AIB makes 300 million euro provision for mortgage tracker redress

LONDON (Reuters) – AIB Group (I:) has set aside a further 300 million euros ($331.53 million) to cover possible compensation owed to customers caught up in Ireland’s mortgage tracker scandal.

In a statement on Tuesday, the board of the Irish bank said it had set aside the sum after acknowledging that “redress may be due to a previously identified group of customers who had an option of a prevailing tracker rate”.

AIB said it was in discussions with Ireland’s Central Bank with regard to potential appropriate treatment of this group of customers.

Thousands of Irish homeowners have been paid compensation by banks in recent years after regulators discovered mortgage lenders had systemically overcharged on home loans that should have been switched to cheaper rates.

The provision will be taken in the bank’s 2019 financial results.

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