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State Banking Sector

Dáil Éireann Debate, Wednesday - 13 May 2020

Wednesday, 13 May 2020

Questions (63)

Michael McGrath

Question:

63. Deputy Michael McGrath asked the Minister for Finance his views on the recent results published by banks (details supplied) and the prospect for the shareholding of the State in those banks; and if he will make a statement on the matter. [4293/20]

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Written answers

The annual 2019 results for AIB and Bank of Ireland which were announced in March showed two profitable banks that were supporting our economic growth with strong and sustainable lending. Both banks made additional large strides in reducing NPEs further last year and continuing on their paths of digital transformation.

However, as the Deputy will be aware, the economic landscape has since been transformed and these results no longer reflect the true picture on the ground for the banks and their customers. Bank of Ireland published its Q1 2020 update on 11 May which showed them recording a loss in the quarter and my officials are currently evaluating and analysing all the information released by the bank. AIB will publish its Q1 2020 on 12 May.

Clearly there are tough times ahead for both the banks and particularly their customers but fortunately the banks are in strong position in terms of liquidity and capital to weather the storm and support the economy. With bank share prices having dropped dramatically all around Europe, our investments are worth a fraction of what they were worth only 12 to 18 months ago and any plans to sell more of the State's shares in the banks are now on hold.

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