KBC Bank is warning of huge losses in the final three months of the year.

The bank says it now expects €510 million of losses, as a result of restructuring mortgage loans and a further loss of €161 million on its corporate loan book.

KBC says the losses will decrease in the next couple of years and the bank will be profitable from 2016.

In a statement this morning, KBC said it is working with distressed borrowers who are in arrears and has met Central Bank targets on offering long-term restructuring agreements.

It said it offers a range of solutions from interest-only repayments, loan term extensions, split mortgages and negative-equity trade down products.

The bank said an expansion of its retail banking operations here has brought in an extra €800 million in deposits.

The Belgian-owned bank also announced that its chief executive John Reynolds is stepping down from his position.

He’s been with KBC for nearly 30 years.