Underlying profit before tax at Bank of Ireland for the financial year to March 31 was 6% higher than the previous year at €1.79 billion. Growth at the same time last year was 28%.
The bank says this is a satisfactory performance in 'difficult market conditions'. Underlying earnings per share were up 4% at 150.3 cent, in line with expectations.
Meanwhile, the bank has said its investigation into missing laptops has confirmed the theft of a computer from its Newbridge branch. This brings the number of missing laptops with sensitive customer information to five.
The bank faces two separate investigations following the disclosure that laptops with details of 31,000 customers were stolen last year.
Bank of Ireland said the results had come against a background of volatility on world financial markets and slowing economic growth. Chief executive Brian Goggin told RTE the result was 'satisfactory', saying the pace of slowdown in the Irish economy in the last six months had been much more pronounced than people had expected.
This had led to a €45m increase in funding costs and a €50m hit linked to investments held by its life division. The strong euro also knocked €30m off its sterling profits.
A breakdown showed that profits at BoI's retail banking business in the Republic were 3% higher at €716m, but Bank of Ireland Life profits dropped 27% to €108m, affected by weakness on stock markets. Capital markets profits grew by 14% to €651m and UK financial services profits were up 12% to €495m. The bank said its joint venture with the UK Post Office had performed strongly, with profits almost doubling.
The bank said the Irish retail division had been affected by a higher impairment charge due to the economic slowdown, which it blamed on lower levels of house building activity. It said the slowdown had been 'sharper than anticipated'.
Total lending across the group rose by 9% to €136 billion. Bad loans accounted for 0.8% of these, up from 0.5% a year earlier, but the figure for the Irish retail business rose from €390m to €642m, representing 1.2% of loans in the division.
The bank said it affected the economic downturn to continue to affect its 'earnings potential' in the year ahead.
The bank said it had completed its restructuring programme - aimed at saving €145m a year - a year ahead of schedule and cut costs to 51% of income.
A final dividend of 39.4 cent will be paid.
Bank of Ireland shares closed down 50 cent at €8.05 in Dublin today.
