The Central Bank of Ireland has imposed a record fine on Allied Irish Bank (AIB) for breaching regulations that affected tracker mortgage customers.

Dublin-based bank AIB and its subsidiary EBS were fined €83.3m and €13.4m for the lapses.

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In a statement, the central bank said that it imposed the fine on AIB for failings related to the treatment of tracker mortgage customers who held 10,015 mortgage accounts between August 2004 and March 2022.

Breaches in EBS affected a total of 2,830 mortgage accounts between August 2004 and June 2020.

AIB admitted to 57 separate regulatory breaches, while EBS admitted 36.

The central bank also noted that thousands of customers were overcharged for the lapses, with some even losing their properties including homes.

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Central Bank Enforcement and Anti-Money Laundering director Seána Cunningham said “The Central Bank has imposed a significant fine on AIB in respect of serious and long running failings in meeting its obligations to its tracker mortgage customers. The consequences of AIB’s prolonged failings were serious and included significant financial strain and distress for those affected and their families.

“Our investigation found that when AIB withdrew its tracker mortgage offering there was no proper regard or concern for the impact on its customers. What followed was a litany of failings where customers were wrongly denied their tracker entitlements and others lost their tracker rates due to AIB’s deficiencies in its provision of day to day mortgage services.”

AIB and EBS are also required to pay €125m and €105m as compensation to the impacted customers.

Other Irish banks were also fined for this same scandal.

Earlier this month, Ulster Bank employees voted in favour of a transfer to Allied Irish Banks (AIB).