AIB currently has 523,438,445,437 ordinary shares in issue, of which 99.8% are held by the National Pensions Reserve Fund Commission ("NPRFC"), with 500 billion of the ordinary shares issued to the NPRFC in July 2011 at a price of €0.01 per share. Based on the number of shares currently in issue and the closing share price at 14 October 2014, AIB trades on a valuation multiple of c. 7x (excluding 2009 Preference Shares) 30 June 2014 Net Asset Value (NAV). The Group continues to note that the median for comparable European banks is c.1x NAV. -ENDS-
Allied Irish Banks, p.l.c. ("AIB") announces High Court approval of capital reduction
Further to resolutions passed by shareholders at the Company's Extraordinary General Meeting ("EGM") on 19 June 2014, AIB announces that the Irish High Court has today approved the Company's application to confirm a special resolution to a) cancel (i) the capital redemption reserve of €3,926,055,941.63 resulting from the cancellation of the Deferred Shares created by the subdivision of ordinary shares (EGM Resolution 1) and (ii) an amount of €1,073,944,058.37 standing to the credit of the Bank's share premium account, and b) treat the €5 billion reserve resulting from (i) and (ii) as profits available for distribution, as defined by section 45 of the Companies (Amendment) Act 1983. The taking of any action that utilises distributable reserves at a future date, as and when conditions permit will be subject to all relevant approvals. The reduction will become effective when the High Court order is registered with the Companies Registration Office.
The reduction of the share capital has no impact on ordinary shareholders, the operating performance of the bank or the Group's capital ratios.
ptsb may need to raise capital after the stress tests lol.this is the propaganda you get from these criminals noonan and is henchmen at the central bank,these people will go to the ends of the earth to justify the illegal takeover of ILP. FACTS ptsb as 2.3bn in ct1,1bn of this is excess capital over the required.the bank as an obsurd ramped up stock provision of 4.1bn,3.1 bn of this on the roi mortgage book,arrears cases on the btl book peaked at 5000 in dec 2012, and have fell to 3300,on the pdh mortgages arrears peaked at 24500 june 2013 and had fell to 17600 at last count.the outstanding 90 days+ arrears cases aparantly 80% of these have been restructured. the uk loan book is low yielding but know defaults.the irish commercial loan book is 2bn and as got a provision of 900 million against it,blackrock who did the stress tests in 2011 said the worst case adverse defaults there would be no more than a 400 million loss on this part of the loan book ??just in comparison on the btl books of the iris banks at last count aib 11600 cases a provision of 1.4bn,boi 8000+ cases provision 1bn,ptsb 3600 cases provision 1.3bn.if there was 4/5000 reppos on the roi mortgage book worst case,there would be a write back up of 2.6 bn, the bank as been raped over the last 3 years of disproportionate high elg fees intrest ect 700 million + to date,no wonder its a basket case the elg fees for boi in the first half of 2014 was 20 m for ptsb 32 m with intrest and bank levys the state take every cent from the balance sheet and they say its challenged lol.but the biggest con ever and I don't know how they kept it underwraps,when the bank was ilegaly taken over in the sumer of 2011 it did an lme or debt buyback just like the other irish banks and raised a profit of 1bn but unlike the other irish banks who used there proceeds to bolster there ct1,ptsb as they said at the time was to be kept in reserve.they put it to work with the contingency capital buying irish government bonds.the rest is history every intrest payment coupon was used to buy more bonds and at june 2014 stood at 3.3bn don't take my word for it look under debt securitys in the results.final word after more than three years in state control they finaly written of 73 m of the roi mortgage book that is less than six months profits for irish life.
..Greeks don't fit in the European union, there are also a few other countries to the north of Greece and the right side boundaries of Germany with the same problem..when you have to deal with a culture of corruption at every level, it weakens the Union itself..but this movement in the markets is the rapid fall of a basic commodity - Oil..markets are making corrections..lower oil is positive for consumers..
same thing happened with Bkir, they bought in at 10cents and it went 8 cents, so 20% from 30 cents will not surprise them. Think the politics of Greece is worrying investors. Can the ruling party get support of 25 parliamentary members to elect the President or is it going to be snap elections. The market is sending a very strong message that it doesnt like the prospect of Syriza. Lets see if this message gets through to leaders and the Greek people. They have been given a taste of what will happen if they elect Syriza. Lets see if they listen, they should. You would think the parliamentary members would?
Last week, there was an article in the media stating that an investment bank had been appointed by Permanent TSB to evaluate options in relation to possibly selling a stake in the bank. Moving to this week, we note with interest comments from the Minister for Finance yesterday evening after the Budget that if PTSB needs to raise capital after the stress tests, it can do so in the markets and not impact on the state finances. He specifically indicated that “if they require extra capital, they’re strong enough to get the small amount of capital they require in markets, so we don’t see any risk to taxpayers”. However, it also appears that the Minister indicated that he has “a fair idea” of how the stress tests assessment is going and that AIB and BOI “are very secure in capital terms”. The comments from the Minister and the reports last week may raise speculation that the government is readying the market ahead of PTSB struggling in the stress tests. Should any capital be required, the bank has €400m of Tier 2 cocos that could convert into equity to replenish the core tier 1 capital and the bank could then raise additional hybrid capital to support total capital. However, we are more intrigued by the comments in relation to AIB and BOI, which on face value should be supportive. Though we wonder whether the specific mention of capital, whilst reassuring, still leaves open the possibility of some additional provisions being required by the banks in the stress tests. Our base case is that both AIB and BOI pass the stress tests without the need for additional capital.
Interesting to see that Wilbur Ross and his friends have lost their shirt on their Greek bet with EFG Eurobank - they bought in at 30c ..........now at 25c and doubt they could sell for anything above 15c. Have been watching with interest but am dissuaded by my experience of six months working in Greece where it is apparent that everything and I mean everything is corrupt and most of the Greeks I know do not believe it is possible for Greece to recover.
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