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Bank Of Ireland’s Strong Half-Year Performance Signals Growth


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Bank of Ireland has reported strong half-year profits, with pre-tax profits reaching €1.025 billion, a significant increase from the previous year. The bank’s total operating income and net interest income also saw growth, contributing to the overall positive performance. Factors such as higher interest rates, acquisitions, and business momentum have played a role in driving the bank’s profits.

Additionally, Bank of Ireland experienced growth in green lending and new mortgage lending, with a notable increase in the latter. The bank has made provisions for potential bad loans but overall, the asset book has proven resilient. These positive results are supported by a resilient economy and a favorable interest rate environment.

Bank of Ireland aims to continue providing support to its customers as they navigate financial challenges.

Bank’s Profits and Income

Bank of Ireland’s robust half-year performance is evidenced by its pre-tax profits of €1.025 billion, an increase from €351m in the same period last year, driven by substantial growth in total operating income, particularly in net interest income and customer deposits.

The bank’s total operating income rose to €2.2 billion from €1.367 billion, with net interest income growing to €1.8 billion due to higher interest rates, acquisitions, and business momentum.

Additionally, customer deposits rose by €2.5 billion to €101.7 billion, indicating a strong inflow of funds.

This performance reflects Bank of Ireland’s ability to attract and retain customers, as well as its efficient management of interest income.

The increase in profits highlights the bank’s successful strategies and positions it for further growth in the future.

Business Performance and Guidance

The business’s performance during the first half of the year is expected to be sustained and aligned with the guidance provided. Bank of Ireland anticipates that net interest income in the second half will be marginally higher than the first half, reflecting positive momentum in the bank’s operations.

Furthermore, business income for the remainder of the year is projected to be in line with the strong performance observed in the first half, which experienced a notable increase of 23%. The bank aims to maintain a return on tangible equity (ROTE) similar to the 18.5% achieved in the first half.

These expectations indicate a positive outlook for Bank of Ireland’s business performance and suggest continued growth and profitability for the remainder of the year.

Lending and Investment

Lending and investment activity during the first half of the year indicate positive trends and opportunities for expansion.

Bank of Ireland reported a 20% increase in new lending in Ireland, reaching €5.2 billion. This growth was primarily driven by the acquisition of KBC Bank Ireland assets and higher Irish net lending.

The bank’s loan book also grew by €8.7 billion since December 2022.

Furthermore, the bank experienced a 76% jump in new mortgage lending and an 18% increase in green lending. These figures highlight the bank’s commitment to providing financial support to its customers and promoting environmentally friendly initiatives.

Additionally, Bank of Ireland established the Davy Stockbrokers business to cater to high net worth clients.

Overall, these lending and investment activities position Bank of Ireland for continued growth and success in the future.

Customer Deposits and Outlook

Customer deposits at Bank of Ireland have shown significant growth, reaching €101.7 billion, driven by various factors such as higher Irish net lending and the acquisition of KBC Bank Ireland assets.

The Retail Ireland division accounted for a substantial portion of the growth, contributing €2.6 billion. Additionally, the acquisition of the KBC deposit portfolio also contributed to the increase in deposits.

The bank’s loan book grew by €8.7 billion since December 2022, indicating a strong demand for lending. This growth in customer deposits reflects the confidence that customers have in Bank of Ireland as a trusted financial institution.

Looking ahead, the bank expects net interest income in the second half to be marginally higher than the first half, and business income for the rest of the year is expected to be broadly in line with the strong performance seen in the first half.

Overall, Bank of Ireland’s robust customer deposit growth signals positive growth and financial stability.

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Aiden is a skilled writer who has found his calling as a journalist 2 years ago. With a passion for storytelling and a keen eye for detail, he has quickly made a name for himself in the industry. Aiden's articles are well-written and informative, and he takes great pride in his work. He has a knack for finding the most interesting angles on any story, and his writing is always engaging and thought-provoking. In his free time, Aiden enjoys reading, hiking, and spending time with his family.

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