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BOI's mortgage arrears slowing

THE rate at which Bank of Ireland customers are falling into mortgage arrears is continuing to decrease, the lender said today.

The bank also said 86pc of customers with restructured mortgages are meeting the revised terms.

It remains on target to see its impairment charges fall from the high levels of last year, it said.

However, the pace of this reduction depends on the performance of the bank's Irish residential mortgage book and of commercial property markets.

While the Irish economy has begun to stabilise, challenging conditions remain, it said.

Its customer deposits rose to €74bn at the end of November from €72bn in June, despite a reduction in interest rates.

Since June, the bank has transferred loan assets amounting to €2.8bn to Bank of Ireland UK to facilitate greater balance sheet efficiencies. BOI also reported further progress on extricating itself from the Government's bank guarantee.