Bank of Ireland reports Q1 performance "in line with expectations"

It says that conditions remain favourable in the UK and Ireland

Bank of Ireland reports Q1 performance "in line with expectations"

The Bank of Ireland flag at the branch on College Green, Dublin | Image: Julien Behal / PA Archive/PA Images

Bank of Ireland has issued a trading statement covering the first quarter of the year. While it says trading continues in line with expectations, the 7% reduction in the value of sterling versus the euro during the period did have some impact on its profit and loss account and balance sheet as the Bank has substantial operations in the UK.

It also notes that macroeconomic conditions in the UK and Ireland have remained favourable.

Its net interest margin also declined modestly to 2.11%. while non-performing loans continued to fall, down by close to €1bn between December and March to €11.1bn while defaulted loans reduced by €0.8bn during the three months.

The bank notes that asset quality trends have continued to improve, and that Ireland's export sector remains strong and that consumer spending is on the rise.

Its liquid asset volumes are higher than expected, this is because of underlying deposit and current account volume growth.