Bank of Ireland upbeat on prospects for 2002

Bank of Ireland released an upbeat assessment of its prospects for 2002 this morning.

Bank of Ireland released an upbeat assessment of its prospects for 2002 this morning.

In its final statement before releasing its results, the bank said it expects to deliver a "satisfactory increase" in alternative earnings per share by a low double-digit percentage.

The group said it had made significant progress in reducing its cost-to-income ratio over the year. Costs for the full year will increase by a mid-teen percentage.

BoI retail banking in Ireland is expected to report a low double-digit percentage increase in profits, despite the economic slowdown and increased euro implementation costs.

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The bank’s wholesale financial services, such as treasury and corporate banking, is expected to show a low twenties percentage year-on-year profit growth.

Treasury and international banking performed very strongly, and the strong investment performance of bank’s asset management division continued to attract new business in a difficult climate for markets.

Analysts welcomed the trading update by upgrading Bank of Ireland shares. NCB banking analyst Mr David Odlum described Bank of Ireland EPS growth forecast as "world class" in the context of the performance of global banking profitability in the past 12 months.

Ms Emer Lang of Davy stockbrokers said: "The message coming through quite forcibly is that notwithstanding the slowdown in the Irish economy, the Bank of Ireland (echoing the experience of Irish Life & Permanent) has seen no let up in activity".