Bank of Ireland – not affected by credit market problems

Bank of Ireland, which owns Bristol & West Mortgages, has announced that the turmoil in the credit markets has only had a modest impact on profits.

The bank said £4 in every £5 of loans were covered by savers’ deposits, therefore, it will not face the same problems as Northern Rock.

A spokesperson for broker Collins Stewart does not think that Bank of Ireland will be the next Northern Rock but interbank issues may have an impact on revenue growth.

Bank of Ireland BoI concluded that their funding strategy supports immediate business requirements and planned growth.
However, shares in the bank are down by more than 25% since June.

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