AIB sells €400m in non-performing loans to Everyday

AIB says the deal is an important milestone in reducing its non-performing exposures to below 5%

The loan portfolio incurred a loss before tax and post-provisions of €46m last year.

AIB has agreed to sell a non-performing loan portfolio in long-term default to Everyday Finance

The portfolio includes loans with an average time in default of nine years. AIB said the deal substantially resolves their legacy, long-term default loans and would reduce its non-performing exposures (NPE) from 4.4% to 3% by the end of 2023.

Everyday Finance, as part of a consortium that includes Everyday, affiliates of Cerberus Capital Management and LCM Partners will pay €400m in cash for the loans. AIB said the proceeds will be used for general corporate purposes, including the continuation of support for customer restructuring. 

The loan portfolio incurred a loss before tax and post-provisions of €46m last year.

AIB's CEO Colin Hunt said: “Agreement of this transaction is an important milestone for AIB as it reduces the NPE ratio to well below 5%, resulting in a proforma NPE ratio of 4.4% at Q1 2022."

"It demonstrates further progress as we move towards closing out legacy items this year while maintaining momentum in the delivery of our strategy," he said.