Bank of Ireland reported that its British gross new home loan underwriting slipped 8.3% to £1.1bn, as the group suffered “lower mortgage margins due to lower base rates” in the first six months of the year from a year ago.
Rate-setters at the Bank of England have made two quarter-point cuts in 2025, bringing the base rate down to 4.25%. Markets expect two further quarter-point reductions this year.
During the period, Bank of Ireland launched customer surveys for online product switching and interest-only buy-to-let loans as well as distributing digital mortgages through its solicitor portal.
Its UK mortgage portfolio came in at €15.5bn in the period, according to a stock market statement.
The Bank of Ireland is organised into four divisions: retail Ireland, wealth and insurance, retail UK, as well as corporate and commercial.
Retail UK includes its British residential mortgage business, savings, asset finance, contract hire, and a foreign exchange partnership with the UK Post Office.
The group said the underlying contribution of Retail UK was £112m in the first half, down 33% from a year ago.
Overall, the group posted pre-tax profit down 33% to €721m, due to falling ECB rates and a €137m impairment charge.
Bank of Ireland group chief executive Myles O’Grady said: “The group continues to invest in its business model to support near-term and longer-term enduring efficiencies.
“This activity is a fundamental component underpinning the sustainability of returns.”
