Belgian lender KBC is considering selling off its Irish unit and hopes to finish repaying outstanding state aid by the end of 2017.

The loss-making Irish arm of the business had €15.1bn ($20.5) of loans and mortgages outstanding by the end of the first quarter of 2014.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

KBC said it was considering "whether to organically grow a profitable bank, build a captive bank-insurance group or sell a profitable bank."

The lender said it hoped the Irish unit would become profitable by 2016 and that it was keeping all options open after that.

KBC group still owes the European Commission €2bn, not including penalties, after receiving a €7bn bailout package at the peak of the economic crisis.

The bank had agreed to repay the last of the loan at the end of 2020, but now wants to accelerate its repayments and finish paying back the money at the end of 2017.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

It added that it plans to use one third of its excess capital generated until 2017 to make these payments.

KBC has shown signs of aggressively targeting the Irish retail banking market in recent months:

  • In late January, the lender announced plans to expand its mortgage business in 2014 and said it aimed to compete with major banks Allied Irish Banks and Bank of Ireland.
  • In February, the bank announced it was to expand its workforce by adding 200 new staff, as part of plans to move out of business banking and focus on growing retail banking business.
  • The announcement came after the lender reported an increase in deposits to €2.9bn, despite incurring losses of €864m in 2013, and reported adding 34,000 new customers during the year.

Related articles:

Bank of Ireland allows KBC to promote current account products: Report

AIB and IMHO negotiate mortgage write downs for Irish borrowers

KBC Bank to recruit 200 new workforce: Report