Bank of Ireland Publishes Interim Results for the 6 months to 30th June 2016

  • Underlying profit of €560m; Loan asset spreads in line with H2 2015; NIM of 2.11%
  • Continue to be the largest lender to the Irish economy
  • New lending of €6.9bn; up 14% on H1 2015
  • Growth in core loan books of €1.1bn;
  • Reduced non-performing loans by €2.1bn in H1 2016: defaulted loans now c.10% of customer loans; less than half their reported peak in June 2013
  • Net impairment charge continued to reduce; 21bps for H1 2016
  • Strong discipline on pricing and risk; ensuring the priority to protect and generate capital is met
  • Fully loaded CET1 ratio of 10.7%; transitional CET1 ratio of 12.8%
  • UK’s EU referendum result impacted IAS19 accounting valuation of pension deficit
  • UK’s EU referendum result may affect new business generation; too early to fully assess the potential impact
  • Aim is to have a sustainable dividend. External factors, including UK’s EU referendum result, may impact timing of our ambition to recommence dividends

Richie Boucher, Bank of Ireland Group CEO, commented:

“Our business continued to perform in line with the strategic objectives we have set ourselves. All trading divisions are profitable and have contributed to our solid financial performance during the period. Our core loan books have been growing and we remain the largest lender to the Irish economy. Our stock of non-performing loans and our customer loan impairment charge continue to reduce.

While it is too early to fully assess the impacts of the United Kingdom’s EU referendum result on economic and customer activity, the strength of our business model gives us confidence in the Group’s prospects. We remain focused on serving our customers and ensuring that we continue to develop the Group on a sustainable basis so as to protect, grow and, over time, provide income on the capital our shareholders have entrusted to us.”

Benefitting from Irish growth with international diversification:


  • Retail and commercial bank; Ireland’s only bancassurer
  • #1 or #2 market positions across all principal product lines
  • Largest lender to the Irish economy, continuing to write about three in ten of new mortgages and provide over half of new lending to businesses
  • Continuing to both benefit from, and support, economic growth in Ireland

United Kingdom

  • BOI(UK) plc is a separately regulated, capitalised and self-funded business
  • Universal banking offering in Northern Ireland
  • Focused predominantly on consumer sector
  • Attractive partnerships including the Post Office and AA – two of the UK’s most trusted brands
  • Flexible business model as it was designed to be


  • Mid-market US / European Acquisition Finance business; strong 20+ year track record
  • Generates attractive margins and fee income within disciplined risk appetite
  • Acquisition Finance represents c.5% of Group loan volumes at June 2016 – good geographic and sectoral diversification

Key Financial Highlights:

Group Income Statement

  • Net interest income of €1,135m
  • Business income in line with H2 2015
  • Other Income includes additional gains of €157m
  • Focused on tight cost control while making appropriate investments in our businesses, infrastructure and people.
  • Net impairment charge of €95m / 21bps

Balance Sheet and Capital

  • Customer loans €80.2bn; €1.1bn increase in core loan books
  • Customer deposits – funding >95% of customer loans
  • Customer deposits predominantly sourced through our retail distribution channels

Continued organic capital generation

  • Fully loaded CET1 ratio of 10.7%
  • Transitional CET1 ratio of 12.8% and Total capital ratio of 17.2%

Strong liquidity ratios

  • Net Stable Funding Ratio – 119%
  • Liquidity Coverage Ratio – 116%
  • Loan to Deposit Ratio – 103%

Click here to view Bank of Irelands Interim Report for the six months ended 30 June 2016

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