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AIB not expecting ‘material’ changes to tracker mortgage provision.

AIB not expecting ‘material’ changes to tracker mortgage provision.

FOD solicitors Cork Galway Dublin 1


AIB has said that any challenges in its provision in respect of the tracker mortgage scandal are not expected to have a “material impact”.

In a trading update released today the bank said it had progressed well with its work on the tracker mortgage examination and made a substantial provision in this regard in 2015.

“The bank continues its work which is subject to review by the Central Bank. Any change in provisioning levels, as we conclude, is not expected to have a material impact,” a statement from AIB said.

Earlier this month it was revealed that AIB is set to face sanctions from the Central Bank for overcharging thousands of customers on tracker mortgages.

It takes to five the number of lenders facing enforcement proceedings from the Central Bank, including Permanent TSB, Ulster Bank, KBC Bank and Bank of Ireland.

AIB has already admitted to 4,600 tracker overcharging cases, setting aside €190m to cover the cost of putting customers back on low tracker rates, refunding them overcharged interest and paying compensation.

The bank said today that it was continuing to focus on actively implementing sustainable solutions for customers in financial difficulty who engage with it.

In its trading update AIB said that it had experienced a strong third quarter and was on track to deliver a full year financial performance in line with market expectations.

The bank’s Net Interest Margin (NIM) of 2.57pc for the nine months to September 2017 was up 3bps from the NIM of 2.54pc experienced in the first six months of the year.

Meanwhile new lending drawdowns in the Republic of Ireland increased 15pc in the three month period, with mortgage lending recording a growth of 29pc in drawdowns.

Impaired loans at the bank were €7.3bn at end of September, down 20pc from €9.1bn at year end 2016.

In June this year AIB engaged in a partial IPO which saw the Government sell a 28.8pc stake to investors for €3.4bn.

Commenting on the results, Bernard Byrne, CEO of AIB, said that the bank continued to deliver sustainable profitability and create a strong balance sheet.

“As we approach the end of the three year €870m investment programme, we continue to focus on understanding better our customers’ needs, becoming more efficient and sustainably delivering for both our customers and our shareholders,” Mr Byrne said.

If you have been affected by the tracker mortgage scandal and would like some assistance then please don’t hesitate to get in contact with Fin at info@fodsolicitors.ie or phone-Dublin 01 6854458, Cork 021 4204122, Galway 091 782181.

Source: https://www.independent.ie/business/personal-finance/aib-not-expecting-material-changes-to-tracker-mortgage-provision-36380226.html