Bank of Ireland Set to Buy KBC Bank Ireland's Performing Loans, Liabilities
April 16 2021 - 3:09AM
Dow Jones News
By Sabela Ojea
Bank of Ireland Group PLC said Friday that it has entered into a
memorandum of understanding with KBC Bank Ireland to potentially
acquire all of its performing loan assets and liabilities.
The transaction would result in Belgium-based KBC Group NV's
withdrawal from the Irish market, as it is also looking to divest
its non-performing mortgage loan portfolio. KBC Bank said it
remains committed to providing retail banking and insurance
services while discussions continue.
The transaction remains subject to customary due diligence,
further negotiation and agreement of final terms and regulatory
approvals.
For 2020, KBC Bank Ireland booked a loss of 55.4 million euros
($66.3 million). It reported total loans and advances to customers
of EUR9.95 billion and customer deposits of EUR5.0 billion as of
Dec. 31.
KBC's potential withdrawal from Ireland follows NatWest Group
PLC's similar decision in February to divest its Ulster Bank arm.
KBC Group Chief Executive Johan Thijs said the decision was due to
the "challenging operational context for European banks".
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
April 16, 2021 02:54 ET (06:54 GMT)
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