KBC Group has promised further development for its Irish operations, in what the company described as an “expression of confidence” in the unit.

The group said KBC Bank Ireland would become part of its new international markets business unit, along with Slovakia, Hungary and Bulgaria.

Despite previously saying that Ireland was not a core part of the group’s operations, KBC said today’s announcement was in contrast to its decision to divestment operations in Russia, Slovenia, Germany and Serbia.

“Ireland remains an exception, where in the coming years KBC Bank Ireland will be managed to maximise its value contribution through its retail banking business,” the group said in a statement.

KBC Bank Ireland has operated in Ireland since 1973. The Irish division was primarily involved in corporate and mortgage lending. In the past 12 months, it has focused on building a presence in the retail banking sector. It currently employs 700 people in its branches in Dublin, Cork, Limerick, Galway and Belfast.

Chief executive of KBC Bank Ireland John Reynolds said it was welcome news for the division and an endorsement of the work the bank had been doing to consolidate and grow its business here.

“While the market remains challenging, we have ambitious plans to expand our online operations and to increase our presence in key locations,” he said. “We are winning new customers by being a competitive alternative and will build sustainable business in Ireland based on understanding our clients and proactively offering products and services tailored to their needs.”