tag:blogger.com,1999:blog-2826531655042170344.post3420602410771402319..comments2024-03-26T11:29:52.986+00:00Comments on Economic Incentives: Mortgages in the Covered BanksSeamushttp://www.blogger.com/profile/15679299530222667673noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2826531655042170344.post-33743479503708606372015-02-09T22:30:42.979+00:002015-02-09T22:30:42.979+00:00Thank you so much for listing these tables! I'...Thank you so much for listing these tables! I've been curious as to the financial positions of each one of these time periods. I find this extremely helpful and plan to reference these often. Not only that, but I love that they're from different countries! This really helps a lot! <a href="http://WWW.themortgagecentre-nealberta.ca" rel="nofollow"> http://WWW.themortgagecentre-nealberta.ca</a>Anonymoushttps://www.blogger.com/profile/05217939253735142732noreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-28095436328246700432013-09-18T19:08:15.530+01:002013-09-18T19:08:15.530+01:00From Brendan Burgess
Hi Séamus
Excellent analys...From Brendan Burgess <br /><br />Hi Séamus<br /><br />Excellent analysis. A few comments. <br /><br />As we own AIB and ptsb 100%, and only 15% of Bank of Ireland, they should be looked at separately. <br /><br />This is how I look at it<br /><br />Total loans: €62 billion AIB: €38 billion; ptsb €24 billion<br />In arrears/impaired: €14 billion AIB: €9 billion; ptsb: €5 billion<br />Balance sheet provisions:€5.5 billion AIB:€3 billion; ptsb €2.5 billion<br />Pcar provisions: €7 billion AIB: €4.3 billion; ptsb: €2.6 billion<br /><br />So the banks have been capitalised for €7 billion of losses on a €62 billion book, of which €14 billion is in arrears over 90 days.<br /><br />Around 20% of mortgages in arrears are in positive equity. <br /><br />So there is around €11 billion in arrears and in negative equity, for which €7 billion of capital has been provided. <br /><br />With the threat or repossession now restored and the restrictions on banks in the Mortgage Arrears Code eased, I would expect that the level of arrears would beging to go down. <br /><br />So it seems that €7 billion is plenty for the €11 billion. <br /><br />I would think that the €30 billion of cheap trackers in AIB and ptsb might be a bigger source of concern. If they are losing 3% margin on these, that would be around €900 million a year, but gradually reducing. I understand, that no provision has been made for losses on these, as long as they are performing. <br />Anonymousnoreply@blogger.com