Mortgage rates will be kept under review after an interest-rate rise by the European Central Bank, Bank of Ireland's outgoing CEO Francesca McDonagh has said.

The bank reported €419million in gross profits in 2022 - down from €465million in the same period last year.

It also advised customers that it won't make the same mistake AIB did and attempt to go cashless in its branches. The bank's chief executive, Francesca McDonagh, said: "Immediately upon the ECB announcement, we confirmed that tracker mortgages would increase by 0.5% from August 10 and we would be ending the application of negative interest rates as of August 3."

She added: "We have made no announcement nor changes to fixed or variable rates since the ECB announcement and obviously we keep all of our rates under ongoing review."

When asked about the prospect of Bank of Ireland branches going cashless, she said: "100% of our branches and nearly 170 branches nationwide have cash. We see branches, but also contact centres and digital, as all essential ways to serve customers and do business."

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The interim results also showed that the bank issued €1.3billion in new mortgages in the first six months of 2022, up 33% on the same period last year.

Ms McDonagh announced in April that she would stand down as bank CEO in September, to join Credit Suisse.

Speaking on RTÉ's Morning Ireland, Ms McDonagh, who receives a salary of around €960,000 with Bank of Ireland, said a number of factors played into her decision to leave the bank.

When asked if the Irish banker pay cap was a factor in her decision to take up her new role, she said that it wasn't a "main factor".

She said: "Pay is a factor - it is not the only factor, but more broadly, I would have been lobbying the Irish Government to lift remuneration restrictions."

Ms McDonagh said she will continue to lobby for change in this regard until her last day at the bank.

She said that Ireland's economic outlook remains "positive" notwithstanding "global uncertainty".