KBC Bank Ireland has reported profits, after tax and impairment costs, of €92m for 2009, down over 10% from the 2008 result. The bank said the results were 'acceptable' given the tough trading environment.
The bank, the Irish subsidiary of Belgian bank KBC, said that its loan losses rose to €176m, reflecting the sharp deterioration in the economic environment.
Its overall loan portfolio fell to €18 billion from €18.8 billion the previous year due to what the bank called very limited demand.
It said the arrears statistics in both the home loans and business categories showed a marked increase in the first half of 2009, however the rate moderated in the second half of the year as some signs of stabilisation were evident.
But the bank said it remains cautious about the extent to which this stabilisation represents a trend.
The bank, formerly known as IIB Bank, said its home loans and residential investment loans amounted to €13.4 billion by the end of the year, which represents about 9% of the Irish market.
KBC said that property lending comprises €1.7 billion, or 9.4% of its overall loan book. Of this property development lending comprised €0.6 billion, or 3.5% of the bank's overall loan book.
'Our key consideration in 2010 is to support customers during what we believe will be another tough year and to generate an acceptable return for our shareholders,' commented John Reynolds, KBC Ireland's chief executive.
'Our aim is to remain a long term, relevant lender to Irish personal and business customers,' he added. KBC Ireland was not earmarked for divestment or reduction in scale under its parent group's strategic plan, which was approved by the EU last November.
'Our underlying profitability remains solid and we are looking forward positively towards our business over 2010,' Mr Reynolds said.
'We expect the economy to show signs of moderate recovery towards the end of this year with the reasonable prospect of better times in 2011,' he added.
