Bank of Ireland has completed the acquisition of a portfolio of around €260m of performing commercial loans from KBC Bank Ireland. 

Affected customers will receive written confirmation of the transfer of their loans.

Bank of Ireland says it will service the accounts directly and the contractual terms and conditions will remain the same.

KBC Bank Ireland said the deal, first announced in April, will have a negligible impact on the group's capital ratio. 

It said it will also further solidify KBC Bank Ireland's core business focus on retail and SME clients.

"This transaction results in further balance sheet optimization allowing KBC Bank Ireland to reduce future earnings volatility, to clean up legacy and to fully focus on sustainably and profitably growing its retail and micro SME business," commented Johan Thijs, KBC Group CEO.

Michael Lauhoff, Director of Business Banking at Bank of Ireland, said the portfolio was a strong one, which would further strengthen the bank's business banking portfolio. 

"We are writing to customers to officially welcome them to Bank of Ireland and provide them with administrative and contact details in relation to the servicing of their accounts. 

"We look forward to supporting these new customers on the future growth and development of their businesses," he added.