Consumer optimism helps B of I record profits

THE chief executive of the Bank of Ireland in Northern Ireland has said that one of the factors which contributed to the bank's recently announced record interim profits of £193.1 million was its success in winning a larger share of the Northern Ireland market.

Mr Gerry McGinn said the level of company activity in Northern Ireland had been higher than had been generally acknowledged.

"The events of the summer may have cast a bit of a shadow over life in general, but there has also been quite a bit of expansion taking place," he said.

Companies had been investing in plant and machinery and been doing more business overseas. There had also been more management buy out activity, he said.

"We also recorded a 40 per cent increase in debtor financing over and above other corporate lending. Debtor financing is ideal for growing businesses in the small and medium sized category, and, has now become an integral part of many of our commercial lending packages," he said.

Growth in the bank's personal finance business suggested people in Northern Ireland might be "feeling a little better".

"People are now buying new cars and that has created more opportunities for us, while new houses are also sterling well. It reflects the fact that people are reasonably positive about the Northern Ireland economy, said Mr McGinn.

Bank of Ireland employs over 950 people in its 52 Northern Ireland branches. Next month, it will open a branch in Portadown and another is planned for Andersonstown in west Belfast.

Mr McGinn said the bank had to respond to the new competition coming into Northern Ireland. This required top quality staff, and investment in new technology.