Investor Presentaiton
Ireland's Banking Sector Overview
Less competition possible in decade to come
•
Banks profitable before Covid-19: income, cost and balance sheet metrics much improved.
Covid impact on asset quality has been muted so far - will need to see how market sits after fiscal policy fades
Ulster Bank and KBC - both of which have no govt. ownership have decided to leave Irish banking market. Reduced competition
is main impact.
The Irish government intends to sell part of its 13.9% share in BOI. The pace of shares sold will depend on market conditions.
Shares are not to be sold below a certain level. Will leave just AIB and PTSB with government involvement.
An IPO of AIB stock (28.8%) occurred in June 2017. This returned c. €3.4bn to the Irish Exchequer. It was used for debt reduction.
Net Interest Margin
Profit before Tax
3.0%
2
2.0%
1
0
1.0%
AIB
BOI
PTSB
-1
0.0%
AIB
BOI
PTSB
-2
■2017
2018
2019
2020
E 2021 H1
2017 2018 2019
2020
2021 H1
Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta
National Treasury Management Agency
78
Source: Annual reports of banks - BOI, AIB, PTSBView entire presentation