14th Jul 2016 07:45
LONDON (Alliance News) - Bank of Ireland (Governor & Co) on Thursday said that trading in the first half of 2016 was in line with its expectations but that Brexit has caused its pension deficit to widen.
The Irish lender said trading in the first half met its expectations, and asset quality has continued to improve.
However, the outcome of the UK's European Union referendum has impacted foreign exchange rates and interest rates, narrowing the AA corporate bond yields that are used to discount the liabilities of Bank of Ireland's sponsored defined-benefit pension schemes.
As a net result of the volatility post-Brexit, the bank said its defined-benefit pension deficit has widened to EUR1.2 billion from EUR740.0 million at the end of December 2015.
The lender will publish interim results on July 29.
Shares in the bank were up 1.4% in London at EUR0.185 on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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