Ulster Bank will look at the sale of bad mortgages

  • Ulster Bank will look at the sale of bad mortgages
    Independent.t. E.
    Ulster Bank will consider further distressed sales of mortgage loans after completion of removal of problem loans 6,500 later this year.
    https://www.independent.ie/business/irish/ulster-bank-will-look-at-more-sales-of-distressed-home-loans-37183298.html
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Ulster Bank will consider further distressed sales of mortgage loans after completion of removal of problem loans 6,500 later this year.

Interim chief Executive Paul Stanley said that the Bank will assess the €1.6 billion of problem loans, the sale after it closes in “Q3 or Q4” this year, as well as the pace of solving the problems of the mortgage loans to the Bank yourself before making a decision.

The Bank is under pressure from European regulators to cut its stock of bad loans for 5pcs of all loans by the end of next year.

“We are still working on the book at this point, I would not rule,” he said.

He was speaking after the Bank announced operating profit of €100 million over the six months to 30 June, significantly an increase of 12 million €reported in the same period last year. The performance was due to several one-off items and 9pc (€10 million) reduction in operating expenses, the Bank said in a trading update.

The Bank was behind its traditional mortgage market shares in the coming year, Stanley said, but has recovered and is now expecting further recovery in the second half after the introduction of the 2.3 PC two-year fixed rate – the cheapest on the market in June.

Pricing that reduced level is acceptable to the Bank, given its cost of capital, he said.

Ulster Bank was not asked to consider any potential partners in the merger of the European Central Bank (ECB) or officer in Dublin, he said.

It was in response to the report in the newspaper ‘the times’, Danielle Nui, head of the Supervisory Board of the European Central Bank, expressed the view that permanent TSB and Ulster Bank to be merged at a meeting with officials from the Department of Finance in April.

The ECB in Europe has been talking about consolidation in General terms, Paul Stanley said, and Ulster Bank will review the potential transaction, he added.

However, not a proposed merger is under discussion, the interim chief Executive said.

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