BoI reveals progress on mortgages; Boucher pay expected to be passed
Bank of Ireland has said it is making steady progress in restructuring mortgage repayments for struggling homeowners.
The bank – which is 15% state-owned – released an interim management statement ahead of its annual general court meeting today, where shareholders are expected to endorse the directors’ remuneration.
Finance Minister Michael Noonan has already said he will abstain from voting on the resolution until the bank delivers savings of 6% to 10%.
Its chief executive Richie Boucher was paid more than €840,000 last year in salary, benefits and pension contributions, despite the bank suffering losses of more than €2bn and well over the €500,000 pay cap on bankers’ pay.
Independent TD Shane Ross said ministers’ decision not to vote on pay and to endorse the reappointment of the bank’s board was “quite staggering”.
“This was the government’s opportunity to cast 15% against these outrageous amounts of money,” he added.
Elsewhere, BoI said it has not experienced any adverse impacts on deposit volumes since the expiry of the Government Guarantee Scheme last month and that operating costs remain a key priority despite losing 1,200 staff last year.
The bank stated customer deposits have remained stable and that it has achieved its “steady state” loan volume target of €90bn.
“Our diverse loan portfolios, including those relating to our Irish Mortgage and SME customers, continue to perform in line with expectations and we are continuing to make steady progress in the provision of appropriate restructuring arrangements to co-operating customers who have difficulties meeting contracted loan repayments,” it said.
“We continue to expect that impairment charges will reduce from the current elevated levels trending over time to a more normalised impairment charge as the Irish economy recovers.”
Labour minister Pat Rabbitte defended Mr Noonan's decision not to intervene.
“The Government fixed a cap of €500,000 in respect of the banks over which the minister for finance had some control,” he said on RTE.
“In the case of the Bank of Ireland that’s not the case, the minority stake of 15% does not entitle the minister to intervene in that way.
“I can perfectly understand how people think that is an unconscionable remuneration package in any bank given the hardship that the banks of this country have inflicted on the people of this country.”
