Credit, Collections & Insolvency News
KBC Bank Ireland has confirmed the sale of all of its performing loan assets and liabilities to Bank of Ireland Group.
Bank of Ireland has agreed to buy practically all of KBC’s performing assets after the Belgian financial group confirmed it would leave the Irish market.
KBC Bank Ireland had entered into a Memorandum of Understanding (MoU) with Bank of Ireland Group, KBC Bank Ireland confirms that it has now entered into a legally binding agreement with Bank of Ireland relating to the sale of substantially all of KBC Bank Ireland’s performing loan assets and its deposit book to Bank of Ireland Group. In addition, a small portfolio of non-performing mortgages (NPEs) will also be acquired as part of the transaction.
The acquisition for a total consideration of c.€5.0 billion (net of deposits), involves c.€ 8.8 billion of performing mortgages, c.€ 0.1 billion of mainly performing commercial and consumer loans, c.€ 0.3 billion of non-performing mortgages, and c. € 4.4 billion of deposits. The exact size of the portfolio and consideration payable will depend on movements in the portfolio up to completion but is not expected to materially change.
Bank of Ireland Group will acquire the portfolio and will fund it from its existing resources. The transaction remains subject to regulatory, including Irish competition, approvals.
Announcing the binding agreement, KBC Group CEO, Johan Thijs, said “Today’s agreement with Bank of Ireland Group regarding the sale to Bank of Ireland Group of substantially all of the performing loan assets and deposits of KBC Bank Ireland and a small portfolio of non-performing mortgages represents an important step in KBC Group’s withdrawal from the Irish market. The transaction remains subject to regulatory approvals. Yet, I’m confident that together with Bank of Ireland Group our customers will be provided with a good home, whilst continuing to enjoy the same legal and regulatory protections. We remain committed to managing this process responsibly over the coming period.”
Francesca McDonagh, Group CEO of Bank of Ireland said “We are delighted to have reached an agreement with KBC on this important transaction. This acquisition is a positive development for our business and consistent with our growth strategy. We look forward to supporting our new customers on their important financial decisions over the years ahead.”
KBC Bank Ireland CEO, Ales Blazek said “I would like to reassure our customers that they do not need to take any immediate action at this point as a result of this announcement. KBC Bank Ireland remains committed to servicing customers of its retail banking and insurance products through its digital channels and hubs. We will communicate to our customers well in advance of any actual steps that may be taken with respect to their products or if our customers need to take any action at any point.”
“The Board and the Executive Committee of KBC Bank Ireland are fully conscious of the responsibilities to our customers and colleagues, and the role of KBC as part of the Irish banking system, and we are committed to those responsibilities until the transaction and subsequent withdrawal from the Irish market have been completed. KBC Bank Ireland remains focused on the welfare of its staff.”