Ian McLaughlin, Chief Executive Officer, Bank of Ireland UK plc, talks about the UK business and its financial performance in 2019.
2019 Results Highlights:
Bank of Ireland UK plc net lending growth of £1.5bn in year of significant strategic progress
Financial performance
- Underlying profit before tax of £166 million (2018: £183 million)
- Underlying net interest margin of 1.92% (2018: 2.05%)
- £100 million dividend paid to Parent in 2019
Growth
- Net lending growth of £1.5 billion (2018: £0.2 billion)
- New gross lending of £5.9 billion (2018: £5.1 billion)
- Supported c.17,000 new customers in 2019 to buy their own homes
Transformation
- £34 million reduction in total operating expenses
- 3% reduction in cost income ratio
- Disposal of consumer credit card portfolio
- Inaugural wholesale funding transaction for £350 million
Capital
- Maintained strong CET 1 ratio 14.5% (2018: 15%)
- Total capital ratio 19.9% (2018: 20.6%)
- Internal MREL £300 million issued in December 2019
Significant progress made against clear strategic priorities to:
- Invest in businesses generating sustainable returns;
- Improve the performance of existing businesses with potential to increase returns; and
- Reposition those businesses which do not meet expected returns.