BoI: 'Conditions challenging, property prices still not stable'
Bank of Ireland has said trading conditions in the first quarter of the year remained "challenging".
In an interim management statement issued today, the bank said its operating income continued to be adversely impacted by the cost of funding and the impact of intense deposit competition in the Irish market.
The bank issued the statement this morning ahead of its AGM today.
The statement reads: "Whilst consumer confidence surveys have shown improvements in the first three months of 2012, domestic economic indicators remain weak, unemployment remains elevated, and residential property prices do not appear, as yet, to have fully stabilised.
"Whilst Ireland has been meeting its commitments under the EU/IMF support programme, there has been some heightened concern in the markets in recent weeks about the economic performance of some other Eurozone countries."
The group said that although the economic environment remained difficult with interest rates expected to remain lower for longer, it was focused on its key priorities, including the implementation of initiatives to further strengthen its balance sheet.
