BOI cautions on profit pressure

BANK of Ireland is warning that operating profits will remain under pressure due to continuing weak loan demand and the high cost of wholesale funding.

In its interim management statement yesterday, the bank said it expects to have clarity on its fundraising exercise available to the markets within the next three weeks.

Under tougher stress-testing scenarios carried out by the Central Bank, the group is under pressure to raise €5.2bn through the sale of assets and other mechanisms.