KBC to offer customers investment opportunities

KBC Bank Ireland will next week launch a new suite of investment products here, as the latest addition to its offering for retail investors.

The KBC Sivek Funds will offer customers the opportunity to invest amounts from €125 upwards in equities, bonds, real estate and cash across different sectors and countries.

Wim Verbraeken, chief executive of KBC's Irish operation, told The Irish Times yesterday that it would be a fund provided by KBC Asset Management, an arm of its Belgian parent group.

“It will draw on the strength of the KBC group, which has more than €85 billion in funds under management,” Mr Verbraeken said.

The funds will provide investors with access to their capital and the ability to increase, redeem or partially redeem their investment at any time. The funds will not be capital guaranteed.

Mr Verbraeken was commenting following the publication of KBC’s third quarter results. It showed that the bank in Ireland had an after-tax loss of €36 million in the three months to the end of September, down from €80 million in the same period of 2013.

Its impairment charge roughly halved year on year to €47 million in the third quarter. This comprised €31 million in corporate loans and €16 million in retail.

KBC reiterated its previous guidance that it expects the Irish bank to return to profitability in 2016. Its cost-income ratio stood at 97 per cent for the first nine months of this year compared with 90 per cent for full year 2013.

Mr Verbraeken said he was “satisfied” with the financial performance of the bank in the first nine months of the year, which was in line with expectations.

Mr Verbraeken said KBC has written €260 million worth of new mortgages in the first nine months of the year, accounting for roughly 10 per cent of the market. Its retail deposits have increased to €3.3 billion from €2.7 billion this year and it has opened more than 30,000 customer accounts in 2014.

The Belgian group plans to open two additional branches in Maynooth and Dundrum before Christmas and has earmarked five openings for the early part of 2015. This will give it 15 branches.