Bank of Ireland has reported underlying profit before tax of 419 million euros for the first six months of the year.
This was a slight decrease from the profit of 465 million euros achieved in the first six months of 2021.
The total income for the first half of the year is also “slightly higher” than in the same period of the previous year. Business revenue increased 16 percent compared to the first half of 2021, driven by the ongoing recovery from the impact of the pandemic.
The bank’s new lending increased by 7 percent compared to the same period last year. UK retail lending fell 19 per cent on a reduction in mortgages and a “strategic focus on value over volume”.
Group costs increased by 1 percent in the first half of 2022 compared to the first half of 2021. The cost is 1 percent lower when excluding the purchase of Davy and one-off investments following other banks’ planned exits, the bank said.
Meanwhile, customer lending volume was €74.6 billion at the end of June, down €1.7 billion from the volume recorded in December 2021.
The bank’s loan book grew by €1 billion on a constant currency basis, excluding the €2 billion planned UK deleveraging and a €100 million bad loan transaction.
Bank of Ireland has taken a net loan loss provision of €47m to cover potential loan losses, with the proportion of non-performing loans now at 5.4 per cent.
Customer deposits amounted to EUR 94.1 billion at the end of June 2022. This meant an increase of 1.3 billion euros compared to the end of last year.
The Group expects slightly higher net interest income and higher operating income for the remainder of the year. Costs are expected to be lower than last year after inflation has been absorbed and $30 million in acquisitions and one-off investments.
The takeover of the stock broker Davy has now also been completed. The bank added that if Davy had been part of the group from January 1, an underlying profit of 12 million euros would have been achieved in the first half. He expects a similar development for the first half of next year.
Bank of Ireland Group CEO Francesca McDonagh said the results showed “a strong business performance”.
“This includes the achievement of key milestones on our two transformative acquisitions and significant momentum in attracting new customers as the Irish banking landscape undergoes a fundamental transformation,” she said.
“Despite the global uncertainty, the fundamental shift in our business model we have achieved places Bank of Ireland well positioned to capitalize on the significant opportunities we face, further supported by an environment of rising interest rates.”
Ms McDonagh will leave the bank in September to take on a new role at Swiss lender Credit Suisse. The board said it now expects to appoint an interim CEO, with an announcement to be made in due course.
https://www.independent.ie/business/irish/bank-of-ireland-reports-419m-profit-for-first-half-of-2022-41886674.html The Bank of Ireland reports a profit of 419 million euros for the first half of 2022