TIDMBIRG
RNS Number : 5695M
Bank of Ireland Group PLC
24 May 2022
Bank of Ireland Group plc (the "Group")
Clearance by the Competition and Consumer Protection Commission
of the Group's acquisition of certain KBC Bank Ireland plc
portfolios
24 May 2022
The Group welcomes the announcement by the Competition and
Consumer Protection Commission ("CCPC") confirming clearance of the
Group's acquisition of certain assets and liabilities of KBC Bank
Ireland plc ("KBCI") as previously outlined in the Group's 22
October 2021 announcement. Following the CCPC review, the remaining
transaction clearances will now be progressed.
As part of the agreement reached with the CCPC, the Group has
agreed to a set of remedies as outlined below under 'Additional
Information'. For further details on the announcement, please refer
to www.ccpc.ie . These remedies will not materially impact the
overall financial benefits of the acquisition.
The Group continues to work closely with KBCI and KBC Group to
ensure a safe transfer of the KBCI customers to the Group. Subject
to final approval of the transaction, KBC Bank Ireland customers
with mortgages or loans that are part of the transaction will
migrate to Bank of Ireland on the rate of their product at the time
of migration. KBC Bank Ireland customers who benefit from a
mortgage or loan rate discount linked to the holding of a KBC
current account will retain that discount for the duration of the
mortgage or loan. In addition, on their first roll over post
migration, KBC fixed rate mortgage customers will be offered the
variable rate equivalent to that of KBC migrated variable rate
customers, as well as BOI fixed rate options.
Francesca McDonagh, Group Chief Executive of Bank of Ireland,
commented: "I welcome today's announcement which is an important
step towards the completion of this acquisition. Bank of Ireland
has been part of Ireland's commercial, economic, and social fabric
for almost 240 years, and we look forward to providing an excellent
long-term home for KBC Bank Ireland customers. We are committed to
delivering a smooth and seamless migration for KBC customers,
ensuring strong customer protections and financial stability within
the Irish banking sector and broader economy."
This announcement contains inside information.
Ends
For further information please contact:
Bank of Ireland
Mark Spain, Group Chief Financial Officer +353 1 2508900 ext
43291
Eamonn Hughes, Chief Sustainability & Investor Relations
Officer +353 (0)87 2026325
Darach O'Leary, Head of Group Investor Relations +353 (0)87
9480650
Damien Garvey, Head of Group External Communications and Public Affairs +353 (0)86 8314435
Additional Information
The Group has committed to the following remedies:
a) In support of the growth of non-bank lenders in the Irish
mortgage market, make EUR1 billion in total funding available to
certain non-bank lenders (Dilosk, Finance Ireland) through the
purchasing of securities issued by them, to increase their funding
capacity and reduce their cost of funding; and,
b) To assist innovation in the Irish mortgage market, make EUR1
million in funding available for distribution to companies involved
in developing innovations relevant to the market for the provision
of mortgages in the State; and,
c) To address the effects of the transaction on KBC mortgage
customers, Bank of Ireland will adopt measures, including:
(i) honouring the fixed rate included in the existing terms and
conditions of KBC fixed rate mortgages for the remainder of the
fixed term,
(ii) honouring the 0.2% discount in mortgage rate of every KBC
customer eligible for that discount at the date of mortgage
transfer to BOI, for as long as their transferred mortgage is held
with BOI, without being required to hold a BOI current account,
and,
(iii) offering the variable rate equivalent to that of KBC
migrated variable rate customers, as well as BOI fixed rate
options, to fixed rate KBC mortgage customers on their first
roll-over post-migration.
Forward Looking Statement
This announcement contains forward-looking statements with
respect to certain of Bank of Ireland Group plc ('BOIG plc') and
its subsidiaries' (collectively the 'Group') plans and its current
goals and expectations relating to its future financial condition
and performance, the markets in which it operates and its future
capital requirements. These forward-looking statements often can be
identified by the fact that they do not relate only to historical
or current facts. Generally, but not always, words such as 'may,'
'could,' 'should,' 'will,' 'expect,' 'intend,' 'estimate,'
'anticipate,' 'assume,' 'believe,' 'plan,' 'seek,' 'continue,'
'target,' 'goal,' 'would,' or their negative variations or similar
expressions identify forward-looking statements, but their absence
does not mean that a statement is not forward-looking.
Examples of forward-looking statements include, among others:
statements regarding the Group's near term and longer term future
capital requirements and ratios, level of ownership by the Irish
Government, loan to deposit ratios, expected impairment losses, the
level of the Group's assets, the Group's financial position, future
income, business strategy, projected costs, margins, future payment
of dividends, the implementation of changes in respect of certain
of the Group's pension schemes, estimates of capital expenditures,
discussions with Irish, United Kingdom, European and other
regulators and plans and objectives for future operations. Such
forward-looking statements are inherently subject to risks and
uncertainties, and hence actual results may differ materially from
those expressed or implied by such forward-looking statements.
Nothing in this announcement should be considered to be a
forecast of future profitability, dividends or financial position
of the Group and none of the information in this announcement is or
is intended to be a profit forecast, dividend forecast or profit
estimate. Any forward-looking statement speaks only as at the date
it is made. The Group does not undertake to release publicly any
revision to these forward-looking statements to reflect events,
circumstances or unanticipated events occurring after the date
hereof.
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