KBC Group: KBC Bank Ireland welcomes Finance Minister’s decision to approve sale of all operating loan assets and liabilities to Bank of Ireland Group – 02/12/2022, 08:00

Press release

Foreign Trading Hours – Regulated Information*

Brussels, 2 December 2022 (before the stock market opens at 8:00 CET)

KBC Bank Ireland welcomes the Minister for Finance’s decision to approve the sale of all of its operating loan assets and liabilities to the Bank of Ireland Group.

On 16 April 2021, KBC Group announced that KBC Bank Ireland had entered into a memorandum of understanding with Bank of Ireland Group. On 22 October 2021, KBC Bank Ireland entered into a legally binding agreement with the Bank of Ireland Group, under which the latter will acquire all of KBC Bank Ireland’s operating loan assets and deposits. In addition, a small portfolio of non-performing mortgage loans will be acquired as part of the transaction.

.

On 24 May 2022, the transaction received clearance from the Irish Competition and Consumer Commission (CCPC) and today, 2 December 2022, the CCPC can confirm the final approval of the transaction by the Irish Minister for Finance.

Subject to the timing of various approvals, it is now expected that the closing of the transaction and the migration of customers to the Bank of Ireland Group will take place in the first quarter of 2023.

KBC Bank Ireland remains committed to protecting the interests of its customers to the maximum extent during exits. KBC Bank Ireland has written to customers to provide them with an up-to-date status of each product they hold with the bank, making it clear what they can expect next and what action they should take.

KBC Bank Ireland still focuses on employee welfare and works with them both directly and

Workers Council.

Firm severance terms, very favorable compared to the sector, were agreed

Workers Council

. KBC Bank Ireland has also begun the process of recruiting employees who may be transferred to Bank of Ireland under TUPE legislation. The employee transfer and dismissal procedure will guide this process, KBC’s responsibility to employees and the ongoing needs of customers.

Following today’s ministerial approval,

Johan Thijs, CEO of KBC Group

said:

“Today’s approval is an important step in KBC Group’s orderly and gradual exit from the Irish market. I am confident that our customers will be well received by the Bank of Ireland Group, while continuing to benefit from the same legal and regulatory protections. We are committed to managing this process responsibly in the future. I would also like to publicly thank the management and our Irish colleagues for the great work and effort they have put in and are putting in to successfully complete the final stages of this process.’

Frank Jansen, CEO of KBC Bank Ireland

added: ‘

We remain firmly committed to fulfilling our commitments to our customers as we exit the Irish market. Customer service will remain a top priority and we have written to all our customers informing them of the specific products they are holding in the bank and what action they should take. ‘

“I would also like to express my gratitude and thanks to all KBC employees who continue to provide excellent service and customer support to KBC employees who are also going through a very difficult time for them. Employees continue to go above and beyond every day for their colleagues and customers, and we are extremely grateful for their unwavering commitment and support.”

For more information, contact:

KBC Group:

Viviane Huybrecht, Corporate Communications Director / KBC Group Spokesperson

This kind. +32 2 429 85 45 – Email:

viviane.huybrecht@kbc.be

,

pressofficekbc@kbc.be

Website:

www.kbc.com

Kurt De Baenst, Head of Investor Relations, KBC Group

This kind. +32 2 429 35 73 – Email:

IR4U@kbc.be

KBC Bank Ireland

Edelman – Joe Carmody, CEO – Tel. + 353 86 805 87 64

joe.carmody@edelman.com

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