ALMOST 4% OF IL&P MORTGAGES IN ARREARS -Permanent TSB bank made an operating loss of €270m last year, compared to a profit of €30m in 2008. Profits elsewhere in the group resulted in an overall loss for Irish Life and Permanent of €196m. Its profit the previous year was €341m. Almost 4% of mortgages at the bank were in arrears at the end of 2009, and 22% of mortgage accounts are in negative equity.
Kevin Murphy, Irish Life and Permanent's chief executive, said the restructuring of the group - which was completed in January - meant it was well positioned to participate in any consolidation which might take place in the Irish market in the coming months. He says the group is expecting 'significant restructuring' of the Irish banking industry. He says that the major talks on a possible 'third banking force' will not take place until the second quarter of 2010 given all that is going on with NAMA at the moment. He points out that many of the institutions involved have to be recapitalised yet.
In respect of arrears in the bank's Irish mortgage book, Mr Murphy said Permanent TSB was working closely with customers in financial difficulty to agree realistic repayment schedules. He said that the problem of arrears is a real and painful one for customers and said the bank is working closely with customers to agree realistic repayment terms for those in financial stress. He said that IL&P has about 200,000 mortgages customers and about 7,000 of those are in arrears with about 3,000 in significant arrears/
On interest rates, the IL&P boss says that the group has already made substantial changes in its rates - one in September and one in January - and does not intend to review its rates again until the middle of the year. He says the rate increase decisions were difficult decisions to make but reflected the cost of raising deposits in Ireland today.
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MORNING BRIEFS - Insurance group FBD has reported operating profits of €28.9m for the year ending 2009, down from the €65.8m seen in 2008, as the company was hit by an unprecedented level of weather related claims and the economic decline.
*** On the currency markets, the euro is trading at $1.3622 cents, and 90.82 pence sterling.
