Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

Regarding mortgage interest, I will ask a positive question with a negative twist. Why did AIB reduce its variable rate? Permanent TSB was the last bank to present to us. Of it, Bank of Ireland and Ulster Bank, none has dropped its rate. Bank of Ireland has a net interest margin of 2.08%. Ulster Bank has a net interest margin of 2.32%. Permanent TSB's margin is low at 0.88%. AIB's figure is 1.6%. Mr. Brown of Ulster Bank told the committee this morning of his belief that banks should be trying to achieve something in the order of 2.5%. My question is leading, but I am giving a context. I welcome AIB's reduction and reasonable net interest margin, but the reduction could have an impact on the margin. Why did it do this?