Annual Report

Bank of Ireland UK plc annual statement on financial results for the twelve months to 31 December 2020

“2020 has been an extraordinary year. We held our focus on improving the customer experience we provide, supported our customers through COVID-19 and Brexit and enhanced our relationships with our key brokers and partners. I want to thank colleagues who continue to go above and beyond to serve customers across all our channels.

“We completed a full review of our UK operation and have embarked on a multi-year restructuring programme. We are making good progress by taking the actions necessary to improve our return on capital by growing our lending in selected products, leveraging our areas of expertise and will continue to drive efficiencies through digital and operational improvements.

"Although the UK market remains highly competitive and challenging, we have a clear strategy for dealing with these challenges, and will execute our strategy with determination and pace. I very much look forward to unlocking the future potential for the business.

Ian McLaughlin, Bank of Ireland UK Chief Executive Officer

2020 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 £50 million (2019: £166 million)
  • Statutory net interest margin of 1.84% (2019: 1.94%)
  • £185 million statutory operating profit before impairment losses (2019: £184 million)
  • Statutory operating expenses reduced 2% (£7 million) year on year to £310 million


  • New gross lending of £4.8billion (2019: £5.9 billion) reflecting focus on higher margin products whilst maintaining lending quality
  • New residential mortgages originated £3.1 billion (2019: £3.6bn)


  • Multi-year restructuring programme commenced to improve returns by growing lending in selected products such as Bespoke mortgages, leveraging areas of expertise and driving efficiencies through digital and operational improvements
  • Outcome of Northern Ireland strategic review responds to customer demand for digital banking; smaller modernised branch network
  • Completion of migration of consumer credit card portfolio to Jaja Finance
  • AA Partnership extended until 2028
  • Improving employee engagement scores


  • Maintained strong CET 1 ratio 13.7% (2019: 14.5%)
  • Total capital ratio 19.1% (2019: 19.9%)

Supporting customers and communities

  • 70,000 payment breaks agreed
  • £295 million Government-backed Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme (CBILS) funding to businesses
  • Fast-tracked payments to all SME suppliers during pandemic
  • Emergency funding for a range of charitable groups working with those most impacted by COVID-19

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.