Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The bank's current rate in respect of NPLs is 10.3%. We have heard from a number of other banks that they have attached particular significance to the end of this year. Has that been communicated to Ulster Bank? Is there a figure it needs to reach or is there pressure on it to reduce the number of its NPLs significantly by year end? That would most likely only be achieved by way of a step change reduction through a portfolio sale. Ulster Bank has already undertaken portfolio sales, but that type of sale is controversial. While the Central Bank, the Department and bank CEOs always tell this committee that protections travel with the loan and the mortgage contract remains unchanged, we have also heard from the Free Legal Advice Centres, FLAC, and the Irish Mortgage Holders Organisation, which have outlined a number of specific instances where they felt that customers were disadvantaged when their loans were sold on. The most significant change is the change in attitude. While Ulster Bank may make every endeavour to reach a restructuring arrangement with a borrower, the same may not hold true for the fund that purchases the loan because that fund takes a much shorter-term view regarding the loan's return. Is there an onus on Ulster Bank to reduce its NPL rate further this year? If so, are further loan portfolio sales on the table and actively under consideration?