15 March 2017
Bank of Ireland (UK) plc, part of Bank of Ireland Group, today publishes its Annual Results for the year ended 31 December 2016.
Bank of Ireland UK continues to grow, building on its unique partnership approach
Financial Highlights
- Underlying profit before taxation of £193 million; 5% increase on 2015 (2015: £183 million)
- Over £500 million net growth in customer lending
- Impairment charges: 48% reduction year on year at £23 million
- Net interest margin 2.07% (2015: 2.11%)
- A year of investment in partnerships and change
- First equity dividend paid to Parent of £220 million
- Strong organic generation of capital: CET 1 ratio 15.5%. Total capital ratio 21.8%
- Strong liquidity and funding position (Loan to Deposit ratio 102%)
Business highlights
- £2.8 billion of new mortgage origination in the year and Post Office savings balances of c.£14.5 billion
- Continued success of partnership approach, including the Post Office, AA, mortgage and Northridge Finance partners
- First full year of partnership with the AA, with c.100,000 new customers and various products launched across savings, cards, personal loans and mortgages
- Ongoing innovation and improvement in technology, including investment in market leading technology across the mortgage business for mortgage origination
Des Crowley, Bank of Ireland UK Chief Executive Officer, commented:
“We have had a strong year in 2016 with continued progress and profitable growth for the Group.
Our success was driven by many factors, including investing in award winning product propositions and by our employees delivering simple, flexible and accessible financial services products both directly and through partnerships with trusted and respected UK brands.
While the UK market remains highly competitive, with interest rates remaining low, we believe our distinct approach as the Partnership Bank, combined with a strong capital and funding base means that we can continue to focus on delivering compelling, value for money product propositions for the increasing number of customers we serve.”
Enquiries:
Bank of Ireland
Sara Holland, Head of UK Communications. Tel: 07831 718436
Alan Hartley, Director, Group Investor Relations. Tel: 00 353 7662 34850
To see a video interview with Des Crowley discussing the results, please view Bank of Ireland UK Financial Results 2016.
Notes to Editors
- Bank of Ireland has supported customers in the UK for over 40 years, and employs c.2200 staff.
- 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 over 3 million UK consumers, Bank of Ireland UK comprises:
- An established financial services partnership and foreign exchange joint venture (FRES) with the Post Office, together with c.2,500 free-to-use BOI/Post Office ATMs, one of the largest ATM fleets in the UK
- A long term partnership with the AA, which brings a product portfolio of credit cards, personal loans, savings and mortgages to nearly 4 million AA members
- A successful UK mortgage business
- A growing UK car and asset finance business, under the Northridge Finance brand
- A full service retail and commercial bank in Northern Ireland