Here’s a breakdown of teh key details from the provided text:
Job Cuts & Restructuring:
260 job cuts: Bank of Ireland plans to cut 260 jobs in the second half of this year.
Further redundancies in 2026: The bank anticipates more job losses in 2026.
Reason for cuts: To keep running costs in check.
Restructuring costs: One-off costs jumped to €83 million, with €69 million attributed to restructuring, including planned redundancies.
Target for running costs: The bank aims to keep running costs at €2 billion over the next three years.
Voluntary redundancies: The bank is planning 260 voluntary redundancies before the year-end and likely in 2026.
AI’s role: Artificial intelligence (AI) is expected to contribute to a fall in headcount in the coming years,though it also offers opportunities for upskilling.Financial Performance & Outlook:
Net profit (first half): Fell to €608 million.
Net interest income (first half): Declined to €1.67 billion from €1.8 billion last year, but was better than expected due to growth in Irish loan and deposit books.
Net interest income (full year forecast): Marginally increased to €3.3 billion, up from a previous forecast of €3.25 billion. (Last year’s net interest income was €3.56 billion).
business income: Expected to rise by 5% (includes income from New Ireland life business, Davy, and joint ventures). Net impairment losses: Hiked to €137 million from €50 million, due to a charge on its US acquisition finance book and a general provision for the evolving macroeconomic outlook.
Full-year guidance: Reaffirmed for net profit equivalent to about 15% of shareholders’ tangible equity.
Dividends: the bank will pay an interim dividend of €243 million.
Economic Context:
Irish economy: Described as resilient against an uncertain international backdrop.
EU-US trade deal: The bank’s economists had upgraded forecasts based on a potential trade deal with a 10% tariff on Irish goods. The actual accord imposes a 15% tariff on most EU imports, which could impact forecasts.
Other Key Points:
Employee numbers: Full-time equivalent employees rose 2% to 11,386 in June, mainly due to temporary staffing and IT insourcing.
UK motor finance provision: The bank set aside £143 million (€167 million) last year for a potential compensation scheme related to ancient discretionary commission arrangements in the UK motor finance industry. A key UK Supreme Court ruling is expected soon.
