KBC Group has today reported a net profit of €458m for the first quarter of 2022 as the Belgian bank said it was keeping a very close eye on the indirect macroeconomic impact of the war in Urkaine.

The net profit of €458m was down from €557m a year earlier on the back of higher costs and a staff bonus.

Its total income for the first quarter of 2022 came to €2.12 billion. up from €1.93 billion the same time last year.

KBC said its direct exposure to Ukraine, Belarus and Russia was quite limited at about €55m.

But it said it was monitoring the effect of high gas and oil price on inflation and economic growth, and on the spillover effects for the bank, its counterparties and its customers.

It said it was making provisions of €223m to cover risks emerging from the war

Last week, KBC Group appointed a new chief executive to lead its Irish operations as it continues to wind down its operations in Ireland.

Frank Jansen, who is currently the Chief Financial and Product Officer (CFPO), is to assume the CEO role.

It follows the appointment of Aleš Blažek, the current boss of KBC Bank Ireland, to the role of CEO of the Czech business unit.

Bank of Ireland is planning to buy around €8.8 billion worth of KBC's performing mortgages, €100m worth of its performing commercial and consumer loans, €4.4 billion of deposits and around €300m of non-performing loans.

KBC has also sold its non-performing mortgage loan portfolio worth €1.1 billion in a transaction financed by funds managed by CarVal Investors.

In today's results statement, the bank said that KBC Bank Ireland reported a net loss of €15m for the first quarter. The bank saw about €24m of one-off impairment costs on fixed assets in Ireland in view of the pending sale of its assets here.