Sunday 22 September 2019

Bank of Ireland trading in line with expectations with net interest margin of 2.18pc

BOI logo
BOI logo

Michael Cogley

Bank of Ireland's interest income has benefited from lower funding costs and the positive impact of new lending the bank said in its third quarter trading update today.

In an interim management statement released to shareholders, the bank said that asset quality trends have continued to improve with its defaulted loan volumes falling by €800m during the three month period from June to September of this year, with reductions across all asset classes.

The weakening of sterling during the period resulted in a reduction in reported loan volumes to €84bn at September 2015.

Customer deposits were €78bn at September 2015 which gave rise to a loan to deposit ratio of 108pc. Wholesale funding in the bank remained unchanged from June at €15bn.

At the end of September the banks fully loaded Common Equity Tier 1 (CET1) ratio (excluding the 2009 Preference Stock) was 10.6pc and the Group’s transitional CET1 and Total Capital ratios were 15.8pc and 20.7pc respectively.

Continuing in the statement the bank says that it continues to expect to maintain a buffer above a CET 1 ratio of 10pc.

During the third quarter of the year, the bank realised a non-core gain of €57m as a result of the Post Office exercising a pre-existing option to acquire the bank’s interest in Post Office Insurances.

The bank also said that the bank levy of €38m was paid to the Irish State in October 2015.

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