Feedback needed on KBC bank.

MFK

Registered User
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75
I notice that KBC are top of the list on best buys for fixed term deposits. I dont know anything about them and would appreciate any feedback as I am currently considering something in the 12 to 18mth bracket and would be happier to go for a lower rate if it was the safer option.

Thanks
MFK
 
Just wondering if anyone has any comments good or bad based on their experience of dealing with them.
 
Hi,
I use KBC for a mortgage and have usually found them fine to deal with, handle requests quickly. I have also just recently signed up for 10 months of overpayments which was easy to setup and agree with them.
I once had a disagreement where they delayed sending out forms to go to a fixed rate for 2 years, in the meantime the rate increased and they honoured the original lower rate as they had a record of my call to customer service.
So for me - no issues dealing with them over the last 5 years for mortgage or now a new savings deal.
 
According to bonkers.ie, current bank credit ratings are:
RaboDirect is AA
Nationwide UK (Ireland) is A+,
National Irish Bank is A,
Ulster Bank is A-,
KBC is BBB+,
Bank of Ireland is BB+
Permanent TSB is BB+
AIB is BB
 
They seem to have taken over with best buys from AIB Direct and of course we dont have Northern Rock anymore.
 
This is taken from their parent banks financial statement. It looks a bit worrying? How can these people pay the highest rate available in Ireland?

On 2 January 2012, KBC repaid a first tranche of 500 million euros in respect of the YES (Yield Enhanced Securities) to the Belgian Federal Government, plus a 15% penalty. We are continuing our efforts to ensure that the 4.7 billion euros in state aid (before any penalty) is reimbursed by the end of 2013, as set out in the European plan


 
This is taken from their parent banks financial statement. It looks a bit worrying? How can these people pay the highest rate available in Ireland?

On 2 January 2012, KBC repaid a first tranche of 500 million euros in respect of the YES (Yield Enhanced Securities) to the Belgian Federal Government, plus a 15% penalty. We are continuing our efforts to ensure that the 4.7 billion euros in state aid (before any penalty) is reimbursed by the end of 2013, as set out in the European plan



RBS (Ulster), BoI, AIB, KBC PTSB, IBRC all have massive state aid. At least KBC are repaying the state aid.
 
RBS (Ulster), BoI, AIB, KBC PTSB, IBRC all have massive state aid. At least KBC are repaying the state aid.

They have to come up with €4.7 billion by the end of 2013. They have also had to pay a penalty on their last payment. Looking at their reduced profits for last year I do not think they have a snowballs chance in hell of paying this state aid back by the end of the year.
Maybe they are paying over 4% to Irish depositors to get in enough cash to pay back the Belgian government.
 
Have used them for some term deposits. No problems. Only issue is they do not seem to have online banking, otherwise the rates and good.
 
they are paying over 4% to Irish depositors to get in enough cash to pay back the Belgian government.

If you're looking to pick flaws you are certainly not doing a very good job. KBC are an enormous Bank. Sure they did run into problems a number of years ago but show me a Bank that didn't !!

Maybe you should take a look at their balance sheet and then form an opinion. But to find fault with an institution because they are offering the best deposit rates is a bit wide of the mark. OP and others, it's your money so do as you please, but please stop criticizing without a real reason.

I've no connection with KBC but am a borrower and frankly although have had some problems, find them an honest set up.
 
Taken from their Financial Statement. Their final paragraph states that they are committed to their customer base in Central and Eastern Europe.

The main special item having an impact on the underlying result for 1Q2012 was:
[FONT=Arial,Arial][FONT=Arial,Arial]Ireland [/FONT][/FONT]The Irish economy weakened in late 2011 and is expected to remain challenging in 2012. Consumer sentiment, business sentiment and spending were all hit by the poorer global backdrop and ongoing severe austerity measures taken in Ireland itself. As a consequence, a loan loss provision of 195 million euros was recorded in 1Q2012.

Our focus firmly remains on catering for our customer base in our core markets in Belgium and Central and Eastern Europe.
 
Have used them for some term deposits. No problems. Only issue is they do not seem to have online banking, otherwise the rates and good.

Just because they have a nice shopfront and brochure and offer a high interest rate doesn't mean much. You really need to have a look at the fundamentals of the business and as a previous poster suggested their financial accounts.
 
Here are a couple of extracts from KBC's latest Q2 statement. The full text can be read from their parent banks website.


The IFRS-based net result reported for the quarter under review came to a net loss of 539 million euros, compared with a net profit of 380 million euros in the previous quarter and 333 million euros in the year-earlier quarter. This means the group has generated a total net loss of 160 million euros for the first six months of 2012, as opposed to a net profit of 1 154 million euros for the corresponding period of 2011.



The main special item having an impact on the underlying result for 2Q2012 was:
[FONT=Arial,Arial][FONT=Arial,Arial]Ireland [/FONT][/FONT]Recent economic indicators point towards resilience in Irish exports, continuing strength in the pipeline of FDI and progress in reducing the deficit in public finances. These developments have been reflected in continuing positive assessments by the EU/IMF. While residential mortgage arrears continue to deteriorate, the pace of deterioration has slowed markedly compared to 2011, which is also positively impacting NPL trends. There are tentative early signs of house prices stabilising, but local confidence remains fragile. Commercial collateral values continue to suffer as all Irish banks deleverage in an illiquid market. As a consequence, a loan loss provision of 136 million euros was recorded in 2Q2012. We estimate that full-year impairment charges at KBC Bank Ireland will end up between 500 and 600 million
 
Enormous means nothing.
I see from their latest financial reports they are trying to offload a number of businesses.

It actually means quite a bit in this country, especially as the National Banks are defunct. We should be thankful that they are still here.

As for offloading a number of their businesses why not ? They are going through the same reorganisation as most of the Financial system throughout Europe.

Don't get me wrong, i'm no big fan. But they just know how to conduct themselves a bit better than what we're used to here.
 
I opened a joint account with them a month ago. The other day my wife got a phone call from a market research company looking for feedback on our dealings with KBC. Why is KBC giving our ex directory and names to a market research company?
 
KBC delay payments etc

They did the same to me - delayed a request for a fixed term and then by the time they got round to it rates had gone up! They are awful to deal with I think, they always delay things in order to hold on to the money longer - we are doing up an old cottage and they always ask for more information - then lose it - then deny ever getting it (even though it was sent recorded delivery) - by which time, two months or so have passed and they have held on to the sum longer. Terrible customer service. Would love to leave them and curse the broker who ever told me this was a good idea - go to a normal high street bank - at least then you can camp out in a branch whenever things go wrong. Avoid these cowboys at all costs
 
I had the same experience with them delaying things on more than 4 occasions - don't trust them one bit. Would love to, and I am, looking to take the mortgage elsewhere. Terrible company all round.
 
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