BoI director has €4.21m mortgage with bank
Paddy Power boss is one of seven on the board who have loans out
Paddy Power Chief Executive Patrick Kennedy has a whopping €4.21m mortgage with Bank of Ireland. Mr Kennedy is also a director of the bank and according to figures published by its mortgage subsidiary last Friday, he is one of seven directors who had loans worth €5.833m at the end of last year.
Given that Mr Kennedy was only appointed to the bank's board of directors on July 9 last year, it would appear that his mortgage pre-dates his appointment. Elsewhere in the section dealing with the loans given to its directors for the purchase of residential properties, Bank of Ireland Mortgage Bank states that Mr Kennedy had an existing personal mortgage of €4.031m on April 1, 2010. By December 31, 2010, that figure increased to €4.211m, the bank's report stated.
The six other current and former Bank of Ireland directors with outstanding mortgages from the bank are: Des Crowley (€496,000); Jerome Kennedy (€425,000); Declan McCourt (€348,000); Paul Haran (€105,000); Heather Ann McSharry (€92,000); Bank of Ireland Chief Executive Richie Boucher had a mortgage of €206,000 on December 31, 2010 last, the report also shows.
In a note covering the terms of the mortgages given to its directors, the Bank of Ireland report stated: "All loans to directors are made in the ordinary course of business on substantially the same terms including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than the normal risk of collectability or present other unfavourable features."
While all the directors' mortgages are declared to be fully performing and up to date, elsewhere in its annual report the bank's mortgage subsidiary reveals how it has suffered a loss of €26.475m at the end of 2010 on mortgages it gave to the country's biggest property developers to invest in trophy homes and personal investment properties following the transfer of those loans to Nama. Taken together, the developers' mortgages were valued initially at a massive €91.64m. They were ultimately acquired by the state agency for a relatively meagre €45.5m.
The transfer of the mortgages from Bank of Ireland's books was required under the terms of Nama's legislation which requires it to take over all of its clients' associated loans along with any land and development loans they have from Irish banks covered by the state agency.
Asked by the Sunday Independent if the developers' mortgages it had transferred to Nama related specifically to their family homes, sources at Bank of Ireland said the loans had been taken both for the purchase of family homes and other investment properties.