Brendan Burgess
Founder
- Messages
- 52,122
€175 million that isn’t related to the AIB prevailing rate? Is that another cohort that has been deemed impacted?From their trading statement today
We expect to incur exceptional costs in 2020 in the range of €150-€175m including costs relating to restitution and operating costs associated with the tracker mortgage examination programme as we work through the enforcement phase. With regard to our decision to apply an award made by the Financial Services Pensions & Ombudsman to c. 5,900 customers, there is no change to the provision taken in 2019.
This does not relate to the Prevailing Rate issue. They provided €300m for that against the 2019 accounts.
This is a new provision for other cases as they realised that what they had provided in previous years was not enough.
Brendan
Hi B
I would say it is unlikely that they have discovered another cohort.
But it is mysterious.
Brendan
My reading of the statement is that this money is not related to the prevailing cohort at all. My opinion is that it is more likely related to implications of recent FSPO decision/s we haven’t heard about yet.Possibly the two points aren't mutually exclusive, AIB could be happy with the accrual of €300mn as of the end of 2020 and still provide additional costs for the same cohort in the current financial year, which might emerge since they are focused on July/August as releasing the letters/refunds etc. That would allow AIB a little wriggle room in their financial results to the half year. Maybe this relates to cases they could be willing to settle on the steps either, or the genuine hard luck cases already in front of the FSPO that are on hold.
They certainly aren't fans of releasing too much information around the issue one way or the other.
Hi B26354, not getting my hopes up too much but maybe it is another cohort within the AIB group. €175 million is a lot of money but €300 million is meant to cover 5,900 people, how many would be covered by €175 million i wonder.My reading of the statement is that this money is not related to the prevailing cohort at all. My opinion is that it is more likely related to implications of recent FSPO decision/s we haven’t heard about yet.
Roughly 2500-3000 customers based on previous figures from AIB.Hi B26354, not getting my hopes up too much but maybe it is another cohort within the AIB group. €175 million is a lot of money but €300 million is meant to cover 5,900 people, how many would be covered by €175 million i wonder.
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