Latest news with #PTSB
Irish Examiner
2 days ago
- Business
- Irish Examiner
Four in 10 adults unable to answer Junior Cert exam question on inflation
An overwhelming majority of Irish adults believe they have an 'average' or 'high' level of financial literacy, but more than 40% could not correctly answer a Junior Cert-level business sample exam question on the impact of inflation on household purchasing power, research shows. The PTSB Reflecting Ireland research revealed 90% of respondents think they have average or high financial literacy, but only 58% identified that high inflation is bad for their purchasing power, with 27% incorrectly saying it is positive for them, 10% incorrectly saying it would remain the same, and 5% saying it makes their personal finances more stable. Just under 10% of survey respondents said their financial literacy is low. This cohort reported feeling down about their finances and uncomfortable talking about money to family and friends. Some 40% of respondents cited the belief that feelings of embarrassment can be a key barrier to improving financial understanding. Only 53% of people are comfortable talking to a friend or family member about money. Protection against scams 'These results highlight that support is needed to educate people on the importance of financial literacy in order to increase financial resilience, inclusion, and protection against financial scams,' said PTSB chief sustainability and corporate affairs officer Leontia Fannin. Some 47% felt technology has helped them to better understand fees and charges, financial products and services available, and their personal spending habits. This rises to an average of 57% for 18 to 24-year-olds. Those over 55 are the least likely group to have used technology to help understand their finances better. Regarding the rise of AI, 27% of respondents said they would be comfortable getting AI-generated advice on how to better manage their money (up from 24% last year). This increases further to 42% for 25 to 34-year-olds. 'People rating themselves with high financial literacy are more confident about the benefits of AI and technology in building knowledge and generating advice. This suggests an opportunity for people to embrace digital tools to support them in their day-to-day budgeting and financial awareness,' Ms Fannin said. Read More Grocery prices now rising three times faster than other goods
Irish Independent
3 days ago
- Business
- Irish Independent
Large numbers of consumers confused about impact of inflation on purchasing power
And many consumers have a limited understanding of how the tax on savings accounts works. That is according to a new survey that lays bare the extent of financial illiteracy in this country. The PTSB 'Reflecting Ireland' research revealed that nine out of 10 of respondents think they have average or high financial literacy. But specific questions asked as part of the survey contradict this view that people understand personal financial matters. The research found that four out of 10 respondents could not correctly answer a Junior Cert level business sample exam question on the impact of inflation on household purchasing power. They were asked if high inflation is bad for their purchasing power – the quantity of products and services available for purchase with a certain amount of money. The research found that only 58pc of respondents identified that high inflation is bad for their purchasing power. Some 27pc got it wrong, answering that high inflation was not bad for their purchasing power. And 10pc incorrectly said their purchasing power would remain the same in a period of high inflation. Some 5pc said high inflation makes their personal finances more stable. ADVERTISEMENT Consumers were also asked about the impact of DIRT (Deposit Interest Retention Tax) on their savings. Only of respondents were able to correctly calculate the total amount of savings they would earn after DIRT is applied. PTSB said these findings were consistent with other aspects of the survey, which also asked respondents to assess for themselves their ability to understand financial terms, concepts and products. Just under 10pc of respondents said their financial literacy is low. This cohort reported feeling down about their finances and feeling uncomfortable talking about money to family and friends. Some 40pc of respondents cited the belief that feelings of embarrassment can be a key barrier to improving financial understanding. The survey, conducted by Core Research, also found that only 53pc of people are comfortable talking to a friend or family member about money. PTSB chief sustainability and corporate affairs officer Leontia Fannin said the results of the survey show that more needs to be done to raise financial literacy levels. 'These results highlight that support is needed to educate people on the importance of financial literacy in order to increase financial resilience, inclusion, and protection against financial scams,' she said. Almost half of respondents felt technology has helped them to better understand fees and charges, financial products and services available, and their personal spending habits. This increases to an average of 57pc for those aged between 18 and 24. Those over-55 are the least likely group to have used technology to help understand their finances better. A drop in consumer sentiment towards the economy was also recorded in the replies. More than half believe the country is on the wrong track, a number which has grown significantly since the start of the year. Some 42pc say their financial situation has deteriorated over the past 12 months. And a third say they expect to be worse off in a year's time, and a similar proportion say they will be no better off.
Irish Examiner
3 days ago
- Business
- Irish Examiner
Is inflation good or bad for your purchasing power? Four in 10 Irish people don't know
An overwhelming majority of Irish adults believe they have an 'average' or 'high' level of financial literacy but more than 40% could not correctly answer a Junior Cert level business sample exam question on the impact of inflation on household purchasing power, a new research showed. The PTSB 'Reflecting Ireland' research revealed 90% of respondents think they have 'average' or 'high' financial literacy but only 58% identified that high inflation is bad for their purchasing power, with 27% incorrectly saying it is positive for them, 10% incorrectly saying it would remain the same, and 5% saying it makes their personal finances more stable. Just under 10% of survey respondents said their financial literacy is low. This cohort reported feeling down about their finances and feeling uncomfortable talking about money to family and friends. Some 40% of respondents cited the belief that feelings of embarrassment can be a key barrier to improving financial understanding. Only 53% of people are comfortable talking to a friend or family member about money. 'These results highlight that support is needed to educate people on the importance of financial literacy in order to increase financial resilience, inclusion, and protection against financial scams," said PTSB chief sustainability and corporate affairs officer Leontia Fannin. Almost half (47%) of respondents felt technology has helped them to better understand fees and charges, financial products and services available, and their personal spending habits. This increases to an average of 57% for 18-24-year-olds. Those over-55 are the least likely group to have used technology to help understand their finances better. Regarding the rise of artificial intelligence, 27% of respondents said they would be comfortable getting AI-generated advice on how to better manage their money (up from 24% last year). This increases further to 42% for 25-34-year-olds. "People rating themselves with high financial literacy are more confident about the benefits of AI and technology in building knowledge and generating advice. This suggests an opportunity for people to embrace digital tools to support them in their day-to-day budgeting and financial awareness," said Ms Fannin.
Irish Times
21-06-2025
- Business
- Irish Times
Paschal Donohoe's refusal to tackle banker bonus ban is hitting those who bought State's shares
Paschal Donohoe's sale of the State's remaining shareholding in AIB this week will pave the way for a crisis-era agreement that governed the Minister for Finance's engagements with the bailed-out bank to be torn up within weeks. The relationship framework – tweaked in 2017 as Donohoe proceeded with AIB's initial public offering (IPO) just days into the job and his first stint in the role – gave the Minister the right to be given sight of business plans before these were adopted, consulted on any deal or investment worth more than €100 million and get prior notice of a senior executive appointment before it was announced. On remuneration, the document said that 'any incentive arrangements for directors and senior executives are closely related to their performance, measured by the achievement of relevant targets, such targets having regard to the achievement of the business plan'. It was a moot clause, of course. Bank bonuses above €20,000 have been in effect banned across rescued banks by way of a prohibitive 89 per cent supertax for the past decade-and-a-half. (Indeed, Donohoe only allowed for variable pay up to that level to be introduced in late 2022, after Bank of Ireland returned to full private ownership.) READ MORE Bank executive pay remains as politically thorny today as at any stage the financial crash – even if the State has now recovered, in nominal terms at least, just over the €29.4 billion pumped into AIB, Bank of Ireland and PTSB during the crisis. It continues to hold a 57 per cent stake in PTSB, which at present has a market value of €620 million, and stock warrants in AIB, estimated to be worth about €300 million. Donohoe confirmed to reporters on Tuesday, after selling the Government's last 2 per cent stake in AIB to stock-market investors, that he is lifting the €500,000 basic salary cap at AIB and PTSB. He argued that it was not appropriate for the Government to have a role in setting the pay at AIB and Bank of Ireland 'when we no longer own a single share in those companies'. Lifting the cap at PTSB is to prevent it being put at a competitive disadvantage when it comes to hiring and retaining executives. He's right. But the logic fell apart when he said that he had 'no plans' to remove the 89 per cent super tax on bonuses, knowing it is enshrined in law (the Finance Bill 2011) and requires legislation being passed through the Oireachtas. There are no votes in that. [ How AIB, once worth less than its art collection, came back from the brink Opens in new window ] To be clear, the long campaign by bankers to reintroduce bonuses was largely ham-fisted. It started off with a pitch by AIB's then chairman David Hodgkinson to the Department of Finance in early 2014 when the bank had barely returned to profit after the crisis, let alone start to repay its rescue bill. Arguing for a return of variable pay when the sector spent much of the next decade knee-deep in the tracker mortgage scandal was also tone deaf. But lines have been drawn under those. To see where AIB is now headed on the executive pay front, you only have to look at its main rival. Following the lifting of pay caps in Bank of Ireland in late 2022, its board came up within months with a plan to award its chief executive, Myles O'Grady , the equivalent of 25 per cent of his basic salary from 2024 by way of shares in the group, rising to 50 per cent this year. O'Grady was hired two-and-a-half years ago on a fixed salary of €950,000. With the stock awards set to soar to 100 per cent of salary next year, his total remuneration will top €2 million, when pension entitlements are also included. The fixed share bonanza, which have trickled down to other senior Bank of Ireland executives, means that top employees have skin in the game alongside other investors. The board, in fairness, has also decided that executives must now hold on to stock for five years after they are received, up from three years previously. And it argues the CEO's total package will remain about 60 per cent below the median maximum remuneration opportunity that heads of mid-tier UK banks and other top-10 Iseq companies enjoy. But the no-strings nature of the stock awards – to get around the fact that performance-related pay above €20,000 remains outlawed – is not ideal for investors who now hold the shares that the Government sold in the banks. It treats success, mediocrity and even underperformance as one and the same. It also flies in the face of carefully thought-out EU rules brought in after the financial crisis. These limit variable pay to 100 per cent of salary – or 200 per cent if explicitly approved by at least two-thirds of shareholders. These also include provisions for bonuses to be docked or clawed back when staff engage in risk-taking that causes losses later. The Irish solution to an Irish problem is even more incongruous when you consider that senior finance executives are now subject to one of the strictest individual accountability regimes in Europe – by virtue of rules that came into force almost 12 months ago.
Irish Times
20-06-2025
- Business
- Irish Times
Markets mixed after US indicates it will hold back from any immediate action in Iran
Global markets were mixed in choppy trading on Friday, as inflation concerns and uncertainty around US involvement in the Iran-Israel war offset relief over president Donald Trump holding back from any immediate action. Dublin PTSB was the standout performer on the day in Dublin as it climbed 4 per cent while the Euronext Dublin index was unchanged. Its peers AIB and Bank of Ireland were flat. Dalata, the biggest hotel operator in the State, finished up 3 per cent at €6.40 after a Scandinavian consortium circling the group signalled an interest in potentially making an improved offer for the business, after its €1.3 billion bid was rejected earlier this month. Oslo-based investment firm Eiendomsspar and Swedish hotel company Pandox, in which it owns an almost 25 per cent stake, said they have bought 1.69 million shares in Dalata at €6.30 – marking a premium to the €6.05-a-share non-binding offer it made previously. READ MORE Elsewhere, food giant Kerry Group underperformed as it finished down 1.8 per cent after earlier announcing it has initiated a €300 million share buyback programme that will run until February 27th, 2026. The airlines were a mixed bag, with Ryanair up 0.5 per cent, while longer-haul peers Lufthansa and Aer Lingus parent International Airlines Group were up 2 per cent and 1.5 per cent respectively. London Britain's FTSE 100 snapped a five-week winning streak, closing out a week marred by a wave of global risk aversion amid the conflict between Israel and Iran, while a slew of interest rate verdicts were also assessed. The blue-chip FTSE 100 dipped 0.2 per cent to hit a more than two-week low, while the midcap index ended 0.4 per cent higher, though with marginal weekly losses. Drugmakers GSK and AstraZeneca were among the top drags on the FTSE 100, down 2.3 per cent and 1.5 per cent respectively. Heavyweight energy shares gave back some of their gains from earlier this week as crude oil prices also edged lower. BP lagged with a 2.1 per cent decline. Among headlining stocks, Berkeley dropped 8.2 per cent after the home builder reported results and forecast fiscal 2026 and 2027 profits below market expectations and proposed the appointment of CEO Rob Perrins as executive chair. Europe Euro zone government bond yields were on track for a weekly decline. German 10-year government bond yields, which serve as the benchmark for the wider euro zone, fell 0.5 basis points to 2.51 per cent and were set to end the week 1.5 basis points lower. In the stock markets, the Europe-wide Stoxx 600 finished down 1.5 per cent. The Cac 40 in Paris closed up 0.3 per cent, and the Dax 40 in Frankfurt ended 1.3 per cent higher. New York Wall Street indexes tracked modestly higher as markets took comfort after the White House said Trump will decide in the next two weeks whether the US will join Israel in attacking Iran. Six of the 11 major S&P 500 subsectors rose. Utilities led sector gains with a 1 per cent rise. On the flip side, communication services stocks lost 1.2 per cent. All three main indexes were set for weekly gains. Investors are also bracing for any potential spike in volatility from Friday's 'triple witching' – the simultaneous expiration of single stock options, stock index futures, and stock index options contracts that happens once a quarter. Among megacap stocks, shares of Google parent Alphabet fell 2.5 per cent while chipmaker Nvidia, and Meta were down about 1 per cent each. Kroger rose 9.3 per cent after the grocery chain increased its annual identical sales forecast. GMS shares rose 28.3 per cent after QXO made an offer on Wednesday to acquire the company for about $5 billion in cash. Shares of QXO were up 4.1 per cent. Accenture fell 6.3 per cent after the IT services provider said new bookings decreased in the third quarter. – Additional reporting: Agencies
