KBC Bank Ireland said on Monday that it has completed the sale of a €260 million corporate loan portfolio to Bank of Ireland.

The move is part of efforts by KBC, a subsidiary of the Belgian banking group, to continue shifting its core business focus to retail and micro SME clients.

First announced in April of this year, KBC Bank, said that the sale has a negligible impact on the group’s P&L and capital ratio.

At the time, Johan Thijs, KBC group chief executive, said that the deal reflected “KBC Bank Ireland’s strategic ambition to become KBC group’s digital frontrunner focussing on retail and micro SME clients has resulted in a gradual building down of the bank’s performing and non-performing corporate loan portfolio in Ireland over the past few years.”

KBC added that the deal will allow it to “reduce future earnings volatility, to clean up legacy and to fully focus on sustainably and profitably growing its retail and micro SME business.”

Bank of Ireland said the acquisition was consistent with its plan to grow its lending volumes.

Michael Lauhoff, director of business banking with the bank said: “ This is a strong portfolio of performing commercial loans and it further strengthens our business banking portfolio. We are writing to customers to officially welcome them to Bank of Ireland and provide them with administrative and contact details in relation to the servicing of their accounts. We look forward to supporting these new customers on the future growth and development of their businesses.”