Bank of Ireland (UK) plc, part of Bank of Ireland Group, today publishes its Annual Results for the year ended 31 December 2017.
- Profit before taxation of £151 million (2016: £193 million), reflecting increased investment in the business, changes to product portfolios and ongoing competition in the UK consumer lending market
- Over £4.5 billion in new customer lending – a 12% increase on 2016
- Impairment charges: £26 million (2016: £23 million)
- Strong net interest margin 2.02% (2016: 2.07%)
- £160 million dividend paid to Parent
- Strong organic generation of capital: CET 1 ratio 14.7%. Total capital ratio 20.5%
- £3.2 billion of new mortgage origination in the year across all channels – c.15% increase on 2016
- Successful longstanding partnership with the Post Office, serving 2.4 million customers, and savings balances of c.£13.9 billion
- Second year of partnership with the AA, with over 150,000 new customer relationships and lending book of c.£350 million
- Excellent year for Northridge Finance with 7% growth in total business lending, and acquisition of Marshall Leasing Limited, a complementary car and commercial vehicle leasing and fleet management company
- Northern Ireland business sustains profitability, reflecting strong margin performance, strict cost control and ongoing management of impairment charges on commercial loan portfolio
Des Crowley, Bank of Ireland UK Chief Executive Officer, commented:
“In 2017 we have continued to invest in new customer propositions and extend our distribution reach, with the priority of putting our customers, colleagues, communities and our partners, at the centre of everything we do.
“Our financial performance reflects the increased investment we have made in our business, as we have continued to transform the customer experience through technical innovation, digitisation and product development. We have grown our personal loan and new mortgage business, significantly reduced our funding costs, acquired a strategically important and complementary car leasing and fleet management business, Marshall Leasing Limited, and continued to win many industry awards.
“Looking ahead, our strategic priorities are focused on transforming our business, serving our customers brilliantly and growing sustainable profits. I am confident that given the momentum in the business, combined with a strong risk and cost culture and our clear focus on value-add customer and partner offerings, that we will build on our trading performance and deliver sustainable returns for all our stakeholders.”