Written answers

Tuesday, 28 February 2017

Department of Finance

State Banking Sector

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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263. To ask the Minister for Finance to set down in tabular form the proceeds from the disposal of investments in the State-supported banks, by institution, in each year since 2010; and if he will make a statement on the matter. [10389/17]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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264. To ask the Minister for Finance to set down in tabular form the dividends the State received from investments in the State supported banks, including interest on contingent capital notes, by institution, in each year since 2010; and if he will make a statement on the matter. [10390/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 263 and 264 together.

As requested by the Deputy the following tables set out the proceeds from the disposal/redemption of bank investments, and income received from bank investments, since 2010.

Table 1: Proceeds from disposal/redemption of investments in the banks:

YearTransactionAIBBOIPTSBTotal
2010Cancellation of preference share warrants€52m€491m
2011No transactions
2012No Transactions
2013Sale of contingent capital notes€1,056m
Sale/redemption of preference shares€2,050m
Sale of Irish Life€1,340m
2014No transactions
2015Redemption of preference shares€1,641m
Redemption of contingent capital notes€442m
Sale of equity€97m
Residual amount re sale of Irish Life€12m
2016Redemption of contingent capital notes€1,760m---
Total€3,453m€3,597m€1,891m€8,941m
Note 1: Disposal/redemption amounts in the Table 1 include accrued interest/dividend at the date of the transaction.

Note 2: The amount of the redemption of the AIB preference shares in 2015 is net of the amount paid to redeem the EBS promissory notes of €225m.

Note 3: In the addition to the transactions above, the State received €1,017m from the sale of shares in BOI to a consortium of North American investors in 2011. This was shortly after the State had exercised its rights to purchase a block of shares at a cost of €1,229m. The net cost of these transaction was €212m for the State.

Table 2: Income received from bank investments:

YearTransactionAIBBOIPTSBTotal
2010Preference share conversion fee income€52m
2011Preference share coupon€215m
2012Preference share coupon€188m
Contingent capital notes€160m€100m€40m
2013Preference share coupon€188m
Contingent capital notes€160m€40m
2014Contingent capital notes€160m€40m
2015Preference share coupon€280m
Contingent capital notes€160m
Total€920m€743m€120m€1,783m
Note 1: Accrued interest received at the date of disposal/redemption is included in Table 1 above, including €160m received when the AIB contingent capital notes redeemed in 2016. The AIB contingent capital instrument was the final debt instrument to be held by the State.

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