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

AIB has priced the existing customer rate at 4.15% and the fixed rate at 4.15% as well. There is no difference between the fixed and the variable rates. The cost of funding has definitely come down. Am I correct that in January 2015, AIB raised €750 million at a cost of 0.625% and in March 2015 the bank raised €500 million at 1.375%? Both rates are a good bit lower than the current 1.57% cost of funding that the bank uses at present. AIB has been restructured significantly and the rate of 1.57% that the bank is quoting for the cost of funding is basically the 2014 rate for the cost of funding. We represent the ordinary person who goes to the bank and sees that a fixed rate mortgage rate is lower than or equal to the variable rate, which on the face of it does not appear to make sense unless the bank knows that the rates are going to drop and they are possibly taking profit from the variable mortgages at the variable mortgage holder's expense.

The bank is raising funds in 2015 at significantly lower rates than applied in 2014. I cannot see why AIB Bank needs to wait until the announcement of the results for the first six months when it is clearly evident that the bank has factored in that the rates are coming down and the restructuring costs have come down. We meet ordinary people who have mortgages. A situation can arise where a number of people have the same level of mortgage, which is not very large, and the person on a variable rate may be paying €300 to €600 more per month than the person on the tracker mortgage. Mr. Duffy wants to be transparent and fair and my question is why AIB does not reduce the rate now.