Bank Of Ireland Share Discussion Threads

[cricklewood] 21/2/2014 08:49

No point in trying to trade this one, moving north everyday.

[cruiser70] 20/2/2014 17:16

Red to green, nice close

[leebong] 19/2/2014 14:53

Bank of Ireland prospers as the country recovers
BY DARA DOYLE AND DONAL GRIFFIN,

AS OVERSEAS banks retreat from Ireland, the country's oldest lender is offering bond invest-ors another chance to buy into the nation's recovery.

Companies ranging from Lloyds Banking Group to Danske Bank have shut branches and returned deposits in Ireland after the worst property crash in Western Europe pulled the rug from under the industry. The power is shifting back to Bank of Ireland as the country recovers.

"Bank of Ireland is increasingly being recognised as the national champion of the Irish banking market," Merrion Capital analyst Ciaran Callaghan says, recommending that inves-tors buy Bank of Ireland's lower tier 2 debt maturing in 2022. "With foreign players retrenching, the pricing power of the incumbents rises."

Danske Bank, Denmark's big-gest lender, is closing accounts and handing back deposits to Irish customers. London-based Lloyds is already gone, while Royal Bank of Scotland and Rabobank of the Netherlands are slimming down in Ireland.

Bank of Ireland, the only domestic lender outside state control, is the main beneficiary.

Its subordinated bond maturing in 2022 yields about 6.8%, down from a high of 9% in late 2012. The yield on Bank of Ireland's senior unsecured bond, due in 2019, fell to 2.9% from 3.3% when it was issued on January 8.

Borrowing costs have fallen in line with those of the Irish state, which exited a bail-out program-me in December after three years. The yield on 10-year government bonds has dropped to 3.28% from 14.2% in July 2011.

"Bank of Ireland's senior paper is very much the proxy for the Irish economy," says a fixed-income strategist at RBS in London, Michael Michaelides. "It's the lead player."

While the yield on Bank of Ireland's debt has declined, it is still higher than peers elsewhere in the euro region, reflecting the size of Ireland's banking crisis.

The 2023 subordinated securities of Intesa Sanpaolo, Italy's second-biggest bank, yield 5%. An equivalent from DNB, Norway's largest bank, yields 2.6%.

Germany's Commerzbank's subordinated 2021 bond yields 4.9%, while subordinated debt maturing in 2023 from Austria's Raiffeisen Bank International yields 5.1%.

Bank of Ireland last month sold a five-year senior unsecured bond, with the sale more than five times oversubscribed. Mr Callaghan at Merrion predicts it will raise €3bn more in debt this year. A bank spokeswoman declined to comment on future debt sales.

The bank is due to report full-year earnings next month. It said on November 1 that its net interest margin - the difference between the rates at which it borrows and lends to customers - widened to more than 1.9% in the third quarter. That compares with a low of 1.2% in the first half of 2012, as the bank grappled with fallout from the banking crisis. The interest margin, which helps drive profit, may widen further as competition eases. The bank has posted underlying losses since 2009.

"Management has successfully navigated the majority of challenges in recent years," says Mr Callaghan. "People can finally see light at the end of the tunnel."

Bank of Ireland became the official banker to the Irish Free State on independence from the UK in 1922. At the height of Ireland's Celtic Tiger boom in 2007, Bank of Ireland, Allied Irish Banks (AIB) and a third rival that AIB has since taken over, together controlled about half the Irish mortgage market, Mr Callaghan says. Last year, the two banks wrote about 85% of new mortgages, he says.

While Allied Irish remains under state control, Bank of Ireland has drawn investors including US billionaire Wilbur Ross's WL Ross & Company and Toronto-based Fairfax Holdings.

In November, a third lender, Permanent TSB Group, sold €500m of residential mortgage-backed securities, the first such transaction since 2007 by any Irish bank.

Taxpayers rescued the Dublin-based bank after the crash with a €4bn bail-out, and it is now awaiting approval from European authorities for a restructuring plan.

"The government has been clear that their preference is for a third banking force alongside the two pillar banks," says Cantor Fitzgerald analyst Ryan McGrath. "Given the reshaping of the Irish banking landscape, that leaves Permanent TSB in a strong position."

Investors should buy Permanent TSB's 4% bonds maturing in March next year, says Mr McGrath. The debt has a higher yield than Irish sovereign debt maturing at about the same time even though it is covered by a state guarantee, he says.

Risks remain for all the banks and their investors as the legacy of the crash lingers.

One in four mortgages by value is in arrears or has been restructured, according to the central bank, and the banks face a new round of stress tests this year. In December, Moody's cut the rating of Ireland's three biggest banks, citing "the continued rise and high level of non-performing loans" in the case of Bank of Ireland.

Yet the New York-based ratings company dropped its junk status on Ireland's credit worthiness on January 17, saying the government would need to provide "very little, if any, of the capital" the banks may need.

"We believe Allied Irish and Bank of Ireland have more than adequate capital" for European stress tests later this year, says the head of fixed-income trading at Goodbody Stockbrokers in Dublin, Colm Ryan.

Source:

[kemorkid] 19/2/2014 13:12

Nice read.
Although bank share prices generally drop around result time no matter what.

[docdave2] 19/2/2014 13:10

Of course it's way over bought, in the short term of course.We're a great county for talking dead things up, just look at the housing mess, more homeless than ever before and we still manage to say its all fine and booming again!

[hvs] 19/2/2014 12:43

Nah its a short.

get these IDIOTS in JAIL.

[scottishfield] 19/2/2014 12:22

give it a rest johnbuy

[johnbuy] 19/2/2014 12:21

This one's way overbought imo.

[cricklewood] 19/2/2014 08:13

Get up there baby,

[hvs] 19/2/2014 08:10

BANKRUPT BANK .

lol TAXPAYERS.

[cricklewood] 19/2/2014 08:03

Er No, what about ya baby .

[t 34] 18/2/2014 18:23

so it is overvalued !!!

[rob_white1] 18/2/2014 17:49

Its actually 32x

1 BN share @ 10 Euros = 10 BN Market Cap (pre-crisis)
32 BN share @ 0.3125 = 10 BN market Cap (not yet post -crisis).

[t 34] 18/2/2014 17:42

Hi
Can someone confirm that bkir issued 10x more shares after the price collapsed so mkt is circa the same now as it was before the crises.

[cricklewood] 18/2/2014 14:13

Maybe Not ?

[cricklewood] 18/2/2014 13:37

I suppose we cant expect a rise everyday, would be asking a bit two much.

[cricklewood] 17/2/2014 20:16

DUBLIN

Bank of Ireland continued its impressive run of late with sentiment remaining positive on the back of a perceived recovery in Ireland's economic fortunes. It closed up 3.3 per cent to 34 cent.

[county kilburn] 17/2/2014 12:35

40 cents by friday at this rate.

[kemorkid] 17/2/2014 09:34

maybe 40c at results.

[cruiser70] 14/2/2014 17:02

If you owe me 100 quid and are due to pay me back in say 20 years... but I need a tenner now and you lend it to me.. are you bailing me out?

If I give you back your tenner plus a pound interest are you not making a profit?

[benchmark] 14/2/2014 16:35

You did say that "the people didn't bail out the bank". I remarked that this wasn't the case, that the tax-payer has bailed out a number of banks, one of which is BoI. No big deal and nothing worth getting in a spin about but the idea that "the people made handsome profit on their investment" is just waffle. That is unless you mean the bankers themselves but certainly not the ordinary taxpayers. If you are living here in Ireland who should be aware of that. end

[cruiser70] 14/2/2014 16:12

Did I mention AIB or Anglo?

[benchmark] 14/2/2014 16:09

Oh! Then if not the people who DID bail out AIB, Anglo, and to a lesser extent BoI?