Bank of Ireland makes pre-tax profit of €456m

Bank of Ireland operates across the Republic of Ireland and the UK

Bank of Ireland made an underlying pre-tax profit of €456m (£390m) in the first half of 2021.

That compares to a €669m (£571m) loss during the same period in 2020 when the pandemic was at its height.

Its retail UK division, which includes its Northern Ireland business, had an underlying profit of £139m.

Earlier this year the bank said it would close 15 branches in Northern Ireland, which is more than half of its NI branch network.

The bank's improved performance largely reflects changes in loan loss provisions.

These provisions are money a bank must put aside to cover loans which they assess are unlikely to be repaid in full.

In the first half of 2020 it had set aside almost €1bn (£850m) in provisions, but in the same period of 2021 it was just €1m (£850,000).

Many banks have reversed loan loss provisions as government interventions have minimised the economic damage from the pandemic.

Aside from the impact of reduced provisions the bank said a cost-cutting programme was also having an impact.

Its cost base has fallen by 13% since 2017, which includes a reduction of more than 1,000 jobs since 2020.

A further 300 people will leave its UK business under a redundancy scheme this year, equivalent to a fifth of the workforce in that division.