PACE OF SLOWDOWN SURPRISED BoI CHIEF - Bank of Ireland results for the financial year to March show full-year earnings, in line with previous guidance, are up 4%. Its underlying profit before tax, at €1.79 billion, is 6% higher than last year. Profit before tax in retail in the Republic of Ireland was 3% higher than last year.
Elsewhere, profits at the bank's Life business were 27% lower than last year, as weakness and continued volatility in equity markets hit investor sentiment, and new business slowed down.
The bank's overseas businesses performed better - growth in UK financial services was 12% and profit before tax at Capital Markets was 14% higher.
Chief executive Brian Goggin said 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. But he said he was still positive about the outlook for the Irish economy after 2009.
Mr Goggin said the drop in profits at BoI Life reflected what was happening in the economy, with a significant slowdown in sales growth in the second half, and a €50m charge linked to the fall in stock markets. This means the value of its investments has fallen.
Mr Goggin said the bank had been investing heavily in businesses outside Ireland, and 44%% of earnings now came from abroad.
Asked about the cost of mortgages, he said banks faced higher funding costs due to the financial market turmoil, but had not fully passed these on to Irish customers.
Mr Goggin described the theft of lap-tops at the bank as regrettable and apologised to customers. He said an investigation was still continuing.
