Operating profit at BoI rises to €380m

Bank of Ireland made an operating profit of €380m for the first half of this year, which is a considerable increase on the €37m for the same period last year.

However, the underlying loss before tax when impairment charges have been deducted was €383m, against €933m for the same period last year. The €780m impairment charge for the six-month period — to cover mortgage and other loan losses — was down from the €941m charged for the first half of 2012.

Bank of Ireland has been heavily lossmaking since the property market crash in 2007, which pushed it into part state-ownership. The Government holds 15% of the bank’s common equity, but it has a further €1.8bn in preference shares.