Mortgage drawdowns jumped 67pc quarter-on-quarter at KBC Bank Ireland in the three months to September 30.
BC saw a surge in mortgage applications in the three-month period, with applications up 66pc on the prior quarter, as people sought to make savings on new and existing mortgages, the bank said.
New mortgage lending totally €297m during the period, according to a trading update from KBC.
Nonetheless, the bank made a net loss of €41m after tax and impairments in the year to-date, this was driven mainly by an exceptional impairment loss recognised in the first half of 2020 due to the impact of Covid-19.
It also incurred an additional €4m charge relating to the tracker mortgage scandal.
KBC’s impaired loan stock for the first nine months of this yar reduced by €187m (11pc) to €1.5bn, representing around 14.4pc of the total portfolio.
The bank had 6,900 payment breaks granted on mortgages and loans for personal and small and medium business customers. To date, 76pc of these have rolled off payment breaks.
“Despite the difficult economic environment, KBC Bank Ireland has continued to deliver a strong performance, particularly around new mortgage lending which saw sustained growth across the quarter,” Peter Roebben, chief executive of KBC Bank Ireland, said.
Meanwhile, KBC Group ended the third quarter of the year with a net profit of €697m.