Written answers
Thursday, 16 July 2015
Department of Finance
Banking Sector Data
Joanna Tuffy (Dublin Mid West, Labour)
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231. To ask the Minister for Finance if he will provide an update on the losses for subordinated and junior bondholders since 2008; and if he will make a statement on the matter. [30409/15]
Michael Noonan (Limerick City, Fine Gael)
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In the period since 2008, significant burden-sharing has been achieved with subordinated/junior bondholders through Liability Management Exercise (LME) transactions completed by the Covered Banks. The purpose of the LMEs was to create additional core tier 1 capital and to strengthen the quality of the capital base of the Banks.
Prior to the Central Bank's PCAR, burden sharing with subordinated bondholders raised c. €10 billion of capital gains across the Covered Institutions. In the period since this Government came into power, burden sharing with subordinated bondholders has realised an additional c. €5.2 billion greatly reducing the cost of recapitalising the banks and bringing the total to more than €15 billion.
The table sets out the amount of capital raised by the Covered Banks via LME's since the banking crisis began.
€m | Burden Sharing pre March 2011 | Burden Sharing post March 2011 | Total |
---|---|---|---|
AIB | 3,121 | 2,053 | 5,174 |
BOI | 2,469 | 2,163 | 4,632 |
EBS | 227 | - | 227 |
PTSB | - | 982 | 982 |
IBRC | 4,092 | - | 4,092 |
Total | 9,909 | 5,198 | 15,107 |
Joanna Tuffy (Dublin Mid West, Labour)
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232. To ask the Minister for Finance if he will provide an update on all levies paid by the banks to the State, following the bank guarantee and recapitalisation, and all funds recouped by the State in respect of the banks concerned, from re-sales of shares and so on; and if he will make a statement on the matter. [30410/15]
Michael Noonan (Limerick City, Fine Gael)
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As requested by the Deputy, I can confirm that total receipts of €12.74bn have been received to date, since the bank guarantee and recapitalisation of the banks, from the disposal of investments, investment income, fees and the bank levy introduced in Budget 2014. The tables provides details in this regard for the benefit of the Deputy:
1) Disposal of investments
Date | Bank | Transaction | Proceeds including accrued interest/dividend |
---|---|---|---|
April 2010 | Bank of Ireland | Cancellation of preference share warrants | €0.49bn |
December 2010 | AIB | Cancellation of preference share warrants | €0.05bn |
August 2011 | Bank of Ireland | Sale of equity | €0.24bn |
December 2011 | Bank of Ireland | Sale of equity | €0.81bn |
January 2013 | Bank of Ireland | Sale of convertible capital notes | €1.06bn |
July 2013 | Permanent TSB | Sale of Irish Life | €1.34bn |
December 2013 | Bank of Ireland | Sale/redemption of preference shares | €2.05bn |
May 2015 | Permanent TSB | Buy-back of convertible capital notes | €0.44bn |
May 2015 | Permanent TSB | Sale of equity | €0.10bn |
Total proceeds from disposal of investments | €6.58bn |
2) Income, fees and bank levy
Date | Bank | Source | Proceeds |
---|---|---|---|
2008 to date | All relevant banks | CIFS/ELG* | €4.41bn |
2011 to date | All relevant banks | Investment income receivedPreference shares and convertible capital notes | €1.62bn |
2014 | State invested banks | Bank levy Budget 2014** | €0.13bn |
Total investment income, fees and bank levy | €6.16bn |
** State invested banks comprise AIB, Bank of Ireland and Permanent TSB. The State collected €153m from all banks subject to the bank levy introduced in Budget 2014.
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