Lloyds Banking Group Plc wants to sell its remaining Irish mortgage portfolio valued at more than €5 billion in a bid to completely exit the Irish market, The Irish Times reported Nov. 22.
The British lender had €5.1 billion in Irish retail loans by 2016-end, the newspaper noted, citing stock exchange filings. The figure, however, increased by £457 million in 2017 after the sterling fell against the euro.
A small part of the portfolio is impaired, with only 3.5% subjected to forbearance by the bank which makes the book attractive to buyers in Ireland, The Irish Times noted. However, the newspaper said that a large chunk of the loan book comprises long-term interest-only mortgages, while 27.8% were in negative equity by December 2016-end.
The deal would reportedly be the biggest Irish mortgage portfolio sale to date if Lloyds sells its loan book in one transaction.