As per sources the Bank of Ireland may sell of three of its major businesses as a part of bailout agreement for receiving state aid. The bank has around 17 % owned by public & is negotiating the bail out deal with the European Union regulators.
As per the sources in Bank of Ireland it may be forced to sell following three major businesses.
- Ireland Assurance: This is its Pension & Life Insurance business with a Net worth of approximately €12 billion.
- ICS Building Society: This Irish intermediary sourced mortgage business is having mortgage loans of about €7 billion.
- Bank of Ireland Asset management: This is its investment division with total assets under management of around €25 billion.
As per the sources all those divisions are adding around €89 million to the annual profits.
The bank of Ireland is among the three to be bailed out by Irish Government when the collapse of realty markets in Ireland. The reason why the bank is forced to sell off its businesses is to smooth out the unfair competitive advantage due to receipt of state funding as contemplated by the European Union Authorities.
The bail out deal is expected to be finalized in the mid of the year & as per analysts the bank may also be forced to sell off its foreign exchange division.
As per current deal the bank has accepted to hold on its discretionary interest payments on its debt till the end of this year. The bank would also dilute its clearing business & some of its operations to other financial institutions.
As a part of the deal the bank would not make any dividend payout before year 2012 until it pay off the whole Government stake.
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