Bank of Ireland Group PLC said Friday that it has entered into the sale of a portfolio of non-performing mortgages with a gross carrying value of around 344 million euros ($409.6 million).
The Irish lender said it expects to complete the sale on June 25. It will be completed via securitization of the portfolio, which is composed of non-performing retirement-interest-only mortgages predominantly secured on owner-occupied and buy-to-let investment properties.
The transaction is expected to increase the bank’s common equity Tier 1 ratio–a measure of a bank’s financial strength–by around 15 basis points, with net interest reduced by around EUR5 million on a full-year basis.
The mortgages will still be maintained by the Bank of Ireland, but won’t be recognized on the balance sheet.
Shares at 1317 GMT were down 28 European cents, or 5.6%, at 475 cents.