Bank of Ireland confirmed they would buy KBC’s Irish performing assets for €5 billion. The move comes following the Belgian financial group owned KBC’s announcement to leave Irish market.
Another bank in the country Ulster Bank had announced pulling out of business from the Ireland in February this year and almost completed the process including shutting down of its branches. Now Ireland will have only three retail banks left in the country.
Bank of Ireland will acquire €8.8 billion of performing mortgages, €100 million of performing commercial and consumer loans and €4.4 billion of deposits from the KBC. A portfolio of around €300 million of non-performing mortgages would also be acquired as part of the transaction, the joint statement from the two banks said.
The transaction remains subject to regulatory approvals.
Bank of Ireland is the largest bank in the country and the only two rivals left in retail sector are AIB and Permanent TSB.
Meanwhile AIB bought €4.2 billion of corporate and commercial loans from Ulster Bank owned by UK’s NatWest group and is in talks to add some mortgage loans.
PTSB has also bought assets from Ulster Bank including 25 of 88 branches and €7.6 billion of gross performing loans.