International
Ireland
Underlying profit before tax in Ireland increased by 23% to £184m (2006 £149m). This strong performance, achieved at a time of significant investment in our distribution capability, underscores the value of our proposition and its attractiveness to customers.
Strong growth was recorded in all our businesses, with advances up 38% to £21.9bn (2006 £15.9bn) (local currency growth of 26%) and customer deposits up 22% to £7.1bn (2006 £5.8bn) (local currency growth of 11%).
| Income Statement | Year ended 31.12.2007 £m |
Year ended 31.12.2006 £m |
| Net interest income | 330 | 268 |
| Underlying non-interest income | 31 | 42 |
| Fees and commission income | 16 | 14 |
| Operating lease rental income | 8 | 12 |
| Other operating income | 15 | 23 |
| Share of profits of associates and jointly controlled entities | 5 | |
| Operating lease depreciation | (7) | (10) |
| Impairment on investment securities | (1) | (2) |
| Underlying net operating income | 361 | 310 |
| Underlying operating expenses | (155) | (133) |
| Staff | (83) | (73) |
| Accommodation, repairs and maintenance | (14) | (9) |
| Technology | (4) | (3) |
| Marketing and communication | (17) | (15) |
| Depreciation: Property and equipment and intangible assets | (10) | (6) |
| Other | (27) | (27) |
| Underlying operating profit before provisions | 206 | 177 |
| Impairment losses on loans and advances | (22) | (28) |
| Underlying profit before tax | 184 | 149 |
| Net interest margin | 1.81% | 1.73% |
| Impairment losses as a % of average advances | 0.12% | 0.20% |
| Cost:income ratio | 42.9% | 42.9% |
| Loans and advances to customers | £21.9bn | £15.9bn |
| Risk weighted assets | £19.7bn | £14.4bn |
| Customer deposits | £7.1bn | £5.8bn |