ECB programme raises Bank of Ireland’s pension deficit €700m

The European Central Bank’s quantitative easing programme (QE), aimed at stimulating the eurozone economy, has adversely affected Bank of Ireland, by driving up the deficit in its defined benefit pension schemes by €700m.

In a trading update, covering the year to date and published yesterday to coincide with its AGM, Bank of Ireland noted that the value of the assets in its defined benefit schemes increased over 10%, year-on-year in the first quarter of this year.

However, the combined deficit of the schemes has risen from €1bn to €1.7bn since the end of December, as a direct result of quantitative easing, which pushed interest rates lower and weakened the euro.