MORTGAGE ARREARS TO PEAK THIS YEAR - IL&P CHIEF - Irish Life & Permanent has reported an operating loss of €10m in the six months to June this year, compared with a loss of €51m in the same period last year.
Operating profit in its life business in the six months was €118m, 40% higher than in the same period last year. But the operating loss at its banking business was €131m, almost unchanged from €132m.
Chief executive Kevin Murphy said its Permanent TSB bank had 180,000 mortgage customers, with around 9,000 in arrears, mainly due to higher unemployment. He said the bank was working with its customers to manage the situation, and that he expected mortgage arrears to peak by the end of the year.
Asked about the bank's increases in variable mortgage rates - a total of 1.5 percentage points - he said most of these customers had lower levels of repayments as they were older customers.
On IL&P's bid for EBS, Mr Murphy said he expected a decision to be made closer to the end of September. He said IL&P was 100% committed to a 'third force' in Irish banking, and believed EBS's relationship with NAMA would not affect an enlarged group's international image.
He said there had been a pick-up in car finance lending, helped by the scrappage scheme, but mortgage lending was still very weak. Mr Murphy also said IL&P was co-operating into the investigation into its controversial deposits with Anglo Irish Bank, but he had no update on the outcome.
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CURRENCIES - The euro is trading at $1.2650 and 81.8p sterling.
