Bank of Ireland profits up 6%
Bank of Ireland has announced that profits before tax were up 6% from €670m in the six months to the end of September last year to €713m this year.
The bank said profits on ordinary activities before exceptional items were up 5% to €676m.
Earnings per share rose by 9% to 57.5 cent and a 12% higher interim dividend of 16.6 cent has been declared.
The bank said its retail activities in the Republic "had an excellent first six months". The retail mortgage book grew by 28%, business advances were up 22% and resources volumes recorded growth of 10%. New business sales were up 19% and there was an increase in operating profits of 26%. Wholesale financial services reflected in a profit before tax increase of 14%.
Meanwhile, the UK financial services division turned in a 6% growth in profit before tax in local currency.
The group's net interest margin dropped from 2.2% to 2.07%, due largely to low euro zone interest rates and slower growth in deposits.
The Bank of Ireland asset management services division achieved a 10% increase in profit before tax for the period.
Despite the overall positive picture, the bank said €5.7bn of funds had left Bank of Ireland Asset Management arm since October, due to pressure from North American clients and the departure of four key members of its investment team. In its results announcement today, the bank said each €1bn change led to a fall of around €2.5bn in pre-tax profits.
Chief executive Brian Goggin said: “With the strong group performance for the half year, together with the positive economic environment in our two main markets and with the dynamic implementation of our business strategy, I look forward to the future with confidence.”
Bank of Ireland also announced the appointment today of Kevin Dolan, current CEO of LCF Rothschild Private Equity Partners in Paris, as the new head of the asset management services division which includes BIAM. AMS profits for the half-year were up 10% to €64m.
