KBC Group has warned that its
2010 results will be impacted by increased provisioning for the
Irish loan book, while GE Capital’s Irish mortgage business has
reported heavy losses.
A statement from KBC reported
further deterioration in market conditions in Ireland since
November 2010.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
It read: “The accelerated
restructuring of the Irish banks will have a negative effect on
asset valuations in the industry.
“Consequently, KBC has
increased its provisions in respect of its commercial lending
portfolio, mainly in its relatively limited real estate development
and investment financing activities.”
Separately, KBC said its Q4
figures, to be published this month, will be affected by an
isolated case of irregularities at KBC Lease UK. The group will
make additional one-off net provisions of between £315 and £300m to
cover the two events.
Internal controls at KBC
Lease UK identified problems in some of the contracts between the
lessor and third parties.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataA thorough review is being
conducted by the relevant authorities and KBC.
KBC had earmarked the UK
business for divestment. It has been estimated that the maximum
amount of irregularities could reach €150m.
Meanwhile, the latest
accounts published by GE Capital Woodchester Home Loans reveal an
after-tax loss of €51.5m in 2009, a tenfold increase from the €5.9m
figure in 2008.
The directors’ report, filed
at the end of October 2010, states that the results may cast doubt
on the company’s ability to continue as a going concern.
The GE Capital subsidiary claimed to have redefined its
collection strategy, but admitted doubts over its own future
continued.
