Bank of Scotland Ireland reports 45% rise in profits as expansion continues

BANK of Scotland Ireland has reported pre-tax profits of €213m for last year, an increase of 45%, as the company opened 24 new retail branches.

In an interview with the Irish Examiner, chief executive Mark Duffy, said the “stand out figure for him was the 44,000 new retail customers the bank signed during the last 12 months”.

While a sharp rise in profits was impressive Mr Duffy said the competition his bank has injected in to the Irish banking sector is finally starting to yield solid results.

They will take a bit more time to deliver fully, he said.

When the bank brings the numbers employed in this economy to 2000, from the current level of 1,600 and opens the remainder of its retail branches the “two big banks will know they have a competitor in the Irish market to contend with”, he said.

The bank holds about 8% of the mortgage market and is writing one in every 12 mortgages in this economy, form zero six years ago.

It writes every sixth motor loan and every 10th loan for the business sector.

Mr Duffy said the slowdown in the market was good for the bank.

It would put even greater focus on value and encourage even more consumers to switch their allegiances, he said.

“People are not stupid; they know value when they are offered it and that’s what we will continue to do,” he said.

The company, which is re-branding its retail banking business as Halifax, reported strong lending growth. Total loans were up 33% to €23.6 billion, while deposits grew by 36% to €8.7bn. Business lending was up 32% and retail lending rose 36%.