Bloomberg News

Irish Life Plunges on Loans to U.K. Landlords, Bank Bailouts

September 29, 2008

Irish Life & Permanent Plc (IPM), Ireland's third-largest lender by market value, plunged the most in almost 14 years on concerns about its loans to U.K. landlords and the bailout by European governments of Fortis.

Irish Life fell 19 percent, the most since November 1994. It traded down 1.10 euros to 4.65 euros at 12:36 p.m. in Dublin for a market value of 1.29 billion euros ($1.85 billion).

The U.K. government today seized control of Bradford & Bingley, the biggest lender to landlords, as the freeze in credit markets cut its access to lending. Irish Life has about 8 billion euros in loans to landlords in the U.K. through its Capital Home Loans unit. Its total loan book is about 41 billion euros.

``People are putting two and two together and looking at its buy-to-let book,'' Emer Lang, analyst at Davy, Ireland's largest securities firm, said in a phone interview. Lang said arrears at Irish Life's loans are running at about half the U.K. average.

Allied Irish Bank Plc (ALBK), Ireland's biggest bank, fell 17 percent to 5.00 euros. Bank of Ireland Plc slumped 14 percent to 3.52 euros and Anglo Irish Bank Corp. Plc declined 15 percent to 3.65 euros.

The governments of Belgium, the Netherlands and Luxembourg yesterday agreed to pump 11.2 billion euros into Fortis, which ran short of capital.

To contact the reporter on this story: Ian Guider in Dublin at

To contact the editor responsible for this story: Mike Anderson at

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