Bank of Ireland

CA Replica

Key Strategic Goals

To be the leading Irish retail and commercial bank in a consolidating sector, with a strongly developing retail orientated business in GB and niche corporate activities internationally

13 September 2012€275m increase to existing agri loan fund

Bank of Ireland today announced a number of new initiatives targeted at supporting and assisting the continued growth and expansion of the agri sector.

In addition, the Bank announced a further €275m increase to its existing €200m Agri Farm Investment Fund.

The increase, along with the €25m working capital fund, which was launched in July, adds up to a cash boost of €500m available to the sector since July 2011.

The Bank is launching these initiatives in advance of the National Ploughing Championships, which takes place in New Ross from 25-27 September, and of which the Bank is a key sponsor.

Key Strategic Goals

To be the leading Irish retail and commercial bank in a consolidating sector, with a strongly developing retail orientated business in GB and niche corporate activities internationally

13 September 2012 The new initiatives include;

Agri Development loanA term loan facility ideally suited to funding farm expansion, whether that is investing in farm buildings, land or livestock.

Farmers who are developing their farms to cater for increased dairy output post 2015 may avail of interest only repayment terms in certain circumstances.

The bank aims to support these farmer’s cash flows until milk quotas are phased out, and believes that this expansion loan provides support for Irish farmers who want to invest in their business now.

Key Strategic Goals

To be the leading Irish retail and commercial bank in a consolidating sector, with a strongly developing retail orientated business in GB and niche corporate activities internationally

13 September 2012 The new initiatives include;

Agri Credit Line

This credit line can provide seasonal funding to all farmers and allows customers to make multiple draw downs during the life of the loan.

The Bank aims to help farmers fund seasonal costs over the loan period.

As customers can make multiple draw-downs on the credit line during the term of the facility, they may also repay funds into the loan as desired during the term. Each drawdown will be a minimum of 25% of the loan amount.

As Bank of Ireland drives to become the number one farming bank, it wants to encourage new customers to move their business to the bank.

Key Strategic Goals

To be the leading Irish retail and commercial bank in a consolidating sector, with a strongly developing retail orientated business in GB and niche corporate activities internationally

Bank of Ireland seeks to grow share of business lending market as it launches its sixth National Enterprise Week “Business confidence must be restored to stimulate demand for lending”, according to Bank of Ireland

17 May 2012

Bank of Ireland wants to be the undisputed number one Bank for business in Ireland.

At present, the Bank’s relationship managers talk to one in three business customers across the country on a daily basis and are well aware of the financial needs and challenges those customers face.

In addition, the Bank wants to play a key role in the economic recovery of this country and this will start with a buoyant SME sector.

Key Strategic Goals

To be the leading Irish retail and commercial bank in a consolidating sector, with a strongly developing retail orientated business in GB and niche corporate activities internationally

Bank of Ireland seeks to grow share of business lending market as it launches its sixth National Enterprise Week “Business confidence must be restored to stimulate demand for lending”, according to Bank of Ireland

17 May 2012

The Bank believes that consumer confidence is one of the key ingredients to seeing a sustainable recovery in the SME sector at present and key influencers must work together to help restore this. The Bank’s National Enterprise Week was established three years ago to provide SMEs with varying types of support that are equally important for the development of their businesses.

These include networking opportunities, seminars and advice sessions, and technology developments, to name but a few. Today these events have grown into valuable forums for both customers and non customers of the Bank and hopefully to help move forward their businesses in a positive way.

Key Strategic Goals

To be the leading Irish retail and commercial bank in a consolidating sector, with a strongly developing retail orientated business in GB and niche corporate activities internationally

Bank of Ireland seeks to grow share of business lending market as it launches its sixth National Enterprise Week “Business confidence must be restored to stimulate demand for lending”, according to Bank of Ireland

17 May 2012

Over 2,200 businesses are expected to exhibit, promote and sell their products in the Bank’s branches nationwide and feedback from previous events highlights both the financial benefit and the networking opportunity that these provide.

Participants will meet local influencers, experts in several business fields like accountancy or business management along with senior bank personnel who will share their knowledge and experiences. Several events will offer speed networking opportunities and business clinics with hands-on advice that people can put into practice immediately. An IT solutions clinic will take place in over 100 Bank branches. Experts from Microsoft will be on hand to provide SMEs with advice and information on technology solutions for their business including Microsoft’s Office365 cloud technology.

Key Strategic Goals

To be the leading Irish retail and commercial bank in a consolidating sector, with a strongly developing retail orientated business in GB and niche corporate activities internationally

Bank of Ireland provided 1 in every 2 mortgages17 November 2011

The latest market data published yesterday by the Irish Banking Federation and PricewaterhouseCoopers confirms that Bank of Ireland’s market share of new mortgage lending has increased to over 50% of the overall market.

While the mortgage market remains low relative to recent years, since early 2008 Bank of Ireland’s market share of new mortgage lending has more than trebled from 15.6% to 50.2%.

Bank of Ireland continues to offer mortgages at competitive rates and genuine access to finance for those who are seeking to buy a home.

Let’s check this out!

its your money.ie

its your money.ie

Who wants to pay a €100 a month more?

Key Strategic Goals

To be the leading Irish retail and commercial bank in a consolidating sector, with a strongly developing retail orientated business in GB and niche corporate activities internationally

Bank of Ireland provided 1 in every 2 mortgages17 November 2011

Commenting on the data, Jonathan Byrne, Head of Mortgages at Bank of Ireland said: “These figures demonstrate that Bank of Ireland remains fully committed to the Irish mortgage market and to mortgage customers at all stages of the mortgage process – enabling consumers to buy their first home or to move to a new home that is more suitable to their needs.

We are also committed to supporting our customers who are facing difficulty paying their mortgage and continue to urge customers who are in financial difficulty or who are facing financial difficulty to come and talk to us”.

Key Strategic Goals

To be well positioned in our core markets with strong customer franchises and market positions capable of supporting economic recovery

Key Strategic Goals

To be strongly capitalised without reliance on exceptional Monetary Authority support and exceptional Government guarantees

Key Strategic Goals

To be strongly capitalised without reliance on exceptional Monetary Authority support and exceptional Government guarantees

Key Strategic Goals

To have a sustainable funding base with our core loan portfolios substantially funded by customer deposits and term wholesale funding

Key Strategic Goals

To be strongly capitalised without reliance on exceptional Monetary Authority support and exceptional Government guarantees

Key Strategic Goals

To be operationally efficient with sustainable, lower cost structures

Cost/income ratio

The cost-to-income ratio is a key financial measure.

It shows a company's costs in relation to its income.

To get the ratio, divide the operating costs (administrative and fixed costs, such as salaries and property expenses, but not bad debt costs) by operating income.

The lower it is, the more profitable the bank will be.

Changes in the ratio can also highlight potential problems: if the ratio rises from one period to the next, it means that costs are rising at a higher rate than income, which could suggest that the company has taken its eye off the ball in the drive to attract more business.

Key Strategic Goals

To be operationally efficient with sustainable, lower cost structures June

2011 2012 TargetCost / income ratio 79% 92% <50%

Key Strategic Goals

To be operationally efficient with sustainable, lower cost structures

Key Strategic Goals

To be operationally efficient with sustainable, lower cost structures

(Reuters) - Bank of Ireland has agreed a voluntary redundancy scheme with employees which their trade union said would pave the way for up to 1,000 more job cuts at Ireland's largest bank.The bank has already reduced its workforce by around 20 percent since the country's property crash in 2008, is in the midst of a sector-wide overhaul that will see it cut its balance sheet by 30 billion euros by the end of 2013.Chief Executive Richie Boucher said in February that the bank would be look at making efficiency gains for a "long, long time" and a spokeswoman for the bank said it had not identified an exact number of employees it expected to take the package.

"As the group remains focused on its necessary task to restructure and reposition ourselves ... the overall number of people which we need to employ will regrettably reduce," Boucher said in the email sent to staff on Friday.

As well as shrinking its business through the asset sales and redemptions required as part of the country's EU/IMF bailout, Boucher said in February that the bank would spend 90 million euros between 2010 and 2013 on bringing in efficiencies through the use of e-banking and automatic payment systems.

Key Strategic Goals

To be operationally efficient with sustainable, lower cost structures

Bank of Ireland To Cut Hours in Some Branches, 98FM.com

DUBLIN, Ireland - Services at more than 40 Bank of Ireland branches are to be dramatically reduced in the coming months.

According to reports in the Sunday Business Post, plans are afoot for the bank to limit over-the-counter cash services to three days a week, at 40 of its 250 branches across the country.

It’s expected the change will come into effect before the end of this year – but it’s still unknown which branches may be effected.

Key Strategic Goals

To grow our revenues through increasing the number of customers we have in our core businesses and selling more products and services to our customers, within an acceptable risk profile, whilst getting paid a competitive, fair price for efficiently and empathetically delivering these products and services, covering our costs, providing a reward for the risks we take and a return for the capital we deploy

its your money.ie

Who wants to pay a €100 a month more?

Key Strategic Goals

To grow our revenues through increasing the number of customers we have in our core businesses and selling more products and services to our customers, within an acceptable risk profile, whilst getting paid a competitive, fair price for efficiently and empathetically delivering these products and services, covering our costs, providing a reward for the risks we take and a return for the capital we deploy

Key Strategic Goals

To reduce the risk to the Irish taxpayer from any support provided to Bank of Ireland, to reward taxpayers’ investment in Bank of Ireland and to repay taxpayers’ investment in Bank of Ireland

Key Strategic Goals

To achieve attractive returns for stockholders through strong operational performance and return of surplus capital

Key Strategic Goals

To achieve attractive returns for stockholders through strong operational performance and return of surplus capital

Return of surplus capital ---- whaaaaa…..!!!!

What planet are you living on Richie!

In all, for me Bank of Ireland has been delivering against all the odds (given the challenging macroeconomic backdrop) of late.

Management is to be commended for a good job in improving the funding profile and offloading non-core assets at better-than-expected prices. In addition, while impairments are set to remain elevated, management has guided that non-NAMA impairments will fall for a third consecutive year in 2012.

So, in terms of the factors it has influence over, it’s doing the right things.

However, the elephant in the room is of course the factors that it doesn’t have control over.

Continued troubling developments in the Eurozone means that punting on a bank stock with significant exposure to one of the PIIGS (56.1% of Bank of Ireland’s loanbook at end-2011 was exposed to Ireland) economies at this time requires courage to say the least.

The Irish domestic economy remains under severe pressure, which could lead to further problems in Bank of Ireland’s loanbook.

Further capital raisings cannot be ruled out, with the Bank holding a call option over the government’s 10.25% 1.837bn 2009 preference stock that allow it to buy it back for €1/share up to 2014 and €1.25/share thereafter.

Given the chunky coupon on these, I suspect the Bank will look to buy them back at the earliest possible opportunity, which may require some new equity depending on the strength of the recovery in profits from here and the state of the debt markets.

So, this is a stock that is not without significant risks.

Against that, I note that, at last night’s closing price of 9.8c it trades on a trailing P/TNAV of only 0.3x, compared to the 2.4x that its fellow ‘pillar bank’ AIB trades on, which suggests that a lot of these risks are priced in where BKIR is concerned.

In February of this year CEO Richie Boucher presented to clients of NCB and it was notable, to me at least, just how forward looking this was compared to many of its investor presentations over the preceding couple of years that were focused on fire-fighting within the loanbook.

Bank of Ireland is now first or second by market share in each of the key segments it serves in its home market, while its UK operation, built around a jv with the post office, looks to be a good franchise with exposure to FX services, insurance, mortgages and the all-important deposit gathering.

Deposits are on the rise and capital levels are strong, while impairments look to have peaked.

As noted above, however, the bank is vulnerable to a lot of factors over which it has limited control.

As I state above, I suspect this is reflected in its low P/TNAV multiple and its recent sharp share price decline from the 2012 highs.

I would go even further and argue that Bank of Ireland is the only Irish bank worth contemplating an investment in at the moment given that AIB appears to be significantly overvalued, while the major surgery being performed on Permanent TSB (not to mentioned the prolonged pain it still has to endure from its mortgage-heavy loanbook) at the moment means, in my view, that attempting to value that stock now is a pointless exercise given so many ‘known unknowns’

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Can we get the foreign banks onside?

Irish Economy: House property prices up in September 2012; Down 9.6% in 12 monthsBy Finfacts TeamOct 24, 2012 - 1:45 PM

Overall Decline: House prices in Dublin are 55% lower than at their highest level in early 2007.

Apartments in Dublin are 63% lower than they were in February 2007.

Residential property prices in Dublin are 56% lower than at their highest level in February 2007.

The fall in the price of residential properties in the Rest of Ireland is somewhat lower at 46%. Overall, the national index is 50% lower than its highest level in 2007.

ARE WE ADEQUATELY PROVISIONED HERE?

No worries?

The results were published August 8th 2012negative trend till end of August

Positive trend since then?