Mr. Shane O'Sullivan:

As Mr. Masding suggests, I will discuss each of the slides and I hope that will provide a very good context for the discussion thereafter. The first slide sets out in detail our submission to the Central Bank regarding the mortgage arrears resolution targets. The total number of treatments offered in the period to the end of June was 6,650. That enabled us to present a position of 26% versus the 20% target. The denominator is just over 25,000 customers who were in arrears greater than 90 days on 31 March. The breakdown of that 6,650 is as follows. There were 1,500 short-term treatments and 2,750 long-term treatments made to customers in arrears. There were a further 800 treatments that we deemed to be assisted voluntary sale and there were legal proceedings in 1,600 cases. I will talk a little more about each one of the clusters.

The short-term treatments are treatments that we believe are sustainable and appropriate to customers which help them over a short period, typically six months, to rectify and work with us on the situation they are facing. We believe that solution delivers sustainability over the long term and that no more than a six month, short-term treatment is required. Those treatments typically can include a moratorium where no payment is made at all.

Another option might be to pay an amount of money that is less than interest only. A further option might be to pay interest only. A final option might be to pay interest only and a little more. There were 1,500 of those treatments in our submission and they account for 23% of our total count.

To move on to the long-term treatments, we offered 2,750 treatments to the half year and they comprise a number of different types of treatment. We offered 1,000 split mortgages, 600 parked capital and interest, 750 interest only or capitalisation and 400 term extensions. Again, if I may I will give a flavour of what those treatments are like in reality.

Members are familiar with the split mortgage. A portion of the mortgage is parked or warehoused. No interest applies on that and no payment is due on that amount, while the remaining part of the mortgage continues as was. The parked capital and interest treatment is for situations where customers can pay not only the interest only but they can make a contribution to some of the capital. What that means is that at the end of the term there is probably a bullet payment required to repay the capital that has been parked or not paid during the term.