LONDON (Alliance News) - Bank of Ireland (Governor & Co) on Wednesday said it has continued to trade in line with its expectations, with good momentum in its Irish and international businesses.
The bank said the macroeconomic environment and outlook for Ireland and the UK, its key markets, remains strong. The weak euro is supporting Irish export volumes at present, it said, while consumer spending and investment are both improving as better labour market conditions and other factors boost consumer confidence.
In the third quarter to the end of September, the group's net interest income has been boosted by lower funding costs and the positive impact of new lending activity, though this has been partially offset by lower yields on its liquid asset portfolio, mostly due to bond sales completed in the first half of 2015. Its net interest margin in the quarter averaged 2.18%.
Fees and other income are broadly in line with the bank's expectations, and it said it has continued to maintain good control over its cost base while making investments across the business.
Bank Of Ireland said its third-quarter benefited from realising a non-core gain of EUR57 million as a result of the Post Office exercising an option to buy Bank of Ireland's interest in Post Office Insurances. It added that it paid a EUR38 million bank levy to the Irish government in October.
The bank said it continues to expect to maintain a buffer above a CET 1 ratio of 10%.
Shares in Bank of Ireland were down 1.6% to EUR0.330 on Wednesday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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