Bank of Ireland is Still Struggling

Bank of Ireland's interim update gives us no reason to change our grim outlook

Erin Davis 23 May, 2011 | 3:05PM
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Last Friday, Bank of Ireland (BKIR) issued an interim update, and we see no reason to change our grim outlook. The bank said that it expects Ireland's economy to gradually recover in 2011, but that it will continue to face high funding costs,

high loan losses, and higher government guarantee fees. Moreover, demand for new lending remains low. The beleaguered bank has made some progress on asset disposals, but we expect a new capital raising--possibly at the expense of bondholders--in the next few weeks.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Bank of Ireland Group PLC8.40 EUR-2.33

About Author

Erin Davis  is a senior banking analyst for Morningstar.

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