The Bank of Ireland has increased its income growth expectations again as the European Central Bank continues to hike interest rates amid soaring inflation.
The Irish bank, which is headquartered in Dublin but employs some 900 staff in Bristol as well in Belfast and London in the UK, said it expected net interest income to rise by 10% - up from previous guidance of 6%-7%. It is the second time in six weeks the bank has updated its guidance.
In a statement to the London Stock Exchange on Friday (December 16), the Bank of Ireland said its guidance incorporated net interest income from targeted longer-term refinancing operations (TLTRO) participation in the 2022 financial year of about €30m (£26.2m) compared to about €62m in 2021.
The announcement comes just weeks after Myles O’Grady became the bank’s chief executive. Mr O’Grady will be paid a nearly €1m package in the role - the same as his predecessor, Francesca McDonagh, who moved to Credit Suisse in September.
The Bank of Ireland will publish its annual results for the financial year 2022 on March 7, 2023, to be accompanied by an update on medium-term targets and strategy.
Last year, the bank’s UK chief executive told BusinessLive it would not force staff to go back into the office following the pandemic. Ian McLaughlin said the Bank of Ireland would not return to the "usual" nine-to-five working hours - but would be bringing people back in a "hybrid manner".
In 2021, the bank also announced plans to hire 130 tech staff as it moved forward with its digital agenda. According to the group, contactless transactions increased from 70 million a year in 2017 to 170 million in 2020.
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