The Central Bank yesterday published a progress report on its Tracker Mortgage Examination. The report finds that as of mid-December, approximately 33,700 customers have been accepted by lenders as affected by tracker mortgage failings.
In October, the Central Bank provided an initial update showing c,13,000 customers had fallen under its current industry-wide review at the end of September 2017 as eligible for redress. Its progress report yesterday highlights a further 13,600 customers were added in the fourth quarter, bringing the like-for-like total to 26,600.
However, the Central Bank report also flags an additional 7,100 customers previously remediated by banks prior to the current review, so a total of 33,700.
Bank of Ireland had already flagged in mid-November a c.6,000 increase in the fourth quarter, out of the 13,600 total increase since September. As such, the real update in the progress report is the c.5.3k rise at AIB and 2.5k rise at KBC. PTSB is unchanged and indeed BOI is actually slightly smaller than previously guided. Whilst there has been a large increase in the number of impacted customers at AIB, the potential cost is flagged in the single digit millions.
In a report today, Goodbody Stockbrokers noted, "Whilst a further update is due from the Central Bank in March 2018, we note the comments that it is of the view “that the vast majority of customers have been identified”. Whilst the number of impacted customers may still drift up further, we believe the delta on any potential incremental costs for the banks is reducing."