DUBLIN: Bank of Ireland made a pre-tax profit of just more than €1 billion last year, down from €1.2 billion in 2015, according to results published Friday. The bank said it expects to pay a dividend in 2018 in respect of the current financial year. This would be the first dividend payments since the crash in late 2008. A dividend had been expected to be announced this year but the effects of Brexit and a widening pension deficit last year resulted in the bank postponing it for 12 months.
Chief financial officer Andrew Keating told analysts that the bank expects to resume its dividend payment in the first half of 2018, at a “modest” level. It would build over time to about 50 per cent of its “sustainable profits”. Its net interest income declined by 7 per cent to just under €2.3 billion. Other income grew by 1.7 per cent to €842 million with its operating income declining to €3.1 billion from just under €3.3 billion previously. The bank said the reduced income was due to a foreign exchange impact relating to its UK business, the continued low interest rate environment, and impacts on its liquid asset portfolio. Fees paid to the State under the eligible liabilities guarantee scheme doubled in the year to €20 million but the bank said this would be the final payment due under the scheme, which has been closed.
Bank of Ireland also paid €38 million to the State in a bank levy. All of its divisions were profitable during the year. However, profits at its UK retail division (down 24 per cent in sterling terms), and its corporate and treasury unit declined during the year. Growth in core loans books of €1.7 billion was achieved during the year and it continued to be the largest lender to the Irish economy.
