(MT Newswires) -- Myles O'Grady, CEO of Bank of Ireland, notes that inflation in the eurozone has fallen and expects it to move closer to the 2% target in the next 12 to 18 months, which should influence monetary policy and lead to lower interest rates. 

The bank has implemented hedging strategies to protect its interest income. Bank of Ireland generated a return of 17.3% last year and is targeting 15% by 2025, a target supported by an interest rate of between 2% and 3%.

The Irish domestic market, which accounts for 76% of the bank's profits, is a focal point for O'Grady. With banking consolidation in Ireland and economic growth expected to be between 3 and 4%, he is confident in the bank's ability to maintain its performance targets.

He reports that the bank's accounting balance sheet in Ireland, which summarises assets and liabilities, recorded a significant increase of 23% over the previous year. This growth was mainly attributed to robust activity in the mortgage market, increased income from corporate services, as well as an 8% expansion in the customer base. The wealth management sector also saw growth of 18%.

On the property market, although the commercial sector is struggling, O'Grady remains optimistic about quality, well-located office space. He acknowledges the strong demand for housing in Ireland, with production of 34,000 units against demand for 50,000.

Finally, he notes the abundance of capital willing to invest in Ireland and the continued investor interest in Bank of Ireland, which is seen as a way of investing in the Irish economy as a whole.

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