Bank of Ireland has reported profit before tax of €1.1bn, and an underlying profit before tax of €1.2bn after its customer base grew 11% in 2022.
Operating profit prior to an €187m impairment charge rose 15% year-on-year, while the bank's 10.6% return on tangible equity reflected a strong operating performance.
Total income rose 11% from 2021, with net interest income up 12% and business income, including shares of associates and joint ventures, rising 27% or 15% when excluding income from newly acquired Davy.
Assets under management with Bank of Ireland increased 75% last year to c. €39bn, including €18.4bn from Davy. The bank has also successfully migrated a €7.8bn portfolio of assets from KBC Bank Ireland.
New lending by the bank was up 10% of €1.5bn to €15.6bn, with €1.6bn in new lending in its retail Ireland and corporate divisions, and the bank reported lower like-for-like costs, although costs rose with the Davy acquisition.
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The value of customer loans on Bank of Ireland's balance sheet decreased €4.4bn last year after the bank deleveraged itself of €3.9bn in UK retail lending and €900m of non-performing loans.
Liquid assets of €48.7bn were down €1bn from December 2021, primarily reflecting the repayment of all EU targeted longer-term refinancing operations (TLTRO) funding in November, which was offset by customers deposits (+€6bn to €99bn).
Bank of Ireland expects net interest income to increase 12% in 2023 due to higher interest rates, improved business and the KBC portfolio acquisition, while business income will fall by a "high single digit" percentage.
The bank has forecast that like-for-like costs this year will be broadly in line with 2022, but higher overall, again due to the KBC acquisition, while levies paid will total c.€160m.
"We had an excellent performance in 2022. This caps out four years of delivery by the team at Bank of Ireland and gives us a great place to build from," said Myles O'Grady, group CEO at Bank of Ireland.
"In 2022 we made two stand out acquisitions and grew our customer base by over 11%. We met or exceeded key financial targets, and ended the year with a very strong capital position.
"This allows us to propose a c.250% increase in distributions. We also returned to full private ownership, a unique position in Ireland amongst domestic retail peers. In all, we became a better bank for our customers, our colleagues, and our shareholders.
"I see a real opportunity for the future. The strength and depth of our Irish franchise is unique, and enhanced by the transformational acquisitions of Davy and the KBC portfolios. This is complemented by great international businesses in the UK, continental Europe and the United States.
"Notwithstanding global uncertainty, Ireland's economic backdrop remains supportive. This all informs our refreshed strategy which is built on three pillars - stronger relationships, simpler business, and sustainable company."
Bank of Ireland announced on Tuesday that it plans to return €350m to shareholders through dividends and buybacks, up fro €104m last year.
(Pic: Leah Farrell / RollingNews.ie)
