Profits surge at Bank of Ireland with increases in new lending

Bank is in the process of acquiring Davy Stockbrokers and parts of KBC Bank
Profits surge at Bank of Ireland with increases in new lending

Customer loan volumes were €77.2bn at the end of June.

Bank of Ireland has reported a 72% increase in profits to €465m for the first half of the year.

The pillar bank, which is in the process of two major acquisitions of Davy Stockbrokers and parts of KBC Bank said they have seen a strong recovery in their business performance with lending up 12% compared to the first half of 2020.

“Our results today, and our outlook for the future, are radically different to 12 months ago," Bank of Ireland CEO Francesca McDonagh said. 

"In the first half of 2021, we have had a strong recovery in our business performance. We’ve continued to deliver our strategy, including investing in digital and transforming our business. 

"We’ve maintained a laser-like focus on costs. And, we’ve announced two significant transactions in the form of Davy and KBC."

Customer loan volumes were €77.2bn at the end of June 2021, €0.6bn higher compared to December 2020.

Updating their guidance for 2021, the bank said total income in the second half of the year is expected to be 5% higher than H1 reflecting higher net interest income, higher business income, and continued reduction in costs.

“While Covid-19 is still with us, there is a path to recovery. Comprehensive vaccination programmes are unlocking the vice-like grip that Covid-19 has held over our economies and society. 

"Our economic outlook is increasingly positive with sentiment back to pre-pandemic levels," Ms McDonagh said.

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