BoI issues positive forecast

The Bank of Ireland has said its group expects strong results across the board for the year to March 31.

The bank said in its trading statement today that it expected to deliver profit of 12% and cost growth of around 5%, while Annual Premium Equivalent (APE) sales growth at its life division will be around 25%.

The group said it expected to deliver savings ahead of its target of €75m.

The bank expects underlying earnings per share (EPS) to be in line with the market consensus of 144.4 cent, excluding the impact of non-core items. This compares with an underlying EPS of 118.5 cent for the previous year.

The bank said that although performance at its retail division remains strong, growth in the residential property market has slowed somewhat in early 2007 as a result of rising interest rates.

It said business banking has performed well with strong lending volume growth expected.