It is not LTRO money (today’s BOI issue will be re-fi’ed with the declining pool of LTRO funds). LTRO largely finished in Q1 2012.
This is a new facility. From the summer of 2012, the PIGS banks holdings of their own sovereign debt has exploded with it.
see ‘jake76’ posted the following link earlier.
I have also posted on reuters coverage of it (called ‘Draghis Doom Loop’)
Note that Irish banks would have used their own cash (non-LTRO / non-new facility) to buy most of the 17% above
(it is monetary financing - and therefore verboten - for the ECB to fund a primary issue - although they made an exception with the Prom Note).
Most of the 83% ‘international investors’ are I-banks / brokers buying on behalf of Irish banks who can buy in the secondary market with this ECB facility.
We will see the effect when NTMA updates its table later in the year.
Made up random stuff.
BoI at peak had a market cap of c.€19.5Bn - tiger era.
Today with the Share price breaking through the 0.30 mark - it’s market Cap is c.€9.7Bn (Almost the exact same as Ryanair).
BoI has approx 32.3 Bn Shares issued V’s Ryanairs 1.4Bn = 23:1 approx.
Ryanair shares today €6.80
BoI shares today €0.30
If the number of BoI shares matched those issued by Ryanair 0.30x 23 (23:1), this suggests /compares BoI shares at an equivalent share price today of €6.84 to Ryanair.
So of BoI and Ryanair- I ask who is currently undervalued/over valued ?
Who knows but the stock with most upside potential is BOI in all likelihood…
so BOI is @ 9.7/19.5 = ~ 50% value vs ‘peak’. Not true of Rynair with share price above 2007- based off this alone since i would say there is potential for much more upside in BOI since regulation seems unlikely to stop them in their tracks when it comes to raising lending rates at a time when the ECB are stayling low-> net interest margins will eventually increase and we are fairly sure at this point they’re not going to go under.
BOI are a long term buy here.
The big money has been made on boi for now, IMO. The bank is ways off earning close to a billion per annum after npl provisions. This is the kind of earnings required in order to justify the current market cap, investors buying now are late to the party IMO
Still I wish I had not offloaded the bulk of my shares before the year end but I nearly always sell too early
BoI’s behaviour during boom was like a ‘good girl’ at a ‘wild party’ - Richie Boucher (aka wanker)
What a prick. I wonder what his predecessor Soden would have made of such a sexist and degrading analogy.
The arrogance is disgusting, I feel sick every time I am reminded that this man is still in gainful employment.
I wonder did Richie pick up cold sores? He was one of the sluttiest bitches ever to lend in BOI.
He Probably doesn’t give a f**k but I would have thought he’d have enough cop to realise media would pick up on comment.
Must say on one level I admire his ability to be still in the job, he must have some qualities.
Care to elaborate what those ‘qualities’ might be?
I would guess this lass ended the party taking on all comers,those that weren’t pulling a train on her were videoing it with their camera phones and she ended up covered in gyp with 2 sprained wrists,a very sore jaw and a broken vagina with 17 stds.
Why does that shit always happen to the good girls at parties eh Richie?
He could be a more superior spoofer than most.
Probably a crappy analogy but bank did maintain slightly more decorum than allied. Alliied were like the gal or boy that was never let out and went a bit mad at the party
Bank of Ireland narrows losses to €569m
Boucher says ’ bank is profitable’ and generating capital on the day it announces yet another loss.
He only has a few utterances every year. It’s not that difficult!
No he’s right you see.
It’s profitable … but also lossable.
He means “it’s profitable” for himself and the other directors??? maybe?