The group said the UK business “delivered a strong performance” due to its strategy to focus on “value over volume”. It said bespoke lending made up 53 per cent of new mortgage lending, compared to three per cent during the same period in 2019.
BOI said it “proactively reduced” the volume of lower margin mortgage origination due to intense competition.
The group said: “We remain committed to delivering sustainable returns in the UK with a focus on value over volume of our new lending, a multi-niche offering in areas where we have competitive advantage, a reduction in cost of deposits, a right sized cost base, and a more profitable business.”
Compared to the six months to 31 December 2021, its mortgage book decreased by £1.7m to £15.8bn due to this strategy.
Tracker mortgages made up 26 per cent or £4.1bn of the book, compared to 26 per cent of £4.5bn at 31 December 2021, indicating a £400m drop. Variable rate mortgages maintained an 11 per cent share but the value of these dropped by £200m to £1.7bn. Fixed rate mortgages held a 63 per cent share of the book, and the value decreased by £1.1bn to £10bn.
Some 0.93 per cent of standard mortgages are in arrears of more than 90 days, a nominal rise from 0.90 per cent of the book at the end of last year and 0.85 per cent of the book in June 2021.
The share of buy-to-let mortgages in arrears stood at 0.91 per cent, a marginal rise from 0.89 per cent in December and a small drop on 0.92 per cent in June last year.
The average loan to value (LTV) for the UK mortgage loan book was 53 per cent at 30 June 2022.
The UK division posted a profit before tax of €180m (£150m), up from €148m (£128m) in the prior year. The group’s profit before tax was €335m (£280m), down from €406m (£340m) the year before.
