Bank of Ireland issued an upbeat pre-results statement today saying it expects continued substantial profit in its Irish retail business due to gains in market share and stable margins.
Lending volumes are expected to grow by over 20 per cent from a year earlier. Credit balances, too, are set to grow over 20 per cent which, combined with deposit growth of approximately 15 per cent, is expected to contribute to growth in total resources of approximately 16 per cent.
The bank said the credit risks arising from the foot-and-mouth situation can be "comfortably accommodated" within its bad debts provision of euro 156 million.
Sterling profits are set to rise due to the strong contribution of Bristol & West in Britain.
Corporate and treasury business is expected to report strong profit growth reflecting strong performance in currency transactions both domestically and internationally.
It said it is satisfied with the quality of its overall exposure to the technology, media and telecommunications sectors. Exposure to companies involved in the acquisition of third-generation telecoms licences is minimal.
Turning to international activities, it predicts continued expansion and profit growth, including lending and structured finance, where advances growth will exceed 40 per cent. It has also experienced new business growth at Bank of Ireland Asset Management.