Latest news with #nonPerformingLoans
Bloomberg
2 days ago
- Business
- Bloomberg
Bank of Ghana Plans to Cap Non-Performing Loan Ratio at 10% by December 2026
Ghana's central bank is planning to introduce a cap on non-performing loans for the banking industry to restore asset quality after the West African nation's debt restructuring and period of high inflation eroded individuals and companies' ability to repay their loans. The directive to be enforced by December 2026 will cap non-performing loans ratio at 10%, Bank of Ghana Governor Johnson Asiama said in the capital, Accra, Tuesday.
Irish Times
26-05-2025
- Business
- Irish Times
AIB to sell off more bad loans and the US AI group that moved to Ireland
Lender AIB is preparing for a potential sale of a portfolio of non-performing loans, including debt that had soured during the Covid-19 pandemic and never recovered, sources have said. The group of loans had a face value of €500 million and includes mortgages, unsecured loans and small business loans, writes Joe Brennan. One in five Irish workers feels under-appreciated in their current position, according to employee benefits consultants, Aon. But as many as two-thirds are eyeing up a change of jobs over the next year, its Human Capital Employee Sentiment Study finds. Perhaps, they're looking for the flexibility Welsh start-up boss Alen Nelmes is offering – going even further than the four-day week and offering staff the chance to spread their 32 hours over a full seven-day cycle. Pilita Clark examines what that might mean. When Darryl Williams, the founder CEO of cognitive AI company Partsol, was looking at whether to relocate its global headquarters, he decided Ireland offered the right mix of ambition and assurance . That's a rare and valuable combination in a world where both are in short supply, he says as he explains the decision. READ MORE As Donald Trump throws down the gauntlet to the European Union in their escalating trade row, Eoin Burke-Kennedy takes a look at how a similar US approach played out in its relations with China. There's no deal in place yet but, as of now, the outcome is very much a US climbdown, he writes. Finally, Irish small and medium business raised a record €533 million in venture capital in the first quarter of the year – more than double the €237 million raised in the same period last year. But, writes Ciara O'Brien, it was not evenly spread, with companies looking to raise smaller sums losing out. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.
Irish Times
26-05-2025
- Business
- Irish Times
AIB weighs sale of more problem loans with face value of €500m
AIB is preparing for a potential sale of a portfolio of non-performing loans, including debt that had soured during the Covid-19 pandemic and never recovered, sources have said. The portfolio being assembled has an original value of €500 million and could come to the market as soon as the third quarter of this year, the sources said, adding that it includes mortgages , unsecured loans and small business loans. The development comes about 18 months after AIB shifted most of its remaining crisis-era problem loans and signals that portfolio sales will remain a tool for the bank's management of intractable non-performing loans. European regulators introduced rules a decade after the financial crash requiring banks to set aside provisions equal to 100 per cent of a non-performing loan within three to seven years after the default date. That incentivises banks to address such borrowings or get them off their books. READ MORE Bank of Ireland said in a recent trading update that it continues to look at 'organic and inorganic activity' to further improve the quality of its loans. Inorganic activity usually refers to asset sales or purchases. Sources have suggested that Bank of Ireland is unlikely to carry out a transaction this year. Bank of Ireland's non-performing loans ratio stood at 2.5 per cent in March. 'AIB has reduced its non-performing exposure levels from €31 billion in 2013 to €2 billion, or circa 2.8 per cent of gross loans, as of the end of March 2025,' a spokesman for AIB said. 'For customers in difficulty, our focus has been to put in place appropriate and sustainable solutions to help them to get back on track. 'The bank's preference is to provide solutions through customer engagement on a case-by-case basis. AIB continues to support customers through a comprehensive range of forbearance solutions, and we have done so in over 150,000 cases. 'Notwithstanding the considerable progress made to date, we remain committed to maintaining a non-performing exposure level which is in line with European norms.' AIB's chief executive, Colin Hunt, said earlier this month that the bank's financial performance was better than expected in the first quarter of the year, despite fears that Trump administration policies will hit global trade and economic growth. The bank reiterated all of its financial targets for the full year in a trading statement on May 1st, including a key measure of profitability known as return on tangible equity which, it said, would be 'meaningfully ahead' of its medium-term target of 15 per cent. Group chief financial officer Donal Galvin said the bank will be reviewing various economic scenarios, including the impact of international tariffs, as it assesses its loan-loss provisioning before the release of interim results during the summer. 'This is a challenging exercise, given the range of potential outcomes,' he said. He highlighted that a worst-case scenario of a 'credit crunch' assessed as part of its 2024 financial reporting would require about €600 million of provisions. AIB's own economics unit estimates that a measure of the Irish economy known as modified domestic demand, which includes spending by consumers, Government and certain private sector investment, will ease to 2.3 per cent and 2 per cent in 2025 and 2026, respectively, from 2.7 per cent last year. ' The uncertainty created by the dramatic shift in US trade policy and the responses of other key trading blocs is expected to dampen global growth in 2025 and 2026,' AIB chief economist David McNamara said, commenting on the bank's new outlook report published on Monday. 'Given the globalised nature of the Irish economy, we expect significant volatility in GDP (gross domestic product) as exporters seek to get ahead of potential trade restrictions this year. 'For the domestic economy we expect a cooling in growth this year, as ongoing uncertainty dampens consumer spending and business investment growth.' He said: 'Nonetheless, Ireland enters this period of uncertainty from a position of strength, with the economy growing at a robust pace in recent months, while the public and private sectors have built up material financial buffers in recent years.'
