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Bank of Ireland's Profits Double as Irish and UK Economies Improve

Strategic Insights

— 1 min read

Bank of Ireland, the Irish lender rescued by the state with a €4.7 billion bailout, has seen its profits soar to €743 million in the first half of the year, more than double the €327 million it made in the same period last year. The turnaround in the Irish and UK economies, a reduction in impaired loans by €1 billion, and a 50% increase in new lending have contributed to the bank's improved results. Richie Boucher, the bank's CEO, said the company has made significant progress in recent years, growing its new lending by 50% and continuing to be the largest lender to the Irish economy.

Key Takeaways:

  • Bank of Ireland's underlying profits before tax increased to €743 million in the first half of 2015, more than double the €327 million it made in the same period last year.
  • The bank's turnarounds in the Irish and UK economies have contributed to its improved results, as well as a cut in impaired loans by €1 billion.
  • New lending across the group increased by 50%, and new mortgage business grew by 18% during the same period.
  • The Irish State still holds a 14% stake in the bank, worth approximately €1.5 billion, despite having recouped its €4.7 billion bailout.
  • Richie Boucher, the bank's CEO, highlighted the quality of its retail and commercial franchises, its diversified business model, and its robust capital and funding as key factors contributing to its success.
  • The bank's group CEO, Richie Boucher, expressed confidence in the company's prospects for the rest of the year, citing its stable team, clear purpose, and commercially disciplined approach.

Statistics:

  • €1 billion reduction in impaired loans
  • 50% increase in new lending across the group
  • 18% growth in new mortgage business
  • €4.7 billion bailout to Bank of Ireland from the Irish State
  • €1.5 billion current value of the Irish State's 14% stake in the bank
  • €743 million underlying profit before tax in the first half of 2015
  • €327 million underlying profit before tax in the same period last year

Sources:

  • Bank of Ireland's press release (date not specified)
  • Richie Boucher, CEO, Bank of Ireland (reported comments in the press release)

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