BoI expected to announce losses of more than €1bn
Published 10/08/2010 | 05:00
BANK of Ireland is expected to reveal underlying losses of more than €1bn for the half year to June when it releases interim results tomorrow.
The figures come exactly a week after rival AIB announced it lost €2bn over the same period, marking the bank's worst results.
Forecasts from Merrion Stockbrokers suggest Bank of Ireland will report underlying losses of €1.5bn for the period, while Davy's are pencilling in €1.36bn and NCB have €1.1bn.
The other three Irish brokers following Bank of Ireland -- Bloxham's, Goodbody's and Dolmen -- were unable to provide figures yesterday.
The billion-plus underlying losses are attributed to massive loan writeoffs, with Merrion predicting €1.9bn, Davy predicting €1.84bn and NCB predicting €1.6bn.
"One-off gains on liability management and pension restructuring will largely offset underlying losses," Merrion's analyst Sebastian Orsi stressed in a note to clients.
Brokers expect the bank to book a gain of between €1.27bn and €1.4bn from pension changes and gains on its recent bond market activities.
On the trading front, the three analysts are pencilling in pre-provision profits of between €450m and €468m.
"Net revenue generation will have been constrained by elevated funding/guarantee costs and deposit spread in the period," NCB analyst Ciaran Callaghan wrote in a note to clients.
Bank of Ireland was the third most traded stock on the Irish exchange yesterday, with shares rising as much as 5pc (to 87c) before closing at 86c.