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AIB makes further €300m provision for tracker mortgage scandal

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AIB has made a provision of €300m to cover compensation due to some customers that had the option of a tracker mortgage.

The bank said that following a preliminary decision issued by the Financial Services and Pensions Ombudsman the redress may be due.

It added that discussions are “ongoing” with the Central Bank with regard to potential appropriate treatment of this group of almost 6,000 customers.

AIB had previously offered this group of consumers €1,615.

The provision will be taken into its 2019 results.

The board of AIB expects to propose an ordinary dividend in line with its approach of between 40-60pc of earnings, subject to regulatory approval.

The group maintains a capital position above regulatory capital requirements and will record a CET1 ratio in excess of 16pc at 31 December 2019.

To date AIB has paid out €272m in respect of the tracker mortgage scandal.

In July last the year the bank said its final payments to customers in respect of the scandal were “almost complete.”

The regulator here fined Permanent TSB €21m in May 2019 for regulatory breaches that affected thousands of tracker customers. It was the first bank that received a fine in respect of the scandal.

More to follow

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