DUBLIN -- The
Bank of Ireland and
Allied Irish Banks PLC both said Monday they plan to complete the transfer of loans to the government's "bad bank" by the middle of 2010.
Bank of Ireland said it plans completion by mid-2010, while Allied Irish Banks said it is aiming for July 2010.
The new National Asset Management Agency will buy property and development loans with a book value of €77 billion ($115.25 billion) from banks, but will only pay €54 billion. NAMA will purchase €16 billion of loans from Bank of Ireland and €24.2 billion from AIB.
The government has said there will be a 30% industry-wide discount on the loans. AIB said there is no reason to believe the average discount applicable to AIB's NAMA assets will fall significantly outside of this guidance, while Bank of Ireland has said 30% is the "maximum loss" likely to be incurred.
Goodbody Stockbrokers sees a 28% "haircut" for AIB and 18% for Bank of Ireland. Ireland's banks were particularly hard hit by the global financial crisis, and by a collapse in the property market. The banks had made big loans to property developers, and many of those loans are unlikely to be repaid.
The government has recapitalized AIB and Bank of Ireland by €3.5 billion respectively in return for an effective 25% stake in each bank, but it has resisted nationalizing them.
AIB will hold an Extraordinary General Meeting on Dec. 23 to vote on the transfer and Bank of Ireland will put the motion to shareholders in January. In the case of AIB, NAMA approval would be passed as an ordinary resolution, but Bank of Ireland will require 75% approval from shareholders.
Bank of Ireland estimates the disposal of eligible bank assets would reduce its risk weighted assets by approximately €15.2 billion. It said it would be required to recognize a loss before tax on disposal of approximately €3.4 billion after adjusting for €1.4 billion of impairment provisions.
It also said its pro forma equity Tier 1 ratio at Sept. 30, 2009 would reduce to 4.2% post-NAMA from 6.6%, core Tier 1 would fall to 8.3% from 10.1% and total Tier 1 ratios would fall to 9.5% from 11%.
AIB has made loan loss provisions of €2.3 billion. It estimates that on a pro forma basis at June 30, participation in the NAMA program would have reduced its core Tier 1 capital ratio to 6.3% from 8.5%, Tier 1 capital ratio to 6.1% from 7.8%, and its total capital ratio to 9.5% from 10.7%.
Bank of Ireland shares were recently down 3% at €1.65 in Dublin in a broadly weaker market. AIB was up 1.2% at €1.66.
"Both banks recommend approval by shareholders and we think it's likely they will get this," said Goodbody Stockbrokers analyst Eamon Hughes. "In addition to providing greater certainty over asset values, it also improves liquidity directly in the banks and drives de-leveraging of the balance sheets, an important metric.
per solidarietà ce l' ho anch' io a 68! 
ed è l' unica cosa che mi fa venire il dubbio che possa NON venir richiamato 
mantenere e nel caso chi ha coraggio (io sto valutando) se scendesse sotto i 60 incrementare 
