30th Jul 2018 10:23
LONDON (Alliance News) - Bank of Ireland Group PLC said Monday it had a "strong" financial performance in the first half of the year with all trading divisions profitable.
In the six months to June 30, the bank's underlying profit was EUR500 million. In the same period a year earlier, the company posted underlying pretax profit of EUR480 million.
The commercial bank has a fully loaded CET1 ratio of 14.1% with a regulatory CET1 ratio of 15.8%.
Bank of Ireland's net loan book grew by EUR500 million to EUR76.6 billion, while the bank's new Irish mortgages increased 30% with it now having a 28% market share.
The bank had net impairment gains of EUR81 million in the half, reflecting "successful resolution strategies" and the positive economic environment and outlook in Ireland.
The bank said there will be a deduction in its potential full year dividend to an annualised EUR0.14 per share. The company paid a full year dividend of EUR0.115 in the financial year 2017.
Chief Executive Francesca McDonagh said: "I am pleased to report a strong financial performance in the first half of 2018. All our trading divisions are profitable, contributing towards an underlying profit of EUR500 million during the period. The economies in which we operate continue to be supportive, and have enabled us to grow our loan book by EUR0.5 billion on a constant currency basis while maintaining our commercial pricing and risk discipline. Operating expenses have decreased by about 3% compared to the second half of 2017 and asset quality continues to improve.
"Our strong financial performance in the first half of 2018 demonstrates good progress in delivering on the growth and transformation strategy we have set out for 2021."
Shares in Bank of Ireland were down 1.3% Monday at EUR7.22 each.
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