What Next for KBC Ireland?

For Ireland, KBC`s first priority is to become profitable from 2016 onwards. As of then, all available options will be considered (i.e. whether to organically grow a profitable bank, build a captive bank-insurance group or sell a profitable bank).

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KBC Bank Ireland could be in line for a potential tie-up with either Permanent TSB or Ulster Bank, following comments on Thursday that its Belgian parent could look to divest its Irish operations once the bank returns to profitability in 2016.

John Cronin, head of financials research with Investec, nonetheless noted that there is a “question mark” around the shape of KBC’s future in Ireland.

“We wonder about the group’s long-term commitment to Ireland,” he said, pointing to a further comment in the group results about its core bank-insurance business “in Belgium, the Czech Republic, Slovakia, Hungary and Bulgaria”.

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Bravoed said:

KBC HQ have publically said a few times that their strategy for KBC Ireland is:
(1) To make the bank profitable - done.
(2) To change strategy for KBC Ireland.

For example, KBC said: (I cannot post links)



KBC have frequently left Ireland out of a list of their "key operations".

More recently The Irish Times reported:



So what next for KBC? Should KBC customers be worried about the Irish operation been sold?

Will KBC acquire Ulster Bank or PTSB? Will KBC acquire an insurance provider? Will KBC sell their Irish operation? or maybe go digital only? Anyone hazard a guess?

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