Brexit not to blame for dividend delay, says Bank of Ireland

A decision to delay paying its first dividend since the financial crisis was mainly due to accounting issues surrounding the bank’s pension scheme, and not to do with underlying issues such as Brexit, Bank of Ireland has said.

Chief executive Richie Boucher acknowledged disappointment over the dividend decision after the lender, in which the Government owns a 14% stake, had for some time signalled plans for an early payout based on its 2016 earnings.

Even though the pension deficit had fallen, the bank had to be certain about its ability to increase payouts in the future and the “finely balanced” decision was all its own and rested on the accounting effects of volatility on the bond markets, he told reporters.