Mr. Stephen Mason:

We have made significant progress in the resolution of mortgage arrears. We point out that the number of Bank of Ireland private dwelling-house accounts and balances in arrears decreased in 2013, and this positive trend has continued in the first quarter of 2014. The pace of increase in buy-to-let arrears accounts and balances slowed significantly in 2013 and stabilised during the second half of the year, and that overall trend improved in the first quarter of this year, with a reduction in buy-to-let accounts and balances. Nine out of ten of our PDH, private dwelling-house, accounts are up to date and eight out of ten of our buy-to-let accounts are up to date. The significant improvement in arrears trends during 2013 and to date in 2014 reflects the effectiveness of the group's operating infrastructure, the restructuring of customer mortgages on a sustainable basis, mortgage resolution activity and improving economic conditions. Bank of Ireland has one in five PDH mortgage accounts in the market while accounting for approximately one in ten of PDH mortgage accounts greater than 90 days in arrears. We also exceeded all our mortgage arrears resolution targets set for the end of the year. Bank of Ireland PDH mortgage accounts in arrears of greater than 90 days are running at fewer than half of the industry level. Our figure is 6.9% while that of the industry excluding Bank of Ireland is 14.1%. The graph attempts to show that proportion has improved year on year. In 2009 we were at 67% of the average, and this figure has fallen year on year down to 49% of the average, which is a reduction of 27%. Our figure was 53% of the average on the last occasion we appeared before this committee. We have improved again against the market in the short time since we were last with the committee.

Our percentage of PDH mortgage accounts in the market has risen over four years from 20.1% of the market to 21% of the market. This confirms our message of being open for business.

Page 26 of the presentation shows the forbearance stock on our book. In 2013 we offered forbearance to nine out of ten customers who, through completing an SFS with us, showed they had potential difficulties or were in difficulty. Eighty-six percent of our restructures are meeting the terms of their arrangement. The Central Bank figures show that the equivalent figure for the remainder of the industry is 77%. Our focus has been on concluding solutions with customers, and we have had to meet targets on proposed and concluded solutions. On the number of proposed solutions for PDH customers, we have proposed solutions to 64% of people against a target of 50%. We have achieved concluded solutions with 40% of PDH customers, against a target of 15%.