Lender has stopped providing mortgages and personal loans through the UK Post Office
should conduct a “strategic refresh” of its UK business to allow investors better understand the group’s approach to the market, say analysts at, after a period of restructuring that saw the lender back out of the mass-mortgage market and slash its UK Post Office offering.
Without a refresh, the stock market will continue to apply a low valuation to the business relative to earnings, the analysts said, adding that Bank of Ireland shares were trading at a “depressed valuation” relative to European peers. A spokesman for Bank of Ireland’s said its “value over volume” strategy in the UK since 2020, which has targeted a smaller, higher-margin loan book, a more efficient funding model and a lower operating cost base, “has been delivering very well”.
In December, the bank stopped providing mortgages and personal loans through the UK Post Office – dramatically narrowing the scope of a joint venture that was set up in 2003 – and ended its financial services joint venture with the AA there.The group’s UK retail mortgage book contracted from €23.4 billion at the end of 2019 to €15 billion at the end of last June. Its small-business loan book in that market has also fallen by 40 per cent to €1 billion.
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