KBC said the deal, if coupled with a separate sale of its non-performing mortgage loan portfolio, would ultimately result in the bank's withdrawal from the Irish market.
"While these discussions are ongoing, KBC Bank Ireland remains committed to offering its retail banking and insurance services of the highest level through its digital channels and hubs, for its existing and new customers," it said. Finance Minister Paschal Donohoe said that KBC's decision to leave the Irish market is regrettable, particularly as it comes so soon after NatWest's decision to withdraw Ulster Bank from the Irish banking sector.
Speaking on Morning Ireland, Mr Roebben said the talks with Bank of Ireland are in the early stages and no conclusion has been reached. The bank CEO sought to reassure customers and staff that their interests would be equally protected in any deal made.Both KBC and Bank of Ireland thought it was in the interests of staff and customers to announce their intention to explore this route further, he added.