RNS Number:0394Q
Bank of Ireland(Governor&Co)
23 September 2003




                              Pre Close Statement

                        Six months to 30 September 2003



                                   Highlights



   *Strong growth in underlying earnings.

   *Profit growth in all Divisions.

   *Positive gap between income and cost growth.

   *Asset quality remains robust.

   *Strong capital ratios.

   *Rolling share buy-back programme.


"The Group's impressive record of consistent, high quality and sustainable
earnings will again be demonstrated in the half year to September 2003."

Mike Soden
Group Chief Executive





                               23 September 2003



Pre Close Briefings with analysts

Bank of Ireland Group will meet market analysts ahead of its close period for
the half year ended 30 September 2003. This statement is issued in advance of
these meetings.


Bank of Ireland Group

Profit before taxation and exceptional items and alternative earnings per share
are expected to show a mid single digit percentage growth over 30 September
2002. All Divisions of the Group performed well, especially in the context of
testing economic conditions in some markets. The underlying half year outturn
would have been at the high end of the single digit spectrum but for the bank
levy in the Republic of Ireland (Euro14 million in the half year), which did not
apply last year, and the impact of the strengthening of the euro against
sterling.

Equity values impact directly on some 10% of Group revenues, principally from
the Life Assurance and Asset Management businesses. The recovery in equity
markets since the beginning of the year has, therefore, benefited the half year
result.

The Group's net interest margin has been adversely impacted by the low interest
rate environment and margin attrition of high single digit basis points is
expected compared to the same period last year.

The Group is expected to exceed its targeted positive gap between growth in
income and costs. Income growth of low single digit percentage will exceed cost
growth for the half year.

Asset Quality

The quality of the Group's loan book remains strong, despite a testing economic
climate in Ireland and internationally. Whilst historically low interest rates
continue to be a positive factor in maintaining credit quality some sectors of
the international lending environment continue to be challenging and there will
be some increase in balances under provision.

The loan loss charge and the arrears experience as a percentage of the total
loan book are expected to show marginal improvement on the March 2003 position.
The quality of the loan book continues to reflect a prudent and consistent
approach to the underwriting and management of credit across the Group.


Capital

The Group will report strong capital ratios. The Group has continued its rolling
share buy back programme which commenced in February this year. To date, the
Group has purchased 36.7 million units of stock at a total cost of c. Euro380
million representing 3.6% of the outstanding stock in issue.


Operating Performance by Business Divisions


Retail Republic of Ireland

Retail Republic of Ireland is expected to report strong increases in volumes,
market share gains, robust asset quality and good cost containment.

Reported profits for this half year are expected to grow by a low single digit
percentage over the corresponding period last year. When gains from property
disposals are excluded from both periods, mid single digit percentage profit
growth is expected.

Lending volumes are expected to increase by a high teens percentage, with
mortgage lending continuing to show mid to high twenties percentage growth and
other lending also well ahead by high single digit percentage growth. Resources
volumes are expected to show a mid to high single digit percentage increase.

The net interest margin is expected to contract due to the historically low
level of interest rates and faster growth in lower margin assets. Mid single
digit growth is expected in net interest income.

Lower property disposal gains in the period under review will impact on the
reported non interest income line. Excepting these gains, mid to high single
digit growth is expected.

Mid single digit cost growth is expected in the period.

Loan losses are expected to be slightly higher but little changed as a
percentage of average advances.



Bank of Ireland Life

Profit before taxation will be significantly higher than the corresponding
period last year, boosted by the strong recovery in world equity markets in the
year to date and the benefit of a discount rate reduction in line with current
market levels and in accordance with ABI guidelines. A reduction in new business
levels, primarily due to the termination of the Irish Government sponsored
savings scheme (SSIAs), will cause lower operating profits by low to mid
twenties percentage. Excluding this scheme, new business volumes increased by a
low single digit percentage.


Wholesale Financial Services

Profit before tax is expected to show low single digit percentage growth over
last September, with income growth of low single digit exceeding cost growth and
somewhat higher loan losses.

Corporate Banking is expected to report a mid to high single digit percentage
loan growth and a strong trading performance in Treasury and International will
result in increased profits from that business.

Private Banking, Davy, First Rate Enterprises and IBI Corporate Finance are
expected to produce satisfactory performances in the first half.


UK Financial Services

UK Financial Services (UKFS) is expected to report high single-digit percentage
profit growth (before goodwill amortisation) in constant currency compared to
the same period last year.

Good progress will be evident in the management of costs and in the enhancement
of revenue from mortgage lending and business banking. Cost and income growth
will remain in balance. The former has been positively impacted by the
rationalisation of the IFA businesses, although there was some associated
decline in revenue.

High single digit growth is expected to be reported in the loan book. The loan
loss charge will be significantly lower than the corresponding period and asset
quality remains strong. There will be some margin attrition due to the lower
interest rate environment. Resources are expected to decline by a mid single
digit percentage.

UKFS Review of Operations

The Group's UK operations and strategy have been subject to review during the
half year, the outcome of which has been considered by the Group Executive and
the Court. The review notes the significance of the UKFS business within the
Group and the quality of its performance, and re-affirms the Group's commitment
to the UK market as a significant source of future growth.

Arising from the review, a wide range of income enhancement and cost reduction
initiatives have been identified, which will be communicated as appropriate over
coming months. A Business Improvement Programme is expected to result in
annualised cost reductions of #30 million which will be substantially achieved
within a two year timescale, and result in a cost/income ratio in the Division
of less than 50%. Implementation of the programme is expected to result in
exceptional costs, over the period of the programme, of c. #35 million, and we
anticipate an element of this cost will be included in the half year.

Business reorganisation and the expansion of high potential activities are
targeted to achieve above trend revenue growth and the Division is projected to
deliver consistent high single digit percentage profits growth.


Asset Management Services

The improvement in global equity markets during the period has positively
impacted on the value of assets under management.

Profit before tax for the Division is expected to grow by a mid single digit
percentage over the same period last year. New business levels remain
satisfactory.

Bank of Ireland Securities Services (BOISS), the custody and fund administration
business, continues to perform well. During the period under review, BOISS
substantially completed the sale of its share of the alliance it operated with
State Street. The profit on the sale of the Group share will be shown as an
exceptional item and excluded from earnings per share.


Ends

23 September 2003

Interim results for the half year to 30 September 2003 will be published on
Thursday 13 November 2003.

For further information:

John O'Donovan   Group Chief Financial Officer              353 1 632 2054
Fiona Ross       Head of Group Investor Relations           353 1 604 3501
David Holden     Head of Group Corporate Communications     353 1 604 3833


This announcement contains certain forward-looking statements as defined in the
US Private Securities Litigation Reform Act of 1995. Because such statements are
inherently subject to risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking statements.
Such risks and uncertainties include but are not limited to risks and
uncertainties relating to profitability targets, prevailing interest rates, the
performance of the Irish economy and the international capital markets, the
Group's ability to expand certain of its activities, competition, the Group's
ability to address information technology issues and the availability of funding
sources. The Bank of Ireland Group does not undertake to release publicly any
revision to these forward-looking statements to reflect events, circumstances or
unanticipated events occurring after the date hereof.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
TSTFGGZLNZNGFZM