Results 8,141-8,160 of 26,043 for speaker:Kieran O'Donnell
- Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)
Kieran O'Donnell: And can I, to follow on, in terms of the measurement of what NAMA is delivering to the Irish citizen and taxpayer, the whole issue of the rate of return metric ... that has come up, as you well know, and the C&AG has carried out a report on it. What's ye're view on that now in terms of providing, I suppose, an independent metric of how NAMA has performed on behalf of the taxpayer?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)
Kieran O'Donnell: What form will that take?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)
Kieran O'Donnell: It's not out of ... is it in your manual, is it?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)
Kieran O'Donnell: The more things change, the more-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: I welcome Mr. Duffy and his colleagues. Mr. Duffy mentioned three components of mortgage pricing - cost of funding, the overhead costs of the bank and the cost of risk.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: In respect of the cost of funding, will Mr. Duffy state the reason the one year fixed rate for new customers at roughly 3.5% is lower than the variable rate, which ranges from 3.85% to 4.25%? That would not be the norm. Why is the fixed rate lower than the variable rate?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: Does that indicate that AIB expects the rates to come down? Ultimately, banks effectively make the fixed rate higher than the variable rate to factor in some element of risk. The fact is that one can get a loan on a fixed rate of interest at a price ranging from 3.5%. The lowest differential is 0.75%. Is it fair to say that AIB expects the rate to come down?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: AIB has priced the existing customer rate at 4.15% and the fixed rate at 4.15% as well. There is no difference between the fixed and the variable rates. The cost of funding has definitely come down. Am I correct that in January 2015, AIB raised €750 million at a cost of 0.625% and in March 2015 the bank raised €500 million at 1.375%? Both rates are a good bit lower than the...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: Mr. Duffy will appreciate that for the ordinary person, that could make the difference between having €400 per month extra, which would amount to €800 in the next two months.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: It is enormously significant to them.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: Does Mr. Duffy accept that, on the face of it, it comes down to AIB's cost of funding and the way the bank has raised money? In 2014, AIB raised money at 2.33% and 2.75%, raising a total of €1 billion in the two bids. In 2015, AIB has raised a total of €1.25 billion, of which €750 million was raised at 0.625% in January and €500 million was raised at 1.375% in...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: When Mr Duffy states "short term", what does he mean?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: We commend that.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: Does Mr. Duffy agree it is self-evident that there are improvements in AIB's cost of funding in terms of the way the bank has raised money, that we are seeing improvement in the risk and we are seeing improvement in the restructuring costs?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: That is based on the figures for 2014.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: The cost of funding has come down in 2015.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: I accept that, but the average has come down.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: Is it fair to say the trends which are self-evident are moving in a direction where the bank will be in a position to reduce the mortgage rate?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: I have a final question. What impact would a 0.25% reduction in variable mortgage interest rates have on profitability? There was a profit of just over €1.1 billion in before tax in 2014. That is most welcome and I commend-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of the Banking Sector in Ireland: Allied Irish Banks (22 Apr 2015)
Kieran O'Donnell: It could be encompassed in that level of profitability.