MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
  • Mortgages
  • Property Report
MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
    • Mortgage Learning Center
    • Calculators
    • Best Mortgage Table
  • Property Report
    • All Properties
    • Houses For Sale
    • Apartments For Sale
    • Available To View
    • Overseas Holiday Homes
      • Properties For Auction
      • Upcoming Auctions
      • BER Assessors
      • Property Conveyancing Solicitors
      • Pre-Purchase Surveyors
    • Find Agents
    • All Properties
    • Houses To Rent
    • Apartments To Rent
    • Available To View
    • Share
      • Irish Holiday Homes
      • Overseas Holiday Homes
  • New Homes
    • For Sale
    • To Rent
    • Auction
      • Residential Land
      • Commercial Land
      • Farm Land
      • Farms
      • Sites
    • MyHome Living
    • Buyer Advice Hub
    • Property Report
    • Property Price Register
    • Price Changes
  • Mortgages
    • Rental
    • Holiday Homes
    • Commercial
    • Sharing
Advertisement
  • Home
  • Uncategorized
  • AIB to sell off €1.4 billion of property loans
Uncategorized
Nov 28, 2011 - 14:12

AIB to sell off €1.4 billion of property loans

The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share
AIB to sell off €1.4 billion of property loans

AIB is understood to be drawing up plans to sell €1.4 billion of property loans made on homes, offices and shops across Ireland, joining the queue of European banks seeking to unwind exposure to the Continent’s troubled real-estate market.

The State-controlled lender, which is battling to meet capital requirements introduced this year, is planning to hire advisers to devise a plan for disposing of the loans, people familiar with the process said.

A spokesman for the bank told The Irish Times it had no comment.

The sale would mark a step change for AIB as it looks to reduce the balance of non-core loans in its portfolio from €25.1 billion at the end of 2010 to €4.2 billion by the end of 2013 and could open the way for a flurry of disposals.

The portfolio is made up of €1.1 billion of commercial property loans, at least half of which are understood to be distressed. The remaining €300 million is made up of loans on houses and apartments across the country.

Advertisement

Potential advisers are expected to make submissions to AIB by the middle of next week. However, according to people involved, the lender has not yet decided on whether it will sell the loans in a single portfolio deal, or break them up into smaller packages.

One quirk of the AIB portfolio is the small size of the non-performing loans, with some thought to have a face value of little more that €1 million.

The bulk of distressed loans in Ireland have been taken over by NAMA. However, the agency will not take loans with a value of less than €20 million, leaving the lenders to dispose of them.

Both Lloyds and RBS, the UK government-backed lenders, are close to completing large disposals of domestic debt, while Lloyds this week also sold more than £1 billion worth of Australian and New Zealand property loans.

As well as disposing of distressed loans, many European banks are slowing, or, in some cases, suspending, new lending to the property sector.

Advertisement

France’s Société Générale and Eurohypo, the real-estate arm of Commerzbank, have temporarily frozen new lending.

It is unclear what kind of impairment AIB would have to take on the original €1.4 billion value of the loans. The four main banks – AIB, Bank of Ireland, Irish Life Permanent and EBS – are being forced to shed non-core loans to clean up their balance sheets.

Under the EU-IMF bailout programme the banks must remove €70.4 billion of non-core assets from their balance sheets by 2013 to wean themselves off emergency funding provided by the ECB and the Central Bank of Ireland.

Subscribe to our weekly MyHome Living eZine today

Processing your request...

You are subscribed now!

<

  • Tags
  • AIB
  • capital requirements
  • property loans
The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share

Helpful Links

Find your home on MyHome
Read more Articles
Calculate what you can afford to borrow
Welcome to the Retrofit Hub
Advertisement
Advertisement

Related News

What is a Heat Pump?
Uncategorized

What is a Heat Pump?

Feb 27, 2025
Living Cities Initiative
Uncategorized

Living Cities Initiative

Jan 14, 2025
Digital Services Act
Uncategorized

Digital Services Act

Mar 31, 2024
Avant Money and Finance Ireland announce new rates
Uncategorized

Avant Money and Finance Ireland announce new rates

Dec 09, 2021
Average deposit of first-time buyer was €52,000 in first half of the year
Uncategorized

Average deposit of first-time buyer was €52,000 in first half of the year

Dec 07, 2021
Frequent And Popular Searches
  • Buy
  • Rent
  • Featured
  • Property
  • Homes
  • Apartments
  • Property Dublin
  • Property Waterford
  • Property Galway
  • Property Limerick
  • Property Cork
  • Property Kildare
  • Property Meath
  • Houses Dublin
  • Houses Waterford
  • Houses Galway
  • Houses Limerick
  • Houses Cork
  • Houses Kildare
  • Houses Meath
  • Houses Clonmel
  • Houses Wexford
  • Houses Wicklow
  • Apartments Dublin
  • Apartments Waterford
  • Apartments Galway
  • Apartments Limerick
  • Apartments Cork
  • Apartments Kildare
  • Apartments Meath
  • Country Houses
  • Cottages
  • Farms
MyHome.ie Blog
Help
Jobs
About
Equality Guidelines
Brand Safety
Contact
Terms & Conditions
Cookie Policy
Privacy Policy
Digital Services Act
Sitemap
© Copyright MyHome.ie 2025
Advertisement