.. no mention of dividends.. seems like they want to get rid of the preferred dididents which cost 133m€ before mention of dividends. . from what i have seen so far , there may still be some writebacks but boi was very conservative and did not want to dump all of these 1 time events in 2014.. save some for later.. they have been very conservative in this financial report.. they can err on being conservative.. they can very likely produce similar results , if not slightly better for 2015... boi has momentum.. will continue to look at financials in more detail. i started eeading the 100+ page report yesterday but not finished.. there is an interesting comparative income report comparing years 2011 to 2014 here as well as NIM which has almost doubled..
Don't forget that there a few once offs running out on the positive side as well. 133 million pre share dividend and 30 million ELG in the next year or 2. Also I would expect the bank to benefit from cheaper funding and qe to some extent.
Fair comment. But they can do more on the cost side to mitigate the one-offs. BKIR targeted a cost to income ratio of <50% by end 2014 but only achieved 55%. They say they are ‘on track’ to deliver, if so it would add c €150m on €3bn of revenue, but it will be tough in the current regulatory environment. Relative value is still not great. BKIR remains expensive even after these results: Lloyds also posted results this week: 2014 CET1 12.8% (BKIR: 9.3%) and P/TNAV 1.4x (BKIR: 1.6x). Lloyds is now paying dividends and forecast to yield 6% in 2016 (BKIR 4.3% with a strong tailwind). UBS 2014 CET1 of 13.4%; P/TNAV 1.3x and 4.8% div yield today.
I agree with these numbers except I think you might be light on the RWAs, only growing 6%. Because of the substantial 2/3/4 year "one-offs" in the e1bn in 2014, Bkir need to substantially grow the business to maintain and grow e1bn. So, if we grow RWas say 25% to 65bn we get 10.5%. 2014 showed us that the underlying real recurring at moment is only e450MM approx so they must grow so that they can replace the multi-year one offs as they don't want a big drop when the right backs and liquidity re-balancing ends. However, if securitisation returns maybe they can ramp up origination of loans but not necessarily hold them all so they control the growth in RWAs. Your analysis highlights the challenge for Bank of Ireland, profitable growth with controlled RWA expansion. The securitisation/covered bond market in Europe needs to be there to support this strategy. In line with Goldman conference last week where they are strong advocates of a deeper European capital market to support growth. This analysis shows why it is so important.
During pints in dingy bars Where the greatest poets they sparred With thoughts of grandeur that left them to write The greatest poetry that comes to sight.
Paint that's faded on the wall Drunks that are blighted by a cause Of freedom from their earthly thoughts That haunted the ones who gave them life To live through a sea of unending strife.
Keoghs Mc Daids I drank them all Walked the steps of generations past Carried tradition to the last Write these lines consumed by fuel That is not the wise mans tool.
Tortured by tradition strong Did not do no mortal wrong Cursed by generations past Using drink to create a fast and timely way To pass the troubles of the day Will exit strife the easy way.
We cannot blame the folks of old When the brutal truth is told For choices that we make in life That will lead to extra strife When freedom it is thrown away Then we choose to stray.
So do not be fooled by short relief From the pain of daily grief Stand up and face your daily woe Then good fortune you will sow For the next folks that will row The boat that floats on life's highs and lows.
Is this correct ?
Dedicated to those that sleep in doorways on Grafton Street, The Strand and like places, cannot read or write, addicted to things that are not good and never had a chance and who look at is we pass by in a hurry and turn our heads the other way for fear they might catch our eye.
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