Bank of Ireland earnings up 16% at €1.4bn

Bank of Ireland, the country's third largest listed company, reported underlying profit before tax of €1.393 billion.

Underlying earnings per share (EPS) were up by the same percentage at 118.5 cents, slightly above the median forecast of 118 cents.

"We will continue to meet our strategic commitments, step up the pace of our delivery and I am confident of another year of strong performance in 2006/07," chief executive Brian Goggin said in a statement.

Shares in the group were down 1.3 per cent at €14 by 8.10am, underperforming a 0.6 per cent decline in the broader Irish Index, but on thin volume.

Mr Goggin reiterated he expected low double-digit earnings growth for the group and for its UK business in 2006/7 although the group is expected to give an update on its outlook, as well as details on current assets under management, at a 9.30am presentation.

"Our existing forecast EPS of 133.7 cents implies growth of 12.8 per cent off the reported base of 118.5 cents. We will review this after this morning's briefing; our instinct is that it has a modest upward bias," said Davy Stockbrokers analyst Emer Lang.

The group said it was ahead of expectations on its cost savings programme. It had made savings of €35 million in the first year of the programme - 5 million more than forecast.

It had also made good progress in its UK Post Office joint venture and built its customer base to 475,000 from 100,000 in May 2005.

"We now have a clear focus in the UK on business banking, mortgage lending and consumer financial services and we are targeting strong growth in the division this year," Mr Goggin said.