Bank of Ireland share price drop today

A

AndroidMan

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I know this happens and this is all part of the risk game that I am ok with playing, but BOI dropped 10% today and I cant understand why.

Considering the good news story on their performance in the link below, why would the price drop?
I was expecting the opppsite, but curious on what the reasons would be.

www.rte.ie

Bank of Ireland shares fall 11% despite €1.9bn profit

Bank of Ireland will more than triple returns to shareholders for the second successive year, the country's largest lender said today after higher interest rates helped it to nearly double full-year profit.
www.rte.ie www.rte.ie
 
Did you read that article in full?


Analysts at Davy Stockbrokers said the guidance from the bank today implied that its 2024 profit would be below market expectations. The forecast for the bank's 2024 underlying pretax profit is likely to be lowered by 9% as a result, they added.
Click to expand...
 
We don't speculate about share prices on askaboutmoney so be careful not to do so.

It often happens that a company announces great results but the share price falls. This could be due to either 1) the company says that these great results will not be repeated - as what happened in BoI's case or 2) The market had already pushed up the price in expectation of even better results.

The opposite happens as well. Bad results, but not as bad as had been feared and the share price rises.

Brendan
 
As they say "Buy on rumour, sell on fact".

I have this problem with a share that will announce results in two weeks or so. The share price has been running up for the past few days and I expect it to continue right up to the results. I may sell before the announcement (many will) but I expect the company to increase the already generous dividend when they announce their results. This may cause the share to remain strong up to the ex dividend date a month later then drop back on ex dividend date.
 
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also show how iseq index is now highly volatile with so many big stocks having delisted from it, BOI share price fall caused the iseq to lose over 200 points when the ftse only dropped 20 points or so
 
Yes, I get it. I did misread the article, but was still surprised by such a drop considering the (mostly) good news article.
 
Most investors are indifferent to the last year's result - as far as they are concerned that's water under the bridge.

What really matters are the forecast results for the next 3 to 5 years. If these are adjusted down unexpectedly, then the share price will drop a lot. Unexpected reductions in forecast profits are like a red flag to a bull - flee
 
They increased provision for losses in their loan book but the underlying profit is huge for a bank that size and just goes to show how much the consumer is being ripped off
 
If there are huge profits to be made in Irish banking, then that will prompt someone to startup a bank or a foreign bank to open up here

It isn't clear that Irish banks make more profits than other European banks

The barriers to entry are quite high, but not insurmountable

However, the market is very small at 5m is spread out. Even the Dublin region only corresponds to a small city in European terms
 
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