Weak sterling hits Bank of Ireland's balance sheet as new lending rises to €10bn
Published 28/10/2016 | 07:45
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.
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.