AIB Group agreed to sell a non performing loan portfolio to Everyday Finance DAC for â¬0.8bn as the bank seeks to rein in its non performing exposure.

The company said it remained on track to cut its non-performing exposure (NPE) to about 5% by end 2019.

The sale was part of a consortium arrangement with Everyday and affiliates of Cerberus Capital Management.

The loan portfolio had a gross NPE value of â¬1b and a fully loaded risk weighted assets position of â¬0.75bn. In the year to December 2018, the loan portfolio incurred a loss of â¬11m.

At completion, AIB would receive cash consideration of approximately â¬0.8bn, with the proceeds expected to be used for ;general corporate purposes including the continuation of support for customer restructuring, the company said.

The conclusion of the transaction would be capital accretive, it added.

At 8:05am: (LON:AIBG) AIB Group Plc share price was +0.04p at 4.04p