Bank Of Ireland Share Discussion Threads

[donpatrol] 28/3/2017 17:10

Yes he has signaled so, but it will not be this year or next by the look of things. He`s got a load of shares he`d like to see a Divi for first!
He done a good job, plus he wasn't afraid to dip his hands into his pockets and buy a few shares himself. I stacked up on more when i saw him buying, and if he goes to the pot for more I`ll do the same!

[catsick] 24/3/2017 23:34

So Boucher is retiring, is his job now done ? Will the final act be payment of a fat div as he hangs up his boots ? Not sure if this is a good thing or a bad thing but it seems like there is no pressure on him and the issues are pretty much solved ...

[daddyireland] 05/3/2017 08:55

OK thanks that's a good guideline. However, is it for certain that BOI didn't write back in 2015 as I believe I read somewhere that they did write back approx 200m in 2015.

[catsick] 04/3/2017 23:21

Aib wrote back 298m in 2016 and 923m in 2015 so it has been chunky, I dont know if they were more aggressive writing stuff down in the first place but these writebacks are the main difference in the profitability in the two banks, especially for 2015, aib may be having its results dressed up a little for the sale of the 99pct still in the govs hands but I am hoping boi are just being conservative and have a better safety margin.

[daddyireland] 04/3/2017 15:08

Can anyone throw any light or articles to show what these writedowns amounted to ?

[red5] 04/3/2017 14:44

Thanks very clear now regards joshua

[donpatrol] 04/3/2017 14:10

Write backs are the opposite of write downs or write off. Basically during the downturn the value of the assets the Banks had loaned against were written down on the books because, well hay they were way over valued. Now that property prices have increased significantly, and in the case of Ireland which hasn't been building new houses with nearly 9 years now there is a housing shortage thus the value of the properties are on the up. Hence why AIB have been doing write backs.
BoI haven't done any write backs yet, so to say they have this as an Ace up their sleeve is a massive understatement. Its more like a royal flush up their sleeve!!

As for the share price at where it is, is mainly due to 4 factors

1: Brexit - caused uncertainty but still way over done.
2: Fairfax Financial (Canadian billionaire Prem Watsa) selling down their stake from 3% - they bought in when the bank was on its knees so now they are moving on to other distressed things.
3: Lack of dividends, large pension funds like the divis so until they start paying them again regularly then they are slow to come on board.
4: All banks across the regional banking sector are given a low value, this sector has the best return/value there. Compare the valuations to the likes of the Pharma sector then the banking sector wins hands down

[red5] 04/3/2017 03:00

What are write back of provisions?

[catsick] 03/3/2017 23:37

Interesting auction anecdote there, If a repo is sold at auction for more than the debt who takes the profit i wonder, It is interesting to also see that AIB have been doing some chunky write backs of provisions but not boi, I am sure boi are just being more conservative and this is an ace up their sleeve !

[red5] 03/3/2017 20:07

one other question why such a low price then?

[red5] 03/3/2017 19:59

Don Patrol i like your style. -

Thank you i put this down as my long to term play - as investing for retirement. I was told by ex boss one day that he thought i would be richer than all of the people he knew, he was right i should have been. The tactic used in my forties is different to the one in my twenties. Bank of Ireland seemed good to me wanted other opinion thats why i bought in.

[donpatrol] 03/3/2017 17:52

lol go bust, if they didn`t go bust in 2008 when the the world economy was about to crumble then they never will.
This is a well financed Bank
Great man at the helm who isn't afraid to dip his hands into his own pockets to buy shares as he demonstrated last August
Generating large profits
Mcap only 7.3 billion euros verses profits of 1.1 billion.
This bank has written down the value of assets over the last 11 years. Those same assets are coming good now and are worth multiples of the current book values.
Not controlled by the Irish government like AIB is.
Low risk Pension funds have now began to reinvest in this stock.

Any downsides?
40% of its business comes from the UK so Brexit has effected it. But this has been way way over done. Its not as if English law is suddenly going to change with regard to owning property and Business. If anything the UK is just going to become another Switzerland or Norway. All big on self identity, access to the EU but no say in the policies made by the EU yet still on the hook to pay!

[red5] 03/3/2017 15:31

Very good posts so not going to go bust then?

[hayfield] 02/3/2017 19:46

I attended an auction of repossessed houses and other properties today. Had my eye on one house that BOI was selling. The amount owed was 140k, they got to sell the house for over 200k. Plenty of buyers at the auction, older clients, the gray haired "Silver dollar" type buying up everything. I`m afraid that house prices are going to push a lot higher here now. As for commercial properties, they have really upped in value since Brexit was announced.
Bad loan book my ass, this bank is reaping in the money from this so called bad loan book. I failed to secure the property, but I will now sink the funds into BOI stock instead. Bank currently valued at around 8 billion, which is a complete laugh when you consider they make over 1 billion profit a year. Plus they have gotten away with no divi again this year to build up even more reserves!
With Richie Boucher at the helm with his aggressive and ruthless streak will take no prisoners. My Target price here is 70c

[catsick] 02/3/2017 08:24

Well, with the irish economy looking better and better boi is better capitalized than the uk banks and the outlook seems much brighter, underlying profits and margins are strong and now they are fully capitalized dividends can return to 50 pct of profit which should give a healthy 5pct coupon, also the perp bonds worth a look that pay close to 7pct forever ...

[red5] 01/3/2017 21:37

well looking at banking stock in ireland as a pure punt here, please could some one give me the plus points and the minus points here please. red5 standing by

[kemorkid] 01/3/2017 10:40

Hope we have turned the corner here.

[liarspoker] 24/2/2017 08:43

Results as expected although profit higher than I had expected but as usual it's been boosted. Divi coming for the FY 2017. Brexit concerns remain. NPL's and pension deficit reducing.

[liarspoker] 23/2/2017 09:27

Strong resukts from LLoyds yesterday. Looking forward to BOI results tomorrow with interest (pun intended). BV = 27c vs share price 23.2c.

[catsick] 23/2/2017 06:15

Bank of cyprus also worth a look at, very similar turn around story, there are some decent presentations on the company website, a massive depositor bail in and a lot of pain taken, now a decent business trading at a 40pct of a heavily written down book value with a lot of upside from writebacks

[my retirement fund] 20/2/2017 11:32

Looking good value

[donpatrol] 11/2/2017 11:45

Be a nice surprise if they announce some form of a divi, even a one off. Not looking likely though, more likely to restart in 2018. Cant really see why not as they are amassing heaps of profits and the bad loan book is disappearing fast, house prices on the move yet again and Dublin commercial has had a firecracker lit under it since the start of Brexit. Don`t see any downside even with the exposure to the UK. Its not as if the property and law there will suddenly cease to exist.
In all fairness, Banking valuations are still on the floor, Bank of Ireland has a Mcap of 8 billion and profits close to a billion. Theirs Pharmaceutical companies out there with more debt issued and less profits yet the Mcaps are through the roof.
I can see a big shift towards this sector sooner rather than later.

[kemorkid] 26/1/2017 11:17

Nice rise over last few days
Any reason one wonders