Ulster Bank: No choice yet on 7,000 loans

By Pádraig Hoare

In charge of Ulster Bank has defended his decision not to attend an Oireachtas financing committee hearing on the tracker home loan scandal previously this month.Gerry Mallon

, who is delegating direct Tesco Bank in the UK, stated he felt it was the “best choice” at the time as other Ulster Bank officials could offer the required info in a more detailed manner.His choice drew intense criticism from TDs and senators, who implicated him of disrespecting the Oireachtas and clients affected by the tracker scandal.Ulster Bank boss Gerry Mallon has actually stated no choice has actually been made on the sale of 7,000 home mortgages in arrears to a foreign fund.Speaking on the back of the bank’s annual outcomes, Mr Mallon said Ulster Bank was “not shooting the starting weapon on any kind of portfolio sale at the minute”, after speculation that a vulture fund might take over 7,000 of its 20,000 mortgages in defaults– a book worth EUR4bn.”We have a level of non-performing loans of about 16%of our total loanbook.

The instructions from the ECB is that the banks need to probably be closer to 5%. “We’ve got a requirement to get down to that, so there will be a series of methods deployed minimizing that overall level of non-performing loans, the very best of which is to get consumers on track to repay their loanings and to have them restructured in a sustainable method.”He stated in 25% of cases,” consumers in arrears are not even engaging”.”Approximately a quarter of the total

in this defaults category are not engaging with the bank at all.

They truly have to do that since it is impossible to discover any kind of sustainable option for them if they are choosing not to even engage, “he said.The expenses of Ulster Bank’s function in the tracker mortgage scandal was a consider it taping an operating loss of EUR151m last year, compared with a EUR24m profit in 2016. Mr Mallon, who is soon leaving to take over the reins of Tesco Bank in the UK, stated it would soon be in a position to confirm the number of more customers were impacted by the tracker scandal.Ulster Bank has around 3,500 determined cases as needing redress and compensation for wrongly being put on more pricey loans.An additional EUR87m has been reserved for redress and compensation, in addition to the already allocated EUR211m.Mr Mallon stated the tracker scandal and the unfavorable promotion had actually not been a factor in his choice to leave the bank.”I was offered a really attractive new role. It wasn’t an opportunity I went seeking. It was an extremely challenging decision to leave,

if that opportunity had actually not provided itself to me, I would have been more than happy to continue, and be proud to lead exactly what is a wonderful team at Ulster Bank,” he said.Mr Mallon stated he had no remorses about not appearing prior to the Oireachtas Finance Committee last month to update TDs and senators on the tracker progress, rather sending out Ulster Bank authorities to deal with questions.His decision to not appear caused relentless criticism from members of the committee

, who accused him of disrespecting the Oireachtas and the people affected by the scandal.” On the subject of tracker mortgages, I have coworkers who supplied that proof comprehensively and much more thoroughly than I could have

. In every case, we have to decide exactly what is the appropriate representation for the bank.”Given that I had just announced I was leaving, we felt it would be more appropriate for others to appear rather than myself,” Mr Mallon said.Meanwhile, Ulster Bank’s owner Royal Bank of Scotland Group(RBS)reported its very first annual profit in a decade. A case being taken by the US Department of Justice against RBS stays on

financiers’ minds, analysts said.Shares were down more than 4 %though the bank surpassed expectations by turning an EUR854m profit.