TIDMBIRG
RNS Number : 0045Y
Bank of Ireland Group PLC
03 May 2019
Bank of Ireland Group plc (the "Group")
Interim Management Statement - Q1 2019 update
3 May 2019
The Group continues to deliver against our 2021 strategic
targets for loan book growth, transformation and associated cost
reduction together with our ambition to grow our wealth and
insurance business.
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.
Income Statement
The Group continues to trade in line with expectations.
Net interest margin (2.16% for the 3 months to March 2019), Net
interest income and Other income were all in line with
expectations.
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. We continue to expect that Operating
expenses will reduce in 2019 and in that regard Operating expenses
(excluding levies and regulatory charges) are lower in Q1 2019 by
c.3.5% compared to the same period in 2018.
Expect levies and regulatory charges to total EUR115 million -
EUR120 million in 2019.
Balance Sheet
Customer loan volumes were EUR79.1 billion at the end of March
2019, an increase of EUR2.1 billion since the end of December 2018
(EUR0.6 billion on a constant currency basis) primarily driven by
Corporate (EUR0.5 billion) and Retail UK. The Group's market share
of new mortgage lending in Ireland averaged c.23% in the first 3
months of 2019 with mortgage applications and drawdowns increasing
during the quarter. For our SME customers, we have seen increasing
activity, confidence and credit demand in Q1 2019 with positive
momentum into Q2.
Asset quality across our loan portfolios has continued to
improve in line with our expectations. The Group will continue to
progress with a full range of resolution strategies in response to
the associated and evolving regulatory framework.
Customer deposits were EUR79.7 billion at the end of March
(EUR78.7 billion on a constant currency basis), from EUR78.9
billion at December 2018. Wholesale funding was EUR10.8 billion at
the end of March 2019.
Capital Position
The Group's fully loaded CET1 ratio at the end of March 2019 was
13.3%, from 13.4% at December 2018. The Group's organic capital
generation during the quarter was offset primarily by investments
in risk weighted assets associated with new lending, investments in
our business transformation programme, IFRS 16 and a dividend
deduction.
The Group's regulatory CET1 ratio was 14.6%, and the Group's
Total Capital ratio was 18.7% at the end of March 2019.
Other
In April 2019, the Group provided an update on the following
strategic transactions:
-- The Group announced the agreement of terms to acquire a
portfolio of c.EUR260 million performing commercial loans from KBC
Bank Ireland with the transaction expected to close in the coming
months. The acquisition requires c.5-10bps of CET1; and
-- The Group entered into a securitisation of a portfolio of
non-performing ROI mortgages secured on buy-to-let investment
properties. The portfolio has a gross value of c.EUR377 million and
the transaction results in a pro-forma reduction in the Group's NPE
ratio of c.40bps and a pro-forma improvement in the CET1 ratio by
c.30bps.
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 Group External Communications and Public
Affairs +353 (0)766 24 6716
Forward Looking Statement
This announcement 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 announcement should be considered to be a
forecast of future profitability, dividends or financial position
of the Group and none of the information in this announcement 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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END
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