Impaired mortgages in Haven up 20pc
ABOUT a fifth of the value of home loans at EBS subsidiary Haven Mortgages have gone bad. Impaired residential loans increased to €214.5m, or 19.3pc of the firm's loan book, new figures show.
The total loan book stood at €1.1bn. EBS established Haven Mortgages Ltd in late 2007 with the purpose of expanding the EBS's presence in the intermediary mortgage market.
Accounts just filed show that the firm recorded a profit of €14.8m in 2012 in spite of a further €16.6m writedown in loans. The profit – which followed a loss of €20m in 2011 – arose mainly from an exceptional one-off gain of €25m.
The total interest income amounted to €14.7m compared to €18.8m in 2011 and the directors state that the decrease arises due to a reduction in the loans to customers balance and a reduction in average mortgage interest rates.
The directors say that Haven's share of the intermediary market – which accounts for 18pc of the overall mortgage market in 2012 – fell from 4.7pc to 0.6pc in 2012.
"This percentage reflects our reduced appetite for mortgage business during a very challenging year," the directors said.
They said they expected the operating environment to remain difficult throughout the year.