KBC Bank Ireland chief executive John Reynolds said the lender may this year require its first capital injection from its Belgian parent since Ireland's property market collapsed in 2008.

KBC Ireland converted almost €300 million of subordinated debt on its balance sheet into share capital to shore up its capital after recording a €268 million loss last year, Mr Reynolds said in a phone interview today.

The Dublin-based lender may need a capital injection from its parent this year which will be "miniscule in relative terms," he said. He declined to give an estimate.

KBC Ireland expects its mortgage arrears to peak towards the end of 2012 or in early 2013 as the lender concentrates on restructuring troubled loans.

"This year is totally about banks finding resolutions that work for people," Mr Reynolds said.

Bloomberg