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Bank of Ireland (ADR) (OTCMKTS:IREBY) Increased New Lending By Over 50% In FY2014

Bank of Ireland (ADR) (OTCMKTS:IREBY) reported that it had leveraged strong franchises in the United Kingdom and Ireland in FY2014. Richie Boucher, the Group CEO said that the bank will continue to strengthen its relationships with existing customers. Also, it will look to develop relationships with new customers in FY2015.

The performance

Bank of Ireland said that the new lending surged by more than 50% to €10 billion in FY2014. It was recognized as the largest lender Bank to the Irish economy last year. The bank reported strong financial performance across all franchises. In the UK, it more than doubled mortgage lending services. The planned investments and effective distribution arrangements resulted in higher lending in FY2014. The investments were made in new businesses and infrastructure projects.

The measures

Bank of Ireland (ADR) (OTCMKTS:IREBY) took several measures to deliver effective solutions to customers. In the process, due diligence was paid on asset quality. The implemented steps enabled the bank to cut down defaulted loans to almost 14.3 million. It managed to reduce defaulted loans by as much as €4 billion from peak levels.

The number game

Bank of Ireland posted the underlying profit before tax of €921 million in FY2014 compared to €1.5 billion in FY2013. The net margin improved to 2.22% in 4Q2014. The disciplined approach to pricing helped the company to expand its net margin in 4Q2014. The primary focus is on robust capital generation and working as per the changing regulatory environment. The bank enhanced transitional core equity “tier-1” ratio to 14.8%.

The success

Bank of Ireland (ADR) (OTCMKTS:IREBY) successfully excelled in the comprehensive test conducted by ECB. It reported accelerated capital expansion indicating that it is on track to derecognize bank’s preference shares of 2009 in next year. The bank adopted the tight control approach of cost structure in FY2014. The customer loan impairment expenses dropped €1.1 billion in FY2014.

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