AIB has agreed a deal to sell a €1 billion portfolio of non-performing loans to Everyday Finance.

The portfolio consists of about 2,200 non performing loans, with around 95% over two years in arrears and  80% over five in arrears. 

AIB said the portfolio is predominantly underpinned by investment asset properties, and also includes limited agriculture loans. 

It said the average balance per customer loan is €0.5m and the portfolio extends across about 5,000 assets.

The bank said the deal was another important step in its non-performing exposure (NPE) deleveraging strategy, adding that it remains on track to reach about 5% by the end of the year. 

AIB said it has reduced its non-performing loans from €31 billion in 2013 to €6.1 billion at 31 December 2018. 

It said that over 90% of this reduction was achieved through case by case restructuring and working with customers to "rightsize sustainable debt based on customer affordability".