Business Irish

Thursday 8 December 2016

Weak sterling hits Bank of Ireland's balance sheet as new lending rises to €10bn

Published 28/10/2016 | 07:45

Bank of Ireland chief executive officer Richie Boucher: BofI faces post-Brexit turbulence Picture: Frank McGrath
Bank of Ireland chief executive officer Richie Boucher: BofI faces post-Brexit turbulence Picture: Frank McGrath

The weak sterling has hit Bank of Ireland's balance sheet, however new lending volumes at the institution rose to €10bn in the first nine months of the year, up €1bn on 2015.

  • Go To

Sterling translation impacts during the three months to the end of September accounted for a €1.3bn reduction in customer loan volumes, the company said in a trading update this morning.

Bank of Ireland said it was maintaining "commercial discipline" on pricing when it came to new lending.

The bank's core loan books, which exclude its non-performing loans and its Irish tracker mortgages, continued to grow in the third quarter with customer deposits standing at €75bn.

Following the publication of the 2016 Finance Bill, the company expects its annual bank levy to fall from €38m this year to around €30m 2017 and 2018.

Non-performing loans have been reduced by €800m since June to €9.1bn at the end of september. Defaulted loans fell by €600m.

The trading update comes after the bank's chief executive Richie Boucher stood firm over its variable mortgage rates, saying there are no reductions on the horizon.

Online Editors

Read More

Promoted articles

Editors Choice

Also in Business