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| Bank Ireland | BKIR | London | Ordinary Share |
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| 0.00 | 0.00% | 0.245 | 00:00:00 |
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Posted at 27/2/2015 09:51 by cricklewood 27 February 20152014 Key Highlights: · Underlying profit of €921 million with all trading divisions profitable - an improvement of €1.5 billion over 2013 · €10 billion of new lending - an increase of over 50% · Largest lender to the Irish economy during 2014, UK mortgage lending more than doubled · A substantial and sustainable increase in our NIM during 2014; Q4 NIM was 2.22% · Reduced defaulted loans by €2.8 billion to €14.3bn; 22% below their peak · Increased transitional CET1 ratio by 250bps to 14.8% · Fully loaded CET1 Ratio of 9.3% · Passed ECB stress test with substantial capital buffers · Increased TNAV per share by 13% CEO Comment: Richie Boucher, Bank of Ireland Group CEO, commented: "Having, to date, returned c.€6 billion in cash to the Irish taxpayers for their support and €4.8 billion investment in Bank of Ireland, we have made further substantial progress against our strategic priorities in 2014. We have grown our new lending by more than 50% to €10bn and were the largest lender to the Irish economy last year. We have also generated capital at an accelerated pace and improved our asset quality. Our progress is reflected in our underlying financial performance, which we improved by almost €1.5 billion, with all trading divisions profitable. We are confident in the Group's prospects. The outlook for the Irish and UK economies remains favourable. We have our strong retail and commercial franchises in these markets and we have resilient and professional people, who are motivated and focused and have a proven track record of delivery. The combination of these factors gives me confidence in our ability to responsibly deliver attractive and sustainable returns to our shareholders." Ireland - Leading bank in a growing economy: · #1 or #2 positions across all principal product lines · Providing 1 in every 3 mortgages; low yielding tracker mortgages reduced by €1.5bn in 2014 · 27% share of the savings market; deposit pay rates lower · Irelands only bancassurer- 24% share of the life assurance market · Ireland's #1 business bank; greater than 50% share of SME/Agri lending · Ireland's #1 corporate bank; greater than 30% market share; leading share of new FDI relationships International - Providing further attractive opportunities for growth: · With our Post Office partner, a leading UK challenger consumer bank with c.3 million customers · Maintaining #1 position in consumer FX · In mortgages, new lending more than doubled reflecting investments in our Post Office partnership and widening of distribution network including Legal & General and others · Northern Ireland business returns to modest profit Continuing to proactively support and benefit from Irish economic growth: Integral part of the Irish economy - supporting customers, enterprise and communities · Largest lender to the Irish economy during 2014 - €5.7bn new lending · > 50,000 business loan applications approved · > 24,000 acres of land for which we approved funding · > 27,000 vehicles financed in 2014 · c.120,000 new current accounts opened · > 11,000 customers supported in buying a new home · > 9,000 people working in our businesses in Ireland · c. €500m paid out by New Ireland under customer protection products in the past 5 years · 220 customer interactions processed every minute of every day Key Financial Highlights: Group Income Statement · Underlying profit of €921m vs loss of €564m in 2013 · All divisions are now profitable · Increased Total Income by > €300m · Net interest margin (annualised) of 2.11% vs 1.84% in 2013; Q4 net interest margin of 2.22% · Reduced cost-income ratio to 55% (2013: 60%) · Impairment charges reduced by c.€1.2bn reflecting improvements in asset quality and Irish mortgage impairment reversal of €280m Group Balance Sheet and Capital · Customer Loans €82bn · Customer deposits - €75bn, account for c.80% of Group funding, predominantly retail · Wholesale funding - €20bn of which Monetary Authority Funding €4bn · Strong liquidity ratios - Net Stable Funding Ratio - 114% - Liquidity Coverage Ratio - 98% - Loan to Deposit Ratio - 110% · Robust Capital Ratios - Transitional CET 1 ratio of 14.8%, up 250bps - Fully loaded CET 1 ratio (including 2009 Prefs) of 11.9%, up 290bps - Fully loaded CET 1 ratio (excluding 2009 Prefs) of 9.3%, up 300bps Please click on the following link to view the full Preliminary Statement: For further information log on to www.bankofireland.co Bank of Ireland Andrew Keating Group Chief Financial Officer +353 (0)766 23 5141 Mark Spain Director of Group Investor Relations +353 (0)766 23 4850 Pat Farrell Head of Group Communications +353 (0)766 23 4770 Forward Looking Statement This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934 and Section 27A of the US Securities Act of 1933 with respect to certain of the Bank of Ireland Group's (the 'Group') plans and its current goals and expectations relating to its future financial condition and performance, the markets in which it operates, and its future capital requirements. These forward-looking statements often can be identified by the fact that they do not relate only to historical or current facts. Generally, but not always, words such as 'may,' 'could,' 'should,' 'will,' 'expect,' 'intend,' 'estimate,' 'anticipate,' 'assume,' 'believe,' 'plan,' 'seek,' 'continue,' 'target,' 'goal,' 'would,' or their negative variations or similar expressions identify forward-looking statements, but their absence does not mean that a statement is not forward looking. Examples of forward-looking statements include among others, statements regarding the Group's near term and longer term future capital requirements and ratios, level of ownership by the Irish Government, loan to deposit ratios, expected impairment charges, the level of the Group's assets, the Group's financial position, future income, business strategy, projected costs, margins, future payment of dividends, the implementation of changes in respect of certain of the Group's pension schemes, estimates of capital expenditures, discussions with Irish, United Kingdom, European and other regulators and plans and objectives for future operations. Such forward-looking statements are inherently subject to risks and uncertainties, and hence actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following: geopolitical risks, such as those associated with crises in the Middle East and increasing political tensions in respect of the Ukraine, which could potentially adversely impact the markets in which the Group operates; concerns on sovereign debt and financial uncertainties in the EU and in member countries and the potential effects of those uncertainties on the Group; general and sector specific economic conditions in Ireland, the United Kingdom and the other markets in which the Group operates; the ability of the Group to generate additional liquidity and capital as required; any capital or other assessments undertaken by regulators; property market conditions in Ireland and the United Kingdom; the potential exposure of the Group to various types of market risks, such as interest rate risk, foreign exchange rate risk, credit risk and commodity price risk; deterioration in the credit quality of the Group's borrowers and counterparties, as well as increased difficulties in relation to the recoverability of loans and other amounts due from such borrowers and counterparties, have resulted in significant increases, and could result in further significant increases, in the Group's impaired loans and impairment provisions; implications of measures introduced by the Central Bank of Ireland to address mortgage arrears on the Group's distressed debt recovery and impairment provisions; the impact on lending and other activity arising from the emerging macro prudential policies; the performance and volatility of international capital markets; the effects of the Irish Government's stockholding in the Group (through the Ireland Strategic Investment Fund) and possible changes in the level of such stockholding; the impact of downgrades in the Group's or the Irish Government's credit ratings or outlook; the stability of the Eurozone; changes in the Irish and United Kingdom banking systems; changes in applicable laws, regulations and taxes in jurisdictions in which the Group operates particularly banking regulation by the Irish and United Kingdom Governments together with implementation of the Single Supervisory Mechanism and establishment of the Single Resolution Mechanism; the exercise by regulators of powers of regulation and oversight in Ireland and the United Kingdom; the introduction of new government policies or the amendment of existing policies in Ireland or the United Kingdom; the outcome of any legal claims brought against the Group by third parties or legal or regulatory proceedings or any Irish banking inquiry more generally, that may have implications for the Group; the development and implementation of the Group's strategy, including the Group's ability to achieve net interest margin increases and cost reductions; the responsibility of the Group for contributing to compensation schemes in respect of banks and other authorised financial services firms in Ireland, and the United Kingdom that may be unable to meet their obligations to customers; the inherent risk within the Group's life assurance business involving claims, as well as market conditions generally; potential further contributions to the Group sponsored pension schemes if the value of pension fund assets is not sufficient to cover potential obligations; the exposure of the Group to NAMA losses in the event that NAMA has an underlying loss at the conclusion of its operations, which could adversely impact the Group's capital and results of operations; the impact of the continuing implementation of significant regulatory developments such as Basel III, Capital Requirements Directive (CRD) IV, Solvency II and the Recovery and Resolution Directive; and the Group's ability to address weaknesses or failures in its internal processes and procedures including information technology issues and equipment failures and other operational risks. Nothing in this document should be considered to be a forecast of future profitability or financial position and none of the information in this document is or is intended to be a profit forecast or profit estimate. Any forward-looking statement speaks only as at the date it is made. The Group does not undertake to release publicly any revision to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date hereof. The reader should however, consult any additional disclosures that the Group has made or may make in documents filed or submitted or may file or submit to the US Securities and Exchange Commission. This information is provided by RNS The company news service from the London Stock Exchange END FR EAKAXAAPSEEF Related Shares: Bank of Ireland (Governor & Company of the) (BKIR). 1234567891011Next Finance News Page Date Source Headline Category 27-Feb-15 07:00 RNS Bank of Ireland Preliminary Results December 2014 Results and Trading Reports 12-Feb-15 11:00 RNS Notification of Significant Shareholding Holding(s) in Company 05-Feb-15 10:30 RNS Acquisition of Commercial Loan Portfolio Mergers, Acquisitions and Disposals 02-Feb-15 16:00 RNS Form 25 Company Announcement - General 27-Jan-15 14:00 RNS Notification of Significant Shareholding Holding(s) in Company 21-Jan-15 15:30 RNS Delisting from NYSE Company Announcement - General 05-Jan-15 16:19 RNS Blocklisting Interim Review Company Announcement - General 24-Dec-14 11:20 RNS Notification of Significant Shareholding Holding(s) in Company 24-Dec-14 11:19 RNS Notification of Significant Shareholding Holding(s) in Company 12-Dec-14 16:31 RNS Acquisition of Performing Resi Mortgage Portfolio Company Announcement - General 05-Dec-14 15:57 RNS Notification of Significant Shareholding Holding(s) in Company 10-Nov-14 16:00 RNS Directorate Change Executive Changes 04-Nov-14 16:53 RNS Notification of Significant Shareholding Holding(s) in Company 31-Oct-14 07:00 RNS Bank of Ireland Interim Management Statement 2014 Results and Trading Reports 27-Oct-14 07:00 RNS BOI passes ECB Comprehensive Assessment Company Announcement - General 24-Oct-14 13:01 RNS Notification of Significant Shareholding Holding(s) in Company 24-Sep-14 16:30 RNS Notification of Significant Shareholding Holding(s) in Company 15-Sep-14 17:01 RNS Notification of Significant Shareholding Holding(s) in Company 10-Sep-14 08:51 RNS Notification of Significant Shareholding Holding(s) in Company 02-Sep-14 14:29 RNS Notification of Significant Shareholding Holding(s) in Company 28-Aug-14 12:00 RNS Notification of Significant Shareholding Holding(s) in Company 15-Aug-14 16:34 RNS Notification of Significant Shareholding Holding(s) in Company 14-Aug-14 16:01 RNS Notification of Significant Shareholding Holding(s) in Company 12-Aug-14 15:29 RNS Notification of Significant Shareholding Company Announcement - General 01-Aug-14 12:00 RNS Director/PDMR Shareholding Directors' Dealings 01-Aug-14 07:00 RNS Bank of Ireland Interim Report Results and Trading Reports 02-Jul-14 15:26 RNS Blocklisting Interim Review Company Announcement - General 30-Jun-14 16:29 RNS Notification of Significant Shareholding Holding(s) in Company 30-Jun-14 15:16 RNS Change in Director's details Executive Changes 26-Jun-14 15:07 RNS Kildare Securities Limited Company Announcement - General 1234567891011Next Finance News Page Home | Contact Us | About Us | Careers | Advertise with Us | Sitemap | Terms & Conditions | Chat Rules | Cookies | Privacy Datafeed and UK data supplied by NBTrader and Digital Look. 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Posted at 30/1/2015 14:40 by muckshifter Don't agree with you there thecynical1. I think serious recovery in Ireland, pushed on by changes in the Euro area both in terms of the political will to push growth and the weakness of the Euro over the next couple of years, will be good for BOI, and their just about unique position as the only Irish bank in reasonable health will serve them well and increase their attraction to both investors and, in due course (say 3 years from now if all goes well in Ireland) perhaps a predator.But, you may be right and I may be wrong, who knows? Regards. |
Posted at 22/12/2014 22:21 by banj Rating Action: Moody's upgrades deposit ratings of Bank of Ireland UKGlobal Credit Research - 22 Dec 2014London, 22 December 2014 -- Moody's Investors Service has today upgraded the deposit ratings of Bank of Ireland (UK) Plc (BoI UK) to Ba2 from B1 following the change in the bank's baseline credit assessment (BCA) to ba2 from b1 (D from E+ BFSR). Short-term deposit ratings have been affirmed at Not-Prime. The action follows the change of its parent, Bank of Ireland's (BoI) BCA to ba2 from b1 (D from E+ BFSR).Moody's has maintained the alignment of the BCAs of both entities given the high level of integration between BoI and BoI UK.The outlook on the long-term deposit ratings remains stable underpinned by the bank's stabilising asset quality, sound funding profile, adequate capital levels and improving profitability trend. |
Posted at 19/11/2014 08:28 by wajai1986 London, 18 November 2014 -- Moody's Investors Service has today upgraded Bank of Ireland's senior debt ratings to Ba1 from Ba3 and deposit ratings to Baa3 from Ba2. The upgrade followed the raising of the bank's baseline credit assessment (BCA) to ba2 from b1 (the BCA has been upwardly revised, and is now aligned with the standalone bank financial strength rating (BFSR) which was upgraded to D from E+). The short-term debt ratings have been affirmed at Not Prime while the short-term deposit ratings have been upgraded to Prime-3 from Not Prime.hxxp://www.moodys.co |
Posted at 05/9/2014 08:00 by goggin Irish Shares: Stock market capitalization at end 2010 was at 1997 level in current money valuesBy Finfacts Team Jan 1, 2011 - 9:32 AM Irish Shares: The stock market capitalization of public companies on the Irish Stock Exchange at the end of 2010 was at €47.6bn compared with the end of 1997 level of €46.8bn. However, this comparison is in current money values, which means that in inflation-adjusted terms, 2010 was much lower. The total market capitalization at the end of 2009, was €44bn compared with €82bn at end 2004; €95bn at end 2005; €119bn at end 2006; €93bn at end 2007 and €32bn at end 2008. The ISEQ index of shares fell 3% in 2010 to 2,885 while the financial sub-index tumbled 61% to 414 points. Eleven companies account for 80% of the capitalization making up the ISEQ index with global building materials firm CRH at 27.3%, followed by Ryanair at 13.3%. Just before Christmas, Allied Irish Banks (AIB), the former leading Irish bank, was moved from the main market of the Irish Stock Exchange to the small companies market. It had a value of €324m on Dec 31st and accounted for 0.7% of the total market capitalization. On February 21, 2007, the ISEQ index rose to an-all time high of 10,041 and the financial sub-index rose to 18,098. Bank of Ireland closed at €18.65; Anglo Irish closed at €16.64 and AIB closed unchanged at €23.95. Bank of Ireland closed at 37 cent at the 2010 year-end and AIB was at 30 cent. The Irish Examiner reported in February 2007: "Much of the growth seen and expected in the Irish market is underpinned by the economic fundamentals. This year and next the Irish economy will grow about 5%, compared to 1.5% last year for the Eurozone and 2.2% for 2007. For the past few years, stock market performance has been up over 20%, with 25% growth in 2005. Forecasts for this year are very good, with growth in the overall value of the market expected to reach 20% or better." In June 2007, one month after the general election and six weeks before the onset of the international credit crunch, Finfacts reported that investors had dumped Irish shares after Irish Life & Permanent said in a trading statement, that its residential mortgage book would grow by 20% in 2007. Only 20%!!! In July 2007, Citigroup CEO Chuck Prince had infamously dismissed fears about an early end to the postmillennial debt frolics. “When the music stops,” he told The Financial Times, “in terms of liquidity, things will get complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.” In the same month, Taoiseach (Prime Minister) Bertie Ahern, who had been a hospital bookkeeper before entering politics, told a a trade union conference that he did not know how people who moaned about the economy did not "commit suicide". "Sitting on the sidelines, cribbing and moaning is a lost opportunity. I don't know how people who engage in that don't commit suicide because frankly the only thing that motivates me is being able to actively change something," Ahern said. Two weeks before, Finfacts said the slowdown in the Irish housing market which would result in a fall in economic growth in 2008, would hit bank shares which "have got investors addicted to impressive double-digit returns during a long boom." Ryanair's Michael O'Leary said: `We expect a big downturn in the next 12 months, we just don't know what's going to cause it. We must be due one.'' |
Posted at 10/6/2014 21:35 by cricklewood "Longer term, the removal of Wilbur Ross from BoI's share register may be a positive for the bank, reducing the focus and reliance of one large high-profile investor as the group returns to normalised operating conditions," Merrion Stockbrokers analyst Ciaran Callaghan wrote in a note.So, is Bank of Ireland fairly valued at its current share price (or the one achieved by Mr Ross)? There are many ways to value any asset but they all come back to one basic principle: how much money (profit) will be made? The exploration of this simple statement has filled many libraries and sustained many an academic and hedge fund career. Peering into the future, particularly of the far-flung variety - opens up all sorts of possibilities for serious analysis and snake oil salesmen. The investment world is full of both: the key skill is the ability to distinguish between the two. One of the reasons why we observe so much focus on simple accounting ratios - like the humble price-to-earnings (PE) ratio - is that they summarise an awful lot of work (including all of that guessing about future profits). And, of course, they are simple . So, when somebody says that the correct PE ratio for a bank is, say, 15, we need to figure out, first, whether they have done the weeks of work necessary to generate such a conclusion, second, whether that work can be trusted or, third, whether they have just thought of a number. Either way, it can look the same. Like a lot of banks, Bank of Ireland doesn't have any earnings to put into that simple PE ratio. By the end of 2014 we hope that this will have changed but, for now, we have to use a slightly different method (but one that is equivalent). We need to figure out what investors, like the Irish Government, are charging for supplying equity capital to the bank. We then need to estimate the likely returns that the bank is likely to generate for those investors. There is then a very simple formula that links these costs and returns on equity capital that tell us what the market value of the bank should be. |
Posted at 16/4/2014 08:49 by kemorkid Irish Financial Sector OutlookIrish financial assets outperformed over the last year but we believe that the convergence story has more to run and so the outlook for bank credit spreads remains positive. We like BKIR credit across the capital structure, and also have a BUY rating on AIB credit, while PTSB issuance is likely to be limited pending approval of the EU restructuring plan. On the equity side, we have a BUY recommendation on BKIR and FBD, but a current SELL recommendation on AIB and PTSB, pending clarification on capital structure, etc. Macroeconomic Backdrop The Irish financial sector is well placed to benefit from the recovery in domestic demand. While the proportion of non-performing loans remains uncomfortably high, we believe that they have peaked and that provisioning is adequate. We are also encouraged that the banks are making real efforts to clean up their loan books, aided by important legislative changes, and the Central Bank of Ireland's quantitative targets for restructuring. Residential and commercial property values have rebounded from lows, although very Dublin-centric in these early stages of recovery, boosting the collateral values of banks' portfolios. Bank Profitability and Capitalisation Capital levels are comfortable heading into the ECB stress tests later this year. BKIR reported a CET1 ratio of 12.3% at 31st December 2013 (on a 1st January 2014 Basel III transitional basis), with PTSB at 13.4% and AIB higher still at 15%. BKIR is generating capital again in early 2014, and AIB should follow by year-end, but PTSB will continue to use capital until 2017 on our projections. AIB is expected to undertake substantial reform of its capital structure, beginning with full conversion of the 3.5 billion of preference shares into ordinary equity, repurchase of the 1.6 billion of 10% July 2016 contingent convertible notes ("CoCos") and re-nominalisation of its equity, ahead of a likely initial sale of a small stake of the government's 99.8% shareholding in early 2015. We do not see the government being in a position to sell any of its 99.2% stake in PTSB for some years. Credit Outlook We continue to like BKIR across the capital structure, favouring a barbell approach, buying covered bonds and the preference shares or contingent convertible notes ("CoCos") relative to senior unsecured debt. For choice, we think AIBMB covered bonds offer an attractive pick-up relative to the BOIMB issues, and we believe any fresh senior issuance will be well received. PTSB's Fastnet 9 RMBS issue last November was the first such issue since 2007, but other issuance options appear closed off pending EU approval of the restructuring plan. Equity Outlook We continue to like BKIR equity and have a BUY rating (TP 0.35) but AIB's limited free float is vastly overpriced and so we have a SELL rating (TP 0.025) and we also have a sell rating on PTSB (TP 0.07). Insurance as Alternative Play Insurer FBD is another interesting play as insurable risk is strongly correlated with domestic demand growth, and there are also emerging signs of the commencement of a premium hardening cycle after many years of falling rates. Moreover, FBD has a strong competitive edge, having grown premium in 2013 when the industry continued to shrink, reaching the highest ever market share of 13.4%, and all this with a conservative and incremental approach to new growth channels. We have a BUY rating on FBD (TP 21.98). Description: Description: cid:image001.jpg@01C Disclaimer Cantor Fitzgerald Ireland Ltd, (CFIL), is regulated by the Central Bank of Ireland. Cantor Fitzgerald Ireland Ltd is a member firm of the Irish Stock Exchange and the London Stock Exchange. This report has been prepared by CFIL for information purposes only and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The report is not intended to and does not constitute personal recommendations/inve Although the information in this report has been obtained from sources, which CFIL believes to be reliable and all reasonable efforts are made to present accurate information CFIL give no warranty or guarantee as to, and do not accept responsibility for, the correctness, completeness, timeliness or accuracy of the information provided or its transmission. 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Posted at 04/3/2014 21:15 by deb81e Billionaire Ross Triples Money in Bank of Ireland Share SaleWilbur Ross, the U.S. billionaire investor in struggling industries, sold part of his stake in Bank of Ireland Plc, more than tripling his money with his bet on the lender. The bank's shares tumbled. Deutsche Bank AG and Davy, Ireland's largest securities firm, placed about 2 billion Bank of Ireland shares today on behalf of Ross and Fairfax Financial Holdings (FFH) Ltd. The shares, equating to a 6.4 percent stake in the largest Irish lender, were sold at 32.8 euro cents each, Deutsche Bank said in a statement. The investors paid 10 cents for the shares in 2011. "We had not been shopping the block and have no present plans to sell any more of our holding," Ross, 76, said in an e-mailed response to questions, adding that he decided to sell some shares following an approach from Deutsche Bank. "We remain totally confident in management." Ross's WL Ross & Co., Fairfax and three other investors paid 1.1 billion euros ($1.5 billion) for a 34.9 percent stake in Bank of Ireland. (BKIR) The accord helped the Dublin-based bank avoid state control as its bad loans soared in the wake of a real-estate collapse. The lender said yesterday it is trading profitably for the first time since 2008, as soured loans started to decline. "Given the appreciation in the bank's share price and its current premium valuation, we are not surprised to see some of the original North American anchor investors move to take some cash off the table," said Ciaran Callaghan, an analyst at Dublin-based Merrion Capital. "In some sense, they have done their job and made their return." Shares Drop Bank of Ireland fell as much as 12 percent, the biggest decline since May 16 2012, and traded at 32.4 cents as of 4:30 p.m. in Dublin. The shares have advanced about 138 percent in the past year, giving the lender a market value of 10.5 billion euros. The sale represents more than a third of Ross and Fairfax's stakes in the bank. The disposal today raised about 681 million euros, more than the two investors paid for their entire stake. The 2011 group, which also included Fidelity Investments, Kennedy-Wilson Holdings Inc. and the Capital Group, helped the lender avoid nationalization, as a raft of its rivals fell under government ownership. Ross sought out troubled banks as the financial crisis hit in 2008. His firm was one of four private-equity groups that paid $900 million for the failed BankUnited Inc., purchasing it from the Federal Deposit Insurance Corp. in May 2009. While WL Ross and Fairfax each acquired 9.3 percent of Bank of Ireland, their stake fell when the lender sold 580 million euros of shares in December to partly refinance the state's 4.8 billion-euro bailout of the lender since 2009. Too Big The position was "too big and too concentrated for us now," said Paul Rivett, president of Fairfax, in an e-mail. The firm plans to hold its remaining shares for the "long term," he said. Chief Executive Officer Richie Boucher, in the job five years, has shrunk the bank's balance sheet, returned 6 billion euros to taxpayers and cut about 2,000 jobs since the five investors took a stake in the bank. Signs are emerging that the Irish economy is on the mend. Home loan arrears of more than 90 days fell in the fourth quarter for the first time since the central bank started the series in 2009, it said today. Consumer confidence rose to an almost seven-year high last month, according to KBC Bank Ireland Plc and the Economic & Social Research Institute. Finance Minister Michael Noonan has also signaled he plans to sell taxpayers' remaining 14 percent stake in the bank in time. He said in an interview with Bloomberg Television in January that he is "under no pressure" to do so. Pat Farrell, a spokesman for the bank, declined to comment on any sale of shares. "While possible supply may temper share price performance, we are still fans of the Bank of Ireland story over the medium term and would regard any technical weakness as an opportunity," said Eamonn Hughes, an analyst at Dublin-based Goodbody Stockbrokers, who rates the stock a buy. |
Posted at 08/1/2014 07:43 by cricklewood Ireland's sovereign rating with Moody's could be upgraded as soon as January 17th when the ratings agency reviews the country's status. Moody's is the only one of the main international ratings agencies to have Ireland at a sub-investment grade level. In spite of having exited the EU-International Monetary Fund bailout last month and the National Treasury Management Agency's success in securing 3.75 billion from a syndicated 10-year treasury bond issuance at a competitive yield of 3.543 per cent, the agency's chief executive John Corrigan said he had no idea if this would sway Moody's view. "We just hold our breath at this stage," Mr Corrigan said. "We've given up trying to second guess them. We will just have to wait and see." Moody's view of Ireland has resulted in most Asian investors being unwilling to buy Irish sovereign bonds. Mr Corrigan said yesterday's issuance included a "smidgen" of buying by investors in the Middle East for the "first time in recent times". But interest was predominately from investors in Europe and the US. Speaking in Doha yesterday following talks with prime minister Abdullah bin Nasser bin Khalifa al-Thani and the Qatar Investment Authority, Taoiseach Enda Kenny said he was hopeful investors there would consider purchasing Irish bonds in the event of a ratings upgrade by Moody's. Delegation to Ireland "Part of the reason that the delegation will visit Ireland is to look at the question of infrastructure, of bond investment and of SME assistance in terms of facilities and access to credit," Mr Kenny said. The NTMA received 14 billion worth of orders from investors for yesterday's issuance. Mr Kenny said this was an indication of the growth of "further confidence in Ireland" after the troika bailout programme. Mr Corrigan said the State would have cash balances of 19.5 billion. He said this is 12-15 months of funding for the State. The agency plans to "taper" this to nine to 12 months funding over time. The NTMA also published its review for 2013. It showed the State drew down 11 billion under the EU-IMF bailout programme last year and the cost of servicing the national debt was 8.1 billion. The National Pension Reserve Fund has invested 1.3 billion in the Irish economy as it transitions into being the Ireland Strategic Investment Fund, managed by the NTMA. It also provided a bridging loan of 250 million to Irish Water to cover the start-up costs and the initial phase of water meter installation. |
Posted at 06/12/2013 15:51 by leebong This story is going to be great for Monday trading.* Irish lender pays back EUR1.8bn of state aid * US, UK investors flood equity and pref share sale * Irish government books profit on bailout By Aimee Donnellan and Graham Fahy LONDON, Dec 6 (IFR) - Bank of Ireland (Berlin: BIR.BE - news) took a giant leap forward in its plans to return to mainstream banking this week when it successfully repaid EUR1.8bn of state aid, breaking free from the clutches of a government that supported it through the financial crisis. The Irish lender executed a two-pronged plan to re-market EUR1.3bn of state-owned preference shares and sell EUR580m of equity, building on strong momentum in the capital markets that is making riskier instruments more attractive to yield-hungry investors. "This is pretty much closure for Bank of Ireland following a very tough story during the crisis," said Sandeep Agarwal, head of EMEA DCM at Credit Suisse (NYSE: CS - news) . "These deals achieved a favourable outcome and follow-on secondary performance that speaks to the depth of the market and the confidence investors have in the Irish story." The bank, which narrowly avoided a full state bailout and infamously burnt its bondholders during the height of the crisis, has been on a fast track to rehabilitation over the past year. It has regained access to every part of debt capital markets, selling covered, senior and Tier 2 bonds, while the government also managed to re-market a CoCo it took on as part of the rescue process. This week's package allows the bank to redeem EUR537m of government-held preference shares and move the remaining preference shares into the hands of private investors. The bank now expects to redeem the preference shares in 2016 from retained profits. "This remarketing exercise and equity sale have given us great clarity on the future of the group, and the improvement in our net interest margins provides strong momentum towards sustainable profitability," said Donal Collins, head of group strategy at Bank of Ireland. US and UK asset managers clearly believe in the bank's recovery, putting in EUR1.7bn of orders for the equity sale and around EUR10bn for the preference shares. "Bank of Ireland has come a long way in restoring its capital levels, even though asset quality is still a concern," said Georg Grodzki, head of fixed income at Legal & General (LSE: LGEN.L - news) . "I think investors that are buying this instrument are taking a bet that the issuer will return to profit and pay them back in the coming years. There's a reasonable chance that this will indeed be the case." The preference shares were priced at 104.5, while the equity was priced at EUR0.26. Proceeds of the equity issue provide the government with a tidy profit - and good news to placate weary taxpayers who had pumped EUR4.8bn into the bank when it was partially bailed out. The government made a profit of EUR62m on its investment in the preference shares, alongside accumulated interest of around EUR151m. DIVIDEND FREEDOM The sale package removes a restriction that prevented the payment of dividends on the bank's ordinary shares while the preference shares were held by the state. This normalises the bank, giving it greater autonomy to decide when and how it handles payouts to shareholders. "We are a strong bank in an evolving market," said Sean Crowe, head of group treasury of Bank of Ireland. "The government is now in a net positive cash position from its bailout of Bank of Ireland and continues to hold a discretionary stake in the bank." By unwinding the state's position in the preference shares ahead of a March 31 deadline and structuring the sale using a special purpose vehicle, the bank has avoided a step-up premium that would have made redeeming the shares 25% more expensive. The government retains a 14% stake in the bank. "This is a situation where everyone is happy, which does not happen every day," said Mauricio Noe, managing director, financial institutions group at Deutsche Bank (Xetra: DBK.DE - news) . "The government achieved a price way above par and investors got exposure to a credit in which they have confidence. It proves that this name is definitely no longer in high-beta territory any more." The deal follows a steady stream of more positive economic news in Ireland (Other OTC: IRLD - news) , including the fastest fall in unemployment in four years. |
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