Bank Of Ireland Share Discussion Threads

[bongo bwana] 27/11/2013 14:21

The Preference Shares are an interesting conundrum.

Currently Im of the view that the Government will be encouraged by BKIR to dispose of them to institutions with whom the bank have a long term relationship. This disposal has the potential to earn the Government a very decent profit (which is written into the 2014 national accounts according to the recent budget details announcement) and to put more institutions on the BKIR list of major shareholders.

Its when those institutions start to sell - perhaps to an acquisative Far Eastern or US bank that the real fun will start, and I have no idea when this process might start but in any event Im NOT selling.

When the water level for banks starts to rise Im hopeful the rising tide will transform the share price of PTSB - my Titanic. Queue maniacal laugh whilst reaching for the horse pill tranquilisers.

[leebong] 27/11/2013 11:32

Once the preference share scenario has been resolved before christmas the share price should fly to about 50c short term. Its going to get out of the share price doldrums once and for all.

interestingly this is against a background of falling unemployment and failing pubs being bought-up which looks set to further reduce bank debt.

[kemorkid] 27/11/2013 10:56

Dont know why BKIR made announcement yesterday as they basically said sweet fanny adams!!

[bongo bwana] 27/11/2013 10:01

Once the holders are in on the long term story there will be little deviation from the current trajectory IMHO :-)

[cruiser70] 27/11/2013 08:57

Kemorkid, tell ya next week :)

If it were to have been an RI then price(going by what share price did the last couple of times) would have gravitated down imo. But if we're looking at a placement and as there seems to be a lot of demand then I'm not convinced it'll have any negative effect on price.

BWTFDIK

[kemorkid] 26/11/2013 17:31

So what will this mean to the ordinary share price ?

[cricklewood] 23/11/2013 17:56

Fri, Nov 22, 2013, 21:54


First published:Fri, Nov 22, 2013, 21:54




Bank of Ireland considers sale of up to €400m in shares

Move would be part of plan to repay a portion of its government bailout


Bank of Ireland is considering selling as much as €400 million of shares to appease national regulators as part of a plan to repay a portion of its government bailout, according to people familiar with the matter.

The Central Bank is pressing the lender to refinance some of the €1.8 billion State-owned preferred shares through a sale to bolster equity capital levels, said the people.

Irish taxpayers put €4.8 billion into Bank of Ireland since 2009 and received €3.8 billion in cash repayments to date.

Chief executive officer Richie Boucher is seeking to wean the bank off State support, and the bank could use the proceeds of the share sale to retire some of the government's preferred shares.


Preferred shares
In response to questions, Bank of Ireland pointed to its November 1st comments on a European Banking Authority ruling on the preferred shares.

The EBA said last month that the preferred shares would still count as core Tier 1 capital, a measure of financial strength, if sold to private investors.

"The group continues to proactively formulate and assess a range of options in relation to the 2009 preference shares, with our assessment of such options carefully taking into consideration our various stakeholders, including the regulatory authorities," the bank said yesterday.

The ruling prompted analysts, including Philip O'Sullivan at Investec, to speculate that the lender might not need to carry out a share sale to help refinance the preference shares.

Bank of Ireland will probably sell shares through a placement with institutional investors rather than a rights offering if it proceeds with a plan to raise equity by the end of the year, according to the people.


Shareholder approval
The bank has shareholder approval to place as much as the equivalent of 5 per cent of its shares, currently equating to about €400 million.

The government's preferred shares only count as core Tier 1 capital reserves to the end of 2017 under incoming international banking rules, according to the European Banking Authority. – (Bloomberg

[leebong] 23/11/2013 11:37

Is most of the 31Bn debt owed by AIB?.

[cricklewood] 22/11/2013 17:50

hxxp://www.independent.ie/business/ecb-emergency-loans-fall-to-lowest-level-since-guarantee-29775903.html

New data from the Department of Finance shows that the so called "covered banks" including AIB, Bank of Ireland and Permanent TSB owed €31.1bn to the ECB at the end of October.

It is the lowest level of debt since September 2008.

The so called covered banks account for three quarters of the €40bn owed to the ECB by banks operating in Ireland.

Not all cash owed to the ECB is for emergency loans, but at the height of the banking crisis lenders here owed a total of €136.4bn to the ECB, a reflection their inability to source cash on the normal inter-bank markets.

The new figures show that the amount of cash on deposit at the Irish banks fell slightly in October.

The Department of Finance said that was because of short term deposits being withdrawn, but banks themselves will be anxious to see if the increase in savings taxes introduced in Budget 2014 is having an impact.

[traidemark] 21/11/2013 12:02

given the heady days of 3 euro, how many shares are now in issue compared to those days.

is there any realistic chance of the stock returning to 3 euros

[kemorkid] 21/11/2013 09:34

Just a little tree shake

[leebong] 21/11/2013 09:13

Crusier enjoy the following...no offence intended.

Here's an interesting article from the Financial Times dating back to August....note that the 500 million of reduced losses can be equated to increased profits when compared to the previous year. However it is a really nice well balanced article.




Pre-tax losses in the first half of 2013 more than halved, falling to €504m, down from €1.26bn in the same period last year. The bank's net interest margin – an important measure that shows how profitable its lending is – increased to 1.65 per cent, from 1.2 per cent, over the same period.

[cruiser70] 20/11/2013 23:56

PLease show me the 700million euro profit they made in HI '13. Please post a link to this.

Anyone who follows BKIR knows me, I've been here way longer and more often then anyway here. I'm full position long here. I never deramp but neither to I post BS nonsense like you did when you say bank made 700 million profit in H1 '13 . I await your link.

This has been a quiet thread over the years with some great banter, there is no need for mindless pumping or BS numbers like Johnbuy.

[leebong] 20/11/2013 15:41

Cruiser70 Try reading the first half results....where the CEO and CFO said that the bank were close to normal business...try reading once in a while then the CEO bought a million shares himself...bye bye dip sticks...this stock will hit a euro sometime soon. The FT polled the major shareholders last August and they all said that they would vote against a share rights issue despite what the Sunday Independent reported in a series of articles in September and turned out to be a well organised deramp through a national newspeaper which worked. DYOR IMO this share is way under-valued...lol chum

[diggerking] 20/11/2013 15:24

What is the significance of trades of 198 shares...please?

[kemorkid] 20/11/2013 12:16

Look at the amount of trades of 198 share gone through in last 30 mins -1000 +.

Hmmmm.

[cruiser70] 20/11/2013 12:06

700m euro profit in the first half of 2013???? Are you on drugs?

[leebong] 20/11/2013 11:46

Cricklewood- good post...banks are planning to either introduce or ramp-up dividend payments from next year. BKIR used to pay out 60c a share and maybe they can start at 5c a share from the middle of next year because the bank made 700 million euros of profit in the first half of 2013 and that's going to increase. But dividend payments can only start to happen once the preference share problem has been resolved, expect an announcement about implementing a solution before Christmas and when that happens this stock will fly.

[johnbuy] 19/11/2013 16:18

I'll buy in again at 10c, or maybe less.