KBC Bank Ireland has sold a portfolio containing around €1.9 billion worth of non-performing buy-to-let mortgages and corporate loans to Goldman Sachs.

The loan book also contains performing and non-performing UK buy-to-let mortgages.

The deal will reduce the level of bad loans on KBC's books by 40% and means the bank's ratio of non-performing loans will fall to around 25%.

It is expected to close in the last three months of the year and is expected to result in a net profit of €14m for the bank, while also improving its loan to deposit ratio.

Alongside today's announcement, KBC Bank Ireland also issued its half-year results today, which saw it record a net profit of €115.9 million for the first six months of 2018 after tax and impairment.

The bank said it added more than 40,000 new customer accounts in the first half of the year, while new mortgage lending rose 26.7% to €422m.

KBC said that mortgage arrears cases were down 7% in the period, while it had also completed its redress and compensation scheme relating to the tracker mortgage scandal.