B of I reports 28% profit growth

Bank of Ireland (B of I) has reported profit growth of 28 per cent across the group's main businesses and markets.

Bank of Ireland (B of I) has reported profit growth of 28 per cent across the group's main businesses and markets.

The bank attributed the profits growth and income growth of 14 per cent to "very strong lending and resources growth for the half-year to 30 September 2006".

The group had a strong first half across all its divisions but, in particular, investment was paying off in its UK unit, which was performing "very robustly", and in corporate banking where profits were significantly up, Bank of Ireland Group chief executive Brian Goggin said.

The bank reported underlying EPS - excluding non-core items such as asset disposal gains - of 73 cents in the six months to end-September.

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Underlying profit before tax rose 28 per cent from the same period of 2005 to €852 million - outstripping an average forecast of €837.5 million.

The bank has around 20 per cent of the mortgage market in Ireland.

First-half growth was broad-based, but key boosts came from wholesale financial services, where profit before tax leapt by 52 per cent to €253 million, and its UK division where pre-tax profit was up 33 per cent at €222 million.

Profit at the bank's retail unit rose 26 per cent to €339 million, while its life business saw a 27 per cent lift to €67 million.

A 35 per cent drop in profit to €33 million at its asset management unit, which has seen substantial outflows in recent years.