Bank of Ireland governor Laurence Crowley told shareholders at today's annual general court that trading for the first three months of the year had been satisfactory.
Crowley said that the Irish economy is not achieving the spectacular growth rates that characterised the 1990's, but the current and prospective economic growth rates for the two principal economies in which the bank operates, Ireland and the UK, are expected to outstrip the EU average.
Crowley said the bank faces a number of challenges, with the fall in European and US interest rates reducing the bank's net interest spread. He said, 'Whilst stock markets have improved somewhat in the second quarter of the calendar year, sales of life and pensions products remain difficult in the current environment and the strengthening of the euro against sterling will have a negative effect on the translation of our overseas earnings.'
The governor said that all pension funds, including Bank of Ireland's, had been adversely affected by the fall in equity values in recent years, but he said the bank's fund remains in surplus and can fully meet its liabilities as they fall due.
Shareholders heard the group is performing well despite many challenges and that Bank of Ireland is in the top quartile of its banking peer group over ten years, during which it has delivered average stockholder return of 25% per annum. 'Performance of this quality cannot be achieved without a clear, coherent and workable strategy, not to mention a very competent management team,' Crowley said.
Crowley also announced that George Magan and Greencore chief executive David Dilger were co-opted to the board this morning.
He concluded that the group is confident it can face current challenges and, based on stock markets and exchange rates remaining at current levels, it foresees a continued good performance in the current year.
