Yesterday, the Central Bank announced a record €100.5 million fine for Bank of Ireland over its treatment of customers on tracker mortgages. The fine, however, doesn't explain the 9.6 per cent drop in the bank's market value since Wednesday.
In the last two years, AIB has more than doubled and Bank of Ireland has more than tripled in value. First-half results now available for both institutions tell the story.
The fine and findings issued by the Central Bank will raise questions for CRH chair Richie Boucher who led Bank of Ireland for most of this period, as well as others.
Davy looks to have maximised returns to shareholders by selling itself off in three parts. In the biggest deal, Bank of Ireland is to buy Davy's wealth management and capital markets business for €440m but retains strong protection against risk.
Bank of Ireland's full-year results show profits are down, and the outlook is not good. The bank is struggling against three forces which are largely outside its control.
From Goodman to the night of the bank guarantee, Eugene McCague has enjoyed a ringside view of the careening, schizophrenic personality of the Irish economy over the last 30 years. He has never told his story or given an in-depth interview. Until now.
It’s still undoing mistakes and retreating from bad markets. And its profitability is still being dragged down by tough capital requirements. But in Ireland, it has a chance of success.
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