Bank of Ireland to pull back from US leveraged finance

Irish lender withdraws as fees and returns shrink for traditional banks

Loans tied to US leveraged acquisition financings were the 'biggest driver' for the bank’s €137m impairment charge.

Bank of Ireland Group Plc is withdrawing from the US market for leveraged acquisition financings, as private credit has started to chip away at fees historically collected by traditional banks.

The Irish lender’s decision to wind down its loan book for US acquisition financings comes after a review of the business found that heightened competition from direct lenders is hindering its ability to earn higher returns, a representative for the Bank of Ireland said in an emailed statement.