AIB Offloads 800 Investment Property Loans

17 May 2018 | 08.21 am

AIB Offloads 800 Investment Property Loans

90% are over two years in arrears

17 May 2018 | 08.21 am

AIB  has sold  a non performing loan portfolio to Everyday Finance as part of a consortium arrangement with Everyday and affiliates of Cerberus Capital Management.

The bank said that the loan portfolio has a gross balance sheet value of €1.1 billion. At completion, AIB will receive cash consideration of €800m.

AIB said the portfolio is characterised by long term arrears, with c.90% over two years in arrears and c.70% over five years in arrears. “This reflects a lack of sustained and meaningful engagement and/or debt sustainability,” the bank commented.

The portfolio mostly consists of investment  properties and excludes private dwelling houses and family farm homes. Consisting of c.800 customer connections, the average balance per customer connection is €1.4m, extending across c.3,700 assets. Typically each customer connection is made up of a number of related borrowers, loans and underlying collateral.

The bank added that the properties being disposed of excludes performing restructured loans. AIB said it will contact impacted borrowers to inform them that their loans are being transferred.

AIB’s non-performing loans totalled €9.2 billion in March 2018. The bank said that 95% of the reduction in NPEs has been achieved through case by case restructuring and working with customers to rightsize sustainable debt based on customer affordability.

“To date we have implemented over 90,000 solutions including over 40,000 private dwelling houses solutions which involved significant debt write-off. We continue to have c.1,500 people working with customers who are in difficulty across the country and our preference remains to provide solutions on a case by case basis,” the bank stated.

 

 

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