Wednesday 21 March 2018

Molloy linked to €35m loan at 'cash-strapped' BoI

Nick Webb

Nick Webb

Bank of Ireland governor Pat Molloy was linked to a €35m loan given out by the cash-strapped bank last year.

The bank, which is desperately trying to raise capital to avoid falling into State ownership, divulged details of the €35.2m loan to "a person connected to P Molloy" in its latest annual report.

The Molloy loan was reduced to €640,000 by the end of 2010, according to the documents. "As with any customer, details of customer loans are treated with the utmost confidentiality and are not disclosed individually," according to the bank.

The €394,000-per-year Molloy holds almost 2.1 million BoI shares, having almost doubled his stake in the infamous rights issue last year.

Molloy picked up 926,000 shares at 55 cent each during the rights issue. Last week, Bank of Ireland shares traded at 13 cent as it fleshed out plans to raise €4.2bn through another rights issue and a deal to buy back €2.6bn worth of bonds at a major discount.

Outside Bank of Ireland, Molloy's business interests and personal investments have been widespread. He is a director of the Blackrock Clinic and has also served on the boards of Eircom, Kingspan and Enterprise Ireland.

BoI describes a "connected" person as "a Director's spouse, parent, brother, sister, child, a trustee where the beneficiaries of the trust are the director, his spouse, children or a company which the Director controls, or a company controlled by the director or a person in partnership".

Ever since revelations that former Anglo Irish Bank chairman Sean FitzPatrick had borrowed €87m from his bank, the Financial Regulator has insisted that banks under its control provide details of all directors' loans and borrowings.

Molloy is also listed as having had a €500,000 loan from the bank in a personal capacity, as well as a credit card balance of up to €15,000 at the end of 2010.

Sunday Indo Business

Business Newsletter

Read the leading stories from the world of Business.

Also in Business