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Sunday 24 September 2017

Bank of Ireland

BANK of Ireland (BoI) must raise €2.2bn by the end of February to meet the latest capital targets or face ceding majority control to the State.

The bank was worth just €1.4bn at the end of last week, making the capital raise a daunting task.

But BoI has form in raising private money, having got €3.5bn earlier in the year, and the bank is believed to be optimistic about raising at least some of the money off its own bat. Whatever it can't raise will be contributed by the State.

Sources say the State's stake could rise to more than 80pc, but this will depend on the bank's share price performance between now and February.

The State already has a 36pc stake in BoI. As well as raising more cash, BoI must draw up a new disposals plan and present it to the Central Bank. The bank has already agreed to dispose of its life insurance arm, New Ireland, and mortgage division ICS. It may also explore selling its UK division.

Irish Independent

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