14 March 2018
Bank of Ireland (UK) plc, part of Bank of Ireland Group, today publishes its Annual Results for the year ended 31 December 2018.
2018 Key Highlights
Profitability
- Profit before taxation of £173 million (2017: £151 million) reflecting focus on margin management, strict cost control, stable arrears performance and selected growth in new lending
- Net interest margin 2.11%
- £70 million dividend paid to Parent in August 2018
Growth
- Over £5.1 billion in new customer lending – a 13% increase on 2017
- Record new lending of £1.1 billion in asset finance by Northridge Finance –31% increase on 2017
- Focus on personal lending via the Post Office sees volumes increase by 130% to c.£0.3 billion
- Partnership with the AA, now in its 4th year, sees lending volumes increase by over 90% to c.£0.5 billion
- Northern Ireland business is performing well in line with our business objectives
Transformation
- Increased focus on technical innovation and proposition development
- Progressing the sale of our UK consumer credit card portfolio
- Business model initiatives driving increased efficiencies
Capital
- Strong capital position maintained: CET ratio 15.0%
- Total capital ratio 20.6%
Clear strategic priorities
- 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
Des Crowley, Bank of Ireland UK Chief Executive Officer commented:
“During 2018 we have invested in our business so that we can improve customer journeys and customer experience. We have launched new propositions for distribution through both our direct channels and via our strategic partnerships. We’ve seen new customer lending increase by 13% to over £5.1 billion, including record new lending in asset finance by Northridge Finance. Our overall financial performance reflects the progress we are making towards achieving our growth and transformation priorities, despite a very competitive market.
Looking forward, we have clear strategic priorities and targets to 2021. Given the momentum in our business, combined with a strong risk and cost culture and a clear focus on adding value to our customers and our partners, I am confident we will continue to deliver sustainable returns for all of our stakeholders.”
ENDS
Enquiries:
Bank of Ireland
Sara Holland Head of UK Communications +44 7831 718436
Darach O’Leary Head of Group Investor Relations +353 (0) 766 244711
To see a video interview of Des Crowley discussing the results, please see link below: www.bankofirelanduk.com/about/annual-reports/
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.2.9 million customers, Bank of Ireland UK 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 4 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