Bristol & West reported full-year profit on ordinary activities before exceptional items of £143.1 million sterling, up 14.4 per cent over the prior year.
The cost-income ratio for the building society controlled by Bank of Ireland Group has improved from 57.3 per cent to 56.2 per cent through strong income growth and close control over costs, the lender said.
Bristol & West's Financial Advice and Savings operations suffered in the year due to equity market volatility resulting in the February merger of its Chase de Vere Investments and MX Moneyextra Financial Solutions IFA business.
This rationalisation resulted in an exceptional charge of £92 million sterling, of which £80 million reflects goodwill impairment and the remainder restructuring costs.
Pretax profit including these exceptionals fell to £50.7 million sterling from £125.1 million. The group said the restructuring will have a short-term impact on profits.
On its lending operation, the group said non-standard lending now constitutes 25 per cent of the residential book, up from 16 per cent last year and has also resulted in an increase in net interest margins over the year.
AFP