Mr. Jeremy Masding:

Repossession is always a last resort. The facts bear this out. Since the start of 2015, we have taken possession of 54 properties while customers have decided to voluntary surrender properties in a further 204 cases in that period. That said, there is no easy solution. There is no way around the problem that does not involve intense engagement with customers and agreeing new arrangements such as split mortgages that reduce each customer’s monthly repayment to a level that he or she can afford. The number of customers in arrears on their primary dwelling home has fallen by around 50% from its peak in September 2013. It is an area that continues to require careful attention but one in which the group is making good progress.

I will conclude with some comments on our capital position and the Europe-wide stress tests. We showed with our first-half results that we are capable of generating capital organically. That is a key indicator of the group’s long-term viability. The members may recall that we successfully raised more than €500 million in private capital last year when we completed our initial public offering, IPO, on the Irish and London stock exchanges and enabled the State to get some of its money back and reduce its shareholding from 99% to 75%. Our capital position is strong and our business case is that it will improve further over time. The bottom line, and the most important test for me and my management team, is that we were not required to raise any further capital following the recent stress tests unlike in 2014, but our capital levels, like those of every other bank, are subject to intense scrutiny by our regulator and the wider investment community. We welcome the scrutiny of these tests as it offers us the opportunity to demonstrate that we are a solid, viable, competitive bank. In our recovery journey, we have met every challenge that has come before us and we are cautiously optimistic that we will continue to build on the enormous progress we have made.

Before I conclude, I should introduce my colleagues. I am joined by Mr. Shane O'Sullivan, the managing director of our asset management unit, Mr. Ger Mitchell, the director of our group product review group, and Mr. Stephen Groarke, the group's chief risk officer. My colleagues and I will be happy to answer the members' questions.