Latest news with #IrishMarket
Irish Times
08-07-2025
- Business
- Irish Times
Non-bank property lenders cut small business loans most sharply during market shocks
Specialist property lenders reduce lending to small and medium-sized businesses (SMEs) much more sharply than mainstream banks and general non-bank finance providers during periods of market shock, according to a new Central Bank study. Between 2019 and 2022, specialist property lenders operating in the Irish market reduced lending by 80-90 per cent in comparison to banks when euro-area financial conditions tightened, Central Bank economists Raffaele Giuliana and Paul Reddan said in a research technical paper published on Tuesday. The period covered both the Covid-19 pandemic and a spike in interest rates globally as central banks fought inflation. While the authors found that lending across non-banks contracted by as much as 9.3 per cent during a shock compared to banks, nonbank providers of asset finance and general loans actually increased credit supply compared to the mainstream banks. READ MORE The authors highlight, however, that the downturn in the commercial property market during the period also played a role in the results of the study. Non-bank entities have become an important source part of the global financial system in the wake of the financial crash in 2008, driven as mainstream banks have been subjected to more onerous regulation and capital requirements. [ EU plans sweeping stress test of non-banks Opens in new window ] The total amount of assets of firm involved in nonbank financial intermediation, which also includes insurance corporations, pension funds and special purpose vehicles, more than doubled to $218 trillion (€186 trillion) between the crash and 2022, according to Switzerland-based Financial Stability Board. That equates to almost half of global financial assets. Some 71 non-bank entities operating in the Irish market accounted for almost half of new lending to SMEs in 2021, when global interest rates were at ultra-low levels and the financial markets was awash with cash that had been injected into the system by central banks during the pandemic. How the wealthy are buying up land to avoid inheritance tax Listen | 22:03 Still, the average SME loan extended by the four retail banks between 2019 and 202 – including the now-defunct Ulster Bank – was more than twice the average €58,902 loan granted by non-banks, according to the Central Bank paper. It used data from the Central Credit Registry. The paper noted that specialist property finance providers in the Irish market receive their funding from third parties operating in the European financial sector. 'The effects of the Covid-19 shock, and the associated implications for office spaces, are clearly a factor during our sample, and the commercial real estate market has continued to be a financial stability concern for policymakers throughout the 2021-2022 period of heightened inflation and increasing interest rates,' it said. 'Our data does not allow us to run regressions for a longer time period, but other cycles of tightening financial conditions, which are not specifically so negative for [commercial real estate] outlooks, may result in different outcomes for lenders focused on providing financing to the real estate sector.'
BreakingNews.ie
01-07-2025
- Automotive
- BreakingNews.ie
New car sales boom in June on back of EVs boost
New car sales in June rose by nearly 60 per cent, with the bulk of the growth coming from newly registered electric cars (EVs). In what is traditionally a quiet month for car sales ahead of the numberplate change on July 1st each year, June saw 2,376 sales compared to 1,493 for the same month last year. Advertisement EVs made up 50.7 per cent of June registrations, with Tesla accounting for 524 of the registrations last month. So far this year, the new car market is up 3.4 per cent with 81,686 sales. Petrol remains the most popular engine format, with a 27.25 per cent market share, ahead of regular hybrids with 22.8 per cent, followed by diesel on 17.3 per cent, and electric on 16.6 per cent. A further 15 per cent is made up of plug-in hybrid (PHEV) models. Toyota remains the best-selling car brand with 11,421 registrations this year, ahead of Volkswagen with 9,066, Hyundai with 7,805, Skoda with 7,513 and Kia with 6,403. The popularity of premium brands means BMW is now the sixth best-selling car brand on the Irish market with 3,308 registrations, outselling mainstream brands like Nissan, Ford, Renault and Peugeot. Similarly, Audi is the eighth best-selling brand with 3,021 sales. Advertisement Hyundai's Tucson is the best-selling model with 3,334 sales, ahead of Toyota's Rav4 on 2,432 and its Yaris Cross on 2,398. The hire-drive market now accounts for 11.4 per cent of total registrations, making up 9,282 new vehicles added to the Irish car fleet, while the motor industry itself accounts for 12.1 per cent of registrations, comprising cars registered by either the Irish distributor or local dealers for use as demonstrator or test drive cars.
Irish Times
29-06-2025
- Business
- Irish Times
SuperValu expands into pet cover in bid to be ‘one-stop shop' for insurance
SuperValu Insurance is expanding into the pet market in an attempt to become a 'one-stop shop' for customers' cover as part of a strategic expansion of its insurance division. 'There are about 500,000 pet insurance policies in the country,' said Garry O'Sullivan, head of SuperValu Insurance , 'but that only covers about 30 per cent of the number of pets that are owned in Ireland'. He noted a '70 per cent gap in pet owners that don't have insurance ' with the numbers taking out policies having grown following the Covid-19 pandemic. He said the small number of pet insurance providers in the sector allows SuperValu to 'give an extra choice to consumers'. SuperValu Insurance has partnered with global insurer Cover-More, with whom, Mr O'Sullivan said, they have 'tried to negotiate the best deals we can', which has allowed them to 'bring a best product to market'. READ MORE The company is expecting the launch of pet insurance to increase its overall insurance policies by about 1,000 in its first year, adding to an existing customer base of about 60,000 following 'incremental growth year on year'. The retailer's pet insurance offering will include lifetime cover for pets and vet fee cover for pets of up to €6,000, which SuperValu said is the 'highest level of veterinary cover currently available in the Irish market'. [ Pet insurance: Why owners must pay a price for peace of mind Opens in new window ] Mr O'Sullivan said bills for family pets 'can run up quite sizeably year on year' in cases where ongoing medical care is required. 'We cover all of that, so our product is well positioned to serve our customer,' he said. SuperValu launched its first insurance policies, travel cover, in October 2014 before later expanding into car and home insurance in May 2015. SuperValu made life and mortgage protection cover available last year and also offers a specialist learner driver insurance package. 'We want to be the one-stop shop for customers' insurance,' said Mr O'Sullivan. [ Pet insurance could save you a fortune, so know your options to care for your furry friend Opens in new window ] He said SuperValu 'will always look at opportunities to expand' into new insurance sectors based on interest from the customer base. He did not comment on what specific sectors it is considering but said the company will be 'exploring other avenues in 2026 and 2027″. As with all SuperValu insurance coverage, customers will be given a €40 shopping voucher when a new policy is purchased, which Mr O'Sullivan said is a reward for customer's loyalty to the brand. The cover will go beyond injury or illness and also provide access to a lost-and-found pet reward service. Cover-More Europe's chief product officer, Jason Whelan, said the underwriter is 'excited to work with SuperValu Insurance to ensure their customers have access to lifetime cover for their cherished pets'.
Irish Times
25-06-2025
- Business
- Irish Times
Uniphar ‘needs up to €150m of deals' to hit growth target
Uniphar , the Dublin-listed diversified healthcare services group, will need to spend as much as €150 million on mergers and acquisitions to reach its medium-term earnings target, according to Deutsche Numis. The brokerage has also downgraded its rating on the stock, from buy to hold, on valuation grounds following a surge in the share price this year. The stock is up 73 per cent so far this year, making it by far the top-performing stock on the Iseq All-Share index. Uniphar's management, led by chief executive Ger Rabbette, expects to double earnings before interest, tax, depreciation and amortisation (Ebitda) to €200 million between 2022 and 2028. That is 'achievable, albeit challenging', said Deutsche analyst Kane Slutzkin in a report on the group. The consensus view among analysts is that Uniphar's Ebitda will reach €170 million by then, based on estimates for organic growth. The balance will have to be delivered by better-than-expected organic earnings growth and merger and acquisition (M&A) deals. READ MORE Uniphar will need to spend €120 million to €150 million on prudently priced deals to reach the earnings goal, Deutsche said. The company would also need to see growth pick up in its supply chain and retail division, following a period of investment, it said. This includes 445 company-owned and franchised pharmacies operating under the Allcare, McCauley, Life and Hickey's brands. It has a 28 per cent share of the Irish market. Its wholesale business has a 54 per cent market share. 'A core part of our investment thesis has been the quality of the supply chain and retail business, which we believe the market had been slow to appreciate, as it consistently beat the company's low-single-digit organic [earnings growth] guidance,' said Mr Slutzkin in the report. Uniphar would also need to sustain mid-teen percentage organic earnings growth in its pharma division, which works with drugmakers and biotech companies to bring innovative medicines to global markets and provides healthcare professionals with access to medicines they cannot source through traditional channels. Deutsche said that Uniphar's other division, which distributes medical technology products across Europe, as the group's 'highest-quality' unit. 'Gaining share in existing markets, growing the basket of products per customer and expanding and leveraging its existing geographic footprint are the key drivers of high-single-digit organic growth expectations [over the medium term],' Mr Slutzkin said. Uniphar, which floated in Dublin six years ago, said in a trading update last month that it has had a 'good start' to this year, following a 6.4 per cent increase in Ebitda last year, to €123.5 million. A pharmacy brokerage business, Thera Pharmaceuticals, started a High Court case last month against Uniphar, claiming it is breaching an agreement and abusing its dominant position in the market. Uniphar has strongly rejected the claims. Thera is part of the Navi Group, which Uniphar had agreed to buy in 2021, but was blocked from completing by the Competition and Consumer Protection Commission (CCPC). Thera provides infrastructure allowing pharmacies to buy products from wholesalers.
Irish Times
23-06-2025
- Business
- Irish Times
House price inflation hits 10-year high and oil prices set to surge after Iran strikes
Irish annual house price inflation reached a ten-year high in the second quarter of the year, said on Monday, as the market remains 'starved' of new and second-hand homes. There are, however, some early signs of a 'tentative' improvement in the volume of second-hand homes coming up for sale in Dublin after a relatively fallow period, according to the property website. With oil prices set to surge on global markets following the US's entry into Israel's war with Iran, Irish petrol and diesel prices could be in line for steep increases in the coming weeks. Experts say the extent of the rally in crude this week will be determined by the Islamic Republic's response. In her FT column, Pilita Clark writes that one thing is clear in the aftermath of reports last week that a top JPMorgan banker will run the bank's EMEA operations from New York: executives have always been able to negotiate deals that give them more freedom than the average employee. And the average employee is still a big fan of the freedom remote working offers. Our columnist John FitzGerald has several ingenious tacks we can take to help cut our carbon emissions, including timber-framed housing and more taxes on petrol and diesel cars. READ MORE In our Opinion piece, academic John McCartney says property developers are bluffing when they say lower prices would undermine the viability of house building. In our Your Money Q&A , a reader's friend cut his wife out of his will even though they weren't legally separated or divorced and wonders what the legal position is in relation to the distribution of assets. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers. In Me & My Money , bakery and coffee shop owner Caryna Camerino says her business her retirement plan. 'I also intend to keep working until the very end,' she tells Tony Clayton-Lea. Spotify's founder Daniel Ek has bet big on Europe's war economy as defence stocks surge, writes Stocktake .
