Mortgage lending up by a third at Bank of Ireland
Bank issues trading update ahead of its AGM
New mortgage lending at Bank of Ireland increased by 33pc year-on-year in the first three months of 2018.
In Ireland the bank's mortgage market share was 28pc for the first two months of 2018.
In a statement ahead of its AGM today the bank said that its gross new lending in the first three months of 2018 was 20pc higher than the same period in 2017.
Customer loan volumes were €76bn at the end of March, with new lending volumes exceeding redemptions by €0.1bn during the first three months of 2018.
Meanwhile customer deposits were €76bn and wholesale funding was €13bn at the end of March.
The bank went on to say that its asset quality across its loan portfolios has continued to improve in line with its expectations.
In addition, the bank said that economic growth in its core Ireland and UK markets remained positive in the first three months of the year.
This was despite ongoing uncertainties related to the UK's decision to leave the European Union.
Net interest income in the first three months of 2018 was in line with the second half of 2017, while the bank’s net interest margin, at 2.22pc for the three months to March, was "in line with expectations."
Looking forwards and the bank, which in February announced plans to pay its first dividend in ten years, said that it expects operating expenses for 2018 to be lower than last year, and in that regard the bank said that it has maintained a tight control over its cost base, while making "appropriate investments" in its businesses, infrastructure and people including in its multi-year business transformation programme.
Earlier this year it was revealed that Bank of Ireland intends to reduce the ranks of its middle management by up to 25pc by the end of the year, with the corporate and global banking arm likely to shoulder the majority of the job losses.
Referring to its capital position and the bank said that its fully loaded CET1 ratio increased by a net 10bps from 13.6pc on 1 January 2018 to 13.7pc at the end of March.
The bank's organic capital generation during the period was partially offset by investments in risk weighted assets associated with new lending, investments in its business transformation programme, and a dividend deduction.
The bank's regulatory CET1 ratio was 15.4pc, and the bank's total capital ratio was 19.4pc at the end of March.