Bank of Ireland defends rates as profits climb

Bank of Ireland yesterday indicated it was sticking to its guns over variable mortgage interest rates as the lender delivered a sparkling set of half-term results that reflected the huge upswing in the economy.

The bank — which is 14% owned by taxpayers — said it had benefited from the disposal of bonds and its work to restructure bad loans from the crash.

Underlying pre-tax profit more than doubled to €743m for the first six months of the year, much more than analysts had expected. Impairment charges fell to €168m from €444m a year earlier. Net profit soared to €617m from €343m a year earlier.