Anglo deposit base decreasing as they post €8bn loss

Laminations

WSJ wrote:

Anglo Irish Bank 1H Loss EUR8.2B, Total Govt Support EUR22.88B




LONDON (Dow Jones)--Nationalized Irish bank, Anglo Irish Bank Corp Ltd (ANGL-YY) Tuesday reported a loss for the six months ended June 30 of EUR8.2 billion--including loan impairment charges of EUR4.8 billion and a loss of EUR3.5 billion upon transfer of EUR10.1 billion of eligible assets to NAMA.
MAIN FACTS:
-Minister for Finance has recapitalized the Bank with a further EUR8.58 billion effective June 30, bringing total capital support to EUR22.88 billion.
-Board has selected as the preferred option a wind down of at least 80% of the Bank and the creation of a new viable bank from the remaining good quality loan assets.
-Impairment provisions include EUR2.3 billion relating to assets classified as held for sale to NAMA, bringing cumulative specific provisions on such loans to 38%.
-Operating profit before impairment and loss on disposals to NAMA of EUR151 million.
-Core Tier 1 and Total regulatory capital at June 30, are EUR7.0 billion and EUR10.2 billion respectively, with risk weighted assets of EUR63 billion.
-At end of June Bank expected to transfer EUR25.9 billion of nominal loan assets with associated impairment provisions of EUR9.7 billion to NAMA; former amount excludes the EUR10.1 billion nominal of assets that transferred to NAMA in May and June.
-EUR5.9 billion of nominal loan assets were subsequently transferred to NAMA in August resulting in an additional loss on transfer of EUR1.6 billion.
-Following completion of loan asset transfers to NAMA, gross customer loans will be EUR38.4 billion with cumulative specific provisions at June 30 of EUR6.5 billion.
-Net interest income was EUR352 million for the 6 months to June 30, down 59% compared to the six months ended March 31, 2009.
-Total operating expenses were EUR133 million for the six month period, a reduction of 12% compared with the six months ended March 31, 2009.
-Costs incurred relating to restructuring activities, the NAMA process and ongoing legacy issues and external reviews were EUR14 million.
- Total assets at June 30, were EUR87.0 billionn, up from EUR85.2 billion at Dec. 31, 2009; this includes EUR46.0 billion of lending assets (2009: EUR56.3 billion) which includes EUR16.1 billion of eligible NAMA loan assets classified as held for sale; EUR4.6 billion (2009: EUR7.9 billion) of available-for-sale financial assets; EUR8.0 billion (2009: EUR7.4 billion) of loans to banks, EUR10.4 billion (2009: nil) of promissory note, EUR4.1 billion (2009: nil) of NAMA government guaranteed notes and an amount due from Shareholder of EUR8.58 billion (2009: EUR8.30 billion).
-At June 30, impaired loans totaled EUR34.5 billion with cumulative provisions of EUR17.5 billion.
-Customer deposits declined from EUR27.2 billion at Dec. 31, 2009 to EUR23.2 billion at June. 30, 2010; borrowings from banks increased to EUR33.3 billion at June 30 and include EUR26.3 billion from central banks compared with EUR23.7 billion at Dec. 31, 2009.
-New management working to significantly restructure the Bank's balance sheet, risk profile and culture in order to restore viability.

Dont know why I bother bolding any of it, its all pretty grim news. I heard Dukes on Pat Kenny this morning saying 'nobody can forecast the losses' as if this was a good thing!


From Brian Lucey's twitter "Anglo Report p4 : third para from bottom. Dukes basically says a winddown not possible as basically developers wont repay them"


The blanket bank guarantee with the inclusion of Anglo was the biggest most costly mistake in this states history.

jank

But but but S&P were wrong and we have turned a corner....

dan_d

How can they not forecast losses?

Is that not what banks employ certain people to do? To use mathematical formulae to forecast profits/losses as near as possible? I don't buy that for one minute - I would imagine they had a pretty good guesstimate in there of what the losses would be.

Idiots.

Sponge Bob

Developers have no intention of repaying them since Anglo repossesed their Bentleys and Choppers and basically humiliated them. That and nobody is buying the shoddy crap most of them built

skelliser

Sponge Bob wrote: »

Developers have no intention of repaying them since Anglo repossesed their Bentleys and Choppers and basically humiliated them. That and nobody is buying the shoddy crap most of them built

I have not seen any of this happening!

In fact they have gotten away scot free

danbohan

skelliser wrote: »

I have not seen any of this happening!

In fact they have gotten away scot free

you sir are a cad!, you just dont understand their deep deep pain , look at fingers face in the airport , or guy who gots his wifes bmw back next day , they are truly shamed and broken people and are with us humble taxpayers in trying to put right a great wrong !

Nijmegen

Wah, wah, wah, wah... Nijmegen proceeds to thrash and flail about, throwing his milk bottle at the wall.

That's about as much you or I can do about it...

Yates raised a decent question on newstalk on Monday: If Anglo has stopped much of its trading activities and is handing over tranches of loans to NAMA on a regular basis, what is all of its (as yet unaffected) staff doing on a daily basis to replace lost tasks?

What a money hole. The money goes in. Sweet f*** all comes out. But it's going somewhere, and somebody is getting rich off of it.

Cookie_Monster

Anglo got "lucky" today, death of Mick Lally will push that out of the limelight, scandalous that its not top story on RTE 6.01, but sure its only (another) 8bn!

flutered

i heard some english economist on the 10.00am news on 100.4 fm saying that anglo is a festering sore in the irish ecomomy.

Tim Robbins

I blame 'All the Developers'.

https://www.youtube.com/watch?v=OdnV5M3gDeQ

blue_steel

Cookie_Monster wrote: »

Anglo got "lucky" today, death of Mick Lally will push that out of the limelight, scandalous that its not top story on RTE 6.01, but sure its only (another) 8bn!

Absolutely. RTE are a farce. The country is about to go under but never mind that sh1t, a Montrose luvvie just died ! With every passing day I feel more like one of the characters in Animal Farm. We kicked out our foreign overlords only to replace them with a home grown elite every bit as bad. And we haven't even the courage or self-respect to fight back. I no longer feel like I have any stake in this "republic". Let the whole sh1thouse go up in flames.

Nijmegen

Nijmegen wrote: »

Wah, wah, wah, wah... Nijmegen proceeds to thrash and flail about, throwing his milk bottle at the wall.

That's about as much you or I can do about it...

Yates raised a decent question on newstalk on Monday: If Anglo has stopped much of its trading activities and is handing over tranches of loans to NAMA on a regular basis, what is all of its (as yet unaffected) staff doing on a daily basis to replace lost tasks?

What a money hole. The money goes in. Sweet f*** all comes out. But it's going somewhere, and somebody is getting rich off of it.

Where is all the money going? Even what countries is it going to? It can't all be in Ireland.

Anyone know of an online resource that explains in simple terms what is gone with Anglo? I haven't the foggiest.

liammur

Ask bertie and all his buddies

RealityCheck

salonfire wrote: »

Where is all the money going? Even what countries is it going to? It can't all be in Ireland.

Anyone know of an online resource that explains in simple terms what is gone with Anglo? I haven't the foggiest.

Wikipedia would'nt be a bad place to start.
http://en.wikipedia.org/wiki/Anglo_Irish_Bank


Most of that money is dead money, propping up Bondholders (other banks, typically German, French and British banks and pension funds) who gave the money to the bank to lend to our dodgy developers. Since the developers cant pay it back we step in instead to pay it.

Diarmuid

RealityCheck wrote: »

Most of that money is dead money, propping up Bondholders (other banks, typically German, French and British banks and pension funds) who gave the money to the bank to lend to our dodgy developers. Since the developers cant pay it back we step in instead to pay it.

Better include the Irish deposit holders and Irish pension funds also. Don't see why you seem intent in singling out foreign bondholders?

RealityCheck

Diarmuid wrote: »

Better include the Irish deposit holders and Irish pension funds also. Don't see why you seem intent in singling out foreign bondholders?

I did use the word typically. An awful lot of the money came from European Banks.

Irish pension funds yes but deposit holders I dont buy. I was only referring to bondholders as they are the first port of call should we decide to partially default (looking more likely). Deposit holders would be in a lot safer position and rightly so. They should still be protected by the bank guarantee. Thats why I did'nt mention them

dan_d

I'm no economist, but the last couple of days are making me increasingly uneasy on this subject.

http://news.eircom.net/breakingnews/18527521/?view=Standard

Things are bad, very bad, out here as it is. Anglo, it would appear, are making it worse.

As a person who's job hunting, headlines like this scare the bejaysus out of me.Reading between the lines of what's going on the last couple of days, I am not a happy camper. I also have a close relative in Anglo who reckons it may only get worse.

Coupled with this...

http://news.eircom.net/breakingnews/18527471/

...foresight tells me I will in all likelihood have to leave in the next 6 months.

Last person out turn off the lights.

hobochris

The higher ups in Anglo must have something seriously incriminating on FF for this to continue.

danbohan

dan_d wrote: »

I'm no economist, but the last couple of days are making me increasingly uneasy on this subject.

http://news.eircom.net/breakingnews/18527521/?view=Standard

Things are bad, very bad, out here as it is. Anglo, it would appear, are making it worse.

As a person who's job hunting, headlines like this scare the bejaysus out of me.Reading between the lines of what's going on the last couple of days, I am not a happy camper. I also have a close relative in Anglo who reckons it may only get worse.

Coupled with this...

http://news.eircom.net/breakingnews/18527471/

...foresight tells me I will in all likelihood have to leave in the next 6 months.

Last person out turn off the lights.

lights ? what lights they will be no money left to buy the oil to run them , its bad out there and getting worse , yesterday i drove a 61 year to airport going to uk to work in construction , buisness here gone many debts and no dole for him , add that to your stastiscs mr cowen

Nijmegen

The law should be changed, the constitution amended, whatever it takes, so that all of those involved in bringing this downfall on Ireland - and I don't mean the global recession, I mean the stupidity, the lies and the corruption - should be locked up, chain ganged and sent to clean our streets in orange boiler suits.

I'd feel happier being screwed if I didn't know they all had properties and money stashed away in other people's names, still living in the lap of comparitive luxury.

dan_d

Danbohan, as stories go, that's one of the worst I've heard in a long time.

At least I'm only 27. That man should be retiring by now.

So....any suggestions what we're going to do about all this....

Diarmuid

Nijmegen wrote: »

The law should be changed, the constitution amended, whatever it takes, so that all of those involved in bringing this downfall on Ireland -

I know of 12,734 you can start with

Laminations

RealityCheck wrote: »

Most of that money is dead money, propping up Bondholders (other banks, typically German, French and British banks and pension funds) who gave the money to the bank to lend to our dodgy developers. Since the developers cant pay it back we step in instead to pay it.

So what you're saying is that we are the real heroes of Europe? I mean Germany is getting the praise for bailing out Greece but in actuality the irish tax payer is bailing out private businesses and national banks on a pan European scale! All this selflessness and we still find the money to contribute to the Greek bailout, we're some country. Oh where are we getting all this money? Well we're borrowing it from similar sources to the bond holders we are paying back. Private debt, regardless on whose it was, should never have been nationalised onto the Irish tax payer. If Germanys banks invested in Anglo, they did so to make a quick buck. They took a risk and they lost (this risk was always greater than investing in Ireland through sovereign lending. Anglo shouldve gone to the wall and if the german banks were systemic to Germany they let them prop their own banks up.

fontanalis

blue_steel

Diarmuid wrote: »

I know of 12,734 you can start with

+1. The office I worked in back then had 20 employees (all under 40). For a laugh, the day of that election we did a poll to see who people gave their number 1 to. I will never forget the results because I found them so baffling. 6 did not vote, 2 voted for labour and the remaining 12 voted for FF. When I asked why so many young, college-educated people were voting for a rightwing party with dubious morals I was met with blank stares. "Sure who else are you going to vote for?" was the most common reply. You get the government you deserve I suppose.

cheesehead

Follow-up article to the WSJ article.

Found in yesterday's New York Times:

http://www.nytimes.com/2010/09/01/business/global/01anglo.html?_r=1&scp=1&sq=anglo%20irish%20bank&st=cse

dan_d

Depressing.

Not least because for once it simply states facts...it doesn't accompany it with the usual window dressing about green fields and leprechauns that these articles normally have.

I didn't realise Anglo were playing havoc in the states aswell.

So tell me again - why is Sean Fitzpatrick not clapped up behind bars???it wouldn't change the problem, but just once, it would be nice to see someone assuming responsibility for the mess. (and pigs might fly....sigh)