AIB AIB's cost of funding in 2012 was less than 3%

[verywhys]

In AIB's press release dated 5th July 2012 AIB's standard variable rate was at 3%.

In this press release AIB CEO, David Duffy states that "Our products need to be priced above our cost of funding to avoid generating further losses for our shareholders." Therefore we now know for sure that AIB's cost of funding was less than 3% at this date.

 

[verywhys]

It does say the mortgage portfolios were loss making.......my mistake

 

[NoRegretsCoyote]

It's perhaps tangential, but banks have operating costs too.

To simplify a bit to make a point, a bank will make losses even if its cost of funding is the same as it charges on its lending.