Belgian bank KBC expects to record loan loss impairment charges of €300 million to €400 million in 2013, group chief executive Johan Thijs said yesterday on the publication of its first-quarter results.
The bank’s Irish subsidiary booked a loan loss impairment charge of €99 million in the quarter. This was lower than the €195 million recorded in the same quarter of 2012 but up on the €87 million impairment in the previous quarter (Q4 2012).
KBC Bank Ireland made a loss of €77 million in the three-month period due to the high loan loss provisioning. This accounted for the bulk of the €87 million loss made by KBC's international markets business unit. Hungary and Bulgaria were also loss-making but it made a profit of €17 million in Slovakia. Belgium was most profitable, recording a surplus in the period of €385 million.
KBC posted a group net profit of €520 million for the first quarter of 2013, up from €380 million a year earlier.
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