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Trading conditions remain challenging – Bank of Ireland

INTENSE competition in the deposit market and the cost of funding continues to impact operating incomes at Bank of Ireland, it said today ahead of its annual general meeting.

The bank added that trading conditions in the first three months of the year remained “challenging.”

According to the bank, residential property prices have yet to stabilise while its asset quality remains “broadly in line with expectations.”

It added that arrears in its Irish residential mortgage book have continued to increase due to the difficult economic environment and high levels of unemployment.

''We are engaging with residential mortgage customers who are in difficulty and are seeking to provide sustainable mortgage restructures where appropriate and possible, and continue to enhance our product range and restructuring solutions,” the bank said in its trading update.