This covered the period in which the Bank of Ireland controversially announced plans to raise the mortgage interest differential of 13,500 customers. Around 1,200 borrowers were later handed a reprieve while those still affected are preparing legal action against the lender.
Those customers had taken out mortgages with Bristol & West and Bank of Ireland’s results warned that continuing low interest rates could cause the group difficulties.
“The persistence of exceptionally low interest rates for an extended period into the future or a material reduction in current interest rates could adversely affect the group’s financial condition,” the bank said.
The bank said its UK lending was predominately through its partnership with the Post Office and its Bank of Ireland branches in Northern Ireland.
Following changes to EU roles on state aid, the lender will withdraw from all business and corporate banking in the UK, although consumer services will remain unaffected.
In Ireland the bank will look to close or sell its intermediary channel, ICS Building Society, and could also dispose of up to £1bn in intermediary-originated lending.
