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Investor Presentaiton

Irish residential mortgage arrears are improving across all duration categories; environment still dysfunctional Mortgage Arrears (90+ days) 120 PDH Arrears (by thousands) Total Restructurings Reduced Payment, 7.0% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 09 10 11 12 13 14 15 16 17 PDH + BTL (by number) PDH + BTL (by balance) Source: CBI 100 80 60 40 20 20 Split Mortgage, 22.6% Term Extension, 12.5% Capitalised 0 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 09 10 11 12 13 14 15 16 17 Other*, 22.3% arrears, 31% Over 90 days >720 days ■361-720 days 181-360 days ■90-180 days Interest Only, PDH mortgage arrears have fallen steadily since 2013. The smaller BTL market (c. 25% of total) has higher arrears but also saw declines in the same period. 121K PDH mortgage accounts were classified as restructured at end Q1 2017. Of these restructured accounts, over 85% were meeting the terms of the restructured arrangement. Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta National Treasury Management Agency * 'Other' comprises accounts offered temporary Interest rate reductions, payment moratoriums and long-term solutions pending six months completion of payments. 76
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