DAVY VIEW

Bank of Ireland (BOI) has announced that it has entered into a credit risk transfer on a portfolio of Irish mortgage loans. The transaction is an efficient method of generating capital and executing on balance sheet optimisation initiatives, which BOI flagged it would pursue with H1 results, and will provide further assurances to the market on its capital resources in advance of inorganic investments in 2022. It also improves returns in the core business given the lower capital requirements to support it – an area of increased focus in the coming years.