Why put a 10-12x multiple on something you believe will last for 4-5yrs? You are overpaying by 100%! i did incorporate growth into my numbers, I put 40% on the type1, that's not gloomy. With them paying out e1.3bn in 1H 2016 cant see them paying out again big time in 2H 2016. Think it would be prudent to wait.
If we use your assumptions senator then boi will continue to report pre tax profits of a billion for the next few years. As the limited shelf life numbers decline (more like 4 year plus time frame I reckon) the growth in earned profits will continue to grow at a reasonable pace. 10 or 12x earnings is in no way expensive considering the growth potential here and in the uk. The uk figure was actually very good Today with emphasis in the commentary on its potential. Not near as gloomy as you seem to think maybe?
One other important point. With the capital ratios almost in line and the pref share issue sure to be sorted next year there will be substantial profits to be dispersed as dividends when the time comes. That's looking more like H2 2016 after today I would think.
I forget to congratulate Bank of Ireland for results and hope this stock will rise soon BKIR have negative trend 2014with no reason ..so i hope soon price will rise some kind of manipulation is in the process. Great company great earnings...hope next year year even more perhaps 1.2 bil and in 2017 2 bil and finally dividend This stock will have great future i will keep it for my old days
I know the only numbers that matters to day are the ones beside the blue triangle at the top of this page.
But there are two very important figures in the results that are going to matter big time to potential bank investors. I wouldn't be surprised if they lead to many broker up grades over the next while.
NIM at 2.11% is ahead of expectations but the Q4 2.22% will raise an eye brow or two. Well ahead of expected and bodes really well for next year.
The fully loaded capitol ratio, ex preferences share of 9.3% is almost a1% better than thought. This is a big one for potential investors. 10% should be easily surpassed well ahead of time.
e921MM includes e516MM of limited shelf life "stuff", lets say 2-3 years. So we have e405MM type1 recurring and e516MM limited shelf life recurring. Lets say type1 grows 40% this year and give it 15x multiple and type2 no growth and give it 3x. Add it up gives e10bn as fair. Market overshoots on up and downside so this will probably test 0.37/0.38 giving it a e12bn value. Where it goes from there? It wont be outrageously expensive but not cheap either, looking out for a reasonable period of time. prefs wont go before jan 2016 confirmed. Div 2H 2016 maybe, although 2017 still the front runner
I'm only messing, Great to see the rise and more so the results !!!!! King Richard has delivered the Emerald Isle ( not too many emeralds left )….I sold some here before christmas but still have a decent block …..happy days…..Oh and I'm not selling ….Mulligans !!!!!!!! stranger things
rob you "profit of doom" ha ha. Enjoy the day fella and try and look at the glass more full than empty. These results when the day sharks are done with their feeding frenzy will propel this sp way up the charts in time. I'm not even contemplating pressing the red sell button.....way way more to go with this share
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