KBC Bank Ireland has reported a profit after tax of €21 million for the first half of the year.

The bank which is planning its exit from the Irish market, said impaired loan stock reduced by €89 million to €1.34 billion during the first six months, representing 12.8% of its portfolio.

Ales Blazek, Chief Executive, KBC Bank Ireland said the bank has delivered a "solid" performance.

"We continue to support and serve our customers for our retail banking, investment and insurance products," he said.

The bank said discussions with Bank of Ireland are ongoing in relation to a potential transaction whereby Bank of Ireland would acquire substantially all of KBC Bank Ireland's performing loan assets and liabilities.

The bank also said it continues to examine its options for divesting its portfolio of non-performing mortgage loans.

"To ensure that the needs and wants of staff and customers are fully integrated into our decision-making process, we are continuing to engage openly and comprehensively with all of our colleagues and stakeholders as our discussions with Bank of Ireland progress and as we consider options for our NPL portfolio," said Mr Blazek.

He said the bank will provide an update when there are "material developments" related to any of the proposed transactions.