Bank of Ireland considers NPL sales

By Eamon Quinn

The Bank of Ireland has not ruled out the sale of NPLs as it rethinks the best ways to preserve capital and boost profitability, said the Executive Director Francesca McDonagh. carries a lighter burden of soured loans in times of crisis than its rivals and has so far avoided the political outcry that other banks have faced after selling troubled loans to vulture funds this year.

But Francesca McDonagh said that she will not rule out any option, as the bank is making a last-ditch effort to reduce its share of unproductive loans to 5%, indicative target regulators want Irish banks to reach.

Bank of Ireland could probably achieve this goal by the end of 2019 if it were to sell nonperforming loans.

"We are looking at all of our options … and I would not rule out any approach", reducing the non-performing exposures, she told reporters.

We try to arrive at 5% as soon as possible. We are also encouraged by our regulator. We will look at all the options on the table.

"Our position has changed because the regulatory environment in which we operate has also changed," she said.

With 5.9 billion euros, the bank currently holds 7.5% of all its loans clbadified as non-performing. 19659003] Reducing this share to 5% means that Bank of Ireland will continue to work for at least 2 billion euros of unproductive loans.

Speaking to the publication of half-yearly results, Ms. McDonagh said that "In the Irish mortgage loan, expanded its" transformation "program that includes investment in computer systems and the improvement of" "culture of the bank, as well as the improvement of the British company's yields and cost control."

It recorded a pre-tax profit of 500 million euros, up slightly compared to the previous year.

The bank's significant exposure to UK loans is under review since the Brexit vote two years ago. weighing on its

But badysts said shares that fell 2% yesterday came after climbing significantly last week and that the latest results marked early progress for the bank's long-term plans.

Mrs McDonagh said that she Most economists expect the British and Irish economies to continue to grow, regardless of the outcome of Brexit, she said

. The bank said it was focusing later this year on selling mortgage loans through brokers, suggesting that it was not planning to cut mortgage rates anytime soon.