trending Market Intelligence /marketintelligence/en/news-insights/trending/xqrhn-ecaapniaekh4q8ew2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Bank of Ireland eyes 20% increase in loan book, to invest more in restructuring

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory

Bank of Ireland eyes 20% increase in loan book, to invest more in restructuring

Bank of Ireland Group PLC expects to increase its loan book by roughly 20% by 2021 and aims to invest an additional €500 million in its restructuring program as it unveiled new financial targets.

The bank said June 13 that the additional investment, split between improving its IT systems and boosting its business model and cost base reduction efforts, will bring total investments under its 2016-2021 strategy to €1.4 billion.

The investment is expected to help the bank reduce its cost base in 2021 to around €1.7 billion from €1.9 billion, with the average investment 2018 to 2021 amounting to €275 million per year, or about 50 basis points to 60 basis points of annual common equity Tier 1 capital.

Of the total loan growth target, the bank said 65% will come from Ireland and 35% through "selective international diversification." This will lead to an expected impairment charge under the IFRS 9 accounting standards in the range of about 20 basis points to 30 basis points per annum, according to the lender.

Net interest margin is expected to be around 2.24%, in line the 2017 exit level, while business income is projected to be around 20% to 25% of total income.

By 2021, the lender's return on tangible equity is projected to exceed 10%, while its cost-to-income ratio is expected to be about 50%. It also expects to maintain a regulatory and fully loaded CET1 ratio of over 13%.

The bank added that dividend will increase on a "prudent and progressive basis," building toward a payout ratio of 50% of earnings. "To the extent the group has excess capital, other means of capital distribution will be considered," Bank of Ireland said.