Bank of Ireland BoI at the Oireachtas Finance Committee

Brendan Burgess

Founder
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37,508
opened 2 new branches
Expanded our cash services

We need to reduce our NPLs , even though we have the lowest NPL ratio of any Irish bank.
 

Brendan Burgess

Founder
Messages
37,508
I missed Pearse at the start.

I came in when he was saying that the tracker issue was not resolved but welcomed the fact that they were meeting a group representing staff.

Now he is asking about bank charges.

You have 47,000 customers on SVRs . Are you willing to reconsider the strategy of a very high SVR?

Francesca
We are focussed on our fixed rate strategy. We built our market on that. That is a market trend. Customers like the security and clarity. We have been reducing our fixed rates by a 1/3rd in the last three years.

As well as the annual requirement, we have also written to our customers on SVRS.

18,000 moved from a SVR to fixed in 2018 (Might be 8,000?)
7,500 moved in 2017

Brendan
 
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Brendan Burgess

Founder
Messages
37,508
Michael McGrath
I want to pick up on Pearse's questions about mortgage rates.

BoI:

47000 are on a variable rate 25% of your total
How many are on the 4.5%
38,000 are PDHs
9,000 are BTLs

I will respond on the product background.

Is there any more that the bank can do? 4.5% is bordering on criminal . Ulster is as low as 2.3%. Even Finance Ireland is cheaper than you. It's not a pretty picture.

Francesca
The 4.5% only applies to 80% to 90% LTV ( BB: no it doesn't)
We go beyond the minimum requirement. We go the extra mile.
And with cash back , which our customers do like.

Any of the 200 new staff on the front line can talk about mortgage pricing. We certainly encourage any customer on a variable rate whether with BoI or another bank to talk to us.

McGrath
I bet you have many customers with a low LTV on 4.5% who have not been proactive (good man)
You have long standing BoI customers payin 4.5% and that's just crazy.

The public debate is useful to encourage people to check their rates. It's amazing how few people don't know what rate they are paying.
 

Brendan Burgess

Founder
Messages
37,508
McGrath:
You don't do risk based pricing

You say mortgages in Ireland need to be more expensive.

But you charge the same for all LTVs

Francesca
That is not true. On over 5 years fixed, the rate is 0.2% higher for higher LTVs.

We want simplicity in a competitive market

The 2.9% fixed rate is very attractive to FTBs.
 
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