Traders Applaud Bank of Ireland's (IRE) Plan to Buyback €1.4B in Debt
More News related to IRE
- UBS Upgrades Bank of Ireland (IRE) to Neutral
- Irish Banks Higher as Traders Applaud Bank of Ireland Results (IRE, AIB)
- Morning Movers 11/04: MPAC, ABK, GNVC, RHB, IRE, PACR Higher; STEC, CLRT, VG, TRLG, ANSW Lower
- Morning Movers 10/03: BNI, DDRX, BDK, AIMC, RTEC, MEDW Higher; CKEC, TPGI, IBCP, NSTC, CMLS, HEB Lower
- Irish Banks Continue to Slide as EU Could Impose Strict Requirements for Gov't Aid (AIB, IRE)
Shares of Bank of Ireland (NYSE: IRE) have rallied more than 21% to $7.26 in this morning's pre-market session following earnings and news that the bank will buyback debt in an attempt to strengthen its balance sheet.
For the year ended March 31, Bank of Ireland reported a net profit of €59 million (or about $80 million), down substantially from the €1.69 billion reported last year. EPS for the year declined from €1.50 last year to €0.32 this year, marking a 79% decline on a year-over-year basis. The Street was expecting annual EPS of €0.10.
The bank also reported a large jump in impairments, from €227 million last year to €1.44 billion this year. Additionally IRE lifted its forecast for bad-debt charges from €4.5 billion to about €6 billion over the next three years.
While the results are important, traders are focusing on Bank of Ireland's announcement that it will spend up to €1.4 billion in order to buyback a hefty amount of Tier 1 securities, specifically, with a face value of more than €3 billion. Buying at this level represents a discount of about 50% from nominal levels.
Related Categories
Corporate NewsEarnings
Momentum Movers
Trader Talk
Stocks Mentioned
+0.12Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
