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Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: I wish to address NPLs, which constituted a significant component of the opening statement. I presume the figures are fairly depressing from the bank's point of view. They are quite shocking. Some 37% of its overall loan portfolio is non-performing. A significant element of that is comprised of PDHs. Is it €2 billion out of €4.5 billion?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: It is almost half of the bank's entire portfolio. It has not transferred any properties to vulture funds yet. It did transfer some residual balances after properties were disposed of. I know that a suite of options is available. Is KBC Bank Ireland considering looking at NPLs on a case-by-case basis? In instances where it is contemplating selling to vulture funds at a discount of 30%,...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: Everything is relative.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: On page 1 of the questionnaire, there was a reference to the total number of mortgages or private dwelling home, PDH, mortgages that were reported as in arrears of more than 90 days as 3,385.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: Page 3 states that various voluntary and legal surrenders total 1,555, 11% of the total distressed portfolio. What is that 11% of? It is not 11% of 3,385.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: The 3,385 excludes the Central Bank definition of non-performing loans, NPL. KBC Bank has a different definition for those 3,385.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: KBC Bank is using the Central Bank's definition of NPL for the 11% but not the 3,385?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: I was losing track of the numbers a little. With regard to the legal proceeding proposal on page 3, does 921 refer to 921 houses or dwellings that KBC Bank has permission to take back?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: The witnesses are looking for repossession of 921. Is that correct?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: That is of PDHs and buy-to-lets.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: There are potentially 921 properties-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: Approximately 1,000. Are they situations where as far KBC Bank is concerned, it is at the end of the road?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: How many came out of the court process?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: So another 70% are still refusing to engage? When Mr. Mahon says they are not engaging, are they just not responding to anything?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: Does KBC Bank send people into the field to look at houses to see if they are still occupied or half-derelict?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: The 30% Mr. Mahon is speaking about are the 30% of the original 1,000 we are referring to here.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: These are the March 2018 figures. Are the 30% in that figure or is that the figure after the 30% has been removed?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: There are still approximately 700 dwellings about which KBC Bank cannot get any engagement.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: That is despite the fact that the bank knocks on their doors. They are not complying at all. What ultimately happens to those people?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: KBC Bank (10 Jul 2018)

Gerry Horkan: How long does that generally take?

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