Bank of Ireland shares climb 7% on profits boost; Government starts to sell down shareholding

Bank of Ireland group chief executive Francesca McDonagh said Irish banking was modernising and added that profits had recovered to levels posted before the pandemic. 

Bank of Ireland shares climbed by over 7% as the lender rebounded back to the black, a recovery that suggests the big Irish banks can look forward to further gains as rivals Ulster Bank and KBC prepare to close their doors. 

The bank -- which along with AIB already dominates Irish bank lending -- posted an operating profit of €465m in the six months to the end of June compared with a loss of €669m a year earlier. Bank of Ireland also set aside a tiny impairment charge of €1m, a further sign the Irish economic recovery from the Covid-19 crisis is well underway, and its new lending rose 12%.