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Thread: BOI sees losses of over €1.2 billion / Bank Guarantee Extended to Cover BoI UK

  1. #1
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    Default BOI sees losses of over €1.2 billion / Bank Guarantee Extended to Cover BoI UK

    Bank Of Ireland has reported a pre-tax loss of more than €1.2 billion for the first 6 months of the year.

    That is almost double the losses for the same period last year.

    The bank lost €466 million on the loans it transferred earlier this year to the National Asset Management Agency (NAMA).

    But the provisions it has made this morning for further loan losses – or impairment charges – have fallen compared to 2009 results.

    Bank of Ireland Chief Executive Richie Boucher says they are responding to some signs that property-related losses may have peaked.

    “We gave guidance to the market at the time; we went to raise our capital and successfully raised our capital” he said.

    “We believe that our loan losses peaked in the second half of last year”.

    “Based on the first half of this year and what we can see forward we continue to hold that guidance”.

    “So the loan losses in our books – while still obviously elevated – we believe will continue to progressively reduce from here on in” he added.

    Business Journalist Mark Mortell says Bank of Ireland made huge losses on the sale of loans to NAMA.

    “The bank lost just over €1.2 billion for the first half of this year – now that’s a disimprovement on a mere €668 million loss for the same period last year” he said.

    “Obviously a huge amount of this was to do with impairment charges; so for example on the sale of loans to NAMA the bank would have lost something in the region of €553 million”.

    “That’s the haircut on the €2.2 billion that was transferred over to NAMA” he added.
    just heard the RTÉ headlines at noon, saying Bank of Ireland lost 1.2 billion but insists the future is looking bright.
    Last edited by C. Flower; 30-08-2010 at 07:58 AM.
    Thus all which you call Sin, Destruction—in brief, Evil—that is my true element.

  2. #2
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    Default Re: BOI sees losses of over €1.2 billion

    Ha ha ha .. 'property losses may have peaked' .... thats nearly as good as being 'a little bit pregnant'.

    Is he saying we've turned the corner?
    Think National. Act Local. Oh- and superstition is just the dark matter of human history.

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    Default Re: BOI sees losses of over €1.2 billion

    It's also worth remembering auditors don't have to sign off on half year accounts............

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    Default Re: BOI sees losses of over €1.2 billion

    Quote Originally Posted by TotalMayhem View Post
    just heard the RTÉ headlines at noon, saying Bank of Ireland lost 1.2 billion but insists the future is looking bright.
    Ah sure what the hell, it's only money. A tenner a week off the Blind Pension and we'll be right as rain in no time.

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    Default Re: BOI sees losses of over €1.2 billion

    Relax folks. TV3 News said that things are looking up for the Bank and the economy.....

    Meanwhile the sh*t has hit the fan in the States and the Federal Reserve officially announced last night that they are simply printing money and buying their own debt. Sure why not? It worked for Mugabe in Zimbabwe......

    http://www.****.com/investing/genera...a-depress.aspx

    (Interview with Peter Schiff, I don't know why the **** are there)
    "When people fear the government, we have tyranny. When the government fear the people we have liberty."

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    Default Re: BOI sees losses of over €1.2 billion

    Boucher did say he wanted out of the bank guarantee, that must have left AIB sh1tting themselves

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    Default Re: BOI sees losses of over €1.2 billion

    Quote Originally Posted by charley View Post
    Boucher did say he wanted out of the bank guarantee
    Mr. Boucher may need to be pushed into recognition of the reality. BoI's chances of survival without said guarantee are zip ... zilch, zero, nada.

    Withdraw the guarantee and you can be guaranteed, nobody in their right mind would invest a penny with a bank that just scored the worst result in its history.
    Thus all which you call Sin, Destruction—in brief, Evil—that is my true element.

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    Default Re: BOI sees losses of over €1.2 billion

    Quote Originally Posted by TotalMayhem View Post
    Mr. Boucher may need to be pushed into recognition of the reality. BoI's chances of survival without said guarantee are zip ... zilch, zero, nada.

    Withdraw the guarantee and you can be guaranteed, nobody in their right mind would invest a penny with a bank that just scored the worst result in its history.
    Yeah it was that same Bouchier who headed the commerical loans section at the height of the boom.

    He would want to see the back of AIB as quickly as possible cos of their intense rivalry in the banking sector. It's just like Ryanair and Aerlingus.

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    Default Re: BOI sees losses of over €1.2 billion

    Quote Originally Posted by TotalMayhem View Post
    Mr. Boucher may need to be pushed into recognition of the reality. BoI's chances of survival without said guarantee are zip ... zilch, zero, nada.

    Withdraw the guarantee and you can be guaranteed, nobody in their right mind would invest a penny with a bank that just scored the worst result in its history.
    Rather than withdraw the guarantee it has now been extended to cover Bank of Ireland (UK) plc :-

    http://www.irishstatutebook.ie/2010/en/si/0358.html

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    Default Re: BOI sees losses of over €1.2 billion

    Not very nice of Brian Lenihan, now that Richie Boucher wanted out of the bank guarantee so desperately.
    Thus all which you call Sin, Destruction—in brief, Evil—that is my true element.

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    Default Re: BOI sees losses of over €1.2 billion

    Quote Originally Posted by ang View Post
    Rather than withdraw the guarantee it has now been extended to cover Bank of Ireland (UK) plc :-

    http://www.irishstatutebook.ie/2010/en/si/0358.html
    I thought it was strictly limited to the Irish banks per se. It wasn't necessary to cover BOI (UK) branch as i wonder did they lend it more or a huge level of impairment loans on their assets books???

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    Default Re: BOI sees losses of over €1.2 billion

    Honohan mentioned last week that his preference would be for the blanket guarantee to be extended by quarters rather tham annually. Given the state of the banks does it make a lot of difference?

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    Default Re: BOI sees losses of over €1.2 billion

    Quote Originally Posted by PaddyJoe McGillycuddy View Post
    Honohan mentioned last week that his preference would be for the blanket guarantee to be extended by quarters rather tham annually. Given the state of the banks does it make a lot of difference?
    Why quarters? Most of the debt subordinated will expire this month or October 2010 at least. Hence the pressing need for gurarantess not to be renewed or let it lapse competely.

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    Default Re: BOI sees losses of over €1.2 billion

    Quote Originally Posted by disability student View Post
    I thought it was strictly limited to the Irish banks per se. It wasn't necessary to cover BOI (UK) branch as i wonder did they lend it more or a huge level of impairment loans on their assets books???
    AIB (UK) already covered by guarantee:-

    Allied Irish Banks, p.l.c. and its subsidiaries AIB Mortgage Bank, AIB Bank
    (CI) Limited, AIB Group (UK) p.l.c. and Allied Irish Banks North America
    Inc.;
    http://www.finance.gov.ie/documents/...aqbankguar.pdf

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    Default Re: BOI sees losses of over €1.2 billion

    Quote Originally Posted by PaddyJoe McGillycuddy View Post
    Honohan mentioned last week that his preference would be for the blanket guarantee to be extended by quarters rather tham annually. Given the state of the banks does it make a lot of difference?
    Maybe he is beginning to live in hope of "something turning up"

    The guarantee has to go it has been a burden that this state can ill afford.

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