Mortgage arrears on Bank of Ireland’s loan book stabilised in the third quarter, the bank said in a statement today.
The bank, which is 15 per cent owned by the State, said it was meeting targets for the provision of restructuring arrangements for “cooperating customers who are having difficulty in meeting contractual repayments”.
It said the macroeconomic environments in Ireland and the UK had slightly improved from the first half of the year, and the bank's loan portfolio was "continuing to perform in line with expectations".
The group’s average net interest margin has continued to grow to in excess of 190 basis points in the third quarter, which they say reflects ongoing measures to reduce costs and restructure the balance sheet.
“We have the capital and the liquidity available to support our growth objectives in Ireland and in our core overseas franchises. We are actively seeking new lending opportunities of the appropriate credit quality and at appropriate levels of return,” the statement said.
“The Group remains focused on tight cost control while continuing to invest in its core franchises. Restructuring and redundancy programmes are on-going.”
The group’s net loan volumes at the end of September were just below the €87 billion reported at the end of June, while customer deposits were marginally above the €72 billion reported on the same date, resulting in a loan deposit ration of below 120 per cent.
The group has estimated the annual banking levy announced in the budget will cost the bank €40 million per year.
