AIB incurs additional €32m for tracker mortgage scandal

State’s banks have incurred costs of about €1bn to deal with the overcharging debacle

AIB chief executive Bernard Byrne speaking to the media.

Fri Jul 27 2018 - 09:50

AIB took an additional €32 million charge in the first half of the year to cover refunds and compensation relating to the tracker mortgage crisis.

This means that the bank has set aside a total of €262 million since the Central Bank ordered the country’s lenders in 2015 to review their loan books to find borrowers who had been wrongly denied a cheap home loan linked to the European Central Bank’s main interest rate.

The bank revealed the latest charge in its interim report for 2018. AIB revealed in April that it number of customers that were affected by the tracker-mortgage controversy had risen by 1,800 to 5,800.

All told, Ireland’s banks have incurred costs of about €1 billion to deal with the country’s biggest ever bank overcharging debacle.