Wednesday, September 04 12:14:39
The number of Bank of Ireland customers in "early arrears" fell in June, July and August, the bank's chief executive Richie Boucher told a Dail Committee today.
He added that nine out of ten of the bank's loans are performing.
Speaking at a meeting of Oireachtas Joint Committee on Finance, Public Expenditure and Reform, Mr Boucher said the bank exceeded a Central Bank 20pc target to restructure mortgages in debt.
He said that while the bank's impairment charges remain elevated, they are falling and are expected to reduce further.
The bank said that out of 11,774 customers in default by the end of March, more than half had either entered into a legal resolution process or were in a restructuring process.
The Bank of Ireland boss said the bank can offer solutions to more than 80pc of customers in default if they engage with the bank.
The "vast, vast bulk" of Bank of Ireland's mortgages in default were tracker mortgages, the Finance Committee heard today.
Commenting on how the bank dealt with split mortgages for both defaulting tracker and variable mortgage customers - as a possible remedy for default - Mr Boucher said any forebearance was a cost to the bank.
Mr Boucher said that if the bank could not recoup this cost it meant it could not lend. He said the bank dealt with the issue of whether to give a split mortgage on a case by case basis.
He said he could not make a promise that it would offer different types of split mortgages to defaulting customers who were on variable as opposed to tracker mortgages.
Committee chairman Ciaran Lynch said the bank did not offer to "warehouse" interest on a mortgage in default when offering a split mortgage to customers, which he said was a different approach taken by other lenders.
Mr Boucher is facing questions from TDs about the bank's plans for sustainable, long-term solutions for homeowners in mortgage arrears.
Members of the committee complained that they did not receive the details in advance and said the bank's figures were not clear.