Belgian banking group KBC is taking additional net provisions of up to €330m to account for losses at its Irish loan portfolio and for irregularities at KBC Lease UK.
In Ireland, KBC says it will take total net provisions of €263m for its commercial and residential mortgage lending portfolio, part of which it has already taken into account.
The group says it has seen a further deterioration in the Irish market in the fourth quarter and forecasts that the accelerated restructuring of Irish banks will have a negative effect on asset valuations in the industry.
In the UK, KBC said it discovered irregularities during internal audits in some contracts with third parties at its lease business, for which it will take a net provision of about €150m.
KBC says it expects its underlying results from other units for the fourth quarter to be in line with its expectations.
In December, British bank Lloyds also warned that it would take a further hit from its operations in Ireland.
