Less Ads, More Data, More Tools Register for FREE

Pin to quick picksBKIR.L Share News (BKIR)

  • There is currently no data for BKIR

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Broker snap: Nomura warms to Irish banks

Tue, 20th Oct 2009 11:01

Nomura Securities is prepared to take a chance on the battered Irish banking sector on the assumption that the government’s proposals for its bail-out vehicle, the National Asset Management Agency (NAMA), do not undergo significant changes before implementation.The Japanese broker has upgraded Bank of Ireland from ‘neutral’ to ‘buy’ and retained its ‘buy’ recommendation on Allied Irish Banks, which it regards as the riskier investment of the two, albeit the one that potentially offers the most upside.‘We believe that NAMA puts the Irish banks on the road to recovery by addressing both asset quality and funding concerns in one go. By the time the NAMA transfers are completed by mid-2010, we believe the Irish economy is likely to be in modest expansion,’ said Nomura analyst Raul Sinha.The National Asset Management Agency is being established to take over the Irish banking sector’s €77bn of toxic assets.The upgrade of Bank of Ireland (BoI) has been sparked by three ‘near-term catalysts’, Sinha said.First is that BoI’s NAMA-related assets are of ‘significantly better quality than the Irish average'’ which means the government will offer better terms for them.Second, BoI shares are among the most geared to available for sale (AFS) write-backs in the sector, in Nomura’s view. Third, Nomura believes BoI will be able to pay back the €1.5bn of government owned preference capital, which would cut the government’s stake from 25% to 15%.‘If it chooses to go ahead with the repayment, we see BoI's ordinary equity tier 1 ratio rising to c.8% pro-forma ahead of the NAMA related loan transfers and reaching a trough of 6.9% by 1H [first half of] 2010 post NAMA,’ the broker said.Bank of Ireland’s shares trade at just 5.2 times Nomura’s estimated earnings per share for the year to March 2013.Meanwhile, the broker believes ‘a significant amount of value within AIB depends on management action. Given that the group is engaged in a search for new management, we believe the appointment of a new CEO [chief executive officer] could be a positive catalyst for the shares which trade at 0.8x price to tangible book and 4.3x our 2012 EPS estimate,’ Sinha said.
More News
1 Apr 2011 06:56

Bank of Ireland bouncing back

Bank of Ireland shares rose sharply Friday morning, albeit from extremely depressed levels, following the publication Thursday night of the Irish government's Prudential Capital Assessment Review (PCAR). Also of great relevance for Irish banks, as well as for the wider euro zone financial sector,

Read more
29 Nov 2010 16:45

London close: Shares slump as eurozone saga continues

The leading share index closed with triple-digit losses Monday as jitters over the eurozone debt situation continued to plague the markets. Financial markets are still betting either Portugal, Spain, or both, will need a rescue deal similar to the €85bn Irish bail-out, rubber-stamped over the weeke

Read more
29 Nov 2010 14:18

London afternoon: Euro-zone fears resurface

Thoughts that the euro-zone boil had been lanced by the agreement of a bail-out package for Ireland have proved premature, with rising Spanish bond yields suggesting that the prospect of Spain being the recipient of an EU/IMF aid package cannot be ruled out. An underwhelming response to the latest

Read more
29 Nov 2010 12:30

London midday: Footsie deep in the red after reversal

The leading share index is now firmly in the red after giving up the strong gains it was posting this morning. Markets remain jittery over the eurozone debt crisis. The euro hit new lows against a basket of currencies this morning, despite claims by European politicians that the €85bn Irish bail-o

Read more
29 Nov 2010 08:54

London open: Banks lead market higher

UK shares have made a bright start to the week led by the banks after Ireland signed up to the EU/IMF bail-out at the weekend. Royal Bank of Scotland is the best performer. It has the largest exposure of the UK banks to Ireland. Lloyds, Barclays and HSBC are all going well. Bank of Ireland, meanwh

Read more
29 Nov 2010 07:52

Bank of Ireland to seek own funds

Bank of Ireland today vowed to raise the €2.2bn demanded under the terms of the Irish bail-out through its own efforts and without the help of the Irish state. The Irish bank has to raise the additional capital by the end of next February or else get the cash from the Irish state, which would amoun

Read more
25 Nov 2010 06:02

Thursday newspaper round-up: British banks, Irish banks, PIGS

Britain's biggest banks are working on a joint plan to cut bonus payouts and boost lending to small business. As political pressure grows ahead of January's bonus round, The Times has learnt that senior executives from Barclays, HSBC, Standard Chartered and Royal Bank of Scotland held discussions l

Read more
22 Nov 2010 16:33

Irish banks slide afer bail-out

Worries that the European debt crisis could spread to other countries following Ireland's acceptance of a bail-out sent shares in banks lower Monday. While markets initially moved higher as investors breathed a sigh of relief when the Irish government put an end to lingering uncertainty about accep

Read more
18 Nov 2010 12:05

London midday: Shares buoyant as updates impress

With some kind of resolution to the Irish crisis in sight and many of today's updates impressing the market, shares have moved sharply higher. The Bank of Ireland chief has confirmed a loan is likely with brokers suggesting it could be as much as €85bn, including €20bn to provide support for the co

Read more
12 Nov 2010 17:11

Irish bonds recover on bail out hopes

Having reached around 9.25% on Thursday Irish 10-year bond yields have fallen back as Ireland is in talks with the EU about emergency funding. This was despite earlier denials from the Irish government, which had been saysing an EU rescue would not be needed. Proposals for the rescue package are

Read more
12 Nov 2010 13:24

Bank of Ireland profits to plunge

Bank of Ireland has stoked more worries over economic conditions in the country, warning that full year profits may fall by up to 40% over the full year. The warning comes at the end of a jittery week for Ireland, which saw the 10-year Irish bond yield rise above 9% amid concerns over the ability o

Read more
11 Nov 2010 16:53

Irish bond yields rise above 9%

The 10-year Irish bond yield has risen above 9% as Irish bonds fall for the 13th day in a row. Traders continue to offload Irish bonds, concerned over the ability of the country's government to pay its debts. That pushed the difference between the returns investors demand to lend money to the Iris

Read more
29 Sep 2010 15:20

Sector movers: Ireland worries hit banks again

Banks are under pressure as worries over the European debt situation continue to plague the markets. Ireland is in the spotlight again amid speculation that that the cost of bailing out the nationalised bank Anglo Irish could rise to as much as €30bn (£25m). Unsurprisingly, Irish banks listed here

Read more
23 Sep 2010 16:40

London close: Late rally trims losses

London staged a last hour rally but didn't rise by enough to eliminate losses sparked by a weak start on Wall Street. News that Brazilian oil company Petrobas will launch a world record $78bn rights issue helped other oil companies. BP, Shell and Cairn all picked up near the close. Expectation t

Read more
23 Sep 2010 12:58

Sector movers: Irish banks under the cosh

Irish banks are sharply lower today as economic worries continue to plague the former Celtic tiger. New figures today show the debt-stricken country's economy shrank by between 1% and 2% between April and June. Allied Irish Banks is down 8% and Bank of Ireland is 6% lower. British banks are also u

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.