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BANK OF IRELAND has released interim results for the six months to 30 June 2012 which show a €1.255 billion pre-tax loss.
The bank’s underlying operating loss hit €907 million compared with €722 million last year.
The report shows that the bank has set more money aside for loan impairment charges in H1 2012 than in the same period of last year – up from €842 million to €941 million.
Of this €941 million, the bank has set aside €387m for property and construction loan losses, €310m on residential mortgages and €216m on non-property SME and corporate loans. The number of customers falling into arrears continues to increase, according to BOI, though the rate of those going into arrears dropped during H1 2012 “and we expect this trend to continue”.
BOI’s net interest margin has fallen from 1.33 per cent last year to 1.2 per cent in the first half of this year. This rate marks the difference between what it costs the bank to raise funds and what it charges its customers for lending that money out.
Richie Boucher, BOI Group chief executive, said that H1 2012 “has been a very difficult environment in which to operate”, adding the the bank’s half-year results were impacted by wider eurozone uncertainties and very low interest rates.
“Whilst we have been able to reduce the rates we pay for deposits and the quantum covered by ELG as well as improving asset pricing, the very low level of official interest rates has adversely impacted on our earnings rates and therefore on income.”
“While the Irish economy remains challenged and our impairment charges remain elevated, we expect the impairment charges to reduce from this level, trending to a more normalised level as the Irish economy recovers,” he added. “The pace of the reduction will be particularly dependent on the future performance of our Irish residential mortgage book and commercial property markets, as well as our own credit management initiatives.”
However, Boucher also noted that as the BOI Group restructures, it will cut staff numbers.
“Our voluntary redundancy programmes to facilitate the measured and controlled departure of staff in line with the Group’s revised requirements has recommenced.”
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It’s hard to believe that a bank which has lost €1.25 billion in six months is in a position to evaluate & refuse business loan applications from companies which are more often than not better managed and more profitable than they are – Banana Banks for a Banana Republic.
Oh dear, they should work harder. Or actually, just ask to government to fill the hole. Seems to be a viable business model of late.
€1.25 Billion?
”Well done guys”
Where do we send the check?
Either merge the AIB with BOI or let one of these banks fail. They are a complete drain on the economy. The only ones profiting from all this are the Bankers themselves….!!!
How much are they still getting in Bonuses for dragging the country into the mire…???
Jesus! learn some manners will ya??? you can’t just go about blurting out the “F” word on public forums like that. Get a grip will ya??? they won’t be let fail, you’ll pay for them whatever the cost.
Is it not officially time to totally nationalise the banks, merge them & close some & then just concentrate on the one?
While it makes sense, it violates every competition law in the state not to mention in the EU. You can be guaranteed that, in the off change our government displayed a pair and moved to do it, the EU would stop it just to prevent it hitting the press and making the eurozone look bad.
Then let the EU take over one of them & pay for it themselves.
There’s a lot to be said for having the state run the banks & finance mortgages/loans etc, sustainable income for the country & the interests of the people at heart (mostly).
My heart bleeds for them, I’ll give it 3 months before branch closures and staff getting the bullet!
The thing I found most shocking about this is my reaction. I thought, €1.25 billion-that doesn’t seem like a lot of money. Which goes to show what kind of world we live in. Madness that I even thought that.
Watch out BOI customers increased charges across the board for Christmas
Can ye imagine an Ireland where it’s society were well educated, well looked after by a well managed health system. A nation of people that were truely represented by the politicians that they would elect. Where big business was big only because all each man, woman and child of this country would have a stake in it’s ownership. Services run by the people, for the people and of course, for the people.
Imagine what it would be like to experience low taxes on our labour and the services we avail of. No TV licence, no hidden taxes, no stamp duty. Everyone with equal opportunities, positive outlook on life and generally a happier, safer existance.
How does something like this come about?
What if our government (We the people) created our own line of credit. Sovereign paper money or digital credit lent by one publically owned bank who earnings would cover its running costs / wages – No interest created so no new money is pumped into the system thus no inflation.
How can we trade with this new currency?
Well, we have a country of roughly 70,000 sqkm. Atleast half of that is land that can support livestock (Remember back when we had fields upon fields of animals all accross the countryside).
We have an unbelieveable 200 million acre marine resource full of marine live.
In that 200 million acre area, we have untold billions worth of oil and gas.
We have western and southern coasts which boasts one of the best sites in the world for renewable energy both wind and wave.
We live in a country which is rich in raw materials and minerals (steel, lead, zinc, silver, aluminum, barite, and gypsum)
Ireland’s arable land can produce vast quantities of turnips, barley, potatoes, sugar beets, wheat, beef, and dairy products.
We literally can be the ‘best little’ country in the world.
But when we are forced to borrow foreign credit (Which is created out of thin air) and not create our own, when we elect money hungry, selfish traitors to represent us – we loose all ownership of the resources above. All our public services are in a deliberate mess. Over paid, under worked, under qualified, unpatriotic self servicing middle and higher management that squander resources to the point that services are poor, even life threathening.
We have sold our national resouces both marine and land based for next to nothing.
We have a government who serve foreign interests and not the people they promised prior to each and every election.
The difference between 1916 and 2012 is that back in 1916, all of us were the same. We generally were of the same ‘class’ We banded together as we had nothing to lose if we had nothing to start with. This power of unity helped wrestle our country back out of the hands of 800 years of repression.
Since then, over time, they slowly divided us.
We now have atleast 6 social classes.
1. The Underbelly – who never work, live off the state and encourage their children to do the same. Dont marry as they’ll lose their free house and social welfare payments and ‘entitlements’.
2. The Working – who had limited education, now working in low paying service jobs, living day to day, week to week.
3. The Lower Middle – who have semi skilled jobs, renting as they cannot save enough to borrow against. Have just a bit saved but cannot risk spending it incase something happens.
4. The Middle – who are educated up to 3rd level. They are stuck with over priced mortgages, in negative equity. Possibly have one spose who have lost their job if not both. Wishing to escape this hell and immigrate.These people are scared to death for themselves and their loved ones. Highly stressed and desperate. No health insurance, savings tied up when used to borrowed against for their mortgage.
5. The Higher Middle – who have been hit with the financial crisis, but havent lost much. Are property owners or very close it. Middle management in the public sector or highly educated working in niche industries in the private sector. The are looking to the future as normal.
6. The Higher – who have their money made. Their children will gain employment either from their education or nepotism. Have private health policies and investment properties.
How can any nation rise up and take back their country when its clearly and cleaning divided. No leader or leadership, no one to risk everything like they did in 1916.
Excuse the spelling mistakes and ggrammatical errors. Send from smart phone.
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