Ireland may give an unexpected update on the cost of bailing out Anglo Irish Bank Corp., the first of the country’s lenders to be nationalized, when it publishes the results of stress tests on the rest of the nation’s banks, two people with knowledge of the talks said.
Bank of Ireland Plc , Ireland’s largest bank, plunged for a third day as the government prepared to inject more capital, a step that may make it the fifth lender to fall under majority state control in less than two years.
Bank of Ireland Plc, the country’s biggest lender by assets, said its underlying pretax loss narrowed to 723 million euros ($1 billion) in the first half as a decline in bad loans offset rising funding costs.
Bank of Ireland Plc Chief Executive Officer Richie Boucher said his 2014 target of rebuilding margins from lending “looks very challenging” as the nation’s largest lender reported its first-half loss more than doubled.
Ireland’s four main domestic lenders will post “materially higher” average loan-loss provisions this year as they are forced to take a more conservative and consistent approach to impairments, according to Jonathan McMahon, a central bank official.