KBC’s Irish arm has warned that its 2010
results will be impacted by increased provisioning for the Irish
loan book, while GE Capital’s Irish mortgage business has reported
heavy losses.

A statement from KBC reported further
deterioration in market conditions in Ireland since November 2010.
It read: “The accelerated restructuring of the Irish banks will
have a negative effect on asset valuations in the industry.
Consequently, KBC has increased its provisions in respect of its
commercial lending portfolio, mainly in its relatively limited real
estate development and investment financing activities.”

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Meanwhile the latest accounts published by GE
Capital Woodchester Home Loans reveal an after-tax loss of €51.5m
in 2009, a tenfold increase from the €5.9m figure in 2008. The GE
subsidiary claimed to have redefined its collection strategy, but
admitted doubts over its own future continued. The directors’
report, which was filed at the end of October 2010, states that the
results “may cast doubt on the company’s ability to continue as a
going concern”. 

Separately, KBC said that its 2010 figures, to
be published in February, will be affected by an “isolated case of
irregularities at KBC Lease UK”. Internal controls at KBC Lease UK
identified irregularities in some of the contracts between the
lessor and third parties. A thorough review is being conducted by
the relevant authorities and KBC’s internal audit and compliance
departments. The bank has appointed legal advisers to assist in the
investigation and is pursuing all available legal remedies against
the third parties involved in order to protect its interests.

KBC had earmarked the UK business for
divestment. It has been estimated that the maximum amount of
irregularities could reach €150m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.