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Sterling crash hits Bank of Ireland trading

Bank of Ireland reports that economic activity in the UK has remained resilient in the wake ...
Newstalk
Newstalk

07.54 28 Oct 2016


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Sterling crash hits Bank of Ir...

Sterling crash hits Bank of Ireland trading

Newstalk
Newstalk

07.54 28 Oct 2016


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Bank of Ireland reports that economic activity in the UK has remained resilient in the wake of the UK's decision to leave the EU - while Irish activity continued to expand.

The bank added that the fall in sterling values after the UK's vote has impacted on its balance sheet. 

It reports that these currency fluctuations account for a €1.3bn reduction in customer loan volumes to €78bn at the end of September 2016.

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This has also resulted in the deficit in its defined benefit pension scheme increasing by €250m.

Its new lending volumes are up by about 10% to €10bn for the first nine months – compared with the same period last year.

Net interest income – the bank’s profit margin – is up slightly to 2.15% and there’s been a continued steady reduction in non-performing and defaulted loans across all asset classes.

There’s a signal also that continued historically low return on bond yields is impacting the current reported deficit in its pension fund and there is no reference to whether the bank might pay its first shareholder dividend in eight years at the full year stage.

 

Additional reporting by Vincent Wall

 


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