Bank of Ireland UK plc net lending growth of £1.5bn in year of significant strategic progress

Bank of Ireland (UK) plc, part of Bank of Ireland Group, today publishes its Annual Results for the year ended 31 December 2019.

2019 Key Highlights

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.

Ian McLaughlin, Bank of Ireland UK Chief Executive Officer said:
“In 2019 we made tangible progress so in my first set of results as UK CEO, I am pleased to report Bank of Ireland UK has extended its long term financial services partnership with the Post Office, invested in new mortgage customer propositions, optimised its cost of funding, restructured the cost base and sold its existing consumer credit card portfolio. We generated a solid financial performance reporting £166 million underlying profit before tax, despite a highly competitive external environment.

“Our strategy is focused on investing, improving or repositioning our business to increase performance and returns. This focus will continue and intensify in 2020 and beyond.”

Notes to Editors

Bank of Ireland has supported customers in the UK for over 40 years, and employs c.1,800 employees

Bank of Ireland operates primarily 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.

Separately capitalised and self – funded business within the Bank of Ireland Group

Supporting c.2.5 million customers, Bank of Ireland UK plc comprises:

  • An established financial services partnership and foreign exchange joint venture (FRES) with the Post Office.
  • A long term partnership with the AA, which brings competitive financial services products to nearly 3 million AA members
  • A successful UK Mortgage business
  • A growing UK car, asset finance and leasing business, under the Northridge Finance and Marshall Leasing brands
  • A full service retail and commercial bank in Northern Ireland