Bank of Ireland, which accounts for 44% of all lending to Irish farmers, has posted a 5% increase in profits for the first half of 2024 at €1.1bn before tax.

The bank has benefited from a number of favourable trading conditions, including customers' reluctance to switch their money from current or immediate access accounts which pay little or any interest to higher-earning interest accounts that are available.

The impairment charge or provision for bad loans has also been reduced significantly to €49m.

Bank of Ireland also reported that their operating expenses were 6% higher, up €32m, reflecting inflation, with €22m additional investment to drive future efficiencies.

Levies and regulatory fees were in the range of €125 to €130m lower than prior guidance of €160 to €165m.

Their total customer loans were €81.5bn for the half year, an increase of 2% compared with December 2023.