Bank of Ireland reports €465m profit for the first half of 2021

Bank of Ireland has reported underlying profit before tax of €465m for the first six months of this year on the back of a “strong recovery” in performance.

rofit is up 72pc compared to the first six months of 2020.

Total income at the bank was 14pc higher than the same period last year, as the economy beings reopening.

The bank’s net interest income, business income and valuation items are all higher verses the first half of 2020, according to interim results.

Bank of Ireland has a net impairment charge of €1m, which has reduced since the end of 2020. The bank said the reduction is “reflecting improved economic outlook and minimal loan loss experience.”

New lending at the bank was 12pc higher in the first half of this year compared to the same period last year.

Costs at Bank of Ireland reduced by 4pc during the period, the seventh straight reporting period of big cost reductions.

Meanwhile, customer loan volumes were €77.2bn at the end of June, €600m higher compared to December 2020.

The bank’s loan book grew by €300m on a constant currency basis and excluding planned UK deleveraging of €1bn and a non-performing loan transaction of €300m.

Customer deposits were €90.6bn at the end of June, €2bn higher than December 2020.

Total income in the second half of this year is expected to be around 5pc higher compared to the first half of this year, reflecting higher net interest income, according to the bank.

Francesca McDonagh, Bank of Ireland group CEO, said the results and the bank’s outlook for the future, “are radically different to 12 months ago.”

“In the first half of 2021 we have had a strong recovery in our business performance. We’ve continued to deliver our strategy, including investing in digital and transforming our business. We’ve maintained a laser-like focus on costs,” Ms McDonagh said.

“If we leave aside the turbulent year of 2020, and compare our results to the same period in 2019, our underlying operating profit, pre impairment, is up 7pc,” she added.

Last month Bank of Ireland announced it was purchasing stockbrokers Davy for €440m.

The bank is also acquiring the performing assets of KBC Bank Ireland.

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