Strong business momentum and growth in the UK market

27 March 2015

Bank of Ireland (UK) plc, part of Bank of Ireland Group, today publishes its Annual Results for the year ended 31 December 2014.

Financial Highlights

  • Underlying profit before tax of £199 million, an increase on prior year performance (2013: £61 million)
  • Improved net interest margin of 2.10% (2013: 1.70%)
  • Loan to deposit ratio of 91% (2013:86%)
  • Common Equity Tier 1 ratio 12.7% (2013: 9.9%);
  • Total capital ratio 22.5% (2013: 19.3%)

Business Highlights

  • New mortgage lending increased by £0.9 billion in the year to £1.8 billion, reflecting the positive impact of mortgage advisors based in principal Post Office branches and new mortgage distribution channels successfully launched including Legal & General and LSL Group
  • Exclusive financial services relationship with the UK Post Office continues to grow
  • Northern Ireland (NI) business returned to profitability
  • Car and asset finance business, NIIB, continues to grow lending across the UK
  • Asset quality across all segments continues to improve with impairment charges 51% lower year on year

Des Crowley, Bank of Ireland UK Chief Executive Officer commented:

“2014 was a year of continued progress for Bank of Ireland (UK) plc. Our financial performance has been strong, with improved net interest margin, and despite a competitive market, our results clearly demonstrate the positive momentum in the business. We made excellent progress towards meeting our objectives of achieving growth in our business and delivering sustainable returns for our shareholder. We are profitable and generating capital.

Against a backdrop of an improving economic outlook, we are well positioned to build on the strengths of our business and the growing partnership with the Post Office. Supported by a clear set of strategic priorities, we look to the future with increasing confidence.”

Enquiries:

Bank of Ireland

Mark Spain, Director, Group Investor Relations                                              Tel: 00353 7662 34850

Sara Holland, Head of UK Communications                                                  Tel: 07831 718436

To see a video interview with Des Crowley discussing the results, please go to /corporate/media-centre/videos/

Notes to Editors

  • Bank of Ireland has supported customers in the UK for many decades and is the exclusive financial services partner to the Post Office.
  • Bank of Ireland primarily operates in the UK through its wholly owned and separately incorporated subsidiary Bank of Ireland (UK) plc, which is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
  • Activities related to the Post Office partnership are conducted within this entity and as such all retail deposits up to £85,000 with the Post Office are protected under the UK’s Financial Services Compensation Scheme.
  • At 31 December 2014, Bank of Ireland (UK) plc had a loan to deposit ratio of 91% with customer deposits of c.£20 billion utilised to fund customer lending of c.£18 billion (primarily comprising c.£14 billion of UK residential mortgages).