RNS Number : 7099V
Bank of Ireland Group PLC
16 April 2021
Bank of Ireland Group plc ("Bank of Ireland")
KBC Bank Ireland and Bank of Ireland Announcement
16 April 2021
KBC Bank Ireland enters into a Memorandum of Understanding with
Bank of Ireland Group
KBC Bank Ireland has entered into a Memorandum of Understanding
(MoU) with Bank of Ireland, expressing the parties' intention to
explore a route that could potentially lead to a transaction
whereby Bank of Ireland commits to acquire substantially all of KBC
Bank Ireland's performing loan assets and liabilities. The
transaction remains subject to customary due diligence, further
negotiation and agreement of final terms and binding documentation,
as well as obtaining all appropriate internal and external
KBC Bank Ireland's remaining non-performing mortgage loan
portfolio, which is not part of the MoU, is currently being
analysed whereby KBC Group is reviewing its options to divest this
Execution of these two transactions would ultimately result in
KBC Group's withdrawal from the Irish market. While these
discussions are ongoing, KBC Bank Ireland remains committed to
offering its retail banking and insurance services of the highest
level through its digital channels and hubs, for its existing and
new customers. There is no impact on KBC Bank Ireland customers'
products or services and they do not need to take any action as a
result of this announcement.
Further announcements will be made in due course.
Announcing the MoU, KBC Group CEO, Johan Thijs, said: "Over the
last decade, KBC Bank Ireland has managed to build a digital first
retail bank and launched recently a digital pension insurance
business for the Irish market. Given the challenging operational
context for European banks and after careful consideration, we have
reached an agreement with Bank of Ireland Group regarding the
potential sale to Bank of Ireland Group of substantially all of the
performing loan assets and liabilities of KBC Bank Ireland. Next to
this MoU, KBC Bank Ireland's remaining non-performing mortgage loan
portfolio is currently being reviewed for potential
Francesca McDonagh, Group CEO of Bank of Ireland continued:
"When we look at opportunities we consider if they are a good fit
for the customers involved and for the bank. This MoU complements
our strategy to grow our business in Ireland, and supports the
investments we are making in the transformation of our systems and
digital banking services. We would be very pleased to provide KBC
Ireland customers with a good home, and look forward to progressing
our discussions with KBC over the coming period."
KBC Bank Ireland CEO, Peter Roebben added: "KBC Bank Ireland
remains committed to offering its quality retail banking and
insurance services. For the time being nothing changes, neither for
existing nor for new customers. Our customers do not need to take
any action as a result of today's announcement. KBC Bank Ireland
continues to benefit from a strong liquidity and capital position.
The Board and the Executive Committee of KBC Bank Ireland are fully
conscious of our responsibilities to our customers and colleagues,
and the role of KBC as part of the Irish banking system, and we are
fully committed to assuming those responsibilities while the talks
with Bank of Ireland are ongoing".
For more information, please contact:
Viviane Huybrecht, General Manager, Corporate
Communication/Spokesperson, KBC Group
Tel +32 2 429 85 45 - E-mail: email@example.com,
Website : www.kbc.com
Kurt De Baenst, General Manager, Investor Relations, KBC
Tel +32 2 429 35 73 - E-mail: IRO4U@kbc.be
Bank of Ireland:
Damien Garvey, Head of Group External Communications and Public
Affairs, Group Corporate Affairs, Bank of Ireland
Tel + 353 (0) 86 8314435 - E-mail: Damien.firstname.lastname@example.org
Darach O'Leary, Head of Group Investor Relations, Bank of
Tel +353 (0) 87 948 0650 - E-mail: Darach.email@example.com
KBC Bank Ireland
Edelman - Joe Carmody, CEO - Tel + 353 86 805 87 64 - E-mail:
This announcement contains inside information.
Forward Looking Statement
This announcement contains forward-looking statements with
respect to certain of Bank of Ireland Group plc ('BOIG plc') and
its subsidiaries' (collectively the 'Group') plans and its current
goals and expectations relating to its future financial condition
and performance, the markets in which it operates and its future
capital requirements. These forward-looking statements often can be
identified by the fact that they do not relate only to historical
or current facts. Generally, but not always, words such as 'may,'
'could,' 'should,' 'will,' 'expect,' 'intend,' 'estimate,'
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'target,' 'goal,' 'would,' or their negative variations or similar
expressions identify forward-looking statements, but their absence
does not mean that a statement is not forward-looking.
Examples of forward-looking statements include, among others:
statements regarding the Group's near term and longer term future
capital requirements and ratios, level of ownership by the Irish
Government, loan to deposit ratios, expected impairment charges,
the level of the Group's assets, the Group's financial position,
future income, business strategy, business model, projected costs,
margins, future payment of dividends, estimates of capital
expenditures, discussions with Irish, United Kingdom, European and
other regulators and plans and objectives for future operations.
Such forward-looking statements are inherently subject to risks and
uncertainties, and hence actual results may differ materially from
those expressed or implied by such forward-looking statements.
Nothing in this announcement should be considered to be a
forecast of future profitability, dividends or financial position
of the Group and none of the information in this announcement is or
is intended to be a profit forecast, dividend forecast or profit
estimate. Any forward-looking statement speaks only as at the date
it is made. The Group does not undertake to release publicly any
revision to these forward-looking statements to reflect events,
circumstances or unanticipated events occurring after the date
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(END) Dow Jones Newswires
April 16, 2021 02:00 ET (06:00 GMT)