarter was 458 million euros, the lender said on Thursday.
KBC’s share capital ratio was 15.3 per cent on a full load basis and the net stable funding ratio – a measure of liquidity – was 149 per cent, while the liquidity coverage ratio was 162 per cent.
The positive result comes despite the fact that KBC built up an additional EUR 223 million in reserves to hedge against geopolitical risks as a result of the Russian war in Ukraine.
“Just as pandemic-related concerns had eased in some countries thanks to the phasing out of precautionary measures, Russia invaded Ukraine in February,” said CEO Johan Thijs. “The brutal invasion is sending shockwaves through the global economy.”
KBC’s direct exposure to the sanctioned economies of Belarus and Russia is just €55m, but Mr Thijs said the lender is “keeping a very close eye on the indirect macroeconomic impact, such as the impact of high gas and oil prices on inflation and economic growth “.
He said the year had “started strong” and the company would pay a final gross dividend of €7.6 per share, bringing the total gross dividend to €10.6 per share as previously announced.
“This is an outstanding achievement considering that the majority of full-year bank taxes are recorded – as always – in the first quarter of the year ahead of time.”
“Recent years have also shown that even in persistently difficult circumstances, we can build on our solid foundations and policy decisions of the past and, perhaps more importantly, build on the confidence of our customers, employees, shareholders and other stakeholders to place in.” us.”
https://www.independent.ie/business/personal-finance/banking/kbc-ireland-records-15m-first-quarter-loss-41642419.html KBC Ireland reports a loss of 15 million euros in the first quarter