AIB has increased its estimate of how much it will have to set aside to cope with bad loans this year to €4.3bn.In a trading update issued to the Irish Stock Exchange, the bank blamed the worsening economic conditions in Ireland for the bigger charge.
It also said mortgage arrears in Ireland were climbing and stood at 2% of total mortgage loans at the end of March, compared with 1.5% at the end of December.
However, AIB said that when the bad debt charges were excluded its trading profit... read more »
The Church of Ireland Primate has criticised some bank directors and executives for indulging in unnecessarily high risk strategies in the current economic crisis and said they should consider their positions.Archbishop Alan Harper told church members there was an urgent need for a completely new ethic in international banking, based on a powerful regulatory system.
Church of Ireland finances were being discussed by members gathered in Armagh for the General Synod.
But it was the fallout f... read more »
Former Anglo Irish Bank chairman Seán FitzPatrick was given tens of millions worth of sterling and dollar loans, it has emerged.
Irish Nationwide gave tens of millions worth of sterling and dollar loans to Mr FitzPatrick as part of his loan transfers between the two institutions to conceal up to €122 million in borrowings from Anglo Irish.
The Irish Times reports that Irish Nationwide provided Mr FitzPatrick with loans of $56 million and £14 million on 26 September, 2007.
The ... read more »
Bank of Ireland and AIB Group have agreed to delay issuing repossession orders on homes for 12 months as part of the Government recapitalisation plan.
The banks have told Government that delaying repossession proceedings for those in arrears on their mortgages for any longer would be viewed negatively by investors.
The issue of mortgage arrears has become more central in the €7bn recapitalisation talks because of rising unemployment levels.
Negotiations continue today and any final ... read more »
Fine Gael Leader Enda Kenny has said the pay and actions of top banking executives must be reviewed before the Government's finalises its €7bn recapitalisation plan for Bank of Ireland and AIB.
Speaking on RTÉ Radio's Morning, Mr Kenny said taxpayers' money should be carefully employed
Last night, Minister for Finance Brian Lenihan said there was much tougher talking to be done before the Government signs off on the plan.
He said the Government will call the shots and will have a sub... read more »
The Central Bank says it expects the economy to contract by 4.7% this year, as Ireland continues to be impacted by global recession and falling demand.
In its latest economic forecast, the Central Bank says the contraction will lead to significant job losses with 100,000 fewer people working by the end of the year.
The bank says unpalatable short-term measures are needed if the economy is to stabilise in 2010.
In one of the most negative outlooks published so far, the bank says the co... read more »
The latest figures from the Central Bank show that weakness in residential mortgage lending persisted in November.The Central Bank says that mortgage lending rose by just €96m in November.
This compares with an average monthly increase of over €850m between January and September of this year.
It also compares with an average monthly increase of almost €2bn at the height of the housing boom in 2006.
The annual rate of increase in residential mortgages slowed to 6.7% last month from... read more »
The Government has announced support for a recapitalisation programme of up to €10 billion for credit institutions.
In a statement issued this evening, it said its objective was to ensure the long-term sustainability of the banking sector in Ireland.
The Government said it would support the programme alongside existing shareholders and private investors, and would underpin its contribution through the availability of credit to individuals and businesses in the real economy.
Afte... read more »
Figures from the Central Bank show a dramatic slump in the growth of residential mortgage lending in October.
The annual rate of growth in October fell to 7.6%, the lowest figure since 1986.
The Central Bank described the mortgage figure as 'exceptionally weak'.
The amount of money lent for mortgages rose by just €26m during October, compared with the average monthly increase of almost €2bn at the height of the housing boom in 2006.... read more »
The US government has agreed to a $306bn (€244bn) rescue plan for Citigroup in the latest attempt to bolster a financial services industry in turmoil.
Citigroup's package may also prove a template for other banks that are expected to face growing losses as economies worldwide sink into recession.
Credit losses once concentrated in mortgages are already bleeding into new, large areas such as credit cards and commercial real estate.
The nation's second-largest bank by assets ha... read more »
