KBC Group: KBC Bank Ireland sells substantially all of its remaining non-performing mortgage loan portfolio
30 August 2021 - 8:00AM
KBC Group: KBC Bank Ireland sells substantially all of its
remaining non-performing mortgage loan portfolio
Press Release
Outside trading hours – Regulated information*
Brussels, Dublin, 30 August 2021 (8.00 a.m. CEST,
before stock exchange hours)
KBC Bank Ireland sells substantially all
of its remaining non-performing mortgage loan
portfolio
No immediate changes or actions for
customers.
Following the announcement made on the
16th April 2021 by KBC Group and
KBC Bank Ireland that they were exploring options to divest the
remaining non-performing mortgage loan portfolio of KBC Bank
Ireland, KBC Bank Ireland can now confirm it has reached agreement
to dispose of a non-performing mortgage loan portfolio of roughly
1.1 billion euros (Private Dwelling House (PDH) and Buy to let
(BTL) and a small number of non-mortgage non-performing loans) in a
transaction financed by funds managed by CarVal Investors
(“CarVal”).
Post completion, Pepper Finance
Corporation (Ireland) DAC will be managing the loans as Legal Title
Holder. Pepper is regulated by the Central Bank of Ireland.
Customers will continue to have the same legal and regulatory
protections (for example under the Consumer Protection Code (CPC)
and the Code of Conduct on Mortgage Arrears (CCMA)) after the
sale.
There is no immediate change for
customers. KBC Bank Ireland customers do not need to take any
action as a result of today’s announcement. Prior to the closing of
the transaction, KBC Bank Ireland will contact the customers whose
loan(s) is/are included in the sale, to inform them that their
loan(s) is/are being transferred.
The transaction is marginally capital
accretive with a combined impact (P&L and RWA) on the pro-forma
2Q21 CET1 ratio of KBC Group of approximately 2bps. It will have an
impact on KBC Group’s P&L, almost fully booked in 3Q21, which
is estimated at -0.1 billion euros. The risk-weighted assets
decrease by 0.8 billion euros.
Johan Thijs, KBC Group CEO welcomed
today’s transaction : “In the past few years, KBC Bank
Ireland already gradually built down its legacy non-performing
corporate loan portfolio and buy to let mortgage loan portfolio in
Ireland. These sales have now been complemented with the sale of
substantially all of the remaining non-performing mortgage loan
portfolio. This transaction allows KBC Bank Ireland to clean up
legacy and further reduce its NPL ratio.”
KBC Bank Ireland CEO, Ales Blazek
commented: “I’m confident that the agreement we have
signed for the sale of substantially all of the remaining
non-performing mortgage loan portfolio, and with Pepper managing
the loans post completion, offers a good and sustainable solution
for our non-performing mortgage loan customers. We can assure that
any customers whose loans are included in the transaction will
continue to be afforded the same legal and regulatory protections.
Pepper is a well established player in the Irish market. Affected
customers will be contacted shortly regarding concrete steps
related to them.”
Note to the editors
CarVal Investors is an established global
alternative investment manager focused on distressed and
credit-intensive assets and market inefficiencies. Since 1987,
CarVal’s team has navigated through ever-changing credit market
cycles, opportunistically investing $130 billion in 5,550
transactions across 82 countries. Today, CarVal Investors has
approximately $10 billion in assets under management in corporate
securities, loan portfolios, structured credit and hard assets.
Pepper Finance Corporation (Ireland) DAC
(“Pepper”) will be managing the loans post completion as the Legal
Title Holder and the lender of record. Pepper is regulated by the
Central Bank of Ireland, so all customers will continue to be
afforded all regulatory protections.
For more information, please
contact:
KBC Group :
Viviane Huybrecht, General Manager, Corporate
Communication/Spokesperson, KBC Group
Tel +32 2 429 85 45 - E-mail:
viviane.huybrecht@kbc.be, pressofficekbc@kbc.be
Website : www.kbc.com
Kurt De Baenst, General Manager, Investor
Relations, KBC Group
Tel +32 2 429 35 73 - E-mail: IR4U@kbc.be
KBC Bank Ireland
Edelman - Joe Carmody, CEO – Tel + 353 86 805 87
64 joe.carmody@edelman.com
* This news item contains information that is subject to the
transparency regulations for listed companies. |
KBC Group NV Havenlaan 2 – 1080
Brussels Viviane Huybrecht
General Manager Corporate
Communication /Spokesperson Tel. +32 2 429
85 45 |
Press Office Tel. +32 2 429 65 01 Stef
Leunens Tel. +32 2 429 29 15 Ilse De
Muyer Tel. +32 2 429 32 88 Pieter
Kussé Tel. +32 2 429 85 44 Sofie
Spiessens E-mail:
pressofficekbc@kbc.be |
KBC press releases are available at
www.kbc.com or can be obtained by sending
an e-mail to pressofficekbc@kbc.be
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