Bank Of Ireland (ADR) (NYSE:IRE) Down Inspite Of Move Towards Profitability In 4Q13
Bank of Ireland (NYSE:IRE) saw its American depository receipts shed close to 5.7 percent of its market value during trading on 4th March in the U.S markets, post the 4Q earnings announcement coming out from Dublin on 3rd March for the operation period ending 31st December.
Richie Boucher who is Bank of Ireland (NYSE:IRE) Group Chief Executive Officer, Executive Director kicked off the earnings call by highlighting the positives “Our underlying performance has improved by almost €1 billion in 2013. We are profitable and generating capital in 2014. We are rebuilding our underlying earnings power. Our pre-provision operating profit was €685 million in the second half or 2013. This was almost double that recorded in the first half.2013 was a year of further substantial progress for Bank of Ireland.”
2013 – Year Of Turnaround
The second placed bank in Ireland in terms of banking business conducted in “pensions, life and investment” had set focus in 2013 to work on the return on investments being seen by the preference share holders who invested into the firm in 2009, in the middle of the financial meltdown that had threatened Europe.
Repaying Shareholders Trust – Saves 460 M Euro In Fines
The bank has been implementing a capital scheme in this regard which both the impacted investors and the management team had kept a sharp focus on right through 2013. By implementing the step up capital reinjection arrangement which was mid-wifed by Central Bank and the Irish State Government, the bank was able to successfully work around having to pay a stiff Euro 460 million as penalty.
Government Debt Fully Paid Back
Bank of Ireland (NYSE:IRE) also reported that it has repaid the funds the government had funnelled into the bank in emergency support fully while also succeeding in maintaining a 2 percent interest margin in the 2H13, in spite of the central bank maintaining a tight hold on the interest regime.