Bank of Ireland profit doubled at half time

BANK of Ireland pleased the City with pre-tax profits doubled to Ir pounds 130.9m ( pounds 124m) for the six months to September, as it cut losses on British and North American operations, writes John Willcock.

Loan loss provisions in the bank's New Hampshire retail subsidiary fell from Ir pounds 21m to Ir pounds 10m, while British provisions went from Ir pounds 5m to Ir pounds 2m. At the same time, net interest income for the group rose 10 per cent to Ir pounds 301m on the back of increased economic activity in Ireland.

Other income rose 20 per cent to Ir pounds 156m, boosted by foreign exchange volumes following the realignment in the exchange rate mechanism. Income from the Lifetime life assurance subsidiary recovered from the effects of last year's strike.

Earnings per share more than doubled from 6.6p to 15.2p.

Yesterday, the bank's share price in London rose 5p to 293p.

The bank paid an interim dividend 20 per cent higher at 3.75p, but said that this was in order to change the balance between the half-year and final dividends.

Howard Kilroy, governor, said: 'While all group businesses may not replicate in the second half their first-half performances, we believe that the out-turn for the full year will be satisfactory.'