Bank of Ireland Group PLC Q3 Interim Management Statement (1496F)
25 October 2018 - 5:00PM
UK Regulatory
TIDMBIRG
RNS Number : 1496F
Bank of Ireland Group PLC
25 October 2018
Bank of Ireland Group plc (the "Group")
Interim Management Statement - Q3 2018 update
25 October 2018
Trading
The Group continues to trade in line with expectations.
Economic growth in our core markets of Ireland and the UK
remained positive notwithstanding ongoing uncertainties related to
the UK's decision to leave the European Union.
Net interest income was in line with the first half of 2018. Net
interest margin for the 9 months to September 2018 was 2.23% and
was in line with our expectations. Business income has remained in
line with the first half of 2018.
The Group continues to maintain tight control over the cost
base, while making appropriate investments in our businesses,
infrastructure and people including our multi-year business
transformation programme which continues to make progress. We
expect that operating expenses for the second half of 2018 will be
lower than the first half of 2018.
Balance Sheet
Customer loan volumes were EUR76.6 billion at the end of
September 2018, an increase of EUR0.5 billion since the end of
December 2017. New lending in the first 9 months of 2018 was c.15%
higher than the same period in 2017, including a 24% increase in
new mortgage lending in Ireland where our market share was 28% for
the first 8 months of 2018. The Group is re-entering the Irish
mortgage broker market in November 2018.
Asset quality across our loan portfolios has continued to
improve in line with our expectations. Absent a change in the
economic environment or outlook, we expect a modest impairment
charge in the second half of 2018 and a net impairment gain for the
full year 2018. As previously communicated, the Group continues to
review NPE reduction strategies.
Customer deposits were EUR77.9 billion and wholesale funding was
EUR11.6 billion at the end of September 2018.
Capital Position
In September 2018, the Group implemented previously announced
changes to its Irish mortgage credit risk models as required under
TRIM. On a pro forma basis at the end of June 2018, this reduced
the Group's fully loaded CET1 ratio by c.70bps, from 14.1% to
13.4%.
The Group's fully loaded CET1 ratio (net of the TRIM impact)
increased during the quarter by 10bps to 13.5% at the end of
September 2018. The Group's organic capital generation during the
quarter of c.40bps was offset primarily by investments in our
business transformation programme and a dividend deduction.
The Group's regulatory CET1 ratio was 15.1%, and the Group's
Total Capital ratio was 19.0% at the end of September 2018.
Ends
For further information please contact:
Bank of Ireland
Andrew Keating Group Chief Financial Officer +353 (0)766 23
5141
Darach O'Leary Head of Group Investor Relations +353 (0)766 24
4224
Damien Garvey Head of Communications +353 (0)766 24 6716
Forward Looking Statement
This document contains forward-looking statements with respect
to certain of Bank of Ireland Group plc ('BOIG plc') and its
subsidiaries' (collectively the 'Group') plans and its current
goals and expectations relating to its future financial condition
and performance, the markets in which it operates and its future
capital requirements. These forward-looking statements often can be
identified by the fact that they do not relate only to historical
or current facts. Generally, but not always, words such as 'may,'
'could,' 'should,' 'will,' 'expect,' 'intend,' 'estimate,'
'anticipate,' 'assume,' 'believe,' 'plan,' 'seek,' 'continue,'
'target,' 'goal,' 'would,' or their negative variations or similar
expressions identify forward-looking statements, but their absence
does not mean that a statement is not forward-looking.
Examples of forward-looking statements include, among others:
statements regarding the Group's near term and longer term future
capital requirements and ratios, level of ownership by the Irish
Government, loan to deposit ratios, expected impairment losses, the
level of the Group's assets, the Group's financial position, future
income, business strategy, projected costs, margins, future payment
of dividends, the implementation of changes in respect of certain
of the Group's pension schemes, estimates of capital expenditures,
discussions with Irish, United Kingdom, European and other
regulators and plans and objectives for future operations. Such
forward-looking statements are inherently subject to risks and
uncertainties, and hence actual results may differ materially from
those expressed or implied by such forward-looking statements.
Nothing in this document should be considered to be a forecast
of future profitability, dividends or financial position of the
Group and none of the information in this document is or is
intended to be a profit forecast, dividend forecast or profit
estimate. Any forward-looking statement speaks only as at the date
it is made. The Group does not undertake to release publicly any
revision to these forward-looking statements to reflect events,
circumstances or unanticipated events occurring after the date
hereof.
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contact rns@lseg.com or visit www.rns.com.
END
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