Statements & Blogs


Key Highlights:

  • The Bank is profitable and Capital generative
  • Net Interest Margin positive momentum continues at 1.80%, up 21bps from exit NIM of 1.59% for Q4 2016
  • Proforma Fully Loaded Common Equity Tier 1 Ratio increased to 15.1%[1] in the quarter compared to 14.9% at 31 December 2016
  • Total new lending volumes up 64% year-on-year compared to Q1 2016

Business and Financial Performance

During Q1 2017, we continued to acquire new customers through our award winning Current Account product – Explore Account – and opened approximately 10,000 new current accounts.

New Mortgage Lending grew by 63% in the quarter year-on-year while the overall market grew by 39%[2]. As a result, our market share of drawdowns increased to 10.4%2. Term Lending also grew by 54% in the quarter year-on-year of which approximately 25% was originated via online channels.

NIM improved to 1.80% in Q1 2017 primarily reflecting the completion of Non-Core deleveraging in Q4 2016, continued reductions in Cost of Funds and further redemptions of NAMA Senior Bonds.

Operating Costs in Q1 2017 were in line with expectations. We continue to focus on rigorous cost management; in addition, full year Bank Levy and Regulatory Charges are expected to be marginally lower than the previously guided range of €60 – 70 million.

Impairment trends are in line with our expectations and we continue to reiterate our previous underlying Cost of Risk guidance of 30-40 basis points.

Balance Sheet

Customer Deposits amounted to €16.9 billion at the end of March 2017, marginally reduced from €17.0 billion at end December 2016. ECB Funding reduced further by 50% to €0.7 billion (3% of Total Funding) and Wholesale Funding increased by €0.6 billion to €3.4 billion.

Net Loans amounted to €18.7 billion at the end March 2017 marginally reduced from €18.9 billion at end December 2016 as repayments and redemptions exceeded new lending.

Non-Performing Loans

We continue to develop the next phase of our NPL Strategy as communicated earlier in the year. We expect to update the market with details of this in the third quarter of 2017.


During Q1 2017, Proforma Fully Loaded Common Equity Tier 1 Ratio increased to 15.1%[3] compared to 14.9% at 31 December 2016.


Ray Gordon
Gordon MRM

Note on forward-looking information:

This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Group undertakes no obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.

[1] Includes profits earned in Q1 2017 which is subject to regulatory approval.

[2] Source: Mortgage drawdowns YTD to March 2017, BPFI.

[3] Includes profits earned in Q1 2017 which is subject to regulatory approval.