Bank of Ireland reports 30% rise in profits

Finance | Mon 22 Feb | Author – Business & Finance
Bank of Ireland Rob Hurson

According to results published, Bank of Ireland made a pre-tax profit of €1.2bn in 2015, an increase of 30% on the 2014.

The bank said all of its trading divisions were profitable last year.

New lending rose by 40% to € 14.2 billion while the bank also reduced its non-performing loans by €3.8bn last year.

The bank said the higher profit level was due to higher net interest income and fees, as well as reduced loan impairment charges.

Its net interest margin increased to 2.19% and the bank’s cost-income ratio was 53%.

It said it remained the largest lender in the country with almost €7bn of new loans issued during the year, while it also had a 27% share of the savings market.

All of the bank’s trading divisions were profitable during 2015, while it has also continued to strengthen its capital position.

Richie Boucher, chief executive, Bank of Ireland, said: “All of our trading divisions are profitable and contributed to our strong financial performance during the period. We have maintained our progress towards dividends and have updated our distribution policy. The strength and momentum in our businesses gives us confidence in the group’s prospects and in our ability to continue to focus on our duty to responsibly develop our profitable, long term businesses and better serve our customers, in a way that delivers attractive sustainable returns to our shareholders.

“We continued to be the largest lender to the Irish economy, providing €6.9bn of new credit to personal and business customers in 2015. With our strong franchises, we are well positioned to meet credit demand which is recovering as the Irish economy grows and confidence returns.”

Photo:Rob Hurson