Thursday 8 December 2016

More deposits as confidence in bailed-out banks grows

FINANCE

Published 29/10/2011 | 05:00

IRELAND's bailed-out banks grew deposits for the second month in a row in September and managed to shift €2bn of funding from expensive emergency liquidity to cheaper money from Frankfurt.

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The double positive for the troubled banking sector is revealed in the Central Bank of Ireland's latest monthly money and banking statistics.

The figures show that the overall level of deposits in the 'covered' institutions -- AIB/EBS, Bank of Ireland, Permanent TSB and Anglo/Nationwide -- rose about €2bn to €265bn last month.

The progress follows a €1bn rise in deposits in August, as the €22.5bn recapitalisation of the banks in late July buoyed confidence in the banking system.

AIB loanbook sale

Meanwhile, AIB is on the verge of selling another $600m of its US loanbook to Wells Fargo and Blackstone in a deal that will bring the bank's recent US sales to more than $1.5bn.

The Irish Independent has also learned that AIB's executive chairman David Hodgkinson has agreed to keep running the bank until a new chief executive starts, even though his one-year contract ended this weekend.

News of the US progress comes days after Anglo Irish Bank confirmed that it had shifted the first $3.5bn of a $9.2bn US loanbook to its new owners. Bank of Ireland has also sold significant assets in the US.

The next AIB deal looks set to see Wells Fargo and Blackstone buy about $600m of loans at a discount of between 15 and 20pc. The discount is similar to the hit Anglo is understood to have taken on its US book.

Irish Independent

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