Paul Murphy
What is the financial health of the bank like?
Masding: Our mortgage share was 2% - it's now in double digits
OUr NPLs is elevated at 28%.
We had to deleverage under our restructuring our plan. We got rid of good assets, so the proportion of our bad loans has increased.
Of the 28% - 15% have been treated but are still NPL
13% - we need to move to resolution - BTL deleveraging, MTR, or voluntary sale.
Cost of risk is coming down, but very high. We have to manage the flow of defaults.
We are operationally profitable and we are growing market share.
Murphy: How many mortgages have you sold?
Masding: WE would have to come back to you with that number. Since the deleveraging restructuring plan, we haven't done any new ones.
Groarke: Primarily Buy to Lets in the UK.
Murphy: What happened the tenants
Groarke: They were performing loans, so nothing would have happened the tenants.
Murphy: 787 is an increase of 90 on last year. ( I think of repossessions and voluntary sales of Buy to Lets)
O'Sulivan: We appoint a Managing Agent. Where there are tenants in place, we abide by the lease and the RTb guidelines
We sell the vacant properties - we don't want to deny people the opportunity to buy properties.
Murphy: You abide by the lease, so you let the lease run out and let the tenant vacate? You are making people homeless.
O'Sullivan: Our obligation is to the borrower to obtain the open market value. And not offering to FTBs or traderuppers would be wrong. In other words, we could not sell it with a tenant in place.
Murphy: Once a property becomes vacant, how long does it remain vacant?
O'sulivan: typically 6 months.
In a repossession, it takes 18 months between exectuting the order and giving notice.
Masding: WE are a bank, not a property company