Latest news with #MylesOGrady
Reuters
29-07-2025
- Business
- Reuters
Bank of Ireland shares fall on U.S. related impairment charge
DUBLIN, July 29 (Reuters) - Bank of Ireland (BIRG.I), opens new tab shares fell 3% on Tuesday after it set aside more money than expected to cover potential losses in its U.S. acquisition finance business in the first half of the year when lower interest rates cut its pre-tax profit by one-third. Ireland's biggest lender still maintained its guidance for a full year return on tangible equity of around 15% after upgrading its net interest income forecast to 2027. The bank set aside 137 million euros ($158 million) in the first half, reflecting a cost of risk of 33 basis points and increased its expectation for the year as a whole to 30 basis points from the low- to mid-20s previously forecast. It said just under a third of the first half charge reflected its view of the macroeconomic outlook, with most of the rest related to its 1.5 billion euro ($1.7 billion) U.S. finance business, equivalent to just under 2% of its total loan book. "I regard that very much as a preemptive measure. This is getting ahead of the potential problem and what you would expect us to do, particularly given the U.S. dynamics throughout quarter two," Bank of Ireland CEO Myles O'Grady told an analyst call. Bank of Ireland shares were 3.3% lower at 0840 GMT. First half pre-tax profits fell to 721 million euros ($832 million) from 1.1 billion euros ($1.3 billion) in 2024 following a run of European Central Bank rate cuts. The bank's Irish loans and deposits grew by 5% year-on-year in the first half, which contributed to it nudging up its net interest income expectations for the next three years. Those upgrades point to upside to 2026 and 2027 management and consensus expectations, analysts at Davy Stockbrokers wrote in a note. The bank added that its estimates in February for deposit and loan book growth of 3% and 4% respectively in both 2026 and 2027 were unaffected by the uncertainty associated with U.S. tariffs. Finance chief Mark Spain told Reuters its loan book showed there were no perceptible challenges emerging from the tariffs and that the caution larger business customers had shown at the height of trade tensions in April was beginning to dissipate. ($1 = 0.8652 euros) ($1 = 0.8645 euros)
Irish Times
22-05-2025
- Business
- Irish Times
Bank of Ireland ‘actively considering' buying out small legacy shareholders
Bank of Ireland is 'actively considering' a plan to offer to buy out thousands of legacy shareholders with tiny holdings after their stakes were severely diluted by its crisis-era bailouts, according to its chief executive. It follows moves by AIB and PTSB last year to launch so-called odd-lot offers last year, which saw them buy back hundreds of thousands of shares from investors whose stakes were catastrophically watered down by taxpayer rescues about a decade-and-a-half ago. 'We are actively looking at a mechanism by which smaller shareholders can sell their shares. That's a commitment we are making today,' said Myles O'Grady , the chief executive, responding to questions from shareholders at the bank's annual general meeting (agm) in Dublin on Thursday about the prospects of such a process. 'We are aware of the issue, but, to be frank, we didn't think it was as acute an issue as other banks.' READ MORE AIB, where taxpayers took a 99.8 per cent stake in exchange for a €20.8 billion bailout during the crisis, bought back 253,765 shares from individual investors with as many as 20 shares for a total consideration of €1.4 million. PTSB, in which the Government acquired a 99.2 per cent stake in 2011, spent just over €1 million repurchasing 592,943 shares. The two schemes applied automatically to such shareholders, unless they actively opted out. [ Bank of Ireland sticks to 2025 outlook after 'good start' to year Opens in new window ] The programmes were in response to calls from shareholders for such a mechanism, as they – or, in many cases, the estates of deceased legacy investors – could not realise any remaining value for their shares on the market on account of dealing costs. They crystallise large capital losses for pre-crash investors, even if they could be used to offset tax on investment gains elsewhere. Boomtime investors in Bank of Ireland were also severely diluted during the financial crisis as the State and a group of North American investors acquired over 15 per cent and almost 35 per cent stakes, respectively, in emergency cash calls. Legacy investors that did not participate in rights-issue share sales to preexisting shareholders during the crisis saw their stakes diluted even further. 'We're at a critically low level of housing stock' for buyers and renters Listen | 33:06 Bank of Ireland has 2,500 shareholders with 25 or fewer shares. It has 80,000 investors in total. The bank's chairman of less than five months, Akshaya Bhargava, fielded a number of questions and complaints from former employees about bank's defined benefit pension scheme, where retirement benefits are linked to final salaries. Dozens of former staffers also staged a protest outside the agm venue. The scheme closed to new members over a decade ago, at a time when existing plan members suffered a hit to future benefits. For the past dozen years pension increases have been essentially capped at 3 per cent – or 4 per cent, minus a 1 per cent clawback – while newly retired individuals get no rise for the first three years. The bank had promised in 2010 and 2013 to review the limits when its profitability stabilised. Mr Bhargava said that the bank carried out 'a very detailed review' of the matter, but concluded that now was not the right time to make changes. He said that the bank and the fund's trustees have an obligation to make sure the plan remains stable as it faces making payouts for the next 60 years to retirees. 'But we will keep it under review,' he said. Bank of Ireland reiterated its forecasts for 2025 in a trading statement earlier this month it had a 'good start to the year', with performance and profitability meeting its expectations. The bank said that its core loan book grew during the quarter, with its mortgage book expanding by an annualised 3.5 per cent. The bank said it continues to expect that its full year net interest income will come in greater than €3.25 billion, and that business income – including its New Ireland and Davy units and shares of joint ventures – is expected to rise 5 per cent. It reported €3.56 billion of net interest income last year in a higher interest rate environment.
BreakingNews.ie
22-05-2025
- Business
- BreakingNews.ie
Bank of Ireland Group increases home building target to 30,000
Bank of Ireland Group is increasing its target for the funding of home building, with a new ambition to support the construction of 30,000 homes across Ireland through debt and equity finance. The bank is currently supporting the construction of more than 24,000 homes, across all housing types, on 220 sites in 22 counties. Advertisement This is already a step up from last year when the construction of 21,000 homes was funded, underlining the bank's focus on making a tangible contribution to addressing Ireland's housing challenge. In addition to the new housing target, Bank of Ireland is also convening a group of key housing market stakeholders – drawn from homebuilders, equity investors, representative bodies, and professional services – to consider ways in which the private sector can further increase housing supply responsibly. Commenting, Group chief executive of Bank of Ireland, Myles O'Grady, said: 'Housing development is a pressing economic and social issue for Ireland, but outputs remain materially behind annual demand. This raises the prospect of significant consequences for individuals and families, as well as for Ireland's economic progress and social cohesion. 'The constituent components of the housing issue are multifaceted and include a range of well-aired matters such as planning, zoning, the availability of serviced land, and public policy interventions. Advertisement "While these are outside the direct control of the private sector, we hold an extremely important piece of the solution – the financing and construction of homes. 'That's why, in addition to increasing our target for housing support to 30,000, I've also asked a number of housing market stakeholders to meet in June. "The purpose of this is to consider ways in which the private sector can optimise housing supply in a responsible way. There may be steps that haven't been actioned to date, or perhaps some specific blockages that can be solved. We all have a responsibility to investigate every angle to accelerate housing supply and collaboration is key to this. 'At Bank of Ireland, our purposeful role to support Irish society and the Irish economy is clear. We will play our part in helping solve this issue and will challenge ourselves to do more.' Bank of Ireland last year increased funding available for new housing by 40 per cent to €2.5 billion, including €1 billion for social and affordable projects. Recent projects include: GEM Construction – 237 new homes in Dunshaughlin, Co Meath ('The Willows') and 220 social and affordable homes in Mulhuddart, Dublin ('Churchfields'); Castlethorn – 123 family homes (3 and 4-beds) in Dublin 15 ('Luttrellstown Gate'); Dwyer Nolan Developments Ltd – 531 apartments in Ballyfermot, Dublin; Hallmark Developments – 199 houses (2, 3 and 4-beds) and duplex apartments in Mallow, Co Cork ('Rose Hill'); O'Flynn Group – 96 houses (2, 3 and 4-beds) in Kerry Pike, Co Cork; Torca Homes – 76 houses (2, 3 and 4-beds); 46 apartments in Clonmel, Co Tipperary.
