22 Nov 2019

Glenveagh Properties: Calls EGM to reorganise its capital

Glenveagh has given notice of an EGM to be held on 17th December, the purpose of which is to gain shareholder approval to transfer up to €700m from its share premium account to distributable reserves. 

As communicated at the time of its H119 interims in August, this is to allow the group the flexibility to put in place a long-term capital returns policy – something which we expect to hear more of at a CMD in Q120. Should the proposal receive the assent of shareholders, Glenveagh will then need the confirmation of the High Court. 

Irish economy: New credit union regulations to allow greater mortgage lending

The Central Bank of Ireland yesterday announced the introduction from January of new regulations on lending by credit unions. 

The changes include the removal of the existing lending maturity limits which restrict the proportion of credit union lending on terms of greater than five and ten years. These maturity limits will be replaced by new concentration limits for home mortgage and business loans, which will be expressed as a percentage of total assets. From January, a combined concentration limit for house and business loans of 7.5% of total assets will be introduced for all credit unions, although this may be increased to 10% or 15% depending on credit union size, with the 15% limit potentially applying to credit unions with total assets of more than €100m.

These changes will improve the ability of credit unions to compete with high street banks and encourage much-needed consolidation and professionalisation of the sector, particularly given other moves in that direction recently, including the introduction by a group of credit unions of full-service current accounts for the first time. Notwithstanding these positive developments, we expect material lending growth from the sector to arrive only slowly.