BoI boosted by 3% deposit rise

BANK of Ireland said yesterday its deposits rose 3% in the four months to the end of October, improving its funding position, although the country’s largest lender said trading was still tough.

Ireland’s only bank not to be nationalised said its profit margins should stabilise in the second half against the first, but further margin recovery would face headwinds in a prolonged period of low interest rates.

“Continued intense competition for deposits in the Irish market, the elevated cost of wholesale funding pending further deleveraging of the balance sheet, along with the high cost of the Government guarantee have maintained ongoing pressure on the group’s cost of funding,” the bank said.