News Archives - Pat Carroll PCCO - Chartered Accountants & Tax Advisors

Revolut has announced the completion of a major secondary share sale that places the company at a valuation of 75 billion dollars. This represents a significant uplift on last year’s valuation and reflects the pace at which the digital financial services provider continues to expand.

The latest transaction attracted participation from a wide range of global investors, including Coatue, Greenoaks, Dragoneer and Fidelity. Additional interest came from established venture capital firms such as Andreessen Horowitz, along with Franklin Templeton and the investment arm of Nvidia. Although the valuation comes through private market activity, it positions Revolut ahead of several long established European banking groups in terms of implied market worth.

Revolut, founded ten years ago by Nikolay Storonsky and Vlad Yatsenko, has become one of the most prominent fintech companies in Europe. The business has grown to more than 65 million users worldwide and recorded a pretax profit of £1.1 billion last year. This represented a sharp increase compared with the previous period and highlights the strength of its commercial model. The firm noted that this latest transaction marks the fifth occasion on which employees have been given the chance to sell shares, a move that has generated substantial returns for early staff and investors over recent years.

The company now serves more than 3 million customers in Ireland alone, contributing to its global user base and reinforcing its role in the wider digital banking sector. Storonsky, who has recently relocated to Dubai, expressed his appreciation for the team behind the business and reiterated his aim of securing a full UK banking licence. This remains one of the company’s key strategic goals and is viewed as essential for expanding its range of regulated services.

Market analysts acknowledge the strength of Revolut’s technology and brand, although they continue to point out that a significant portion of its income is generated from cryptocurrency trading and interest related revenue. Deposits remain lower on average than those held with traditional banks, and Revolut itself recognises that many customers use the platform as a secondary account rather than their main banking provider.

The company is seeking to diversify its offering by entering markets traditionally dominated by established lenders. Revolut has signalled plans to expand into consumer credit, mortgages and business lending. It is also exploring the possibility of acquiring a bank in the United States to accelerate its presence in that market.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

Irish Residential Properties REIT, one of the largest private landlords in the country, has reported continued strength in its rental portfolio, supported by high occupancy levels and a steady pipeline of asset sales.

In its latest trading update covering the three months to the end of September, the company noted that portfolio occupancy reached 99.5 percent. Demand for rental accommodation remains resilient and the business continues to place emphasis on financial stability and disciplined capital management.

A key driver of performance has been its strategy of recycling assets. I-RES has completed 36 unit sales so far this year, with a further 12 sales agreed. These disposals place the company on track to reach its 2025 target of 50 units sold. The business highlighted that sale prices achieved have exceeded initial expectations. Premiums above book value are now surpassing 25 percent, signalling both strong asset quality and ongoing market confidence.

The company also expects its full year 2025 Net Rental Income margin to remain in line with the 78 percent margin recorded in the first half of the year. Management attributes this stability to a combination of disciplined operations and the performance of its rental assets.

Leverage levels have been easing as a result of continued disposals. Loan to value stood at 44.8 percent at the end of October, compared with 45 percent at the end of June. This remains comfortably below the 50 percent threshold set by both debt covenants and Irish REIT rules.

I-RES has welcomed the Government’s proposed updates to rent regulations, announced earlier in the year. Although the changes are not expected to take effect until March 2026, the company has already observed signs of increased liquidity in the development market and a more positive attitude among developers. It anticipates that these conditions will support future growth, initially through reinvesting internally generated funds into selective acquisitions that strengthen the portfolio.

Management believes that the combination of revised regulatory measures and a more supportive market environment will enhance opportunities for expansion and help deliver sustained value for shareholders in the medium and long term.

Eddie Byrne, CEO of I-RES, commented that the business has delivered another strong quarter and continues to benefit from positive momentum. He emphasised the success of the asset recycling strategy, noting that the premiums achieved have exceeded early expectations and have contributed to an improved financial position. The company intends to continue exploring opportunities that enhance asset quality, income resilience and long term value creation.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

Public debate often features high-profile comments from influential business figures. Some of these insights can be valuable. Others show how far the lived experience of the ultrarich has drifted from that of ordinary workers, households and SMEs.

Many people point to investors such as Warren Buffett who advocate long term thinking, sustainable business models and a cautious approach to risk. His message that investors should focus on well run companies and avoid unnecessary losses is grounded in principles that generally stand up to scrutiny.

Not every contribution from wealthy business leaders lands as well. When prominent figures express personal views on workplace culture, public sector performance or national infrastructure, the attention these remarks receive can outweigh their practical value. Recent commentary has included claims that remote working damages productivity, that graduates have become overly demanding or that employees need stricter workplace discipline. These positions can be interpreted in several ways, although critics often highlight that such statements overlook the realities of modern work and the need for balanced organisational decision making.

Other well known entrepreneurs have weighed in on the pace of infrastructure delivery in Ireland. Frustration with slow progress is widespread and legitimate concerns exist about planning timelines and regulatory procedures. However, proposed solutions that rely on more meetings, heavier restrictions on legal challenges or financial barriers for those seeking judicial review raise questions about fairness, accountability and access to justice. Limiting who can challenge a project risks placing influence in the hands of those with the deepest pockets rather than those with the strongest evidence.

There is also a growing trend among some wealthy commentators to argue that society would function better if leadership were concentrated in the hands of a so called productive elite. This idea clashes with democratic principles and assumes that economic success automatically translates into sound judgement on complex social and political issues.

The same pattern appears in international examples, where innovations and bold thinking from high profile tech founders can sit alongside impractical or poorly informed ideas. Overconfidence in one field does not necessarily transfer to others, especially when proposals involve public administration, policy reform or areas where expertise is essential.

A common explanation for these misjudgements is the distance between the daily lives of the ultrarich and the realities faced by most people. Many live with extensive privacy, limited exposure to public services and minimal routine interaction with wider society. When surrounded primarily by advisers, peers and private support staff, it becomes much easier to lose sight of the challenges encountered by ordinary households and businesses.

Some high net worth individuals avoid this disconnect by maintaining a relatively normal lifestyle, continuing to engage with communities and staying grounded in everyday experiences. Those who remain connected often offer advice that is more relatable and measured.

For everyone else, the lesson is to evaluate comments from wealthy business leaders on their substance rather than their status. Success in one domain does not guarantee insight across all others, and public discourse benefits when ideas are assessed critically rather than accepted purely because of who delivers them.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

A new nationwide survey suggests that most Irish businesses expect pension auto enrolment to place pressure on profitability once the scheme begins in 2026. The research, carried out by FRS Recruitment, indicates that many employers are planning price increases, recruitment freezes or reduced investment to manage the additional cost burden.

According to the study, the average employer faces an estimated 25,000 euro rise in employee related costs next year due to the rollout of the My Future Fund auto enrolment scheme. The survey had 515 respondents, split roughly evenly between employers and employees.

For workers, understanding the new system remains a challenge. Fifty nine percent of employee respondents said they need more guidance from their employer on how auto enrolment will operate and what it means for their retirement savings.

Colin Donnery, CEO of FRS Co Op, noted that while the scheme is designed to boost long term financial security for more than 800,000 workers, it also introduces cost pressures for businesses. Over three quarters of employers surveyed expect auto enrolment to reduce profitability in 2026. He added that it is unsurprising to see companies considering price rises or hiring pauses as they try to adjust.

My Future Fund will begin on 1 January. It will automatically enrol any eligible employee aged between 23 and 60 who earns over 20,000 euro annually and is not already contributing to an occupational pension. Contributions will be introduced gradually over a ten year period. Both employer and employee contributions will start at 1.5 percent and increase every three years until reaching 6 percent in year ten. The State will provide a top up of one euro for every three euro contributed by the employee.

The Government has emphasised that Ireland is the final OECD country to implement a national auto enrolment system. A new body, the National Automatic Enrolment Retirement Savings Authority, has been established to oversee the programme.

Minister for Social Protection Dara Calleary has said that administration for employers will be kept to a minimum. NAERSA will be responsible for identifying eligible employees, enrolling them, managing opt ins and opt outs, calculating contributions and informing employers of the amounts due through payroll.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

Growing international guidance on household emergency preparedness is placing renewed emphasis on the role of cash. Reports that Irish households may soon be advised to keep a small amount of cash at home reflect a broader shift across Europe. The European Central Bank has highlighted that cash is now considered a critical element of national crisis planning, particularly in scenarios where digital payment systems fail.

Tánaiste Simon Harris has confirmed that the Office of Emergency Planning is preparing advice to help people plan for situations where electronic payments may not be available. The risks are not theoretical. Power outages, cyber attacks and geopolitical instability all have the potential to disrupt digital systems for extended periods. In such circumstances, cash may be the only functioning method of payment.

The stability and resilience of cash continue to be recognised across the euro area. The Eurosystem Cash Strategy describes cash as an essential pillar of payment freedom and financial inclusion. The ECB’s SPACE survey found that in 2024 cash remained the most used payment method at physical points of sale in 14 of the 20 euro area countries, particularly for smaller transactions under 50 euro.

In Ireland, the use of cash has remained steady since the pandemic. While the number of individual cash transactions fell by 5 percent, the overall value of cash payments stayed unchanged. Survey responses cite privacy, anonymity and greater spending awareness as key benefits. The Department of Finance has also reported a slight increase in cash usage, with 92 percent of people using it in 2025.

The ECB has noted that sustained demand for cash, despite the growth of digital payments, demonstrates that it cannot be fully replaced. During major crises, demand for cash rises sharply, highlighting its value as a dependable offline payment method.

Several European countries have already issued guidance encouraging households to maintain a supply of cash for emergencies. Sweden’s central bank and its civil contingency agency advise households to hold enough cash for a week’s essentials and to keep using cash from time to time. The Dutch National Forum on the Payment System recommends that adults keep roughly 70 euro in cash and children 30 euro. Germany, Austria and Finland advise households to keep sufficient reserves for expected household needs, with some recommending enough to last up to 72 hours during a system failure.

The UK has also examined this issue, with a 2025 Treasury Committee report urging consideration of formal guidance. The Bank of Portugal recently reiterated the importance of cash following lessons learned during a national blackout earlier that year.

While encouraging households to keep cash on hand is a sensible step, policymakers stress that cash should not be viewed only as an emergency fallback. Reliable access to cash remains essential for many people, and it must continue to function as a viable everyday payment option. Ensuring this requires ongoing policy support, regulatory oversight and the maintenance of a resilient cash infrastructure.

As ECB Executive Board member Piero Cipollone remarked, cash continues to play a vital role in society and is expected to remain a permanent part of the European payments landscape.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

A new law designed to safeguard public access to cash is set to come into force this week, placing a legal requirement on financial institutions to ensure that an ATM is available within 10 kilometres of the vast majority of homes and businesses across the country.

In one of his first actions as Minister for Finance, Simon Harris is expected to formally sign the order that activates the legislation. The measures were approved by the Oireachtas last May but could only take effect once the Central Bank completed an extensive review of ATM coverage and cash services nationwide. That analysis is now finished, clearing the way for the new rules to be implemented.

Once signed, the order will oblige banks and other cash service providers to maintain suitable access to ATM facilities in towns, villages and communities throughout the State. The Government has presented the policy as an important protection, particularly for rural areas that have experienced a wave of bank branch closures in recent years.

Minister Harris has said the legislation will help ensure that people and businesses who still rely on cash are not left without essential services, and that communities remain supported as the financial sector continues to evolve.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

The Department of Social Protection has issued a warning following reports that some employers are attempting to sidestep the new pension auto enrolment system by pressuring staff into joining less beneficial pension arrangements.

The national auto enrolment scheme, known as My Future Fund, is due to begin on 1 January and is expected to bring more than 800,000 workers into retirement saving for the first time. The scheme applies to employees aged 23 to 60 who earn more than €20,000 across their employments and who are not currently part of an occupational pension scheme.

My Future Fund will be phased in over a ten year period. Both employee and employer contributions will start at 1.5 percent and will rise in stages every three years until reaching 6 percent. The State will add one euro for every three euro contributed by the employee, providing a significant incentive to participate.

In correspondence to the Irish Congress of Trade Unions, the Secretary General of the Department noted that some employers have been urging staff to join pension schemes that require little from the employer. These schemes are reported to involve employer contributions of roughly 1 percent of salary, which the Department says is far below what would be provided under the new auto enrolment system and unlikely to result in any meaningful pension outcome.

ICTU General Secretary Owen Reidy welcomed plans for new regulations that will prevent employers from using minimal contributions to meet their legal obligations. He also encouraged workers who feel pressured into joining inferior schemes to seek advice from their trade union.

Similar concerns were highlighted by the Minister for Social Protection, Dara Calleary, who said a small number of employers are telling staff they must be enrolled in any pension scheme before January. He emphasised that employees without an existing workplace pension will be automatically enrolled in My Future Fund from 1 January 2026 and that workers should compare any pension they are offered with the terms of the new State scheme.

The Minister explained that the pension pot created under the new system belongs entirely to the employee and will move with them from job to job. He also highlighted the long term benefits, noting that a 25 year old earning €25,000 a year could accumulate almost €196,000 by age 66 before investment returns are taken into account.

The Government has said it is introducing safeguards to ensure the scheme cannot be diluted or bypassed. Once launched, the fund will be managed independently by NAERSA. A dedicated online portal is due to open on 1 December, allowing employers to register employees and enabling workers to monitor their own contributions and savings.

Ireland has been the only OECD country yet to implement auto enrolment, with hundreds of thousands of workers currently facing retirement with only the State pension. The Minister described My Future Fund as a major step towards providing greater financial security in later life.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

New labour market data from the Central Statistics Office indicates that unemployment has reached its highest point since 2021. The unemployment rate for people aged 15 to 65 rose to 5.3 percent in the third quarter of the year, compared with 4.5 percent in the same period of 2024.

The figures show that 155,400 people aged 15 to 74 were unemployed, an annual increase of 25,900. Despite this trend, overall employment numbers continued to grow. Employment across the 15 to 89 age group rose by 30,600, bringing the total number of people at work to 2.82 million.

The employment rate for those aged 15 to 65 edged down slightly to 74.7 percent, while labour force participation dipped to 66.5 percent. The estimated labour force reached nearly 3 million people, up 1.9 percent year on year.

Youth unemployment also saw movement. The rate for younger workers fell to 47.5 percent from 50.9 percent a year earlier, although this figure includes young people both seeking work and those with limited attachment to the labour market.

Remote working habits continue to shift. More than six in ten employees reported never working from home. Close to one million people said they worked from home at least occasionally, while just over half a million said they worked remotely most of the time. This latter group has fallen significantly since early 2021, when remote work was far more widespread.

Total weekly hours worked across the economy increased by 0.6 percent compared with the same quarter last year, reaching 86.5 million hours.

Commenting on the figures, Andrew Webb, chief economist at Grant Thornton Ireland, noted signs of a labour market that is easing after several strong years. He pointed to a rise in unemployment alongside only modest gains in employment as indicators of cooling conditions.

He also highlighted a group of 119,200 people who have a weak but meaningful attachment to the labour market. While smaller than last year, this group remains larger than in 2023 and includes many individuals limited by illness, disability or caring duties. Webb suggested that increasing participation, rather than job creation alone, is now a key priority. Tackling barriers such as access to affordable childcare and health-related challenges will be essential to bringing more people into the workforce.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

A growing share of first time buyers are securing mortgages on their own, according to new data from the Banking and Payments Federation Ireland (BPFI). The organisation’s latest Mortgage Market Profile Report indicates that individual applicants made up 31 percent of first time buyer drawdowns in the year to June.

The report highlights a strong first half of the year overall. Between January and June, first time buyers drew down 11,791 mortgages with a combined value exceeding €3.7 billion. This represents a 5.5 percent increase in volumes and a 14.4 percent rise in the total value compared with the first half of 2024. It is also the highest number of drawdowns recorded in the first six months of any year since 2007, and the highest value for the period since 2006.

Although the majority of first time buyer loans continue to involve joint applicants, the shift towards sole applicants remains notable. BPFI pointed out that the proportion is still significantly lower than levels seen in the mid-2000s, when almost half of these mortgages were issued to individuals.

The current figures show different patterns depending on property type. Sole applicants accounted for only 22 percent of mortgages on new homes, yet represented over 36 percent of those purchasing existing properties. They also made up two thirds of first time buyer mortgages on apartments. In Dublin, nearly half of all sole applicants bought apartments, compared with 14 percent of joint applicants.

Demand for both new and existing homes continued to rise. First time buyer mortgages used to purchase or build new properties climbed by 14 percent to 4,531, the largest half year figure since 2008. Meanwhile, mortgages for existing homes rose slightly in volume but reached their highest ever value at more than €2.2 billion.

Mover purchasers also recorded growth during the period. Mortgage volumes for this group rose by 3.5 percent and the value of these loans increased by over 13 percent to almost €1.5 billion.

Average mortgage values for both first time buyers and mover purchasers reached new peaks, with mean drawdown amounts of €314,810 and €373,393 respectively. According to BPFI chief executive Brian Hayes, this trend reflects ongoing upward pressure on property prices across the market.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

The European Central Bank is widely expected to maintain interest rates at current levels until at least the end of 2026, according to a new Reuters survey of economists. The outlook reflects a steady economic environment across the euro zone, with inflation close to target, growth stable and unemployment at record lows despite uncertainty in the global economy.

The case for an extended pause has strengthened since the ECB last reduced rates in June. Inflation has remained close to the bank’s 2 percent objective, and the labour market has continued to perform strongly. In contrast, some other major economies, including the United States, have faced additional pressures stemming from significant tariffs on imported goods.

The ECB held rates again in October for the third consecutive meeting. Several members of the Governing Council signalled that the central bank was likely to maintain its current stance for some time. President Christine Lagarde described the current position as being “in a good place” while cautioning that the situation could still change.

Almost all respondents in the latest poll expect the deposit rate to remain at 2 percent at the next ECB meeting. A large majority believe rates will remain unchanged through the middle of next year, and around two thirds expect no rate adjustments throughout 2026. Only a small number of economists foresee cuts before the end of that period.

Alain Durre, head of Europe macro research at Natixis, noted that economic conditions are broadly favourable, but warned that the balance remains delicate. He said that while the next move is more likely to be a cut than a hike, both growth and inflation still face downward risks.

Most economists surveyed anticipate slower growth over the coming year rather than an acceleration. Median forecasts suggest that the euro zone economy will grow by 1.4 percent in 2025, slow to 1.1 percent next year and return to 1.4 percent in 2027. These projections are closely aligned with the European Commission’s recent outlook.

Inflation, currently at 2.1 percent, is expected to average 2 percent this quarter before easing to 1.7 percent early next year. Many analysts believe inflation will remain below the ECB’s target throughout 2026, driven in part by energy costs and the strength of the euro.

Bill Diviney, head of macro research at ABN AMRO, said that while lower inflation may prompt discussions about rate cuts in the near term, the picture could shift again as 2027 approaches.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.