KBC Bank Ireland sees fall in profits after tracker scandal

KBC Bank Ireland has reported a full-year net profit of €183m after tax and impairments for 2017.

It compares to a profit of €227m in 2016 and also shows its net profit for the last quarter of 2017 fell to €7m, after tax and impairments, from €109m in the same quarter of 2016.

The bank said it has taken account of the €120.3m it has provided for redress and compensation for customers affected by the tracker mortgage controversy, where homeowners were overcharged after being wrongly denied low interest tracker rates.

The bank said this figure includes a provision for redress and compensation of €61.5m for the fourth quarter of the year.

KBC Bank Ireland said it has made rate rectifications and redress and compensation payments to 501 customer accounts in its engagement with the Central Bank to conclude the identification phase of the tracker mortgage review.

The bank said: "Rates have been rectified on all other impacted tracker mortgage customer accounts, including those newly identified in December 2017.

"Redress and compensation continues to be paid to affected customers as soon as possible but will conclude no later than end of June 2018."

The bank also revealed that it added more than 75,000 new customer accounts in the 12 months to December 31, 2017, giving it more than 262,000 customers.

Solid Q4 2017 result of €399 million for KBC Group brought the net result to €2,575 million for the full year 2017, up 6% on the €2,427 million recorded for full year 2016.

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