Irish Sovereign Green Bonds Update
Ireland's pillar banks in relative good shape to weather
Covid-19 storm
3.0%
2.5%
Banks profitable before Covid-19: income, cost and balance sheet metrics much improved.
Interest rates on mortgages and to SMEs are still high compared to EU thanks to legacy issues and the
slow judicial process in accessing collateral.
An IPO of AIB stock (28.8%) occurred in June 2017. This returned c. €3.4bn to the Irish Exchequer: used
for debt reduction. Further disposal of banking assets unlikely in the short term given low valuations
Ulster Bank (no govt. ownership) has decided to leave Irish banking market. Reduced competition is
main impact. Ulster Bank's loans and deposits may be taken on by other institutions in market.
Net Interest Margin
1.5
1
Profit before Tax
2.0%
0.5
1.5%
0
1.0%
AIB
BOI
PTSB
-0.5
0.5%
-1
0.0%
AIB
BOI
PTSB
-1.5
2017 2018 2019 2020
2017 2018 2019 2020
Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta
National Treasury Management Agency
Source: Annual reports of banks - BOI, AIB, PTSB
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