Saturday 21 April 2018

AIB makes the handling of arrears a 'clear priority'

AIB does not anticipate needing any further bailouts from taxpayers
AIB does not anticipate needing any further bailouts from taxpayers
Donal O'Donovan

Donal O'Donovan

AIB IS setting up a new internal leadership subgroup in an effort to speed up handling of arrears cases, the Irish Independent has learned.

The news comes as the bank successfully raised €500m on the markets, by placing new debt backed by credit card debt with investors – the first deal of its kind for an Irish bank since the bust.

Yesterday, chief executive David Duffy told staff in an internal memo that "accelerated resolution of the arrears challenge" was now the "clear number one priority" for the bank.

" ... .Our ability to deal fairly, transparently and quickly with our customers in difficulty will have a significant bearing on AIB's performance and brand for many years to come," he said.

Mr Duffy said he had established a new "leadership subgroup" to tackle the mortgage situation.

The new group is made up of Brendan O'Connor, who, as head of AIB's financial solutions group, has primary responsibility for the internal bank unit handling distressed debt cases; Anne Boden, the bank's chief operating officer; Bernard Byrne, who runs AIB's "customer and distribution" business; and chief risk officer Peter Rossiter.

AIB, along with the other main banks, is under pressure to meet a Central Bank target to have offered a "sustainable" debt deal to half of all customers in long-term arrears on their home loans by the end of December.

Irish Independent

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