Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Around 11,000 BoI Irish customer accounts on payment breaks

payment breaks

There are around 20,000 outstanding payment breaks in Ireland and the UK, down on the 106,000 initial payment breaks

Just over 11,000 Irish customer accounts with Bank of Ireland (BoI) are currently on payment breaks due to Covid-19.

The total value of these loans is £1.72bn (€1.9bn).

Mortgage accounts make up 6,400 of the total. A further 2,800 belong to small and medium businesses, the bank said in a third quarter trading update.

Customer accounts – unrelated to mortgages – make up 1,900 of those loans.

The number of accounts on payment breaks is 5pc of the bank’s Irish portfolio.

In the UK, where the bank also has a presence, 8,900 accounts are on a payment break, the majority of which are also mortgage accounts.

In total there are around 20,000 outstanding payment breaks in Ireland and the UK, down considerably on the 106,000 initial three-month payment breaks approved by the bank.

Non-performing loans (NPLs) have remained “broadly stable” since the end of June, it added. Bank of Ireland had NPLs of £4.07bn (€4.5bn) at the end of September, equivalent to an NPL ratio of 5.8pc.

The bank said it had experienced higher activity levels in the three months to September 30 compared to prior quarter, with new lending up 59pc.

Mortgage drawdowns in Ireland increased 30pc compared to the second quarter of this year.

It also experienced improved business activity in its UK business.

However, overall new lending of £8.13bn (€9bn) to September 30 was 25pc lower compared to the prior year.

Chief executive Francesca McDonagh warned that recently announced Covid-19 restrictions by the Irish and UK governments combined with Brexit “present continued uncertainty”.

Against this backdrop, our capital position remains strong, she added.

The bank’s voluntary redundancy scheme, which will result in around 1,450 full-time employees leaving the company, is costing the company £152.72m (€169m) to implement.

When completed, it will reduce annual staff costs by about £103.02m (€114m).

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.