Anglo to sell off €4bn in assets
03 April 2011
Anglo Irish Bank expects to dispose of at least €4 billion in assets in 2011 as the nationalised institution continues its wind-down, Mike Aynsley, its chief executive, has told The Sunday Business Post.
The bank, which sold nearly €3 billion of its remaining €36 billion in assets last year, has disposed of €1 billion in assets this year already, according to Aynsley.
That rate puts Anglo on track for a ten-year work-out period and gives an indication of market appetite, as the rest of the Irish banking system seeks to deleverage by more than €70 billion over the next three years.
The Anglo disposals this year have come about through restructuring, refinancing and straight sales of assets in the US and British markets. Aynsley said he did not expect any disposals in Ireland before the second half of 2011, although the bank achieved some in 2010.
‘‘The Irish market hasn’t begun to recover," he said. ‘‘You don’t want a firesale if your funding costs are not going to blow you out of the water. We are very confident that the state funding is there to wind this down."
Anglo has put disposal teams in Britain, US and Ireland as the institution’s focus moves from restructuring and downsizing the bank to how effectively it can recover the loans it hasn’t already transferred to Nama.
Aynsley has established a group recovery management unit to help recover very distressed loans and improve insolvent assets. He has also put together a corporate projects unit to focus on recovering outstanding debt from Anglo’s higher-value, more complex corporate customers.
The latter unit is working primarily on getting back the €2.8 billion Anglo loaned to Quinn Group and associated parties. It is also managing the Arnotts and Champion Sports deals. An update on Anglo’s capital position is expected in May. The bank delivered audited results last week, and Aynsley said he expected its total capital needs to be close to €29 billion, and not the €34 billion provided for in September 2010.
‘‘We’ll still have further impairments, but I don’t think the taxpayer will have to put in more capital," said Aynsley.
‘‘We’re in the guts of the portfolios and know the extent of the problem."
Aynsley, who was paid nearly €1million last year, said he had no plans to resign his job, despite failing to get approval for three successive restructuring plans
A new "floor" in property prices will be found this year, however long that "floor" lasts!