ONE MORE THING:ONE OF the few positives in Bank of Ireland's half-year results this week was the performance of New Ireland Assurance Company.
Sales rose by 17 per cent at its life and pensions arm in the period and there was an increase of 11 per cent in operating profit to €40 million.
This was roughly one-quarter of the bank’s overall operating profit for the period before impairments and other charges dragged the group into the red.
New Ireland was loss-making, however, on an underlying basis, primarily as a result of taking a €50 million hit on the change in the value of Irish sovereign bonds.
“Thanks for noticing,” Bank of Ireland chief executive Richie Boucher quipped when asked about the strong operating performance.
Alas for Richie, he is being forced to sell the business under the terms of a viability plan agreed with the European Commission in return for receiving support from the Irish State.
Boucher said that the bank has asked the commission for permission to delay the sale of New Ireland as its main rival Irish Life is currently on the market as part of the restructuring of Irish Life Permanent.
He expects to be granted the extension. But this will be no more than a stay of execution for the bank. “We don’t want to sell it but we have to,” he lamented.
