Dec. 2, 2013, 9:34 AM
- Bank of Ireland's (IRE -3%) core tier one capital ratio falls a sharp 360 basis points to 10.6% following a balance sheet assessment and asset quality review by the Irish central bank. Under Basel III rules set to begin on January 1, the ratio will slip to 9.85%. "The bank continues to expect to maintain a buffer above a tier one ratio of 10%," says the lender, and the central bank has not asked it to raise fresh capital.
- The review found the bank needs to reserve for an additional €360M in mortgage losses, €486M for property, construction, SME, and corporate loans, and €547M for defaulted loans.
- The news comes at a tricky time for the bank which is considering raising €600M in fresh equity to help buy back $1.8B in preferred stock owned by the government (the cost of redeeming jumps 25% in March).
Nov. 29, 2013, 8:29 AM
- "Reflect(ing) our belief that Bank of Ireland (IRE) is making steady progress to return to profitability on an ongoing basis, and that its funding and liquidity profiles are normalizing," S&P affirms its BB+/B rating on the lender.
- Notable, says S&P, is the bank's boosted net interest margin (thanks to lower funding costs) which should lead to significantly higher net interest income this year and higher still in 2014.
- Earlier this week, the bank hinted it may sell common stock to help repay €1.8B of state-owned preferred shares. The cost of redeeming these shares is set to jump by 25%, or €450M in March under the terms of its bailout agreement.
- The stock is ahead by 2.7% In the premarket.
Nov. 14, 2013, 7:51 AM
- Ireland goes commando, setting the December 15 exit from its 3-year €67.5B bailout without a credit line from the EU. Finance Minister Michael Noonan suggested a couple of months ago Ireland might ask for a €10B credit line from the troika, but lines cost money even if not used, and come with strings like continued foreign oversight of the country.
- The New Ireland Fund (IRL) is ahead 36% YTD.
- The Bank of Ireland (IRE) is up 124% YTD and up 0.3% premarket.
- Full government statement
Oct. 13, 2013, 2:29 AM
- Ireland is set to become the first eurozone country to exit a bailout program, with Prime Minister Enda Kenny saying that the nation will leave its €85B scheme on December 15.
- Ireland may exit without the insurance policy of a precautionary credit line, which would stop the country from obtaining funds from the European Central Bank's Outright Monetary Transactions program of government bond purchases, but would also reduce the the conditions involved and the close monitoring from EU officials.
- ETFs: EIRL, IRL
- Bank of Ireland: IRE
Sep. 23, 2013, 3:54 PM
- Moody's decision to lift Ireland's debt rating to stable from negative still leaves the country with an "undeserved" junk rating of Ba1, writes Richard Barley. Nevertheless, it's a significant step in that it's Moody's first positive action on one of the EU's periphery since the financial crisis. Moody's has been the toughest on Europe's troubled countries, and other agencies still have Ireland firmly in investment-grade territory.
- The most important part of the move seems to be how Ireland's fate now rests in its own hands, rather than eurozone considerations, and Moody's has finally conceded the country is at much-reduced risk of losing access to financial markets again. In fact, Irish 10-year paper yields less than similar Spanish or Italian maturities.
- The New Ireland Fund (IRL -0.3%) is up 30% YTD. Bank of Ireland (IRE +0.9%) is up 80%.
Sep. 10, 2013, 12:11 PM| Sep. 10, 2013, 12:11 PM | 2 Comments
Aug. 9, 2013, 9:17 AM
Jun. 19, 2013, 12:43 PM
Jun. 11, 2013, 10:09 AM
Bank of Ireland (IRE -6.6%) continues to slip, perhaps still stung by Goldman's downgrade to Sell yesterday. One wonders if the bank's return to the bond market in late May - when an issue of $650M in unsecured 3-year notes was 3x oversubscribed and priced to yield 2.75% - wasn't ringing some sort of bell. "Investors will get absolutely shellacked," says an asset manager. "As rates rise, investors will get savaged by both interest rate and credit risk."| Jun. 11, 2013, 10:09 AM | 3 Comments
Jun. 11, 2013, 9:10 AM
Dec. 19, 2012, 7:10 AM
Nov. 13, 2012, 7:41 AMBank of Ireland (IRE) plans to return to the public debt markets after a 2-year hiatus with a €500M sale of 3-year covered bonds. Amidst widening net interest margins (eat your hats U.S. banks) and lower loan losses, the bank appears to be nearing the end of needing government support. Shares +2.8% in London. | Nov. 13, 2012, 7:41 AM
Aug. 10, 2012, 7:21 AMBank of Ireland (IRE) posts an operating loss of €907M in H1 vs. a loss of €722M a year ago. Toss in asset disposals and the loss rose to €1.09B. Net interest margin fell 13 basis points to 1.2%, though the CEO expects it to strengthen from here (even as the ECB cuts rates?). Shares -6.1% in London. | Aug. 10, 2012, 7:21 AM | 3 Comments
Jul. 31, 2012, 9:24 AM
Jun. 29, 2012, 9:16 AMPremarket gainers: STZ +18%. SWHC +13%.
AMPE +12%. NBG +14%. FSIN +13%. PCX +9%. KBH +9%. ING +8%. LXRX +8%. IRE +7%. BBVA +7%. DB +7%. IVN +7%. MTG +7%. ALU +7%. GSS +6%. LNCR +5%. RIO +6%. ATPG +6%. MT +6%. HZNP +6%. SAN +6%. CLNE +6%. STM +6%. CS +6%. BBL +5%. GALE +5%. OREX +7%. SI +5%. VALE +5%. BHP +5%.
Losers: RIMM -14%. NKE -10%. TMH -7%. SPPI -6%. | Jun. 29, 2012, 9:16 AM | 1 Comment
Apr. 12, 2012, 9:00 AM