B of I sees good earnings growth

Bank of Ireland (B of I) said today it was generated good volume and earnings growth in the first quarter.

Bank of Ireland (B of I) said today it was generated good volume and earnings growth in the first quarter.

In a statement released prior to its annual general court in Dublin today, the bank said employment, retail sales and industrial production in Ireland remains robust and that strong domestic demand continues to underpin economic growth.

In the United Kingdom, economic growth continues to be solid, underpinned by firm consumer spending, B of I reported.

But the bank repeated its warning that rising interest rates in Ireland and the United Kingdom have cut the rate of volume growth compared with last year.

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B of I said it remained comfortable with its low double-digit underlying earnings per share growth to March 2008 from a base of 144.6 cent in March 2007.

The bank's governor, Richard Burrows, told the court that strong organic growth was the main feature of the bank's results for the year to March.

"Underlying profit before tax and earnings per share both increased by 22 per cent. Total dividend is proposed to increase by 15 per cent," he said.