Breakdown of Irish Banking Bailout by Bank – Compared to size of the banks

As most people know, the Irish banks were bailed out over a period of around 3 years, to a total of around €64 billion. A breakdown by bank of that amount is as follows:

  • Irish Nationwide Building Society (INBS) – €5.4 billion
  • Anglo Irish Bank – €29.3 billion
  • Bank of Ireland- €4.7 billion
  • Permanent TSB (formerly Irish Life & Permanent) – €4 billion
  • AIB – €19.8 billion
  • EBS – €875 million (which became part of AIB Group in July 2011)

One way to measure the scale of the banking crisis is to compare the bailout amounts to the banks’ operating profits in 2008, before impairments and tax (Bank of Ireland’s annual accounts ended in March 2009, while Anglo Irish Bank ended in September 2008 with the other banks ending December 2008).

Anglo Irish Bank comes out the worst with its bailout equating to 17.8 times the operating profit of €1.64 billion. INBS is a close second place with the bailout figure being 17.7 times its operating profit of €305 million for 2008.

In third place is PTSB with its €4 billion bailout being 16.3 times its 2008 operating profit of €245 million. In 2012, PTSB sold its Irish Life division for €1.3 billion bring the net bailout to €2.7 billion. However it is best to measure the scale of the banking bailout at the time the government had to first start recapitalising the banks, as they would have ultimately had to pay interest on the loans required for bailing out the banks. Even if the bailout is counted at €2.7 billion, then PTSB is still only one place behind.

Next is EBS with its bailout being 12.2 times its 2008 operating profit of €72 million. AIB is next in 5th place with its bailout equalling 7.3 times its 2008 operating profit of €2.7 billion. Bank of Ireland is therefore last with its bailout being only 2.5 times its €1.9 billon operating profit for the year ending March 2009.

The combined operating profits of the 6 banks are €6.86 billion which is 9.3 times smaller than the total €64.1 billion bailout.

Another way to measure the scale of the banking crisis is to work out the bailout amount per the number of employees at each bank, according to its annual reports.

Again, Anglo Irish Bank is the worst bank with its bailout of €29.3 billion equating to €15.7 million for each of its 1,864 staff at the time. Similarly the bailout for INBS works out at €14.03 million for each of its 385 staff in 2008.

The ranks of the banks now change places, with EBS coming next by having a bailout per staff of nearly €1.4 million for its 646 staff at the time. AIB has a bailout of around €765,000 for each of its 25,919 staff recorded at year end 2008. PTSB is close behind with nearly €729,000 required at the time for each of the bank’s 5,490 employees. Once again Bank of Ireland comes out the best with its bailout of €4.7 billion for 15,457 staff, working out at only around €303,000 for each employee.

The total amount of employees at the 6 banks was 49,791 at the time. With a total bailout at €64.1 billion, this works out at nearly €1.3 million per each member of staff.

Bank Bailout Figures





Irish Banks Account for 62% of Ireland’s Mortgage Market

At the time of the banking crisis in 2008 which badly affected Ireland, there were 6 Irish banks in existence. Two of those banks later merged together to form IBRC, and began liquidation proceedings over 4 years later, while the largest bank AIB bought the smallest bank EBS.

Clearly this leaves only 3 Irish banks left with AIB Group having the largest mortgage book with a value of €37.3 billion at the end of June 2014 which accounts for 27.5% of the total country’s mortgages by comparing these figures to Central Bank statistics for June 2014. Bank of Ireland had mortgages in the country totalling €26.3 billion during the same month (19.4% of the market) while at the same time, Permanent TSB had a mortgage book with a value of €20.3 billion (15% market share)

These 3 banks therefore have a combined share of 61.9% as at June 2014.

The next main mortgage player is Ulster Bank (owned by British bank RBS Group) which has a similar sized share of the market to Permanent TSB with a mortgage book in the Republic of Ireland worth €20.2 billion as at December 2013.

Danske Bank which bought the Irish bank NIB a few years before the banking crisis hit, had a mortgage book in Ireland worth €3.2 billion, according to the Accounts in Dec 2012 (in the unlikely event it has the same value today in a decreasing mortgage market, it would command 2.4% of the market) which has since been sold on to other lenders, some of which would not have been familiar to most people.

IBRC, the bank which announced liquidation in February 2013, had a mortgage book value of only €1.8 billion (concerning 13,000 customers as it was mostly a developer’s bank) according to its accounts for the second half of 2012, which would only give a market share of 1.3% based on June 2014 figures. These mortgages were sold off in tranches to the highest bidders, just like the Danske Banks mortgages.

In addition there are sub-prime mortgages worth around €3.3 billion (2.4% of market) which affect 18,000 customers, according to a parliamentary answer to TD Michael McGrath last summer.

The total of the mortgages book values mentioned, account for 83% of the Irish market. Other foreign owned banks would clearly account for the remaining 17%, such as KBC bank or any of the European and US banks with a banking license in this country who may not specifically advertise their mortgages to the Irish market.

The Central Bank mortgage statistics, used to determine the banks’ exposure to the mortgage market, as at June 2014, had a book value of €135.4 billion (906,762 mortgages), of which around 78% of the value concerned principal private dwellings and the reaming 22% involved Buy-To- Let mortgages.