Friday, August 23 17:40:44
The ISEQ closed the week slightly ahead as strong signals that the EU is in recovery was offset by depressing news that the rate of mortgage arrears in Ireland continues to rise.
The index rose 6.51 points to 4,225.29.
There were 97,874 (12.7pc) private residential mortgage accounts for homes in arrears of over 90 days at end-June 2013, up from 95,554 accounts (12.3pc) at end-March 2013, latest Central Bank figures show. The number of PDH (principle dwelling houses) accounts in longer-term arrears over 180 days increased by 3.8pc during Q2 2013, while quarter-on-quarter growth in the number of accounts in arrears over 720 days was 11.3pc. Bank shares registered no change.
Elsewhere, FBDs interim results are expected to show a decline year-on-year at the operating profit level, driven by an increase in large claims in the half. However, the insurer reiterated its FY guidance in its May IMS, assuming that the large claims trend reverts to a more normal pattern and barring any exceptional weather in H2. Dividends are likely to be a key focus. The pay-out ratio in 2012 remained well below FBD's ultimate target (40-50pc of operating earnings) with the insurer signalling an interim 2013 increase in line with 2012 (final +30pc; FY 2012 +22.5pc). Shares in the group fell 30c to E16.39.