Annual Report

Bank of Ireland UK plc annual statement on financial results for the twelve months to 31 December 2021

“In 2021 we significantly improved our financial performance while remaining laser-focussed on the delivery of our strategy. That strategy has seen a turn-around in the performance of Bank of Ireland UK, supported by a highly successful Bespoke mortgage offering, and ongoing investment in our relationships with customers, partners, and brokers.

“Digital banking has continued to grow, with four in five customers now using our mobile app for their day-to-day banking needs. We also confirmed Belfast as the new HQ for Bank of Ireland UK, reflecting our commitment to Northern Ireland’s financial services landscape and future economic development.

“COVID was, of course, a challenge over the year. Our people, guided by our purpose and values, helped our customers navigate this challenge while delivering significant change in challenging market conditions. While we have made good progress in transforming our business, we have more to do, including continuing to invest in our people, processes and digital services over the coming year.”

Ian McLaughlin, Bank of Ireland UK Chief Executive Officer

2021 Key Highlights

Financial performance

  • Statutory profit before tax, including non-core items of £410 million (2020: £40 million) and an underlying profit before tax of £335 million (2020: £50 million).
  • Statutory net interest margin of 2.13% (2020: 1.84%) with a focus on value versus volume
  • £263 million statutory operating profit before impairment losses (2020: £185 million)
  • Net impairment gain of £54 million (2020: £151 million charge) reflects improved economic outlook and limited loan loss experience
  • Gross new lending £3.5 billion (2020: £4.8 billion) reflecting the UK strategy to focus on higher returning lending segments


  • Statutory operating expenses reduced 12% year on year to £272 million
  • £37 million non-core costs including £31 million for costs associated with strategic transformation initiatives
  • Northern Ireland branch footprint optimised, with additional investment in remaining branches and new technology
  • Net customer lending £5.0bn lower in line with agreed strategy, including £2.9 billion mortgage asset sale to Parent. Customer deposits £2.5bn lower vs December 2020, supporting margin performance via lower funding costs.


  • Strong organic capital growth
  • Optimised capital position and returns, with £500 million capital repatriated to Parent
  • Maintained strong CET1 ratio 17.5% (2020: 13.7%)
  • Total capital ratio 21.4% (2020: 19.1%)

Supporting customers and communities

  • Continued to support customers through the impact of Covid-19, who have availed of our website’s Covid Hub.
  • Creation of customer ‘how to’ video guides, with over 350,000 views.
  • Enhanced functionality on Mobile App and online banking for Northern Ireland banking customers- 80% of customers now use the mobile app only for their banking needs, with an average of 450,000 logins per week.
  • Community programme, “Begin Together”, has provided financial support of £700,000 to more than 100 community and arts projects.

Significant progress made against clear strategic priorities:

  • Further developing as a leading multi-niche bank in the UK, focusing on a number of market segments, serving specific customer needs, where we can build sustainable competitive advantage and build on our existing distribution partnerships.
  • Growth in Bespoke mortgage lending continued with increased margins and lower LTV vs standard mortgages.
  • Reduction of balance sheet size during the year in line with our strategy to focus on value over volume. Further deleveraging planned in 2022, prior to loan book stability in 2023.
  • Deliver improved returns, continuing to focus on optimising costs, while maintaining transformational investment in regulatory compliance, technology and business growth