AIB reports 4pc drop in number of Irish mortgages in arrears
Allied Irish Bank (AIB) has maintained its momentum from 2015 and has reported strong profitability, increased lending, and reductions in impaired loans in the first three months of the year.
In a trading update released to shareholders this morning, AIB posted a net interest margin (NIM) of 2.09pc, an increase on the 1.97pc for the full year of 2015.
New lending drawdowns increased by 17pc in the period as the bank held on to leading market shares in both retail and business sectors.
AIB chief executive Bernard Byrne said the bank has continued the positive trend from 2015.
"Our focus on growth, a more efficient operating model and improved funding costs enabled us to pass on a 4 reduction of 25bps to variable rate mortgage customers and a €2,000 contribution to switching costs.
"We look forward to increasing our payments to the State to around €6.5bn when we pay a further €1.8bn in capital and interest in July on the maturity of the Contingent Capital Notes."
Excluding currency costs performing loans increased by €500m, which AIB said was driven by increased new lending and restructures offset by redemptions.
Impaired loans were down by €1bn to €12bn due to ongoing case by case process of bringing in restructuring soluitions.
Irish mortgages in arrears fell by 4pc in the three months with similar declines visible in both early and late stage arrears. AIB said the number of accounts in arrears in both the owner-occupier and buy-to-let portfolios dropped by 29pc and 27pc respectively since December 2014.