Bank of Ireland makes progress on loan restructuring

The Bank of Ireland has revealed its loan portfolios are continuing to perform in line with expectations ahead of its annual general court meeting yesterday.
 
It believes it is making steady progress on providing customer restructuring arrangements and insists loan impairment charges will continue to fall over time "to a more normalised impairment charge as the Irish economy recovers".
 
Additionally, the Bank confirmed its provision to "appropriate restructuring arrangements to co-operating customers" is well under way, aiding those with difficulties in meeting their repayments.
 
The Bank added: "Our diverse loan portfolios, including those relating to our Irish Mortgage and SME customers, continue to perform in line with expectations."
 
The Bank has also reiterated that it has not experienced any adverse impacts on deposit volumes since the expiry of the Eligible Liabilities Guarantee scheme (ELG).
 
In today’s statement, Bank of Ireland said the positive momentum noted during the second half of 2012 had continued into 2013.
 
The Bank continues to rebuild its net interest margin, the profitability measurement of its lending, which increased to 1.25 per cent at the end of 2012, having risen from 1.2 per cent six months previously.
 
Archie Kane, chairman of the Bank of Ireland, has told the bank’s annual general court that a primary objective is to reduce taxpayer risk and to reward their on-going support.
 
Mr Kane insisted the removal of the ELG had not impacted deposits, confirming they were "still performing well".
 
It was revealed the Group has now reached its "steady state" loan volume target of €90 billion, and has therefore hit its targeted Loan-to-Deposit ratio, of 120 per cent, ahead of schedule.

 

Image: James.Stringer (flickr)

Date published 25 Apr 2013 | Last updated 25 Apr 2013