Business Irish

Tuesday 25 June 2019

BOI customers paid €130m in relation to tracker mortgage scandal - CEO Francesca McDonagh

Bank of Ireland CEO Francesca McDonagh
Bank of Ireland CEO Francesca McDonagh
Donal O'Donovan

Donal O'Donovan

Bank of Ireland chief executive Francesca McDonagh says customers have accepted €130m in compensation and repayments so far in relation to the tracker mortgage scandal.

The issue was the first question raised from the floor of the bank’s sparsely attended annual general meeting in UCD in Dublin today.

It is newly installed ceo Francesca McDonagh’s first shareholder meeting, and the last for outgoing chairman Archie Kane.

In response to a shareholder question, Ms McDonagh said understanding the tracker issue had been a key issue for her since taking up the role last October.

She said 9,300 customers had been directly impacted by the issue, including 3,200 who’d suffered “relatively small” issues around the rates they were charged on home loans.

A bigger cohort of 6,000 customers had a right to a tracker deal but were not properly offered such deals. Most affected customers have been contacted and offered compensation, Ms McDonagh said.

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“As of last week we had contacted 97pc of all those affected,” she said.

The bank took a provision of €170m in 2017 to cover the costs of compensation and redress, she said.

So far, the bank has made offers of €130m so far to those affected, and most customers have accepted, Francesca McDonagh said.

Long-time Bank of Ireland shareholder Charles Lysaght said shareholders should be provided with a detailed, and written, account of how the tracker scandal had developed within Bank of Ireland and said it was a blow to the lender’s integrity.

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