(Alliance News) - Bank of Ireland Group PLC on Friday said its net interest income topped expectations in the first quarter of 2021.
Net interest income was "stable" year-on-year during the first quarter. Bank of Ireland said corporate lending volumes were higher and UK mortgage margins increased. However, low interest rates are still hurting income on liquid assets.
Net interest income was "stronger than expectations", Bank of Ireland added. Net interest margin was stable year-on-year at 2.00%.
"Notwithstanding the impacts of continued Covid-19 restrictions on economic activity, business income, including share of associates and [joint ventures], is in line with expectations and, in the 3 months to end-March, is broadly in-line with the same period in 2020," the company explained.
Its fully loaded common equity tier 1 capital ratio was 13.5% improved from 13.4% at the end of December, with its regulatory CET1 ratio at 14.7%. The CET1 ratio is a key gauge of a bank's strength.
Earlier in April, Bank of Ireland said it entered talks to buy the loan assets and liabilities of KBC Group NV's Irish unit, as the Belgian bank looks to exit the country.
The two companies signed a memorandum of understanding, and the transaction remains subject to further negotiation, due diligence and regulatory approval, Bank of Ireland said on Friday.
Bank of Ireland shares were 2.2% higher at EUR4.94 each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Bank Of Ireland (BIRG)