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(Alliance News) - AIB Group PLC said Tuesday, following discussions with Irish regulators, it may have to issue a redress to certain customers who had an option of a prevailing mortgage tracker rate.
Allied Irish Banks has created a provision of EUR300 million, which will be taken in 2019.
"The board also recognises it is in the interests of the group, our customers and our other stakeholders to bring this matter to a resolution and discussions are ongoing with the Central Bank of Ireland with regard to potential appropriate treatment of this group of customers," the lender added.
AIB noted it set aside the provision following preliminary discussions with the Financial Services & Pensions Ombudsman in Ireland.
The bank still expects to propose its dividend in line with its guideline of between 40% to 60% of attributable earnings. AIB stressed it maintains a capital position above regulatory capital requirements and expects its CET1 ratio to be higher than 16% at at the end of 2019.
AIB is scheduled to release its 2019 results on March 6.
By Paul McGowan; paulmcgowan@alliancenews.com
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