Bank of Ireland has reported pre-tax profits of €650m for the six months to the end of September this year, a drop of almost a third from a year earlier.

In its statement published this morning, the bank also said it would not pay a dividend to shareholders.

Chief executive Brian Goggin told RTÉ Radio that the bank was a 'strong, sound and successful' business and did not see the need to raise additional capital at the moment.

He said only €13bn, or less than 10% of its total loan portfolio, linked to property development, was causing the bank problems.

Underlying earnings per share were down 31% to 55c.

A breakdown showed that profits in Bank of Ireland's retail business in the Republic dropped 25% to €286m, while Bank of Ireland Life profits plunged from €72m to €3m, badly hit by stock market turbulence which affected the value of its investments.

Capital markets profits fell 8% to €283m and UK profits dropped 38% to €148m.