KBC Bank Ireland to create 100 new in retail move

KBC Bank Ireland expects to create about 100 new jobs in Ireland this year as it continues its retail expansion by opening five additional branches to bring its total to 15.

Speaking to The Irish Times, KBC Bank Ireland chief executive Wim Verbraeken said: "Last year we recruited 250 people. This year the number will probably be somewhere around 100. We're now close to 1,000 and I think we'll probably plateau somewhere around that total."

KBC has already earmarked Naas and Kilkenny for new branches. “These are two very good marekts and we’re looking at three or four other locations and will probably pick three of them in the first quarter,” he said. “It’s about increasing the density of our footprint and it adds to our street credibility.”

Mr Verbraeken said KBC’s has targetted 15 branches for Ireland. “Once we are are 15 we will consider whether further investments are most appropriate, whether it should be our physical network, digital, online or call centres.”

Mr Verbraeken’s comments followed the publication of KBC’s full year results, which showed it made a loss of €91 million in Ireland last year. The bank posted an operating profit of €107 million but impairment costs of €198 million dragged it into the red.

Mr Verbraeken said the loss “wasn’t unexpected” and reiterated KBC’s previous guidance that its Irish subsidiary is on track to return to profitability by 2016.

KBC expects to book impairment costs of between €50 million and €100 million in Irealnd this year 2015. In spite of the losses, Mr Verbraken said KBC was committed to “building a solid franchise”.

“The ultimate result [FOR 2014]was very much in line with the projections we made more than a year ago,” he said.

KBC had more than €455 million in mortgage drawdowns last year, roughly four times the level of 2013. Mr Verbraeken expects to approve “significantly more”mortgages this years as the “market overall will be more active”.

The Belgian bank opened 50,000 new customers accounts in 2014 and now has 180,000 customers across all products as it refocuses the business away from corporate and towards the retail market. “We are very much on target. In deposits, we have exceeded our internal targets and are now at €3.4 billion in spite of the fact that we have reduced [INTEREST]rates in line with the competition.”

Overall, KBC Group generated a profit of €1.7 billion in 2014, up from €1.01 billion the previous year.