Irish Banks in 45 percent profit shocker

factual

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According to the news story below, the Irish banks make a gross profit of 45% of revenue. That ie extraordinary and suggests the firms are setting prices too high and not acting in the interests of consumers.

http://www.rte.ie/business/2006/0717/banks.html

The headline says "Irish banks the most profitable in Eurpoe" as though that is a good think (typical of how right wing our society has become).

It means less for the low-income customer and more for the high income shareholder.

Not good.
 


jjcarroll

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I am genuinely suprised that anyone is suprised by this. With regard to "The headline says "Irish banks the most profitable in Eurpoe" as though that is a good think (typical of how right wing our society has become). " I would have to disagree, I don't think anyone out there, actually thinks this a good thing.

This those lead to the question as to why only RBS have gone in a big way for the Irish market, with majority of the big players sitting on their hands. There is a lot to be said for the view that the international banks view Ireland as a balloon waiting to burst, with the banks far to exposed to property.
 

factual

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jjcarroll said:
I am genuinely suprised that anyone is suprised by this. With regard to "The headline says "Irish banks the most profitable in Eurpoe" as though that is a good think (typical of how right wing our society has become). " I would have to disagree, I don't think anyone out there, actually thinks this a good thing.

This those lead to the question as to why only RBS have gone in a big way for the Irish market, with majority of the big players sitting on their hands. There is a lot to be said for the view that the international banks view Ireland as a balloon waiting to burst, with the banks far to exposed to property.
Hope you are right about people not thinking its positive. I find people on this site seem to worship profit and care little for the 'small man'.
 

cyberianpan

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The banks are not going to go giving free money out...

Either:

1) In significantly greater detail than just "45%" prove the case
(I'm not sure anyone could do this)

2) Offer, as the nice people in Europe want, some suggestions to make the market more competitive.

3) Continue whinging

Hint... the answer is 2 !

cYp
 

stalins granny

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Factual
I find people on this site seem to worship profit and care little for the 'small man'.
I was watching" oh brother where art thou" last night and your remarks remind me of the guy who had the dwarf on his campaign cos he was for the little man. interestingly he was a member of the KKK in the movie.
 

factual

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stalins granny said:
Factual
I find people on this site seem to worship profit and care little for the 'small man'.
I was watching" oh brother where art thou" last night and your remarks remind me of the guy who had the dwarf on his campaign cos he was for the little man. interestingly he was a member of the KKK in the movie.
I am unsure where you are going with this; hopefully somewhere else :)
 

stalins granny

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sorry Factual the phrase just amused me conjured up images of banks discriminating against those under 5 foot 6
 

factual

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stalins granny said:
sorry Factual the phrase just amused me conjured up images of banks discriminating against those under 5 foot 6
OK - fine :)

Of course the point I was making was a socialist one. The customers of banks are on average less well off then their shareholders. Therefore our lack of concern for profiteering has adverse distributive consequences.

Taking money from the poor and giving it to the rich.
 

stalins granny

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Factual, that is true but the problem arises then that the pension funds of these "small people" are very often partially invested in banks as most private sector workers have invested pension fund so a catch 22 almost arises.
 

toffeebhoy

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I'd have less of a problem with it if they started offering better services.

Here in Korea I opened an account and was given a debit card before I left the bank, and my bank charges are nowhere near as high as back home.

Ten years ago you could cash a cheque in any bank, then it had to be from the same bank, then from the same branch. I worked with a lot of EU workers who had to be paid by cheque because even opening an account takes ages in Ireland. Poor, expensive service-huge profit. Typical of Ireland these days.
 

buckfasthero

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45% Shocker?? Didn't come as a surprise to me...
 

Maximus

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factual said:
It means less for the low-income customer and more for the high income shareholder. Not good.
Get a grip, the vast majority of share holders of financial services companies are ordinary working people - bank staff / people with pension funds invested in them.

There's nothing to stop people investing their money in financial institutions! Well except perhaps the AML laws in the case of some members of the provisional movement :wink:
 

david

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National Irish Bank was recently taken over and all the adverts are talking about 'treating customer's money as if the customer mattered' or some such drivel.

The standard of service has IMHO fallen dramatically and charges have risen. So much for competition etc etc blah blah blah.

Banks are to a great degree a necessary evil but the monstrous profits many of them make shows what fools their users (hi!) really are.

Do posters have recommendations for someone wishing to ditch NIB for a bank that gives better service?
 

cyberianpan

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david said:
Do posters have recommendations for someone wishing to ditch NIB for a bank that gives better service?
In reality retail banks make most of their profit from their top 20% of customers. You've to either show as high net worth or "potential high earner" to get dedicated service. There are sneaky ways to achieve this ...

Also some Irish banks are attempting to move towards the relationship manager owning a large portfolio of customers model. Presently due to the state of their systems this is largely aspirational, however it ought start to come in over the next 2 years.

Else stick with Internet Banking.


cYp
 

Norfolk Enchants

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factual said:
According to the news story below, the Irish banks make a gross profit of 45% of revenue. That ie extraordinary and suggests the firms are setting prices too high and not acting in the interests of consumers.

http://www.rte.ie/business/2006/0717/banks.html

The headline says "Irish banks the most profitable in Eurpoe" as though that is a good think (typical of how right wing our society has become).

It means less for the low-income customer and more for the high income shareholder.

Not good.
GROSS profit indeed...time to take them on...I've banked in the US and in England and never had to pay fees for my current account...now I'm paying Bank of Ireland fees for the pleasure of letting them have the use of my money including fees for taking MY money out by ATM...fcukin apalling.

A letter will be in the post on Monday...remove the fees by 15th August or I am moving my account..either to TSB or internet banking. They depend on our apathy in these areas but if we start moving away, just watch the fees disappear. And, they have to make it as easy as possible to change direct debits etc. They are required to provide all the details directly to your new bank.
 

david

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One thing about NIB is they were for years, afaik, the only bank which offered a charge-free current account, so long as it was in credit. I have a feeling that might change but I suppose it depends on the trend other banks.

So is TSB better? And internet banking, I've never looked into it. I shall.

Saw an advert. for AccBank recently. Amongst services offered was 'wealth management'. They're the farmers' bank, aren't they?
 

revereie

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Don't most businesses have similar gross profit margins ? I'd be more interested in net profits and PBITDA and EPS stats and how these compare.

How do these (gross) profit margins compare with european margins ?

All I hear on this site is how Irish banks are creaming off the top without proper financial analysis anywhere. We even have some Shinner living in Korea lambasting the banks for their performance 10 years ago!
 

toffeebhoy

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revereie said:
Don't most businesses have similar gross profit margins ? I'd be more interested in net profits and PBITDA and EPS stats and how these compare.

How do these (gross) profit margins compare with european margins ?

All I hear on this site is how Irish banks are creaming off the top without proper financial analysis anywhere. We even have some Shinner living in Korea lambasting the banks for their performance 10 years ago!
What I'm lambasting is a decline in the standard of service coupled with increases in cost.

I think anyone would have the right to feel peeved about that.
 


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