December 20, 2016 / 11:41 AM / a year ago

Net income unsustainably low at some Irish lenders - central bank

DUBLIN (Reuters) - The long-term sustainability of Irish banks’ business models depends on generating sufficient net income but some lenders ability to do so remains unsustainably low, Irish Central Bank Governor Philip Lane said on Tuesday.

Philip Lane, Governor of the Central Bank of Ireland speaks at a Reuters Newsmaker event in London, Britain October 28, 2016. REUTERS/Toby Melville

“To date, there has been a mixed performance: some banks are still contracting, while others are growing slowly in certain areas like consumer lending or fixed-rate mortgages. This is reflected in recurring pre-provision net revenue remaining unsustainably low for some,” Lane told a parliamentary committee.

“This is driven, in part, by institution-specific challenges; part is also due to aggregate trends as their main customers – households and firms – are in aggregate continuing to pay down debt, which should be welcomed from a financial stability perspective.”

Reporting by Padraic Halpin. Editing by Jane Merriman

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