Friday 24 November 2017

AIB has reduced bad debts by €18.4bn since 2013 peak

AIB chief executive Bernard Byrne
AIB chief executive Bernard Byrne
Michael Cogley

Michael Cogley

AIB has reduced bad debts by €18.4bn since its peak in June 2013, representing a reduction of 63pc over the three-year period.

New lending drawdowns at AIB increased to €4.7bn in the nine months to the end of September, rising 15pc on the same period last year.

The State-owned bank expects regulatory costs related to the Banking Recovery and Resolution Directive, the Deposit Guarantee Scheme, and the Bank Levy to rise to €108m in 2016.

AIB chief executive Bernard Byrne said the institution is trading in line with expectations.

“We have strong underlying profitability, a robust capital base and an improving risk profile. This positions the Group well for future opportunities and challenges in a growing Irish economy.

“We are continuing to invest to support our strategic priority of creating better customer experiences through a simple and efficient operating model,” he said.

Mr Byrne also said the bank had paid a further €1.8bn in capital and interest to the State in July on the maturity of the Contingent Capital Notes.

AIB’s market share in the mortgage, personal, and business lending sectors has improved this year.

The group now claims 35pc of mortgage drawdowns across the country, 21pc of personal lending, and 44pc of business current accounts.

The bank’s Nama Senior Bonds fell to €2.5bn in the year to date, a trend it expects to continue into 2017.

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