90% of BOI customers with restructured loans are meeting their commitments

Up to 90% of Bank of Ireland’s 20,000 mortgage customers whose loans are currently in restructuring mode, are meeting their commitments, the company revealed yesterday.

As part of the Bank’s better than expected first half financial results, an impairment charge of €444m relating to customer loans was noted; €336m, or 43%, lower than the first half of 2013. The bank attributed lower impairments to an improvement in asset quality.

BoI’s new lending volumes — relating, solely, to its Irish business, and excluding tracker mortgages — amounted to just over €2.5bn during the six months; making the bank the largest lender in the Irish market. The impairment for residential mortgages was €88m, down by €163m on this time last year. Improved household incomes and economic conditions have seen a significant reduction in the number of default arrears in owner-occupier mortgages.