Bank of Ireland – securitisation of portfolio of non-performing mortgages

Bank of Ireland has entered into a securitisation of a portfolio of non-performing ROI mortgages.

The portfolio has a gross value of c. €350 million, and the proposed transaction is expected to result in a pro-forma reduction in the Bank’s non-performing exposure (NPE) ratio from c. 5.7% at 31 March 2021 to c. 5.3%. The portfolio includes owner occupied and buy-to-let investment properties.

Bank of Ireland has the lowest NPE ratio of any bank in Ireland. However, Bank of Ireland – like all banks in Ireland – is required to hold much more significant levels of capital against NPE mortgage loans than performing mortgage loans. This is capital that could otherwise be deployed in a range of ways, including lending into the Irish economy.

Today’s transaction will assist the Bank in managing the regulatory capital requirements that are applied to NPE mortgages and in meeting regulatory expectations regarding ongoing NPE reduction.
The mortgage loans included in the securitisation are classified as non-performing under applicable European Banking Authority (EBA) and European Central Bank (ECB) Regulatory Guidelines and the average timeframe that the loans have been non-performing is six years. The majority of the loans involved have been restructured and are performing in line with restructuring arrangements agreed between Bank of Ireland and its customers.

Any restructuring arrangements agreed between the Bank and a customer including any alternative repayment arrangements, are unchanged by the transaction. There will be no change to the protections currently afforded to customers under the relevant Central Bank of Ireland statutory codes of conduct, including the Code of Conduct on Mortgage Arrears and the Consumer Protection Code.

Furthermore, there is no transfer of servicing or legal title currently planned in respect of the portfolio and Bank of Ireland expects to continue to service these mortgage accounts. This means Bank of Ireland will remain the contact point for customers in all queries regarding their loan, as is the case today.

Customers do not need to take any action arising from this announcement. However, any customer seeking more information can contact our dedicated customer phone line on 01-6115307. This phone line is available 9:00am to 5:00pm, Monday to Friday, excluding Bank Holidays.