AIB looking at Ulster Bank's tracker book.

[Brendan Burgess]

According to Joe Brennan in today's Irish Times, AIB is hinting that it might buy Ulster Bank's tracker mortgage book.

Has AIB dropped clearest hint yet of its designs on Ulster’s tracker mortgages?

Market Beat: Bank makes all the right noises over excess cash

www.irishtimes.com

Galvin added on the call: “The landscape in Ireland is changing. It has changed so rapidly in 2021. Who knows what other opportunities may present themselves.” Has he dropped the biggest hint yet that Ulster Bank’s €6.5 billion tracker loan book is really in AIB’s sights?

Apparently, he first reported it back in July.

AIB in talks to buy Ulster Bank’s €6.5bn tracker loans

Sources say debt expected to be bought at discount due to low returns

www.irishtimes.com

 

[Ndiddy]

Why would a bank want to take on more tracker mortgages? Is it to get a captive audience for when interest rates have gone up?

 

[RedOnion]

Why would a bank want to take on more tracker mortgages?

To make money...

 

[MrEarl]

There's value in everything - once you buy at the correct price...

Buy a low rate Tracker Mortgage loan book at a discount to face value, and then factor in the opportunity to put some of your excess funding to work (rather than pay to get it at the Central Bank), and then sprinkle the opportunity to do some follow in business with the customer base that you acquire.