It's true, but look at the numbers: to get to beng a Euro stock means a multiple of 4.
ie: if they were to use a hypothetical standalone buyback programme, they would have to buy 3 quarters of the stock, currently meaning paying 6.5bn. Not a runner.
The only other way to get to being a Euro stock is to do a reverse split as discussed here before, which basically costs nothing and is largely cosmetic.
Which still leaves the dividends.
Likely we will see a reverse split, followed by some partial buyback and then some dividends, but again, only after they have dedicated profits to retiring pref shares with 10.25% coupon, which will in turn strengthen the P&L.
2014-2017 will be the final consolidation and return to a normalised funded, profitable bank with a 50:50 Ireland/UK market.
I genuinely can't see them paying dividends ufn. The market is just awash with BOI scrap....this needs to be bought back in some shape or form. The SP must get out out of the penny status....how they go about this has been discussed on numerous occasions but in its current guise a dividend is for the birds
I think yes they will pay dividends. First they have said they will dedicate profits to retiring the remaining 1.3bn pref shares now held by private investors by 2016 and only then will they think about dividends, so likely to be 2017ish, possibly 2016 if they have become profitable enough in the meantime to have accumulated capital enough to retire the pref shares and have some decent leftovers.
Anyone have any ideas feeling as to when or if BKIR will start paying dividends on ordinary shares again?
like everyone else i'm glad to see an upturn in the sp. but i have to keep reminding myself my investment was never a short term one. it gets a bit unnerving watching the sp falling off from its high, hope it gets back up there again soon. stick to the plan. ;)
Permission to go off topic momentarily - am long DBK and will prob participate in RI. Anyone else in similar position?
It is a substantial % capital raise ahead of the stress tests but I don't think there is a high correlation in the read across to our bkir on the basis that DBK is last man standing in euro and wants to become one of the few truly global IBs. From all I can ascertain, Bkir is good for these tests. Likewise for DBK, I now see it benefitting from any flight to quality that may take place during/post stress tests. Appreciate any thoughts/comments. thanks.
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