(Adds comment from spokeswoman on number of extensions)
DUBLIN, July 31 (Reuters) - Ulster Bank is extending repayment breaks for around 60% of the 12,000 mortgage customers who sought an initial three-month payment holiday due to the COVID-19 crisis, the Irish unit of NatWest Group said on Friday.
Ireland’s banks offered the three-month breaks in March and agreed to extend them to six months for customers in need of further temporary relief as the Irish economy emerges from lockdown at a slower pace than most of Europe.
Ulster Bank had extended 4,000 repayment breaks for mortgage customers by the end of June, according to Friday’s half-year results. A spokeswoman for the bank added that around 60% of mortgage customers were choosing to extend breaks to six months.
“We’re probably where we thought we’d be,” Ulster Bank Chief Executive Jane Howard told Irish national broadcaster RTE in relation to the number of extensions.
Ireland’s central bank has estimated that at the end of May there were almost 200,000 active breaks across Ireland’s five main domestic retail banks, including business customers.
Ulster Bank, the country’s third-largest mortgage lender, was the first Irish bank to provide details of how many repayment breaks have been extended. Its four rivals report first-half results next week.
Ulster, which said it had also provided payment breaks for around 3,000 commercial customers, reported a 276 million euro ($328 million) operating loss in the first half year, contributing to NatWest Group’s 770 million pound ($1 billion) pretax loss.
That was primarily due to a net impairment charge of 278 million euros, part of 2.1 billion pounds in provisions at the recently rebranded NatWest.
($1 = 0.8410 euros)
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.