Sunday 19 January 2020

Mortgage arrears at Bank of Ireland still increasing but pace falling

Donal O'Donovan

Donal O'Donovan

THE number of mortgages in arrears at Bank of Ireland is still increasing, but the pace of new problems has continued to slow since June, the bank said today.

The comment was part of a trading update to investors released this morning.

Bank of Ireland shares were up slightly on the Dublin market today at 9.27c each after the announcement.

In its trading update the bank said it is ready to exit the government guarantee, and told investors that it expects to see loan losses decrease.

"We maintain our expectation that impairment charges will reduce from the elevated levels experienced in 2011, trending over time toward a more normalized impairment charge as the domestic economy recovers,” Bank of Ireland said.

The bank said its net interest margin- the difference between what it pays to borrow money and what it charges to lend it out again - is likely to improve when figures are published for the second half of the year. It is the key driver of profit for banks.

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