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Bank of Ireland Group PLC - Dublin-based lender - For 2021, swings to pretax profit of €1.22 billion from loss of £760 million, mainly due to €1.13 billion in net impairment losses on financial instruments recorded for 2020, turning into a gain of €194 million in 2021.
Total operating income rose 12% year-on-year to €2.94 billion from €2.62 billion, with net interest income rising 4.7% to €2.22 billion through higher asset loan spreads and targeted
longer term refinancing operations income.
Net other income also increases 44% to €725 million from €505 million due to higher business income and positive valuation gains in the bank's Wealth & Insurance business.
Bank of Ireland's common equity tier 1 ratio rises to 16.0% from 13.4% the year before. Total loan book decreases 0.3% to €76.35 billion from €76.58 billion the prior year.
Looking ahead, for 2022 total income is expected to be line with 2021, reflecting stable net interest income and higher business income, while costs continue to reduce.
‘Today we are announcing a strong rebound in our financial performance for 2021, continued momentum in the execution of our strategy, and confidence in our growth outlook for 2022 and beyond. We delivered our strongest performance since the global financial crisis. Our disciplined focus on the execution of our strategy underpins these results, while also supporting our customers throughout the very challenging Covid-19 pandemic,’ said Chief Executive Officer Francesca McDonagh.
‘As a result of this profitability and strong capital position we are recommencing distributions, in line with our prudent and progressive policy, with a total of €104 million of dividends and buybacks proposed,’ McDonagh added.
Current stock price: €5.91
12-month change: up 70%
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