Pressure to lower mortgage rates will likely weigh on the profitability of 75%-State-owned Permanent TSB (PTSB) over the coming years, according to Davy Stockbrokers.

KBC Bank Ireland is attracting new business with its low mortgage rates and will compete with any new mortgage entrants on price, its chief executive has vowed.

Bank of Ireland looks set to resist pressure to cut its most expensive mortgage rates despite growing political pressure and significant moves by its biggest competitor earlier this week.

Some of the highest savings rates on offer in Ireland are likely to be squeezed lower, a leading analyst has said, as the political war of words over the rates lenders charge for mortgage loans hots up more.

Mounting political pressure on mortgage lenders to cut their standard variable rates could impact funding costs at Permanent TSB more than many other banks, a leading banking analyst has said.

Drivers are set to face even higher premiums in the coming months as insurance sector bodies continue to quibble over the cause of the increases. Figures from the CSO last week showed premiums have ballooned by 24.4% in the past year.

The Government has picked Goldman Sachs to advise on how to recoup a €21bn taxpayer bailout of AIB.

Permanent TSB is likely to tap private investors before AIB early next year, though there is little chance that both state-owned banks will weigh on each other’s prospects of raising equity, according to analysts.

Bank of Ireland’s UK lending activities and mortgage business could help shelter it from the adverse effects of any potential worsening in the domestic market, according to a leading stockbroking firm.

The Irish operation of KBC bank has reported losses of €40m for the first three months of the year following on from a loss of €766m for the last three months of 2013, due mainly to its residential loan book.

Allied Irish Bank is confident it will breeze through the ECB stress tests following the announcement the bank has returned to underlying profit for the first time since 2008.

The destruction wrought upon Ireland by the winter storms will cost FBD insurers €7.8m in claims according to the company’s interim management statement.

Bank of Ireland exceeded most analysts’ expectations in terms of its capital buffers and cost discipline.

The insurance firm FBD reaffirmed full year operating earnings per share of €1.45 to €1.55 as well as growth in premium income and further market share gains, according to its latest interim management update.

Bank of Ireland said its pension deficit will narrow by an initial €400m under a plan to cut employee retirement benefits, in an accord that eases the way for the nation’s largest lender to repay part of its state bailout.

The banks will not need further capital following the next round of EU-wide stress tests scheduled for 2014, according to Merrion Stockbrokers’s senior credit analyst, Ciaran Callaghan.

Bank of Ireland is on course to reach a break- even pre-tax profit level in the second half of this year before returning to outright profitability next year, according to Davy Stockbrokers.

There is a buoyant speculative market for IBRC bonds despite the Government’s move to liquidate the controversial bank.

Loan losses at Bank of Ireland and AIB through exposure to the SME sector could exceed the adverse scenario in the last Central Bank stress tests by up to €1.1bn, according to a new report by Davy Stockbrokers.

Financial services company IFG will buy up to £30m (€37.3m) of its own shares later this month, it confirmed yesterday.

Weaning Irish banks off the Eligible Liabilities Guarantee scheme; driving down deposit rates, kickstarting the supply of credit, and the introduction of the Insolvency Bill, are all key to restoring banks to profitability.

Davy Stockbroker analyst Emer Lang has downgraded Bank of Ireland from “outperform” to “neutral” on the back of near-term challenges to its net interest margin, rising impairment losses, and limited growth opportunities.

NEARLY €18 billion of the €25bn contingency fund for the banks — which formed part of last year’s EU/IMF bail-out deal — might be needed in order to recapitalise the Irish banks further in the aftermath of next week’s capital and liquidity stress tests.

THE total amount that NAMA will spend on tainted bank loans will amount to around €37 billion, it was confirmed yesterday.

THE banking authorities may set up a NAMA Mark II to take control of billions of euro worth of good assets currently held by the Irish banks, as part of the enforced strategy insisted on by the IMF and the ECB as part of the €85bn bailout.

FINANCE Minister Brian Lenihan was given High Court clearance yesterday to inject €3.7 billion in taxpayers’ money into the country’s former leading bank.

BANK of Ireland’s raising of £300 million (€344m) in a three-year bond was described yesterday as apositive development by a leading Irish banking analyst.

DUBLIN stockbrokers said yesterday the new Basel III capital requirements being introduced to prevent another global banking collapse will post no serious challenges for Irish banks.

SPANISH banking giant Santander has emerged as the latest ‘favourite’ to land AIB’s 70% stake in Poland’s Bank Zachodni and could end up taking over most of the Irish banks’ international assets.

THE bank guarantee scheme is expected to be extended by the European Commission to the end of the year.

AIB has refused to comment on its progress in meeting capital-raising requirements, despite mounting speculation regarding its Polish operations and concerns over the possibility of state ownership.

INTERNATIONAL investors will be keeping a close eye on Ireland this week as plans to salvage the country’s banking system are revealed.

ONE in 10 bank workers could lose their job as financial institutions battle to overcome billions of euro in losses.

THE Government says it has no intention of nationalising the country’s two largest banks, as AIB revealed plans to raise a further €1.5 billion.

FINANCIAL commentators yesterday expressed doubts over claims from Government that Anglo Irish Bank could be kept operating as a long-term going concern.

SHARE price targets for Irish banking stocks have been cut by as much as 14.5% by Davy Stockbrokers in a dramatic re-evaluation of the sector.

AIB’s long term strategy is based on an “independent future” for the bank, outgoing chief executive Michael Buckley told staff yesterday.

AIB, Ireland’s biggest company with a market value of €14 billion expects a further rise in profits this year following a strong first quarter.

SHARES in Irish banks should increase by 10% this year, with AIB Bank heading for growth of 11.7%, according to Davy Stockbrokers.

THE honeymoon ended for new Bank of Ireland chief executive Brian Goggin yesterday as the market took a dim view of the bank's latest trading update and sent the share price down 3%.

SHAREHOLDERS in AIB can look forward to solid results when the bank releases figures for the first six months of the year next Tuesday, according to Davy stockbrokers.