Bank of Ireland’s pension deficit weighs on capital reserves

Bank of Ireland’s major operations in Britain have so far weathered the fallout of Brexit but the deficit in the lender’s defined benefit pension scheme continues to drag on its capital.

In an update, the bank said: “Economic developments in our core markets of Ireland and the UK remained positive notwithstanding ongoing uncertainties following the UK’s decision to leave the EU.” New lending in the first three months included a sharp 30% increase in mortgage home loans from a year earlier.

And the quality of its €78bn loan books had improved in the first three months but was “in line with our expectations”.