Bank of Ireland to pay out €104m in dividends and share buybacks on back of strong underlying growth

On the back of the 2021 figure, Bank of Ireland said it is in a strong capital position and plans to pay out €54m in cash dividends and €50m via a share buyback. File Picture: :Leah Farrell/RollingNews.ie

Bank of Ireland is planning to return €104m to shareholders, through a dividend and share buyback, after posting a strong underlying profit for last year.

The bank, which is currently trying to buy the bulk of the assets of KBC Bank Ireland, has reported an underlying pre-tax profit of €1.4bn for 2021. That compares to a €374m loss in 2020 and an underlying profit of €758m in 2019.

On the back of the 2021 figure, Bank of Ireland said it is in a strong capital position and plans to pay out €54m in cash dividends and €50m via a share buyback.

The bank said it reduced its costs by 4% last year, and further reduced the level of non-performing loans to 5.5% of its total loan book. 

Total new lending amounted to €14.2m. Due to the improved economic outlook and muted loan loss performance, the bank said it saw a net credit impairment gain of €194m.

The Competition and Consumer Protection Commission (CCPC) is looking at the KBC deal, which has raised concerns over lessened competition in the Irish banking market. 

The transaction will be dependent on a full investigation by the CCPC.

Bank of Ireland chief executive Francesca McDonagh said despite eastern European tensions and residual Covid issues, the outlook for the bank’s core markets is positive. 

She said the bank also looks forward to becoming the first Irish lender to return to full private ownership this year.

Ms McDonagh said Bank of Ireland will update on its strategy and outlook for 2024 later this year, including refreshed medium-term targets.