Wednesday 23 August 2017

Impaired loans at State-owned AIB down 70pc from peak

CEO Bernard O' Byrne
CEO Bernard O' Byrne

Sean Duffy

The quantity of impaired loans at State-owned AIB is down 70pc from the peak levels seen in 2013, according to a first quarter trading update issued by the bank.

The total value of impaired loans now on the banks books is €8.6bn, a fall of €500m since the final quarter of last year. In addition, the number of non-performing loans has reduced by €1bn to €13.1bn. Lending at the bank is up 10pc compared to this time last year.

AIB said it had enjoyed a strong performance in the opening quarter of the year with both income and profit increasing.

Net interest margin (NIM) rose to 2.46pc, up slightly from 2.42pc in the final quarter of last year.

NAMA senior bonds reduced to €1bn at the end of March due to further redemption of €0.8bn in the first quarter. The bonds and are expected to be fully redeemed by the end of this year.  The loan to deposit ratio at the bank was 96pc.

“We have had a good start to the year, generating 70bps of capital to finish the quarter with a fully loaded CET1 ratio of 16pc,” said AIB CEO Bernard O' Byrne.

“We continue to focus on our customers' needs, simplifying our operating model and becoming more efficient. Our three year €870m investment programme will complete this year and positions us well to deliver for customers and shareholders," Mr O' Byrne added.

The bank said it added it had 38pc of overall mortgage drawdowns across the country so far this year. Lending in sterling also rose by 18pc compared to the same period last year.

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