The 2011 Annual Report for the Irish Bank Resolution Corporation has been released. The Consolidated Income Statement and Consolidated Financial Position are reproduced below the fold though I would recommend looking at the relevant Note in the full report to get more insight on any particular figure.
10 replies on “IBRC Annual Report”
Note 57
Promissory notes
Following an outline request, made on behalf of the Minister for Finance, the Bank is in discussions with the Department of Finance and the NTMA regarding a settlement proposal to utilise the funds due from the next instalment under the promissory notes on 2 April 2012 to acquire an Irish Government bond with an equivalent value. In the context of the ongoing financial support provided by the State to the Group, the Directors’ statutory public interest obligations and on the basis that the settlement proposal takes account of commercial market based considerations including valuation, liquidity and funding factors, the Board has agreed in principle to the outline request from the Minister.
The settlement proposal relates to the €3.06bn instalment due on 2 April 2012 only and does not impact on the remaining annual instalments under the promissory notes. Detailed discussions on the technical aspects of the proposal continue.
FYI
Iron Mike:
Legal proceedings will be issued later today against former Irish Nationwide chief executive Michael Fingleton and other former directors of the building society, the former Anglo Irish Bank that is winding down Irish Nationwide has said.
Mike Aynsley, chief executive of Irish Bank Resolution Corporation, formerly Anglo, said the bank would issue a “protective plenary summons” against Mr Fingleton, former Irish Nationwide chairman Michael Walsh and three other former directors of the building society.
The proceedings would “signal a potential series of actions to come”, he said, and that they were being issued today to avoid any problems arising with the statute of limitations. He declined to say what the nature of the proceedings was.
http://www.irishtimes.com/newspaper/breaking/2012/0329/breaking29.html
Bank Directors in Court! A first surely …
FYI … for banking_heads
The Vickers Report and the Future of UK Banking
The final report of the UK’s Independent Commission on Banking, chaired by Sir John Vickers, was published on 12 September 2011. Its recommendations include ring-fencing UK banks’ retail banking operations, higher capital requirements for UK retail banks, preferential status for insured deposits in a bank insolvency and measures to increase competition in the UK banking sector. The UK government issued its formal response on 19 December 2011 and has indicated it will implement most of the recommendations. This memorandum summarises the key recommendations and their likely impact, in light of the UK government’s response.
http://blogs.law.harvard.edu/corpgov/2012/03/29/the-vickers-report-and-the-future-of-uk-banking/
Lite reading for Bank Directors in ‘De Joy’ …
The 776m gain on disposal of assets to NAMA is noteworthy, and indeed Note 14 has been assigned. Namawinelake will hopwfully explain this. It looks like NAMA is paying more than had been expected. IIRC a bulk of loans were tranferred to NAMA without DD but at an assumed discount. It would seem they were ‘too discounted’. I guess the ‘too discounted’ is at the makey-up date of November 2009 and ignores the falls in property prices since then. (though, like PNs, cashflows are between government owned entities.
The operating costs (staff numbers and costs) seem high given the decreased balance sheet. I see “183 people working directly in the
Bank’s NAMA unit” and wonder how are these staff kept busy.
FYI – *IRELAND’S NOONAN SAID TO PLAN ANGLO IRISH STATEMENT 4 P.M.
297m in Admin costs looks very high.
It’s ironic that the institution that is slowly strangling Ireland has the same initials as the grouping of countries that is supposed to save the world economy via growth.
So are we going to issue a 3.06bn bond every year in March?
Can someone (BEB I am lookin at you) explain Bank of Ireland and NAMA’s role in this?
@ Rob
ECB wants this chunk of 3.1bn in Anglo and ELA exposure to be wiped out on schedule. So they don’t want this 3.1bn to be directly recycled back into ELA, or ECB repo, with Anglo as the counterparty (to either ECB or any part of ESCB, ie CBI). So NAMA short term finances (given time constraints), and BKIR ends up being the ultimate middle man, the ECB now facing a fully recapped private sector bank, instead of an insolvent state-ownded wind down vehicle. BKIR pockets 1.35% for a year.