Bank of Ireland profits to plunge

Bank of Ireland has stoked more worries over economic conditions in the country, warning that full year profits may fall by up to 40% over the full year.The warning comes at the end of a jittery week for Ireland, which saw the 10-year Irish bond yield rise above 9% amid concerns over the ability of the country's government to pay its debts.'Economic conditions in Ireland remain challenging as anticipated,' Bank of Ireland said today.It said it facing increased competition for deposits, while rising bond yields in peripheral eurozone countries were resulting in higher costs for wholesale funds.Irish bond yields fell back on Friday as other EU countries vowed to support the Irish government as it seeks to reduce its deficit.