Bank of Ireland UK plc annual statement on financial results for the twelve months to 31 December 2020

Bank of Ireland (UK) plc, part of Bank of Ireland Group, today publishes its Annual Results for the year ended 31 December 2020.

2020 Key Highlights

Financial performance

  • Underlying profit before tax of £50 million (2019: £166 million)
  • Statutory net interest margin of 1.84% (2019: 1.94%)
  • £185 million statutory operating profit before impairment losses (2019: £184 million)
  • Statutory operating expenses reduced 2% (£7 million) year on year to £310 million

Growth

  • New gross lending of £4.8billion (2019: £5.9 billion) reflecting focus on higher margin products whilst maintaining lending quality
  • New residential mortgages originated £3.1 billion (2019: £3.6bn)

Transformation

  • Multi-year restructuring programme commenced to improve returns by growing lending in selected products such as Bespoke mortgages, leveraging areas of expertise and driving efficiencies through digital and operational improvements
  • Outcome of Northern Ireland strategic review responds to customer demand for digital banking; smaller modernised branch network
  • Completion of migration of consumer credit card portfolio to Jaja Finance
  • AA Partnership extended until 2028
  • Improving employee engagement scores

Capital

  • Maintained strong CET 1 ratio 13.7% (2019: 14.5%)
  • Total capital ratio 19.1% (2019: 19.9%)

Supporting customers and communities

  • 70,000 payment breaks agreed
  • £295 million Government-backed Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme (CBILS) funding to businesses
  • Fast-tracked payments to all SME suppliers during pandemic
  • Emergency funding for a range of charitable groups working with those most impacted by COVID-19

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: “2020 has been an extraordinary year. We held our focus on improving the customer experience we provide, supported our customers through COVID-19 and Brexit and enhanced our relationships with our key brokers and partners. I want to thank colleagues who continue to go above and beyond to serve customers across all our channels.

“We completed a full review of our UK operation and have embarked on a multi-year restructuring programme. We are making good progress by taking the actions necessary to improve our return on capital by growing our lending in selected products, leveraging our areas of expertise and will continue to drive efficiencies through digital and operational improvements.

“Although the UK market remains highly competitive and challenging, we have a clear strategy for dealing with these challenges, and will execute our strategy with determination and pace. I very much look forward to unlocking the future potential for the business.”

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

Notes to Editors:

Bank of Ireland has supported customers in the UK for over 40 years, and employs c.1800 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 successful 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