KBC today confirmed writedowns on its exposure to collateralised debt obligations and collapsed banks dragged it to its first quarterly loss since the start of the credit crisis, and the Belgian bank warned results in the final three months this year could be hit by charges related to its Icelandic bank exposure.

KBC said in its third-quarter results today it incurred a €906m ($1.1bn) net loss, compared with a €639m profit in the same period a year ago. The loss fell within the €880m to €930m range provided by KBC last month when it warned of a loss on the back of credit rating downgrades to some of its collateralised debt obligation holdings.