KBC Bank has reported profits of €601m for the third quarter of this year, despite a €319m negative one-off impact related to its pending sale deals in Ireland as the bank prepares to leave the Irish market.

KBC Bank Ireland in August reached a deal to dispose of substantially all of its non-performing mortgage loan portfolio .

It later also entered into a legally binding agreement for the sale of substantially all of its performing loan assets and its deposit book to Bank of Ireland.

A small portfolio of non-performing mortgages will also be sold as part of that transaction, which remains subject to regulatory - including Irish competition - approvals.

The bank said the immediate once off profit and loss impact in the third quarter of these deals amounted to a loss of €0.3 billion after tax, while there will be a positive impact of about €0.2 billion when they are completed.

"The finalisation of both deals will ultimately lead to KBC withdrawing from the Irish market and will have a positive impact on our common equity ratio of approximately 0.9 percentage points," the bank's group chief executive Johan Thijs said today.

The Belgian bank said its total income went up on a quarterly basis, as higher net interest income, net fee and commission income and net other income more than offset the lower non-life insurance result - which had been negatively impacted by floods in Belgium - and the seasonally lower level of dividend income.

It said that loan loss impairment contributed positively to its result, as the reversal of previously recorded impairment charges for the coronavirus crisis more than offset the negative impact on impairment of the pending sale transactions in Ireland.