AIB downgrades its EPS due to property debts

[Digout]

Interesting day to give this info to the market, but they have reduced the EPS from 1.80 - 1.90 to 1.20.

The bad debt provisions has gone from 35 to 75. Up to 100 next year, all down to property.....

[wysiwyg]

well the market took a large fall at opening.. which was against the grain of other markets this morning, but is now steadily climbing back upwards. Perhaps this announcement is a good thing as banks are finally being honest about the states of their balance sheets

[needle_too]

well the market took a large fall at opening.. which was against the grain of other markets this morning, but is now steadily climbing back upwards. Perhaps this announcement is a good thing as banks are finally being honest about the states of their balance sheets

Youre dreaming there pal.
You need to wake up.

The AIB figures are predicated on a 30% fall (peak to trough) in house prices and continuing FDI through to 2011.

House prices are already down by 25% and I see one of Obama's advisors has stated that Ireland should not rely on FDI. In other words, the new US administration is saying "You've had your fun but now we want our tax revenue back, paddy".

"But wait a minute the EU will help us.... surely they are big enough to ignore the two-fingers we stuck up to them in the referendum?".... Ehh, no.

Those figures are total fantasy. AIB is a lost cause and the FF govt have guaranteed its finances.

Goodbye Ireland, it was nice knowing ya!!!

[yehbut_nobut]

FT.com

AIB said the overall deterioration in loan book asset quality had been “moderate” in all but the residential development portfolio, where the bank has €10.7bn of loans to developers and builders who have been hit by the collapse in demand.

Of the book, €7bn is lent for the purchase of undeveloped land, where the bank anticipates prices will fall by 40 per cent. The rest is lent to owners of housebuilders.

€7bn in land that's undeveloped? Just reading those figures is a bit scary.