BoI up 23% on debt buy-back boost

BANK of Ireland (BoI) was the star performer in Dublin trading, yesterday, rising by well over 20% on the back of announcing a partial buy-back of its debt at a discount in order to boost its financial strength.

The reporting of a €7m pre-tax loss – hampered by a €1.4bn bad loan impairment charge for the year to the end of March – the resignation of chairman Richard Burrows and a doubling in the percentage of its mortgage lending book that is in arrears, were not enough to damage the company’s share price as news of the potential cash boost was supported by claims from management that the bank is not in need of further Government funding.

Although a 30%+ rise in its share price ebbed slightly later in the day, Bank of Ireland managed to close at 1.34; up 26c – or 23.73% – on Monday’s close. Bank of Ireland has now overtaken its main rival AIB in terms of market capitalisation – it being worth €1.34bn to AIBs current market value of €1.02bn.