Bank of Ireland has reported pre-tax profits, before exceptional items, of €1,088m for the year to the end of March. This is an increase of 18% on the same period last year and is marginally ahead of forecasts. Pre-tax profits were up 8% at €995m after exceptional items were taken into account.
Exceptional items include the costs of the bank's DIRT settlement and a charge of €68m to cover staff severance costs under its transformation programme. Earnings per share were 83.1 cents and a final dividend of 29 cents is to be paid.
The bank says that the second half of its financial year, though ahead of last year, was weaker than the first half. This was due to the fall in equity markets that affected its asset management business. There was also a slowing in customer activity. Bank of Ireland says that it expects continued earnings growth this year despite a slowing of growth in the Irish economy.
The bank's Republic of Ireland retail business performed strongly, with profits up 27% to €290m, mortgage lending up 29% and other lending up 21%. The bank also expects that the Government's savings scheme to boost volumes.
