AIB Annual Results 2009

[HanleyS]

I haven't seen another thread on this but seeing as we are soon to be the owners of this failed institution I believe it merits discussion on a politics forum.

http://www.aibgroup.com/futuretense_...ownload_f2.gif

Some quick notes on AIB's Annual Results:
Interest income of EUR 3,233 Million on loan assets of EUR 168,139 Million
Average interest margin of 1.92% across the loan asset portfolio.
Loan assets of EUR 23,195 Million for transfer to Nama, provisions of EUR 4,165 Million against these.
Implies 18%~ discount on assets for sale to NAMA.
EUR 21,809 Million in criticised loans not destined for NAMA.
Total criticised loans went from EUR 15,465 Million in 2008 to EUR 38,177 Million in 2009.
AIB Residential Mortgage assets total EUR 27,100 Million and have a bad loan provision of EUR 91 Million or 0.35%.
AIB is to transfer EUR 138 Million in home mortgage assets to NAMA.
EUR 816 Million in BTL investment loan assets will transfer to NAMA.
Non-mortgage personal lending assets in Republic of Ireland decreased from EUR 7,357 Million to EUR 6,242 Million.
Home mortgage lending assets in ROI increased from EUR 26,546 Million to EUR 27,818 Million.

Edited title to include IL&P

[Furze]

Could we not privatise them and let the risk takers make a few bob for change

[HanleyS]

Loan assets by class ROI (%):
Construction and property 35.93
Personal Home mortgages 28.65
Distribution 10.11
Personal Other 7.94
Other services 5.85
Manufacturing 4.10
Agriculture 2.39
Financial 1.67
Lease financing 1.19
Transport 1.10
Energy 1.07
Guaranteed by Irish government 0.00

Loan assets by class UK (%):
Construction and property 39.55
Other services 20.54
Personal Home mortgages 13.92
Distribution 10.03
Manufacturing 5.17
Financial 3.17
Personal Other 2.90
Transport 2.48
Energy 1.43
Agriculture 0.57
Lease financing 0.23
Guaranteed by Irish government 0.00

Loan assets by class Poland (%):
Construction and property 31.77
Personal Home mortgages 15.56
Manufacturing 13.18
Personal Other 9.86
Distribution 9.09
Lease financing 8.58
Other services 5.31
Financial 2.73
Agriculture 1.90
Transport 1.15
Energy 0.87
Guaranteed by Irish government 0.00

[HanleyS]

AIB's bad loans provisions are a bad joke, their current provisions against home mortgage assets are 0.35%. Compare this to their previous humdinger in their 2007 results where they made an overall provision of 0.09%. That figure is now 4.35%, or almost 50 times the 2007 figure and that's assuming only an 18% discount on loans transferred to NAMA.

[HanleyS]

Just released: IL&P have provisions of EUR 477 Million in their accounts this year against a loan book of EUR 38,592 Million. This represents provision of over 1.2% against IL&Ps book of almost exclusively mortgage assets. Why is IL&Ps provision over three times that of AIB? Because they can afford it? Kevin Murphy expects mortgage arrears to spike in 2010. Evidently he knows something the rest of us don't about wage inflation and increasing employment. Not to mention tackling the deficit. http://www.irishlifepermanent.ie/ipm...imreport09.pdf

[Malbekh]

Quick reply to this HanleyS although you've probably gone to bed at this stage. The worrying development for me which you might not have heard, was that both Colm O'Doherty (between the lines) and Richard Bruton (in screaming headlines) were advocating the selling off of their performing assets; namely their operating interests in Poland, the UK and the US.

This is a fire sale strategy to raise as much capital as possible to reduce the stake the State has to take in AIB. It's pretty much the same a bank forcing you to sell off your house right now so you can pay back some or all of your mortgage.

It's also a complete contradiction to the bank indicating that it will raise interest and mortgage rates to customers to become profitable again, whilst simultaneously selling off their most profitable assets.

Will someone please stop this stupidity and put matchsticks into Bruton's eyes.

[odie1kanobe]

Quick reply to this HanleyS although you've probably gone to bed at this stage. The worrying development for me which you might not have heard, was that both Colm O'Doherty (between the lines) and Richard Bruton (in screaming headlines) were advocating the selling off of their performing assets; namely their operating interests in Poland, the UK and the US.

This is a fire sale strategy to raise as much capital as possible to reduce the stake the State has to take in AIB. It's pretty much the same a bank forcing you to sell off your house right now so you can pay back some or all of your mortgage.

It's also a complete contradiction to the bank indicating that it will raise interest and mortgage rates to customers to become profitable again, whilst simultaneously selling off their most profitable assets.

Will someone please stop this stupidity and put matchsticks into Bruton's eyes.

+1

[HarshBuzz]

+1

odie, would you rather the alternative?

i.e. a fully nationalised AIB?

[odie1kanobe]

odie, would you rather the alternative?

i.e. a fully nationalised AIB?

You sell off your performing assets that Nationalisation will eventually occur. You don't fire sale performing assets.

[HarshBuzz]

You sell off your performing assets that Nationalisation will eventually occur. You don't fire sale performing assets.

I think there might be some words misisng from your first sentence

re. fire-sales; they don't really have any choice do they? their problem is that it ain't exactly a buyer's market right now

also, the EU seems hell-bent on forcing FIs in receipt of State Aid to sell off assets and downsize. What do you think of the Commissions stance on this to date?