Friday, November 15, 2013

Irish Bank chief quits as results released

Bank chief quits as results released
Friday, November 15, 2013

KBC chief executive John Reynolds resigned on the same day as the bank announced it is significantly increasing bad loan provisions for the year.

John Reynolds: 'Pursuing other opportunities'
By John Walsh

In a sign the Belgian-owned bank has accelerated its attempts to work through its troubled loans, it has significantly increased the amount of bad debt provisions it will incur this year.

In its results presentation, it said it has reassessed its entire Irish loanbook in view of the EU-wide bank stress tests scheduled for 2014 and the Central Bank’s guidelines on dealing with mortgage arrears, issued earlier this year.

KBC has reclassified €2bn of restructured mortgages from non-impaired to impaired, which will increase provisions by roughly €510m.

A similar review of the corporate loanbook will see provisions increased by €161m.

On top of the €104m provisions already in place, KBC will not increase its overall provisions to €775m for the year.

The bank said it expects to return to outright profitability in 2016.

Over the third quarter, it posted an after-tax loss of €80m and impairment costs of €98m for the same period. The after-tax loss was €93m and impairment charges were €129m for the third quarter of last year.

Its core tier one capital position at the end of September was 12.45%. Deposits over the first nine months of this year rose €800m to €2.9bn.

Mr Reynolds will leave the bank after 29 years of service “to pursue other opportunities”.

He will be replaced by Wim Verbraeken, the current chief financial officer of KBC Ireland.
© Irish Examiner Ltd. All rights reserved

1 comment:

  1. June 30 2013

    "This week, it was announced that the EU had approved a further injection of our taxpayer money into additional capital for Anglo-Irish Bank . This brings the total as of now to almost €25bn. This is money going into a bank that is essentially in wind-down over the coming decade, money that the Irish citizens and taxpayers will not see again, as it is shoring up the balance sheet of a bank that had too much imaginary wealth. And that is not the end of the money, many fear."

    100 suggestions what the Irish could do with €25bn ...


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