Bank of Ireland close to agreeing E.U. restructure

Bank of Ireland (IE:BIR) (IRE) said Friday that it expects to sell several businesses and to impose limits on payouts to shareholders and other investors in order to gain European approval for its state aid and restructuring plans. The bank said a final decision by the European Commission is expected by mid-2010, but that it expects to dispose of assets including New Ireland Assurance Co., Bank of Ireland Asset Management and ICS Building Society. The divisions likely to be sold generated underlying operating profit of around 90 million euros ($122 million) in the nine months to Dec. 31. The bank said it will attempt to accelerate the wind-down of its U.K. intermediary-sourced mortgage portfolio. Among the other requirements, the bank won't make discretionary payments of coupons on hybrid capital securities through Jan. 31, 2011, will accept restrictions on paying dividends on common stock and won't make any material acquisitions.

-Simon Kennedy; 415-439-6400; [e-mail]

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