Minister for Finance, Michael Noonan T.D. welcomes return to profitability by Bank of Ireland in the first half of 2014

The Minister for Finance, Michael Noonan T.D. today (1 August 2014) welcomes the return to profitability by Bank of Ireland in the first half of 2014. Commenting on the Bank of Ireland – 2014 Half Year Results. The Minister stated:

“The recovery in the Irish economy is taking hold and further proof of this is evident in the Bank of Ireland half year results. The results show that the Bank is lending into the real economy, reaching sustainable solutions with SME and mortgage customers in arrears, and making a profit.

As a 14% shareholder in Bank of Ireland, this is good news for the Irish taxpayer. The investment in Bank of Ireland shows that the State can make a profitable return on investments in the banks.   The State invested €4.8 billion in Bank of Ireland in 2009.  To date, €6bn has been returned to the State through sales of investments, interest coupons and guarantee fees.  In addition, the State retains a 14% shareholding in Bank of Ireland that is currently valued at €1.2bn.” 

• Bank of Ireland reported an underlying profit before tax of €327m in the first half of 2014 and is now capital generating.
• Lending into the Irish Economy increased in the first half of 2014 with €2.5bn in new drawdowns versus €1.6bn for the same period in 2013.
• The Bank continues to make progress in reaching workable and sustainable solutions in relation Mortgage holders and SME’s who find themselves in arrears.
• Since its original investment of €4.8bn in the Bank, the State has received cash back of €6bn.
• In addition to this, the State continues to hold c14% of shares in Bank of Ireland with a market value today of €1.2bn.