DUBLIN - Bank of Ireland Group, the Dublin-listed financial institution, said it made significant changes to its operations in the United Kingdom in 2023. The bank has scaled down its unsecured personal loan portfolio in the UK, with projections indicating balances will settle around €1.3 billion by the end of December.
In a strategic shift, Bank of Ireland also announced Tuesday that it has renewed its partnership with the UK Post Office until at least 2031. This extended agreement will focus exclusively on savings products, moving away from offering Post Office branded mortgages and personal loans. Despite this change, the bank's joint venture with the Post Office in consumer foreign exchange remains ongoing and is not impacted by the recent modifications in their business arrangement.
Additionally, Bank of Ireland Group has wrapped up its financial-services partnership with The AA. This conclusion marks an end to the provision of loans and savings products under The AA brand, as the bank continues to streamline its services and offerings in the competitive UK market.
InvestingPro Insights
As Bank of Ireland Group reshapes its UK operations, the latest data from InvestingPro provides a mixed financial outlook. The bank's market capitalization stands at a robust $9.86 billion, reflecting its significant presence in the financial sector. With a P/E ratio of 6.83, Bank of Ireland is trading at a low price-to-earnings multiple, which could indicate an undervaluation relative to its earnings potential, especially considering the P/E ratio has adjusted slightly downwards to 6.67 over the last twelve months as of Q2 2023.
InvestingPro Tips highlight that while Bank of Ireland is experiencing accelerating revenue growth, with a notable 22.87% increase over the last twelve months as of Q2 2023, concerns about its cash flow and earnings have raised questions about potential dividend cuts. Nevertheless, analysts remain optimistic, predicting profitability for the current year. These insights suggest that investors should monitor the bank's performance closely, especially as it implements strategic changes in the UK.
For those looking to delve deeper into Bank of Ireland's financial health, the InvestingPro platform offers additional tips, including analysis on the company's gross profit margins and free cash flow yield. With a special Cyber Monday sale, subscribers can now access InvestingPro with a discount of up to 60%. Plus, use the coupon code sfy23 to get an additional 10% off a 2-year InvestingPro+ subscription. In total, there are 9 more InvestingPro Tips available, providing a comprehensive look at the bank's financial trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.