Bank of Ireland is in talks to take over KBC Ireland.
It comes just weeks after Ulster Bank, the third biggest bank in the country, announced its plans to exit the Irish market. The loss of KBC will mean just three banks are left in a potentially devastating blow to competition. The two lenders have entered into a Memorandum of Understanding with Bank of Ireland potentially buying KBC’s performing loan assets and liabilities. KBC Bank Ireland’s remaining non-performing mortgage loan portfolio, which is not part of the MoU, is currently being analysed with KBC Group reviewing its options to dispose of this non-performing loan portfolio.
Reacting to the news, Minister for Finance, Paschal Donohoe said the decision taken by KBC to leave the Irish market is “regrettable, particularly as it comes so soon after NatWest’s decision to withdraw Ulster Bank Ireland DAC from the Irish banking sector.”
“The decision announced by KBC is a very significant event for the Irish banking sector, its staff and customers. Our thoughts immediately turn to KBC’s staff and the impact of this decision for them,” Minister Donohoe said.
