The Bank of Ireland has reported growth in its UK business, benefitting from the strength of partnerships with the Post Office.
However, in a trading update the bank also stated that the weakening of sterling during the period resulted in a reduction in reported loan volumes to €84bn (£59.5bn) in September.
Customer deposits were €78bn (£55.2bn) at the end of September, giving rise to a loan to deposit ratio of 108 per cent. Wholesale funding was €15bn (£10.6bn), unchanged from the June figure.
Defaulted loan volumes have fallen by €0.8bn (£0.56bn) since June, to €12.5bn (£8.85bn) in September, with reductions across all asset classes.
Andrew Keating, group chief financial officer at the Bank of Ireland, explained that the macroeconomic environment and outlook in Ireland and the UK, which are our key markets, continue to be favourable.
“In Ireland, the weaker euro is supporting exports, while consumer spending and investment are increasing as improving labour market conditions and other factors positively impact consumer confidence.
“In the UK, consumer spending is benefitting from lower unemployment and a pickup in earnings growth.”
emma.hughes@ft.com
