Nearly all Irish exporters braced for ‘harmful effect’ of Brexit

The bank, which led a return to profitability across the Irish sector following years of losses after the country’s 2008 banking crash, reported an underlying first-half pretax profit of 560 million euros ($621 million) versus 743 million a year ago.

It made a pre-tax profit of 557m euros (£469m) between January and June, a significant reduction on the 725m euros (£610m) made in the first half of 2015.

Like-for-like profit was impacted by fewer one-off gains and a weaker pound, reducing the value of its United Kingdom earnings when translated back to euros, but its net interest margin remained stable at 2.11 percent and impairment charge fell further.

The bank hailed its “solid” performance with all of its divisions “profitable”.

In a survey conducted in the two weeks following the June 23 vote, the Irish Exporters Association (IEA) said 92 percent of members felt the decision by its neighbour and major trade partner to quit the European Union would have a harmful effect on the sector.

The Bank of Ireland group operates across the Republic of Ireland and the United Kingdom, and is one of Northern Ireland’s “big four” banks.

Last week Bank of Ireland said it was downgrading its branch network across Northern Ireland, with plans to shut eight outlets.

“Our core loan books have been growing and we remain the largest lender to the Irish economy”.

Bank of Ireland has not paid a dividend since 2008, and had flagged to the markets its goal to recommence payments in 2017.

The International Monetary Fund has also cut its Irish economic forecasts on the back of Brexit and warned that banks here could take a hit on their United Kingdom operations as well as growth prospects.

Mr Boucher said the bank’s business “continued to perform in line with the strategic objectives we have set ourselves”.

AIB is still 99% owned by the Irish state, following a taxpayer-funded bailout during the Irish banking crisis.