Bank of Ireland posts euro 572m profit

The Bank of Ireland (BoI) Group today posted profits of €572 million for the six months to the end of September 2001.

This represents a 1 per cent increase on profits of €567 million for the same period last year.

A statement from the company describes this performance as "satisfactory". "The group continues to record volume increases in both domestic and international business," the statement said.

According to BoI Group Chief Executive Mr Maurice Keane, "When the impact of falling equity prices on embedded values, as well as goodwill amortisation, are stripped out, the group achieved a 7 per cent increase in pre-exceptional profit for the period, a performance that we believe is satisfactory in current market conditions".

Speaking on RTÉ radio this morning, Mr Keane had advice for Minister Charlie McCreevy to consider for the upcoming Budget. "The government should look after the infrastructure, because when the world economy picks up again, it will be needed," he said.

The group’s margins contracted in both its Irish and UK businesses in the six-month period. The group net interest margin, at 2.26, is 10 basis points lower than in the corresponding period last year, but at the same level overall as for the preceding six months.

In the retail banking sector in the Republic profit before tax increased by 10 per cent to euro 168 million for the half year, a figure the company described as "a very solid result when set against the background of a slowing economy."

Total income grew by 11 per cent with a 14 per cent increase in interest income on foot-of-good volume growth in lending and resources.