Of Special Interest
15th November 2011
Bank of Ireland cautiously optimistic trading statement
The Bank of Ireland issued a third quarter trading statement. The statement was cautiously optimistic. It does not include any detailed financials or accounts. Key points made included:
- 1 The bank has disposed of €5bn non-core assets, one half of the amount planned to be disposed of by 2013. It is in talks regarding further disposals.
- 2 It has grown deposits in Ireland and the UK.
- 3 It is likely to make Debt Value Adjustment gains in the second half offsetting some DVA losses in the first half.
- 4 It will gain from loan loss writebacks this year but may not do in future periods.
- 5 The cost of its state guarantees will become more noticeable in future periods because of the likely lack from the above gains
- 6 The Irish economy is expanding with annualised real GDP growth of 2.3% in the second quarter of 2011 with real GNP increasing by 1.1%.
- 7 The bank raised €4bn of secured term funding on the wholesale bank without external guarantees. It did so with a weighted average duration of 2.4 years and spread of 250bps over 3 month Euribor.